Morgan Stanley

Morgan Stanley Private Equity Asia Makes First Investment in Taiwan

May 25, 2006

Taipei —

Morgan Stanley Private Equity Asia ("MSPEA") today announced the acquisition of a 19.9% stake in CTCI Corporation, Taiwan's leading engineering, procurement and construction firm.

Investing in Asia since 1993, MSPEA has been an active private equity investor in China, Korea and Singapore with more than US$650 million invested in companies with proven business models and strong value propositions. The investment in CTCI marks the first investment in Taiwan by MSPEA.

"We are very pleased to have the opportunity to invest in CTCI. The company has a very proud and excellent heritage, and has developed an enviable track record, in both Taiwan, where it is clearly the national leader, as well as the international markets. We look forward to working closely with CTCI Chairman, John Yu, and the rest of the management team, and to leveraging the global resources of Morgan Stanley to assist the company in its growth plans," said Chin Chou, Managing Director and Head of Morgan Stanley Private Equity Asia.

"This investment further demonstrates Morgan Stanley's confidence in Taiwan. It reflects our belief that the fundamentals of the local economy are strong and that Taiwan presents an extremely compelling investment environment for our businesses," said Susan Lin, Morgan Stanley's Taiwan CEO. "We are delighted to have concluded this transaction and will continue to look for other investment opportunities in Taiwan."

John Yu, Chairman of CTCI, said he is truly excited about the new partnership with Morgan Stanley. "With MSPEA as our shareholder, we will be able to utilize their global expertise and franchise to create real value for the company and our shareholders. This is particularly relevant today, as the prospects of our industry are very favorable throughout Asia and the Middle East," he added.

CTCI Corporation is the largest engineering, procurement and construction company in Taiwan, and is among the largest in Asia. The Company has a strong market position in Taiwan and has played a key role in the design and construction of many of the Taiwan's largest and most complex petrochemical, power and transportation projects. Over the past several years, the Company has leveraged its industry expertise and over 3,500 highly qualified staff to expand in key international growth markets including China, Southeast Asia and the Middle East.

The Company is currently enjoying a strong end market demand, triggered by the build-out of critical infrastructure in China and elsewhere, increasing hydrocarbon infrastructure requirements in oil and gas producing markets in the Middle East and Southeast Asia, as well as the industry-wide capacity constraints.

Morgan Stanley Private Equity Asia is one of the leading private equity investors in Asia Pacific, having invested in the region for over 12 years and having developed one of the leading investment track-records over an extended period of time. The group has made a number of investments in businesses throughout Asia, including eAccess Ltd (Japan), Hengan International (China), HTL International (Singapore), Jinbang Steel (Korea), Landmark ITMC (Korea), Belle International (China), Ssangyong Corporation (Korea), Mengniu Dairy (China), Nanfu Battery (China), Paradise Retail (China) and Ping An Insurance (China).

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 30 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.