Paul Schapira to Join Morgan Stanley

London —

Morgan Stanley today announced the appointment of Paul Schapira as a Managing Director in its Investment Banking Division, with effect from October 2006.

In his new position as a senior banker he will be covering clients in Italy and providing increased leadership to our effort in that market. He will also focus on further strengthening Morgan Stanley's relationships with select clients in the Energy sector across Europe.

Mr. Schapira, aged 42, brings 20 years of investment banking experience to his new role. He joins Morgan Stanley from Goldman Sachs where he spent the last 17 years, most recently as Head of the European Natural Resources Group. He previously ran the European Consumer and Retail Group and held senior roles in European Equity Capital Markets and in Asian investment banking.

Commenting on the appointment, Franck Petitgas, Head of European Investment Banking, said, "We are very pleased that Paul is joining Morgan Stanley. His considerable experience, strong relationships and diverse range of skills will complement our established Italian investment banking and European Energy franchise. He will be a great addition to Morgan Stanley."

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.

Note to Editors:

Paul Schapira

An Italian national, Paul holds a degree in economics from Columbia University and an MBA from INSEAD. He began his career as an equity trader and portfolio manager with Euromobiliare in Italy before joining Goldman Sachs in 1989. He worked in Italy for the first half of his career there. He then covered a variety of international positions in New York, Hong Kong and London: initially in corporate finance then in equity capital markets, before becoming Head of the European Consumer and Retail Group. Since 2002 he has been Head of Goldman Sachs' European Natural Resources Group.