Morgan Stanley Acquires Nan Tung Bank in China

Hong Kong —

Morgan Stanley (NYSE: MS) announced today that it has acquired Nan Tung Bank, a Zhuhai-based foreign funded bank formerly owned by Nam Tung (Macao) Investment Limited, a full subsidiary of Bank of China. The acquisition, approved by the China Banking Regulatory Commission, will enable Morgan Stanley to strengthen further its world-class platform in China and offer a broader range of products and services to its clients.

Nan Tung Bank, which is now a wholly owned subsidiary of Morgan Stanley Bank International, offers a comprehensive set of commercial banking products and services, including deposits, home mortgage loans, corporate loans, foreign currency exchange and remittances, trade finance and credit facilities to individuals as well as corporate customers based primarily in the Pearl River Delta region of Guangdong Province.

John Mack, Chairman and Chief Executive Officer of Morgan Stanley, said, "We want to build the leading, fully integrated financial services firm in China and the acquisition of Nan Tung Bank is another important milestone in our pursuit of that strategy. We are pleased to be the first among our peers to establish an onshore commercial banking platform in China, and believe it will help further strengthen our leadership position in this increasingly important market."

"Growth markets such as China are critical to the future of Morgan Stanley, and we are committing the resources, people and capital we need to pursue the significant investment opportunities in the country," said Alasdair Morrison, Chairman of Morgan Stanley Asia. "With this new banking entity, we have taken a critical step to increase our presence and franchise in China to better service our domestic and international clients."

Commenting on future plans for the bank, Hans Schuettler, CEO of Morgan Stanley Asia, said, "By leveraging Morgan Stanley's global strength, industry expertise and multi-product capabilities, we look forward to growing Nan Tung Bank's business further and continuing to contribute significantly to the development of China's financial sector."

"We are pleased to have received regulatory approval for this ground-breaking transaction," said Wei Christianson, Morgan Stanley's China CEO. "Nan Tung Bank is a good strategic fit for our China business. This platform will allow us to provide a wider array of new product capabilities that are currently offered only by commercial banks with a presence within China."

As one of the world's largest financial services companies, Morgan Stanley also has significant commercial banking experience, with the Firm already operating commercial banking entities around the world, including in South Korea, Russia and Brazil.

Founded in 1985, Nan Tung Bank was the first foreign-funded bank incorporated and headquartered in China.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 30 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.