Fixed Income and European Institutional Securities Management Changes

London —

Morgan Stanley today announced that Jonathan Chenevix-Trench will now focus exclusively on his role as Chairman of the Institutional Securities Group Operating Committee in Europe, relinquishing his fixed income responsibilities as Head of the Global Interest Rate and Currency Group, effective 31 March, 2005. In this capacity, Jonathan will have responsibility for overseeing the Firm's Equity, Fixed Income and Investment Banking businesses in Europe. He will continue to be based in London and will report to Vikram Pandit, Head of the Institutional Securities Group, and Sir David Walker, Chairman of Morgan Stanley International.

Philip Newcomb and Sean Notley will replace Jonathan Chenevix-Trench as co-heads of the Global Interest Rate and Currency Group, reporting to Zoe Cruz, Global Head of Fixed Income, Commodities and Foreign Exchange.

Commenting on the appointments, Sir David Walker said: "We are delighted that Jonathan is assuming this expanded role and able to give his exclusive attention to our European business. With over 20 years at the Firm, his experience running both global and European businesses makes him uniquely qualified to leverage the synergies in our institutional businesses."

Zoe Cruz added: "Phil's and Sean's proven track record within Fixed Income will ensure that we preserve the momentum created under Jonathan's leadership and build upon the division's record 2004 performance."

Morgan Stanley is a global financial services firm and a market leader in securities, investment management and credit services. With more than 600 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.

NOTES FOR EDITORS:

Jonathan Chenevix-Trench

Jonathan Chenevix-Trench joined Morgan Stanley as an Analyst in 1984, became a Vice President in 1991, a Principal in 1993 and was elected Managing Director in 1995.

Jonathan is a member of the European Executive Committee, and serves on the boards of Morgan Stanley Bank International Limited and Morgan Stanley International Limited. He serves on the board of LCH.Clearnet, the International Securities and Markets Association, and is a member of the Leadership Team of Opportunity Now, a business led campaign to realise the full potential of women in the workforce. Jonathan is also a Trustee of the Chelsea Physic Garden in London.

Jonathan graduated with a BA degree in Classics from Oxford University in 1984.

Philip Newcomb

Philip Newcomb joined Morgan Stanley in 1984, became a Vice President in 1990, a Principal in 1993 and a Managing Director in 1995.

Philip is Global head of Foreign Exchange at Morgan Stanley. He serves on the board of FXall and is a member of New York Foreign Exchange Committee sponsored by the Federal Reserve Bank of New York.

Philip holds a BS in Accounting from the University of Delaware.

Sean Notley

Sean joined Morgan Stanley's London office in 1986. Since then he has been involved in the trading of interest rate derivatives in the European, US and Asian markets. Sean is currently a Managing Director of Morgan Stanley, co-managing the Firm's global interest rate derivatives and government bond trading operations and in April 2004 was promoted to Co-Head of Fixed Income Europe.

Sean is a member of the European Executive Committee and serves on the Board of the Morgan Stanley UK Group Pension Plan. He is also a member of ISDA (International Swaps and Derivatives Association) and serves on the boards of Morgan Stanley Bank International Limited, and Morgan Stanley International Limited.

Sean holds a BA in Engineering from Cambridge University.