Morgan Stanley

Morgan Stanley's new plan offers 100% capital protection and 100% participation

Mar 5, 2009

London —

London, 5 March 2009 - Morgan Stanley (NYSE:MS) is set to launch the latest tranche of the FTSE Protected Growth Plan, a six year structured product offering 100% participation in the FTSE® 100 Index and 100% capital protection3.

The Morgan Stanley FTSE Protected Growth Plan 28 ("The Plan") provides investors with 100% of any positive performance of the FTSE®100 Index at maturity. At the end of the third year, there is the opportunity for early exit. If the FTSE index has risen 15% or more, investors receive a fixed 21% return. In both cases, the investment capital is 100% protected, with capital protection provided by securities issued by Morgan Stanley. Morgan Stanley currently has a credit rating of A by Standard and Poor's.

Historically the company's most popular product of this type, the Morgan Stanley FTSE Protected Growth Plan 28 complements the recent launch of the Morgan Stanley FTSE Defensive Gilt-Backed Growth Plan, enabling Morgan Stanley to offer a suite of products covering a range of investor risk profiles. The FTSE Protected Growth Plan 28 provides 100% capital protection whilst the FTSE Defensive Gilt-Backed Growth Plan offers protection against counterparty risk concerns.

The Morgan Stanley FTSE Protected Growth Plan 28 is available for direct investment, SIPP/SSAS investors, ISA investments for 2008/2009 and 2009/2010, transfers of existing ISAs and discretionary investment. The minimum investment is £3,000. The maximum subscription amount is £7,200.

Marc Chamberlain, Morgan Stanley Executive Director, Structured Products, comments:

"The FTSE Protected Growth Plan offers investors a route back into the market with the added benefit of capital protection3. Given the volatility of the markets lately, investors are understandably worried and cautious so it's important that we address these concerns by providing investment solutions that combine realistic returns with investment security."