Morgan Stanley to Contribute More Than $1 Million to People and Communities Affected by Hurricane Katrina

NB: On September 6, 2005, Morgan Stanley raised its dollar-for-dollar matching to $1 million from $500,000 due to strong employee response to its initial fundraising program.

New York —

Morgan Stanley (NYSE: MWD) today announced that, in response to the increasing toll of Hurricane Katrina, the Company will allocate more than $1 million in support for the victims of the disaster.

Morgan Stanley has established an employee matching program to benefit the American Red Cross that will provide a dollar-for-dollar match of up to $500,000 for all employee donations to Red Cross relief efforts. This program is in addition to the Firm's ongoing $250,000 per year commitment to the Red Cross.

Further, the Firm's Discover Financial Services unit has committed significant support for Cardmembers, merchants and others directly affected by the disaster. The company is offering Cardmembers affected by the hurricane assistance that includes payment relief, emergency replacement cards, emergency PIN numbers and other special services. Affected Cardmembers are urged to call 1-800-DISCOVER for assistance. Discover also will rebate all merchant fees associated with disaster relief contributions to the Red Cross made with Discover Cards. Additionally, Discover Cardmembers can donate their Cashback Bonus® directly to the Red Cross through the Discovercard.com website or by calling 1-800-DISCOVER. Discover Card will add 20% to each Cashback Bonus contribution.

John J. Mack, Chairman and Chief Executive Officer said, "All of us at Morgan Stanley are deeply affected by the devastation and human suffering caused by Hurricane Katrina. We are working closely with our clients and partners, including our Discover Cardmembers and merchants, to provide any assistance we can in this difficult situation. Our thoughts are with all the people in the storm area, as well as their friends and loved ones."

About Morgan Stanley

Morgan Stanley 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.

About Discover Financial Services

Discover Financial Services LLC, a business unit of Morgan Stanley (NYSE:MWD), operates the Discover Card with more than 50 million Cardmembers, the Discover Network with more than 4 million merchant and cash access locations and the PULSE ATM/Debit network currently serving more than 4,000 banks, credit unions and savings institutions. For more information, visit www.discovercard.com, www.discovernetwork.com or www.pulse-eft.com.