Morgan Stanley Appoints Stephen Trevor and Alan Jones as Co-Heads of Newly Established Private Equity Business Within Its Asset Management Division

New York —

Morgan Stanley announced today that Stephen Trevor and Alan Jones will become Co-Heads of the newly established private equity business within Morgan Stanley Investment Management (MSIM). Mr. Trevor will join the Firm from Goldman Sachs, where he is a Managing Director in the Principal Investment area. Mr. Jones is currently Head of Morgan Stanley's Corporate Finance Department.

Mr. Trevor and Mr. Jones will be responsible for building and leading the Firm's private equity business for third-party investors. They will focus on direct investments, joint ventures, leveraged buyouts and fund investments and will oversee the Firm's infrastructure business as well. They will report to Owen Thomas, President and Chief Operating Officer of MSIM. Mr. Trevor, who will join Morgan Stanley in March 2007, will also become a member of the Firm's Management Committee.

Mr. Trevor, 43, has been based in New York since 2004, primarily focusing on industrial investing for Goldman Sachs' Principal Investment area. From 1999 to 2004, Mr. Trevor was based in London and led Goldman Sachs Capital Partners' investing activities in Germany. He joined Goldman Sachs in 1992 and previously worked in Hong Kong in the firm's Investment Banking and Real Estate Principal Investment areas. Prior to joining Goldman Sachs, Mr. Trevor worked at Time Warner, Inc. He received an M.B.A. from Harvard Business School in 1992 and was a member of the United States Olympic fencing team in 1984 and 1988.

Mr. Jones, 45, has been with Morgan Stanley since 1993. He is a Managing Director and has been Head of the Corporate Finance Department since 2005. Prior to that, Mr. Jones served for three years as Global Co-Head of the Financial Sponsors Group. From 2001 to 2002, he was Head of Global Leveraged Finance and from 2000 to 2001 served as Co-Head of Global Leveraged Finance. From 1997 to 2000, Mr. Jones was based in London, where he established and ran the Firm's European Leveraged Finance Department. Mr. Jones also served as a coverage officer in the Firm's U.S. Financial Sponsors Group from 1993 to 1997. He graduated from Harvard College and received an M.B.A. from Harvard Business School.

John J. Mack, Chairman and Chief Executive Officer of Morgan Stanley, said, "Steve Trevor and Alan Jones are a perfect team to lead our private equity initiatives. Steve Trevor is a world-class banker and leader with extensive private equity experience, having worked in the principal investment business in Hong Kong, Europe and, most recently, New York. Alan Jones is one of Morgan Stanley's most talented and influential bankers and has worked with financial sponsors for most of his 20-year career. His deep knowledge of Morgan Stanley's platform and his strong relationships in the private equity community will prove invaluable as we look to build our own private equity business."

"As we move to grow our private equity business, we are assembling a team of top talent from both inside and outside the Firm, and we are extremely pleased that these two very experienced executives will be leading our efforts," said Robert Scully, Co-President of Morgan Stanley. "Morgan Stanley's bankers offer unparalleled capabilities for sourcing investment opportunities, and our new private equity team will work to create investment funds that can leverage those opportunities and allow us to co-invest alongside our clients."

Owen Thomas said, "As we accelerate our private equity initiatives, our private equity team will utilize the full resources and capabilities of our firm to create industry-leading private equity products for the investors we serve."

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 400 investment professionals around the world and $448 billion in assets under management or supervision as of August 31, 2006. These entities offer investment management services to a diverse client base, which includes governments, institutions, corporations and individuals.

About Morgan Stanley

Morgan Stanley (NYSE: MS) 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.