Senior Management Changes in Europe

London —

Morgan Stanley today announced that Sir David Walker will retire from his role as Chairman of Morgan Stanley International, effective 31 December 2005, and will be succeeded by Jonathan Chenevix-Trench. In this capacity, Jonathan will have executive responsibility for the Firm's activities in Europe, the Middle East and Africa. He will continue to serve as member of the Firm's Management Committee. Sir David will remain at the Firm as a Senior Advisor.

Commenting on these changes, John J. Mack, Chairman and Chief Executive Officer of Morgan Stanley, said: "The Firm has benefited greatly over many years from Sir David's trademark commitment and focus on clients and employees alike, and we are delighted that we will continue to benefit from his insights and experience. Jonathan brings a wealth of knowledge and diverse range of skills to the role of Chairman, having spent a significant amount of his 21 years at the Firm leading some of our most successful institutional securities businesses, and this experience will prove invaluable as we continue to grow our already strong presence in Europe."

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.

NOTES FOR EDITORS:

Sir David Walker

Sir David was a Managing Director of Morgan Stanley & Co. Incorporated, Chairman of Morgan Stanley International Inc. and Executive Chairman of the Firm's European operations between 1994 and December, 2000. He then became a Senior Advisor to the Firm. In April 2004, he resumed his previous role as Chairman of Morgan Stanley International Limited with executive responsibility for the Firm's activities in Europe, the Middle East and Africa.

Sir David was a board member of the Morgan Stanley Group until the merger with Dean Witter in 1997, a member of the Management Committee of Morgan Stanley Dean Witter and served as a non-executive board member of Reuters between 1994 and 2000. He is UK Chairman of the University of Cambridge 800th Anniversary Campaign, Chairman of Reuters Venture Capital, Vice-Chairman of the Legal and General group, a member of the Group of Thirty and was Chairman of the London Investment Bankers' Association for 3 years until June 2004. He is also British Co-Chairman of the British-Moroccan Business Council.

Prior to joining Morgan Stanley, Sir David spent two years at Lloyds Bank as Deputy Chairman. From 1988 to 1992, he was Chairman of the Securities and Investments Board, the British authority at that time regulating the securities markets and, ex officio, a nominated member of the Council of Lloyd's over the same period. He was Chairman of the International Organisation of Securities Commissions (IOSCO) in 1991-92.

Earlier in his career, Sir David held several key posts over a fifteen-year period at the Bank of England where, in 1981, he became one of four Executive Directors of the Bank. He was a non-executive board member of the former CEGB and subsequently of National Power plc between 1984 and 1994. Sir David began his career in 1961 with the British Treasury, where, except for a period on secondment to the International Monetary Fund in Washington (1969-1973), he served until 1977.

Sir David Walker graduated at Queens' College, Cambridge with a Double First in Economics and became an Honorary Fellow of Queens' in 1989; he was awarded an Honorary LL.D by Exeter University in 2002. He is a trustee of the Cambridge University Development Foundation, of the St. Paul's Cathedral Development Appeal and of the Cicely Saunders Foundation and is Ambassador for the East End charity Community Links.

Jonathan Chenevix-Trench

Jonathan Chenevix-Trench is a Managing Director of Morgan Stanley. Mr. Chenevix-Trench joined Morgan Stanley as an Analyst in 1984, became a Vice President in 1991, a Principal in 1993 and was elected Managing Director in 1995. From 1999 until 2004 Mr Chenevix-Trench ran the European Fixed Income Division and, from 2000 until March 2005, was Head of the Global Interest Rate and Foreign Exchange Group. He is currently Chairman of Morgan Stanley's European Management Committee, and serves on the boards of Morgan Stanley Bank International Limited, Morgan Stanley & Co International Limited, Morgan Stanley International Limited and Morgan Stanley's bank in Russia.

Mr Chenevix-Trench serves on the board of the International Capital Markets Association, and is a member of the Leadership Team of Opportunity Now, a business led campaign to realise the full potential of women in the workforce.

Mr Chenevix-Trench is a Trustee of the Chelsea Physic Garden in London.

Mr. Chenevix-Trench was born in March 1961. He graduated with a BA degree in Classics from Oxford University in 1984.