SECURITIES Morgan Stanley provides investment banking services to corporations, governments and other entities and provides sales, trading and research services to institutional and individual investors, all on a global basis. The firm offers its investment banking clients advice on mergers and acquisitions, restructurings and privatizations. The firm also is a major underwriter of stocks and bonds and provides research, sales and trading services in virtually every type of financial instrument, including stocks, bonds, derivatives, foreign exchange and commodities. The firm provides clearance and custody, financing, client technology and securities lending to hedge funds and also manages private partnerships that invest in venture capital, real estate and other private equity opportunities. The individual investor group has nearly 14,000 financial advisors and 5.6 million client accounts, with client assets of $595 billion. INVESTMENT MANAGEMENT Morgan Stanley is one of the largest asset managers in the world, offering a diverse range of investment products managed by top investment professionals from our various money management units, including many highly rated U.S. and international bond, equity and multi-asset class funds distributed in multiple channels under several brands. INDIVIDUAL INVESTORS Proprietary channel — Morgan Stanley reaches individual investors through our proprietary network of financial advisors who offer, among other things, Morgan Stanley and Van Kampen-branded products. Non-proprietary channel — Morgan Stanley also offers Van Kampen-branded products through a large and diversified network of non-proprietary national and regional broker-dealers, commercial banks and thrifts, insurance companies and their affiliated broker-dealers, and financial planners. INSTITUTIONAL INVESTORS Institutional investors, including corporations, non-profit organizations, governmental agencies, insurance companies and banks, are serviced through a proprietary sales force globally, as well as a team dedicated to covering the investment consultant industry. CREDIT SERVICES Morgan Stanley's flagship Discover® Card is marketed in the United States with no annual fee and a Cashback Bonus® award. With more than 50 million Cardmembers and nearly $50 billion in consumer loans, Discover Card is one of the largest issuers of general purpose credit cards in the U.S. The Discover Card is accepted on the Discover Business Services Network, the largest independent credit card network in the U.S., with approximately 4 million merchant and cash access locations. Discover Card offers various products and financial services, including Discover Platinum and Discover Gold cards, affinity cards, CD and money market accounts, installment loans, home mortgages and credit insurance coverage. Today, 24 percent of our active Cardmembers have at least one additional Discover Card-branded product. Discover Card has quickly become a leading card company on the Internet (Discovercard.com), with more than 7 million Cardmembers registered at the Discover Card Account Center. Our efforts to expand our credit card business overseas have been equally successful as the Morgan Stanley MasterCard®, introduced in the U.K. in 1999, reached over $1.5 billion in consumer loans in 2001.