Morgan Stanley and AFA to Establish Leading Financial Economics Award

Bi-Annual Award for Leadership in Financial Economics Research with $200,000 Cash Gift

New York —

Morgan Stanley (NYSE: MS) and the American Finance Association (AFA) announced today the establishment of a new bi-annual finance award for career achievements and leadership in financial economics research.  The award shall be entitled and referenced as ‘Morgan Stanley – American Finance Association Award for Excellence in Finance’.

Morgan Stanley and the AFA will grant the first award in January 2008, along with a $200,000 gift that will be made to an institution of the award recipient’s choice to support financial research.

“We are delighted to be teaming up with the American Finance Association to establish this award,” said Joseph Langsam, Managing Director at Morgan Stanley.  “We believe it will be the premier prize devoted exclusively to the field of Finance.”

Richard C. Green, President of the AFA said, “What is particularly gratifying about this award is that we not only get to honor a leading scholar but we also get to fund important research in the field of financial economics.”

Morgan Stanley plans to host the first presentation ceremony in 2008 at its headquarters in New York.  The AFA announced the establishment of the award to its members at its Annual General Meeting in Chicago on Saturday, January 6.

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.

The American Finance Association is the premier academic organization devoted to the study and promotion of knowledge about financial economics.  Founded in 1939, the AFA now has more than 8,000 members and publishes the world-renowned Journal of Finance.  For further information about the AFA, please visit www.afajof.org.

Contact: Media Relations, Mark Lake, 212.761.0814