October 18, 2007

The Bank of New York Mellon Reports Third Quarter Continuing EPS of $.56, Excluding Merger and Integration Expenses Continuing EPS of $.67


Strong Revenue Momentum combined with Positive Operating Leverage Integration on track

NEW YORK, October 18, 2007 — The Bank of New York Mellon Corporation (NYSE: BK) reported third quarter income from continuing operations of $642 million and diluted earnings per share of 56 cents which compares to 41 cents a year ago and 62 cents sequentially. The merger of The Bank of New York Company, Inc. with Mellon Financial Corporation was completed July 1, 2007.

  -- Adjusting for the impact of merger and integration expense ($218
     million pre-tax), diluted earnings per share for the third quarter of
     2007 was 67 cents, which compares to 50 cents a year ago and 66 cents
     sequentially.
  -- Adjusting for the impact of merger and integration expenses ($218
     million pre-tax) and intangible amortization expense ($131 million pre-
     tax), diluted earnings per share for the third quarter of 2007 was 74
     cents, which compares to 51 cents a year ago and 69 cents sequentially.

Income from continuing operations was $448 million in the second quarter of 2007, and $298 million in the third quarter of 2006.

"We are off to a tremendous start as a new company," said Robert P. Kelly, chief executive officer of The Bank of New York Mellon. "During a volatile market environment, we delivered strong double-digit increases in revenue and profit reflecting a combination of impressive organic growth and the positive impact of market volatility on our securities servicing businesses. While the asset management environment during the quarter was challenging, we capitalized on our strength in money market funds and won a landmark mandate in China. Our pipelines are in great shape, credit quality remains strong, we launched our new brand and the integration is proceeding well."

The results for the third quarter of 2007 include the net pre-tax benefit of $27 million from a settlement received for early termination of a contract that occurred in 2005 associated with the clearing business, as well as the pre-tax write-offs of the value of the remaining interest in a hedge fund manager that was sold in 2006 ($32 million) and internally developed software ($6 million). In addition, the impact of the merger in the third quarter on the state marginal tax rate required a recalculation of the yield on the leverage lease portfolio. The effect was a $22 million reduction in net interest revenue, together with a $45 million tax benefit recorded as a reduction to taxes. The net impact of these items increased earnings per share by approximately 1 cent.

Third Quarter Highlights of The Bank of New York Mellon (Unless otherwise noted, all comments begin with the results of the third quarter of 2007. This is followed by commentary that compares the current period to pro forma combined results of the third quarter of 2006 unless otherwise noted. The appendix to this release provides the pro forma combined results, without purchase accounting adjustments and assumes that the merger had occurred at the beginning of the third quarter of 2006. Please refer to the Quarterly Earnings Summary Report for detailed business sector information.)

  -- Total revenue (FTE) reached a record level of $3.614 billion,
     consisting of 81% fee and other revenue and 19% net interest revenue.
     On a pro forma combined basis, the growth was 24%, driven by higher fee
     revenue of 21% and net interest revenue of 40%.

  -- Assets under management, excluding securities lending assets, amounted
     to $1.106 trillion.  On a pro forma combined basis, this represents an
     increase of 19% compared to the prior year and 2% (unannualized)
     sequentially.  Net asset flows totaled $29 billion for the third
     quarter of 2007.  Assets under custody and administration amounted to
     $20.8 trillion.  On a pro forma combined basis, this represents an
     increase of 22% compared to the prior year and 2% (unannualized)
     sequentially.

  -- Asset and wealth management fees totaled $854 million. On a pro forma
     combined basis, this represents an increase of 25%, reflecting net new
     business and higher equity market levels.  Sequential revenue increased
     1% (unannualized), in line with market levels.  The impact of market
     volatility on certain alternative, quantitative and fixed income
     strategies was offset by strong net inflows into money market funds.

  -- Performance fees were a negative $3 million.  On a pro forma combined
     basis, performance fees were $59 million in the third quarter of 2006
     and $63 million in the second quarter of 2007.  The significant decline
     from both periods principally reflects the impact of market volatility
     during the third quarter on certain alternative and quantitative
     strategies as well as weaker relative performance compared to the third
     quarter of 2006.

  -- Asset servicing fees totaled $720 million.  On a pro forma combined
     basis, the increase was 25% reflecting a record level of securities
     lending revenue and increased client activity related to market
     volatility and net new business.  Securities lending fee revenue was
     $108 million compared to $66 million in the prior year and $97 million
     sequentially.  Wider spreads driven by market volatility and a decrease
     in interest rates offset the typical seasonal sequential decline in
     securities lending fee revenue.

  -- Issuer services fees were $436 million.  On a pro forma combined basis,
     the increase was 79% and if adjusted for the Acquired Corporate Trust
     Business the increase was approximately 15%.  The sequential increase
     was 5% (unannualized), reflecting a strong quarter in both depositary
     receipts and global products within Corporate Trust.

  -- Clearing and execution services fees totaled $304 million.  On a pro
     forma combined basis, these fees increased 3% compared with the third
     quarter of 2006 and increased 7% (unannualized) compared with the
     second quarter of 2007.  Excluding the impact of the contribution of
     certain businesses to ConvergEx in October of 2006, clearing and
     execution services fees rose approximately 25% vs. 3Q06, driven by
     strong growth in trading activity in a normally slow quarter along with
     continued growth in money market and mutual fund positions.

  -- Foreign exchange and other trading fees totaled $238 million.  This
     compares to $137 million in the prior year and $176 million
     sequentially, on a pro forma combined basis.  The increases compared to
     both prior periods reflect higher client volumes, as well as a
     significant increase in currency volatility and a higher valuation of
     the credit derivatives portfolio.

  -- Investment income was $22 million.  On a pro forma combined basis, this
     compares to $54 million in the prior year and $77 million sequentially.
     The decline compared to prior periods principally reflects the lower
     market value of seed capital investments due to the market environment.

  -- Net interest revenue (FTE) totaled $674 million with a net interest
     margin of 2.02%.  This compares to a pro forma combined net interest
     revenue of $481 million in the third quarter of 2006 and $592 million
     in the second quarter of 2007.

     The increase from both prior periods reflects a higher level of average
     interest-earning assets driven principally by the growth in client
     deposits.  The net margin increased 22 basis points compared to the
     prior year and 7 basis points sequentially, principally reflecting the
     benefit of wider spreads on investment securities.  Sequentially, the
     margin benefited from the impact of market volatility on short-term
     spreads as well as higher deposit levels, lower bond premium
     amortization due to slowing prepayments, partially offset by the
     negative impact of the required recalculation of the yield on the
     leverage lease portfolio under FAS 13 ($22 million).

  -- Total noninterest expense was $2.706 billion.  This compares to a pro
     forma combined noninterest expense of $2.146 billion in the third
     quarter of 2006 and $2.642 billion in the second quarter of 2007.

     Excluding merger and integration expense ($218 million) and intangible
     amortization ($131 million), noninterest expense on a pro forma
     combined basis increased 16% compared to the third quarter of 2006 and
     declined 3% (unannualized) sequentially.  The results reflect $79
     million in expense synergies ($62 million net of open positions
     eliminated) associated with the merger (detailed in the Quarterly
     Earnings Summary Report).

     On a pro forma combined basis, excluding merger and integration
     expense, intangible amortization expense and the non-operating items in
     the third quarter of 2007 detailed on page 1 and the second quarter of
     2007 detailed on page 11, we generated 1,100 bps of positive operating
     leverage compared to the prior year and 400 bps sequentially.

  -- There was no provision for credit losses in the third quarter of 2007,
     compared to a credit of $4 million in the third quarter of 2006 and a
     credit of $15 million in the second quarter of 2007.

  -- Pre-tax margin (FTE) was 25% in the third quarter of 2007.  Excluding
     merger and integration expenses, intangible amortization expense and
     the non-operating items detailed on page 1, the pre-tax margin (FTE)
     was 36%.  This compares to 30% in the third quarter of 2006 and 34%
     sequentially, on a pro forma combined basis excluding merger and
     integration expense, intangible amortization and the non-operating
     items in the second quarter of 2007 detailed on page 11.

  The following comparisons are to legacy The Bank of New York only.

  -- The effective tax rate was 28.2% compared with 29.4% in the third
     quarter of 2006 and 31.9% in the second quarter of 2007.  The lower
     effective tax rate vs. the prior year reflects the impact of the
     recalculation of the yield on the leverage lease portfolio under FAS
     13.  Excluding this adjustment, the effective tax rate was 32.4%.

  -- Total assets at Sept. 30, 2007 were $184 billion, an increase of $58
     billion from June 30, 2007, reflecting the merger with Mellon.

  -- Return on tangible common equity was 46% for the third quarter of 2007,
     or 53% excluding merger and integration expense, intangible
     amortization expense and the non-operating items detailed on page 1.

  -- The adjusted tangible shareholders' equity ratio was 5.31% at Sept. 30,
     2007 compared to 4.53% at June 30, 2007.

  -- Average diluted shares of 1.141 billion increased by approximately 418
     million shares from the second quarter of 2007, reflecting the merger.

On Oct. 9, 2007, The Bank of New York Mellon declared a quarterly common stock dividend of 24 cents per share. This cash dividend is payable on Nov. 2, 2007, to shareholders of record as of the close of business on Oct. 24, 2007.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 37 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $20 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $11 trillion in outstanding debt. Additional information is available at http://www.bnymellon.com/.

Earnings Release Format

The third quarter 2007 results in this release reflect The Bank of New York and Mellon on a consolidated basis. The results for the nine months ended Sept. 30, 2007 in this release include nine months of The Bank of New York and three months for Mellon which reflect all related purchase accounting adjustments. All prior period financial results are for The Bank of New York only, unless labeled pro forma.

Throughout this earnings release, all information is reported on a continuing operations basis unless otherwise noted. Quarterly returns are annualized. Certain amounts are presented on a fully taxable equivalent (FTE) basis. We believe that this presentation provides comparability of amounts arising from both taxable and tax-exempt sources, and is consistent with industry practice. The adjustment to an FTE basis has no impact on net income. Where financial measures are presented excluding certain specified amounts, we believe the presentation enhances investor understanding of period to period results.

Supplemental Financial Information

Please refer to the Quarterly Earnings Summary for supplemental financial information of The Bank of New York Mellon Corporation, including 5-quarter trends of fee and other revenue, net interest revenue, noninterest expense as well as business sector trends. The Quarterly Earnings Summary is available at http://www.bnymellon.com/ (Investor Relations - financial releases).

Conference Call Data

Robert P. Kelly, chief executive officer; Gerald L. Hassell, president; and Bruce W. Van Saun, chief financial officer, along with other members of executive management from The Bank of New York Mellon, will host a conference call and simultaneous live audio webcast at 8 a.m. EDT on Thursday, Oct. 18, 2007. This conference call and audio webcast will include forward-looking statements and may include other material information. Persons wishing to access the conference call and audio webcast may do so by dialing (888) 677- 2456 (U.S.) and (517) 623-4161 (International) Pass code: Earnings, or by logging on to http://www.bnymellon.com/. The earnings release together with the quarterly earnings summary will be available at http://www.bnymellon.com/ beginning at approximately 6:30 a.m. EDT on Oct. 18. Replays of the conference call and audio webcast will be available beginning Oct. 18 at approximately 2 p.m. EDT through Thursday, Nov. 1, 2007 by dialing (800) 810-4036 (U.S.) or (402) 280- 1623 (International). The archived version of the conference call and audio webcast will also be available at http://www.bnymellon.com/ for the same time period.

  THE BANK OF NEW YORK MELLON CORPORATION
                           Financial Highlights
  --------------------------------------------------------------------------
                                                          Legacy The Bank of
                                                             New York only
  (dollar amounts in millions,                           -------------------
  except per share amounts and                      Quarter ended
  unless otherwise noted; common        Sept. 30,     June 30,     Sept. 30,
  shares in thousands)                     2007         2007          2006
  --------------------------------------------------------------------------
  Continuing Operations:
    Fee and other revenue               $  2,931   $  1,580      $  1,263
    Net interest revenue                     669        452           351
                                        --------   --------      --------
    Total revenue                       $  3,600   $  2,032      $  1,614

  EPS from continuing operations
   (diluted)-As reported (GAAP) (a)     $    .56   $    .62      $    .41
  Non-GAAP adjusted:
    Excluding merger and integration
     expense and non-operating items
     detailed on page 1 (a)                  .66        .66           .50
    Excluding merger and integration
     expense, non-operating items
     detailed on page 1 and intangible
     amortization (a)                        .73        .69           .51

  Return on tangible common equity
    GAAP                                    46.0%      37.3%         22.2%
    Non-GAAP adjusted (b)                   53.1%      39.8%         26.5%

  Return on equity:
    GAAP                                     8.9%      15.5%         11.6%
    Non-GAAP adjusted (b)                   11.6%      16.7%         14.4%

  Fee and other revenue as a
   percentage of total revenue (FTE)          81%        78%           78%

  Annualized fee and other revenue
   per employee (based on average
   headcount) (in thousands)            $    290   $    274      $    248

  Non-U.S.:
    Percent of revenue (FTE)                  31%        32%           29%

  Pre-tax operating margin (FTE):
    GAAP                                      25%        32%           26%
    Non-GAAP adjusted (b)                     36%        36%           33%

  Net interest margin (FTE) (c)             2.02%      2.01%         1.89%

  Selected average balances (c):
    Interest-earning assets             $133,534   $ 90,557      $ 76,088
    Total assets                        $183,828   $114,323      $ 95,579
    Interest-bearing deposits           $ 80,870   $ 53,610      $ 43,905
    Noninterest-bearing deposits        $ 26,466   $ 15,334      $ 10,687
    Shareholders' equity                $ 28,669   $ 11,566      $ 10,262

  Average common shares and
   equivalents outstanding
   (in thousands)
    Basic                              1,125,165    709,783(a)    713,946(a)
    Diluted                            1,140,797    722,661(a)    723,272(a)

  Period-end data
  Assets under management
   (in billions)                        $  1,106   $    153      $    131
  Assets under custody and
   administration (in trillions)        $   20.8   $   14.9      $   12.2
    Cross-border assets
     (in trillions)                     $    8.3   $    6.2      $    4.2
  Securities lending cash collateral
   assets (in billions)                 $    575   $    365      $    368

  Employees                               40,600     23,200        20,500

  Tier I capital ratio (d)                   9.1%(e)   8.09%         8.17%
  Total (Tier I plus Tier II)
   capital ratio (d)                        13.0%(e)  12.07%        12.32%
  Adjusted tangible shareholders'
   equity to assets ratio (d)(f)            5.31%      4.53%         5.58%

  Book value per common share           $  25.43   $  16.50(a)   $  14.52(a)
  Tangible book value per common
   share                                $   5.83   $   7.35(a)   $   8.04(a)
  Dividends per share                   $   0.24   $   0.23(a)   $   0.23(a)
  Dividend yield                            2.17%      2.12%         2.46%
  Closing common stock price per
   share                                $  44.14   $  43.93(a)   $  37.38(a)
  Market capitalization                 $ 50,266   $ 31,495      $ 26,938
  --------------------------------------------------------------------------
  (a)  Historical earnings per share and all other share-related data are
       presented in post-merger share count terms.  See page 8 for
       additional information.
  (b)  Calculated excluding merger and integration expense, intangible
       amortization and non-operating items detailed on page 1.
  (c)  Prior periods calculated on a continuing operations basis.
  (d)  Includes discontinued operations.
  (e)  Preliminary.
  (f)  Shareholders' equity less goodwill and intangible assets plus the
       benefit of the deferred tax liability associated with tax deductible
       intangibles divided by total assets less goodwill and intangible
       assets.



                 THE BANK OF NEW YORK MELLON CORPORATION
               Condensed Consolidated Income Statement (a)


                               Quarter ended            Nine months ended
  (in millions,        ------------------------------  --------------------
  except per share     Sept. 30,  June 30,  Sept. 30,  Sept. 30,  Sept. 30,
  amounts)                  2007      2007       2006       2007       2006
  -------------------------------------------------------------------------
  Fee and other
   revenue
  Securities
   servicing fees:
    Asset servicing       $  720    $  427     $  346     $1,540     $1,046
    Issuer services          436       367        194      1,122        555
    Clearing and
     execution services      304       291        302        877        981
                          ------    ------     ------     ------     ------
      Total securities
       servicing fees      1,460     1,085        842      3,539      2,582
  Asset and wealth
   management fees           854       168        133      1,173        393
  Performance fees            (3)       21          3         32         17
  Foreign exchange and
   other trading
   activities                238       117         83        482        322
  Treasury services          122        55         55        227        158
  Distribution and
   servicing                  95         2          2         99          4
  Financing-related
   fees                       51        61         62        164        189
  Investment income           22        39         34         97        108
  Securities gains
   (losses)                   (9)       (2)         1         (9)         -
  Other                      101        34         48        182        125
                          ------    ------     ------     ------     ------
    Total fee and
     other revenue         2,931     1,580      1,263      5,986      3,898
  Net interest
   revenue
  Interest revenue         1,778     1,162        960      3,961      2,683
  Interest expense         1,109       710        609      2,413      1,635
                          ------    ------     ------     ------     ------
    Net interest
     revenue                 669       452        351      1,548      1,048
  Provision for
   credit losses               -       (15)        (4)       (30)        (5)
                          ------    ------     ------     ------     ------
    Net interest revenue
     after provision for
     credit losses           669       467        355      1,578      1,053
  Noninterest expense
  Staff                    1,280       752        644      2,752      1,904
  Professional, legal
   and other purchased
   services                  241       132         89        503        256
  Net occupancy              144        81         70        304        206
  Distribution and
   servicing                 127         4          4        135         12
  Software                    91        57         53        202        161
  Furniture and equipment     80        54         46        184        145
  Sub-custodian               58        42         31        134        101
  Business development        56        37         27        123         78
  Clearing and execution      52        44         52        133        161
  Communications              33        23         26         75         74
  Other                      195        87         51        354        174
                          ------    ------     ------     ------     ------
    Subtotal               2,357     1,313      1,093      4,899      3,272
  Amortization of
   intangible assets         131        29         14        188         42
  Merger and integration
   expense:
    The Bank of New
     York Mellon             205        35          -        244          -
    Acquired Corporate
     Trust Business           13        12         89         36         89
                          ------    ------     ------     ------     ------
      Total noninterest
       expense             2,706     1,389      1,196      5,367      3,403
                          ------    ------     ------     ------     ------
  Income
  Income from continuing
   operations before
   income taxes              894       658        422      2,197      1,548
  Provision for income
   taxes                     252       210        124        670        499
                          ------    ------     ------     ------     ------
    Income from continuing
     operations              642       448        298      1,527      1,049
  Discontinued operations:
    Income (loss) from
     discontinued
     operations               (4)       (4)        96        (13)       297
    Provision (benefit)
     for income taxes         (2)       (1)        42         (5)       124
                          ------    ------     ------     ------     ------
      Discontinued
       operations income
       (loss), net            (2)       (3)        54         (8)       173
                          ------    ------     ------     ------     ------
    Net income            $  640    $  445     $  352     $1,519     $1,222
                          ======    ======     ======     ======     ======

  Earnings per
   share (b)
  Basic:
  Income from
   continuing operations  $  .57    $  .63     $  .42     $ 1.80     $ 1.47
  Income (loss) from
   discontinued
   operations, net             -         -        .08       (.01)       .24
                          ------    ------     ------     ------     ------
  Net income              $  .57    $  .63     $  .49(c)  $ 1.79     $ 1.71
  Diluted:
  Income from
   continuing operations  $  .56    $  .62     $  .41     $ 1.77     $ 1.45
  Income (loss) from
   discontinued
   operations, net             -         -        .07       (.01)       .24
                          ------    ------     ------     ------     ------
  Net income              $  .56    $  .62     $  .49(c)  $ 1.76     $ 1.69

  (a)  Third quarter and year-to-date 2007 include three months of the
       combined company's results, while second quarter 2007 and the results
       for all periods in 2006 include legacy The Bank of New York only.
  (b)  All earnings per share data is presented in post-merger share count
       terms.  See page 8 for additional information.
  (c)  Amounts do not foot due to rounding.



                 THE BANK OF NEW YORK MELLON CORPORATION
                   Condensed Consolidated Balance Sheet

                                                         Legacy The Bank of
                                                            New York only
                                                         ------------------
  (dollar amounts in millions,         Sept. 30,    Dec. 31,      Sept. 30,
  except per share amounts)                 2007        2006(a)        2006
  -------------------------------------------------------------------------

  Assets
  Cash and due from banks               $  6,010    $  2,840       $  2,072
  Interest-bearing deposits
   with banks                             28,158      13,172         16,753
  Federal funds sold and securities
   purchased under resale agreements       4,194       5,114          5,139
  Securities:
    Held-to-maturity (fair value of
     $2,208; $1,710 and $1,716)            2,221       1,729          1,737
    Available-for-sale                    44,861      19,377         20,278
                                         -------     -------        -------
      Total securities                    47,082      21,106         22,015
  Trading assets                           6,890       5,544          3,266
  Loans                                   50,856      37,793         33,958
  Reserve for loan losses                   (332)       (287)          (339)
                                         -------     -------        -------
    Net loans                             50,524      37,506         33,619
  Premises and equipment                   1,701       1,050          1,009
  Accrued interest receivable                655         422            406
  Goodwill                                15,764       5,008          3,801
  Intangible assets                        6,554       1,453            872
  Other assets                            16,437       9,973          8,856
  Assets of discontinued operations            3          18          8,828
                                         -------     -------        -------
    Total assets                        $183,972    $103,206       $106,636
                                         =======     =======        =======

  Liabilities
  Deposits
    Noninterest-bearing (principally
     domestic offices)                  $ 27,289    $ 19,554       $ 11,451
    Interest-bearing deposits in
     domestic offices                     21,263      10,041          9,785
    Interest-bearing deposits in
     foreign offices                      59,653      32,551         33,717
                                         -------     -------        -------
      Total deposits                     108,205      62,146         54,953
  Federal funds purchased and
   securities sold under repurchase
   agreements                              2,929         790          1,040
  Trading liabilities                      4,978       2,507          2,102
  Payables to customers and
   broker-dealers                          7,917       7,266          6,673
  Other borrowed funds                     2,112       1,625          1,121
  Accrued taxes and other expenses         7,842       5,129          4,140
  Other liabilities (including
   allowance for lending related
   commitments of $178, $150 and $137)     6,679       3,477          4,671
  Long-term debt                          14,312       8,773          8,434
  Liabilities of discontinued
   operations                                 41          64         13,035
                                         -------     -------        -------
    Total liabilities                    155,015      91,777         96,169

  Shareholders' equity (b)
  Common stock-par value $0.01 per
   share, authorized 3,500,000,000
   shares, issued 1,139,968,850;
   994,110,501 and 990,464,938                11          10             10
  Additional paid-in capital              19,713      10,035          9,879
  Retained earnings                        9,773       9,280          7,820
  Accumulated other comprehensive
   loss, net of tax                         (488)       (317)           (66)
  Less:  Treasury stock of 1,191,302;
   280,935,236 and 269,522,099 shares,
   at cost                                   (49)     (7,576)        (7,169)
  Loan to ESOP (95,994, 95,994 and
   191,989 shares)                            (3)         (3)            (7)
                                         -------     -------        -------
    Total shareholders' equity            28,957      11,429         10,467
                                         -------     -------        -------
    Total liabilities and
     shareholders' equity               $183,972    $103,206       $106,636
                                         =======     =======        =======

  (a)  Certain prior period balances have been revised, see discussion on
       pages 9 and 10.
  (b)  Par value, authorized, issued, treasury stock and loan to ESOP shares
       at Dec. 31, 2006 and Sept. 30, 2006 are presented in post-merger
       share count terms.  See page 8 for additional information.

  Note:  The balance sheet at Dec. 31, 2006 has been derived from the
         audited financial statements as of that date, as revised.

Nonperforming Assets

Nonperforming assets were $37 million at Sept. 30, 2007, down from $38 million at Sept. 30, 2006 and up from $27 million at June 30, 2007. Nonperforming asset balances remain at historically low levels.

Consolidated Net Income Including Discontinued Operations

Net income, including discontinued operations, totaled $640 million, or 56 cents per share, in the third quarter of 2007, compared with $352 million, or 49 cents per share, in the third quarter of 2006, and $445 million, or 62 cents per share, in the second quarter of 2007.

Supplemental information - Earnings Per Share Presented on a GAAP and Non- GAAP basis

In the merger transaction between The Bank of New York and Mellon, The Bank of New York shareholders received .9434 shares of The Bank of New York Mellon common stock for each share of The Bank of New York common stock outstanding on the closing date of the merger. Mellon Financial Corp. shareholders received one share of The Bank of New York Mellon common stock for each share of Mellon Financial Corp. common stock outstanding on the closing date of the merger. Historical earnings per share for The Bank of New York are presented in post-merger share count terms in this Earnings Release and the Quarterly Earnings Summary. The table below converts earnings per share for The Bank of New York into post-merger share count terms for periods prior to July 1, 2007.

Reported amounts are presented in accordance with GAAP. We believe that this supplemental non-GAAP information is useful to the investment community in analyzing the financial results and trends of our business. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management internally monitors financial performance. These non- GAAP items also are excluded from our segment measures used internally to evaluate segment performance because management does not consider them particularly relevant or useful in evaluating the operating performance of our business segments.

  -----------------------------------------------------------------------
                           Legacy The Bank of
  Continuing                New York Only (a)
  operations -        ---------------------------
  fully diluted                                                 Nine
  earnings per share              Quarter ended             months ended
                      ----------------------------------    -------------
                      Sept.   Dec.   March   June  Sept.    Sept.   Sept.
                        30,    31,     31,    30,    30,      30,     30,
                       2006   2006    2007   2007   2007     2007    2006(a)
  -----------------------------------------------------------------------
  As reported          $.39   $.56    $.57   $.59   $.56    $1.77   $1.36
  As reported
   adjusted for
   exchange ratio
   (GAAP)               .41    .60     .61    .62    .56     1.77    1.45

  Non-GAAP adjusted -
   excluding merger
   and integration
   expense and
   non-operating
   items: (b)
    As reported         .47    .58     .59    .63    .66(c)  1.95(c) 1.44
    Adjusted for
     exchange ratio     .50    .61     .62    .66    .66(c)  1.95(c) 1.53

  Non-GAAP adjusted -
   excluding merger
   and integration
   expense,
   non-operating
   items and
   intangible
   amortization: (b)
    As reported         .48    .61     .61    .65    .73(d)  2.09(d) 1.48
    Adjusted for
     exchange ratio     .51    .65     .65    .69    .73(d)  2.09(d) 1.57
  -----------------------------------------------------------------------
  (a)  Amounts prior to July 1, 2007, represent legacy The Bank of New York
       only.
  (b)  Non-operating items are detailed on page 1.
  (c)  Including the non-operating items detailed on page 1, non-GAAP
       adjusted earnings per share - excluding merger and integration
       expense would have been 67 cents and $1.96 in the third quarter and
       first nine months of 2007, respectively.
  (d)  Including the non-operating items detailed on page 1, non-GAAP
       adjusted earnings per share - excluding merger and integration
       expense and intangible amortization would have been 74 cents and
       $2.10 in the third quarter and first nine months of 2007,
       respectively.



  Revision of Prior Period Financial Statements

Our Company's fourth quarter 2006 acquisition of the Acquired Corporate Trust Business and sale of our Retail Business to JPMorgan Chase included a "Like Kind Exchange" (the "LKE") of finite lived intangible assets, principally core deposit intangibles, under Internal Revenue Code section ("Section") 1031. The LKE deferred taxes of $164 million were treated as a liability acquired in the business combination with an offsetting increase to goodwill.

We reviewed the transaction and now believe that $164 million of deferred tax expense should have been recognized on the gain related to the Retail Business intangibles included in the LKE with JPMorgan Chase. Accordingly, we have corrected the fourth quarter 2006 financial statements with a non-cash charge to discontinued operations - income taxes and a reduction in goodwill of $164 million. This revision does not impact income from continuing operations or our tangible common equity.

As shown in the financial information included in this release, we have revised our prior years' financial statements to reflect these taxes in discontinued operations. Because the revision was not material to any prior year financial statements, the revisions to prior periods will be presented in future filings, pursuant to SEC Staff Accounting Bulletin No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements." Financial statements for the year ended Dec. 31, 2006 will be revised in the Dec. 31, 2007 Annual Report on Form 10-K.

The table below presents the effect of the correction on our previously reported consolidated statements of income for the fiscal year ended Dec. 31, 2006 and for the three-month period ended Dec. 31, 2006.

  -------------------------------------------------------------------------
  (in millions, except per share amounts)

                           As previously
                             reported                        As revised
                          ---------------                 ----------------
  For the period ended    Fourth                          Fourth
   Dec. 31, 2006          Quarter    Year    Adjustment   Quarter     Year
  -------------------------------------------------------------------------

  Income from continuing
   operations             $  427    $1,476     $    -     $  427    $1,476

  Discontinued
   operations:
    Income from
     discontinued
     operations            2,130     2,426          -      2,130     2,426
    Income taxes            (768)     (891)      (164)      (932)   (1,055)
                          ------    ------     ------     ------    ------
    Discontinued
     operations, net       1,362     1,535       (164)     1,198     1,371

  Net income              $1,789    $3,011      $(164)    $1,625    $2,847

  Diluted earnings
   per share
    Income from
     continuing
     operations           $  .56    $ 1.93                $  .56    $ 1.93

    Income from
     discontinued
     operations, net        1.80      2.00                  1.58      1.79
    Net income              2.36      3.93                  2.14      3.72
  -------------------------------------------------------------------------

The effect of the correction on the Dec. 31, 2006 consolidated balance sheet is as follows:

  -------------------------------------------------------------------------
                                As previously
  (in millions)                   reported        Adjustment     As revised
  -------------------------------------------------------------------------
  Balances as of Dec. 31, 2006
  Goodwill                         $  5,172         $(164)        $  5,008
  Total assets                      103,370          (164)         103,206
  Retained earnings                   9,444          (164)           9,280
  Total shareholders' equity         11,593          (164)          11,429

  Memo: Tangible common equity     $  4,968         $   -         $  4,968
  -------------------------------------------------------------------------

The effect of the correction on the 2006 consolidated statement of cash flows is as follows:

  -------------------------------------------------------------------------
                                As previously
  (in millions)                   reported        Adjustment     As revised
  -------------------------------------------------------------------------
  Balances as of Dec. 31, 2006
  Net income                       $ 3,011          $(164)         $ 2,847
  Gain on retail business sale,
   net of taxes                     (1,381)           164           (1,217)

  Net cash provided (used) by
   operating activities            $ 3,283          $   -          $ 3,283
  -------------------------------------------------------------------------



  APPENDIX

                 THE BANK OF NEW YORK MELLON CORPORATION
            Pro Forma Condensed Consolidated Income Statement
                Excluding Purchase Accounting Adjustments

                                    Three months ended June 30, 2007
                        ---------------------------------------------------
                        The Bank of    Mellon                       Total
  (in millions)           New York   Financial(a)   Adjustments   Pro forma
  -------------------------------------------------------------------------
  Fee and other revenue
  Securities servicing
   fees:
    Asset servicing        $  427     $  281         $   (4)(b)    $  704
    Issuer services           367         48              -           415
    Clearing and
     execution services       291          4            (10)(b)       285
                           ------     ------         ------        ------
      Total securities
       servicing fees       1,085        333            (14)        1,404
  Asset and wealth
   management fees            168        678              -           846
  Performance fees             21         42              -            63
  Foreign exchange and
   other trading
   activities                 117         59              -           176
  Treasury services            55         66              -           121
  Distribution and
   servicing                    2         81              -            83
  Financing-related fees       61          8              -            69
  Investment income            39         38              -            77
  Securities gains
   (losses)                    (2)         3              -             1
  Other                        34         55              -            89
                           ------     ------         ------        ------
    Total fee and other
     revenue                1,580      1,363            (14)        2,929
  Net interest revenue
  Interest revenue          1,162        416              -         1,578
  Interest expense            710        282              -           992
                           ------     ------         ------        ------
    Net interest revenue      452        134              -           586
  Provision for credit
   losses                     (15)        (3)             -           (18)
                           ------     ------         ------        ------
    Net interest revenue
     after provision for
     credit losses            467        137              -           604
  Noninterest expense
  Staff                       752        551              -         1,303
  Professional, legal
   and other purchased
   services                   132        121              -           253
  Net occupancy                81         91              -           172
  Distribution and
   servicing                    4        151            (14)(b)       141
  Furniture and equipment      54         26              -            80
  Software                     57         20              -            77
  Business development         37         35              -            72
  Sub-custodian                42         18              -            60
  Clearing and execution       44          -              -            44
  Communications               23         10              -            33
  Other                        87        117              -           204
                           ------     ------         ------        ------
    Subtotal                1,313      1,140            (14)        2,439
  Amortization of
   intangible assets           29         11              -            40
  Merger and integration
   expense:
    The Bank of New York
     Mellon                    35        116              -           151
    Acquired Corporate
     Trust Business            12          -              -            12
                           ------     ------         ------        ------
      Total noninterest
       expense              1,389      1,267            (14)        2,642
                           ------     ------         ------        ------
  Income
  Income from continuing
   operations before
   income taxes               658        233              -           891
  Provision for income
   taxes                      210        (48)             -           162
                           ------     ------         ------        ------
    Income from
     continuing
     operations               448        281              -           729
  Discontinued operations:
    Income (loss) from
     discontinued
     operations                (4)         1              -            (3)
    Provision (benefit)
     for income taxes          (1)         7              -             6
                           ------     ------         ------        ------
      Discontinued
       operations income
       (loss), net             (3)        (6)             -            (9)
    Net income             $  445     $  275         $    -        $  720
                           ======     ======         ======        ======

  (a)  Mellon's results for the second quarter of 2007 include the impact of
       pre-tax charges associated with merger and integration expenses ($116
       million), early redemption of junior subordinated debentures ($46
       million), exit costs associated with excess office space ($30
       million), and a litigation reserve charge ($5 million), as well as
       the net benefit of a tax settlement and other discrete tax items
       ($122 million).
  (b)  Adjustment to eliminate intercompany revenue and expenses for
       Clearing and execution services and Asset servicing paid by Mellon
       Financial to The Bank of New York.



  APPENDIX

                 THE BANK OF NEW YORK MELLON CORPORATION
            Pro Forma Condensed Consolidated Income Statement
                Excluding Purchase Accounting Adjustments

                                  Three months ended Sept. 30, 2006
                        ---------------------------------------------------
                        The Bank of    Mellon                       Total
  (in millions)           New York   Financial      Adjustments   Pro forma
  -------------------------------------------------------------------------
  Fee and other revenue
  Securities servicing
   fees:
    Asset servicing        $  346     $  233         $   (5)(a)   $  574
    Issuer services           194         49              -          243
    Clearing and
     execution services       302          2             (8)(a)      296
                           ------     ------         ------       ------
      Total securities
       servicing fees         842        284            (13)       1,113
  Asset and wealth
   management fees            133        552              -          685
  Performance fees              3         56              -           59
  Foreign exchange and
   other trading
   activities                  83         54              -          137
  Treasury services            55         66              -          121
  Distribution and
   servicing                    2         71              -           73
  Financing-related fees       62          9              -           71
  Investment income            34         20              -           54
  Securities gains              1          3              -            4
  Other                        48         49              -           97
                           ------     ------         ------       ------
    Total fee and other
     revenue                1,263      1,164            (13)       2,414
  Net interest revenue
  Interest revenue            960        393              -        1,353
  Interest expense            609        274              -          883
                           ------     ------         ------       ------
    Net interest revenue      351        119              -          470
  Provision for credit
   losses                      (4)        (1)             -           (5)
                           ------     ------         ------       ------
    Net interest revenue
     after provision for
     credit losses            355        120              -          475
  Noninterest expense
  Staff                       644        512              -        1,156
  Professional, legal
   and other purchased
   services                    89        121             (1)(a)      209
  Net occupancy                70         51              -          121
  Distribution and
   servicing                    4        122            (12)(a)      114
  Furniture and equipment      46         26              -           72
  Software                     53         16              -           69
  Business development         27         25              -           52
  Clearing and execution       52          -              -           52
  Sub-custodian                31         14              -           45
  Communications               26          8              -           34
  Other                        51         61              -          112
                           ------     ------         ------       ------
    Subtotal                1,093        956            (13)       2,036
  Amortization of
   intangible assets           14          7              -           21
  Merger and integration
   expense:
    The Bank of New York
     Mellon                     -          -              -            -
    Acquired Corporate
     Trust Business            89          -              -           89
                           ------     ------         ------       ------
      Total noninterest
       expense              1,196        963            (13)       2,146
                           ------     ------         ------       ------
  Income
  Income from continuing
   operations before
   income taxes               422        321              -          743
  Provision for income
   taxes                      124        103              -          227
                           ------     ------         ------       ------
    Income from
     continuing operations    298        218              -          516
  Discontinued operations:
    Income (loss) from
     discontinued
     operations                96          7              -          103
    Provision (benefit)
     for income taxes          42          3              -           45
                           ------     ------         ------       ------
      Discontinued
       operations income
       (loss), net             54          4              -           58
                           ------     ------         ------       ------
    Net income             $  352     $  222         $    -       $  574
                           ======     ======         ======       ======

   (a)  Adjustment to eliminate intercompany revenue and expenses for
        Clearing and execution services and Asset servicing paid by Mellon
        Financial to The Bank of New York.


Cautionary Statement

The information presented in this Earnings Release, may contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, statements with respect to future financial goals, the merger of The Bank of New York and Mellon, including expectations with respect to the merged companies, integration and operations after the merger, achievement of milestones, future growth and prospects. These statements and other forward- looking statements contained in other public disclosures of The Bank of New York Mellon (the Company) which make reference to the cautionary factors described in this Earnings Release, are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond the Company's control). The following risks, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: the businesses of The Bank of New York and Mellon may not be integrated successfully or the integration may be more difficult, time-consuming or costly than expected; the combined company may not realize, to the extent or at the time it expects, revenue synergies and cost savings from the transaction; revenue following the transaction may be lower than expected as a result of losses of customers or other reasons; deposit attrition, operating costs, customer loss and business disruption following the transaction, including, without limitation, difficulties in maintaining relationships with employees, may be greater than expected; market volatility; operational risk; changes in political and economic conditions; equity, fixed-income and foreign exchange market fluctuations; geographic sources of income; the price of oil; and levels of tax-free income. Additional factors that could cause the Company's results to differ materially from those described in the forward- looking statements can be found in the Company's filings with the Securities and Exchange Commission and The Bank of New York Company, Inc.'s and Mellon Financial Corporation's historical reports (such as Annual Reports on Form 10- K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. All forward-looking statements in this Earnings Release speak only as of Oct. 18, 2007, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.