Ellyn A. McColgan Named President and Chief Operating Officer of Morgan Stanley Global Wealth Management Group

New York —

Morgan Stanley today announced that Ellyn A. McColgan has been named President and Chief Operating Officer of the Global Wealth Management Group (GWMG), effective in April, 2008.  Ms. McColgan will be a member of Morgan Stanley’s Management Committee and will report to Co-President James P. Gorman, whom she succeeds in the GWMG leadership role.

Ms. McColgan, 53, joins Morgan Stanley after a 17-year career at Fidelity Investments, where she served most recently as President of Distribution and Operations.  In this position, she was responsible for the firm’s retail and institutional distribution channels as well as core processing operations in the U.S. and India, representing 21,000 employees and more than $1.5 trillion in client assets under administration.  Prior to this, she served as President of Fidelity Brokerage Company, the largest such company in the U.S. based on client assets and accounts.

“Breadth and Depth of Experience Unmatched in Our Industry”

John J. Mack, Chairman and CEO, said, “Ellyn McColgan is the ideal executive to carry forward the tremendous progress that James Gorman and his team have made in transforming our Global Wealth Management business into an industry leader.  She will bring to our management committee a breadth and depth of experience that is unmatched in our industry.   As the leader over a number of years of one of the largest wealth management businesses in the U.S., Ellyn has a proven ability to grow revenues and profits, deliver a superior operating platform to Financial Advisors and create a client experience that is second-to-none.  Her leadership will enable us to build on the momentum we have achieved over the past two years in this important business for Morgan Stanley.”

Mr. Gorman said, “I have known Ellyn for many years, having first met her when we served together on the board of the Securities Industry and Financial Markets Association.  She is one of the most talented executives in the wealth management industry and brings great insight, expertise and a fresh perspective to our business.  We will draw upon her vast experience with wealth management products, retirement services and best-in-class operations and technology platforms to advance GWMG’s leadership position.  I am looking forward to working closely with her to realize the full potential of this business and its incredibly talented team of Financial Advisors.”

Background on Ms. McColgan

Ms. McColgan joined Fidelity Investments in 1990, where she held a succession of executive positions across virtually all aspects of the firm’s distribution businesses.  These included fund accounting and custody services, institutional retirement services and institutional investment services.  In her most recent role as head of the brokerage company, she led the retail brokerage, mutual fund, correspondent clearing, registered investment advisor, capital markets and family office businesses.

Ms. McColgan received a B.A. from Montclair State College in 1975 and an M.B.A. from Harvard Business School in 1983.  She served as Co-Chair of the Securities Industry and Financial Markets Association from 2006-2007, is a trustee of the Museum of Fine Arts, Boston, and a former trustee of Babson College.  In 2005 and 2006, she was recognized by Fortune magazine as one of the “50 Most Powerful Women in Business.”

Background on Progress in Global Wealth Management

Over the past two years, Morgan Stanley has made significant progress in reinvigorating its Global Wealth Management business.  GWMG has delivered six consecutive quarters of improved performance.  In the third quarter, this business achieved its highest revenue since the second quarter of 2000 and a margin of 17 percent, compared with a margin of 1 percent in 2005.  GWMG also delivered record annualized revenue per Financial Advisor of $817,000 in the third quarter, versus $502,000 in 2005, as Morgan Stanley continued to attract and retain high-quality advisors.  Client inflows of nearly $15 billion reached all-time highs during the third quarter, and the amount of client assets in $1 million-plus households is up by $107 billion, or 28 percent, from the first quarter of 2006.

About the Global Wealth Management Group

One of the largest businesses of its kind in the world, GWMG provides a range of wealth management products and services to individuals, businesses and institutions.  These include brokerage and investment advisory services, financial and wealth planning, credit and lending, banking and cash management, annuities and insurance, retirement and trust.

About Morgan Stanley

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 32 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

Media Relations Contact: James Wiggins, 914.225.6161