Morgan Stanley Investment Management Hires Michael Feldschuh as Portfolio Manager, Morgan Stanley Alternative Investments

Feldschuh and team to run process-driven strategies

New York —

Morgan Stanley (NYSE: MS) announced today that its Investment Management division (MSIM) has hired Michael Feldschuh as Managing Director and Portfolio Manager, along with his team of statisticians and computer scientists, to run process-driven strategies for Morgan Stanley as part of the firm's effort to build its Alternative Investments business.

"We have exciting strategic goals for our alternatives group in 2006, and these appointments represent a significant step forward in its ongoing development," said Yie-Hsin Hung, Managing Director, and Head of Alternative Investment's Absolute Return Strategies Group. "Michael and his team have excellent analytical skills and strong investment experience, and we are pleased they have joined our team."

Feldschuh joins Morgan Stanley from Millennium Partners, New York, where he was a managing director, portfolio manager from 1997-2005. There he was responsible for creating and managing multi-country, process-driven strategies for non-U.S. markets. Prior to joining Millennium, Feldschuh was a proprietary trader in the Equity Division of Morgan Stanley & Co. from 1994-1997. While in that role, Feldschuh developed and traded process-driven strategies for several world markets. Prior to that Feldschuh was with D.E. Shaw & Co., in New York and London, as a proprietary trader, Japanese Equity, from 1992-1994.

"Continuing to expand the investment strategies we offer clients is one part of our plan to strengthen and grow our asset management business," said Owen Thomas, MSIM President and Chief Operating Officer. "Another part is maintaining our strong focus on investment excellence, and I believe Michael and his team will make key contributions to each."

Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 400 investment professionals around the world and more than $431 billion in assets under management or supervision as of November 30, 2005. These entities offer investment management services to a diverse client base, which includes governments, institutions, corporations and individuals.

Morgan Stanley (NYSE:MS) 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.

Note to Editors:

Morgan Stanley Alternative Investments is a newly formed group comprised of MSIM's alternative investment strategies and businesses. It includes the Senior Loan Group, Alternative Investment Partners (AIP), Absolute Return Strategies Group and Hedge Fund Partners.