Walid Chammah Named As Head of Investment Banking at Morgan Stanley; Jerker Johansson, Neal Shear Named Co-Heads of Institutional Sales and Trading

-- Jon Anda and Franck Petitgas Named Co-Heads of Global Capital Markets

-- Organizational Changes Made To Enhance Integration of Institutional Businesses and Delivery of Broad Range of Capabilities to Key Clients

Morgan Stanley (NYSE:MWD) today announced new leadership roles inInstitutional Securities, its largest business. These changes include:

-- Walid Chammah, 51, will become Head of Investment Banking, with global responsibility for Morgan Stanley's corporate advisory, underwriting and principal activities businesses. Mr. Chammah was previously Head of Global Capital Markets, an integrated client solution group. Mr. Chammah will also join the Firm's Management Committee.

-- Jerker Johansson, 49, Head of the Institutional Equities Division, and Neal Shear, 51, Head of the Fixed Income Division, will retain their current roles and also be Co-Heads of Institutional Sales and Trading, a new position with joint management responsibility for the Institutional Equities and Fixed Income divisions, created to enhance the integration of those businesses.

-- Jon Anda, 48, and Franck Petitgas, 44, will become Co-Heads of Global Capital Markets. Mr. Anda was formerly Managing Director and Global Head of Corporate Finance while Mr. Petitgas was Managing Director and Head of Morgan Stanley's Global Capital Markets activities in Europe.

Messrs. Chammah, Johansson and Shear will report to Zoe Cruz,Morgan Stanley's Acting President. Mr. Anda and Mr. Petitgas willreport jointly to Investment Banking and Institutional Sales andTrading, with a focus on providing a comprehensive solution to ourclients.

The company said that Cordell Spencer, 42, and Mike Uva, 47, whohad been named Co-Heads of Investment Banking in April 2005 would takeon new responsibilities within the Investment Banking Division. Mr.Uva will assume a senior coverage role from his base in London,working with many of the Firm's most important clients, while Mr.Spencer will play a major role as Deputy Head of Investment Banking.Mr. Spencer will continue to serve on the Firm's Management Committeeand will report to Walid Chammah.

The Firm said it was creating the new position for Mr. Johanssonand Mr. Shear to enhance the integration of Morgan Stanley'sinstitutional businesses and improve the delivery of a broad range ofcapabilities to key clients worldwide. The company said that, asCo-Heads of Institutional Sales and Trading under the new structure,Mr. Johansson and Mr. Shear will maintain distinct equity and fixedincome operations. At the same time, they will work to combine thosemanagement functions and trading activities that will help driverevenue growth while providing greater efficiency and the use of bestpractices across the two divisions. Their immediate priority will beto increase new business growth through expanded offerings across arange of equity and fixed income products. Improved integration willprovide opportunities for cost reductions by streamlining operationsand eliminating duplicative or overlapping functions. Mr. Anda and Mr.Petitgas will continue the integration of the Global Capital Marketsbusiness and will work to strengthen the business' role as a bridgebetween Morgan Stanley's investment banking and sales and tradingbusinesses.

John J. Mack, chairman and chief executive officer, said, "We aremoving on all fronts to strengthen Morgan Stanley's leadership teamand create the optimum structure for continued success. Today'smanagement and organizational changes are key steps in that process.Walid Chammah has great integrity, a tremendous work ethic and istotally dedicated to the best interests of his clients and MorganStanley. We have the strongest and deepest investment banking team inthe industry, a position reflected by our leading position in numerousproducts. Walid is the ideal individual to lead our investment bankingbusiness and reinforce our strong competitive position worldwide.

"Jerker Johansson and Neal Shear have displayed outstandingleadership qualities and have mutually supported the growth of ourInstitutional Equities and Fixed Income Divisions. They will now worktogether even more closely to provide an integrated approach to clientservice. Jon Anda and Franck Petitgas have each proven themselves tobe leaders in creating innovative financing solutions for clientsaround the world, and they are superbly qualified to continue thegrowth of an integrated, efficient Global Capital Markets business.Cory Spencer and Mike Uva have made significant leadershipcontributions to Morgan Stanley and will continue to do so in theirnew assignments," Mr. Mack added.

Ms. Cruz said, "We are extremely pleased to announce theappointments of such strong leaders to key positions in InstitutionalSecurities. Walid leads by example and creates strong, client-focusedteams that build cohesive client relationships. Jerker and Neal willmaximize our potential to grow new business, particularly by workingmore closely with clients on multi-asset class opportunities. Thecollaborative structure will also let us manage our cost basis moreefficiently, by achieving operating efficiencies derived fromeliminating overlap and streamlining technology platforms. Jon Andaand Franck Petitgas bring to their roles complementary andcomprehensive expertise to help Global Capital Markets broaden itsrange of solutions for corporate finance and capital structure issues.The leadership and experience that all of these individuals bring totheir new roles is a testament to the depth of talent we have atMorgan Stanley," Ms. Cruz added.

Walid Chammah

Walid Chammah joined Morgan Stanley in 1993 as head of U.S. DebtCapital Markets. In 1996, he was promoted to worldwide Head of DebtCapital Markets Services. In 2001, Mr. Chammah's responsibilities wereextended to include Worldwide Leveraged Finance. Before joining MorganStanley, he was a managing director of CS First Boston, responsiblefor U.S. Taxable Fixed Income Capital Markets and Structured FinanceGroups. He had previously been a senior vice president with BlythEastman PaineWebber, responsible for liability management swaps. Anative of Lebanon, he graduated from the American University of Beirutand received a Masters Degree in International Management fromAmerican Graduate School of International Management.

Jerker Johansson

Jerker Johansson joined Morgan Stanley in 1985 as a SummerAssociate in Equity Capital Markets and was elected Managing Directorin 1995. In 1997, he became Chief Operating Officer of theInstitutional Equity Division based in Europe. In January 2002, hebecame Head of European Equities. He received a master's degree inEconomics from the Stockholm School of Economics and earned an MBAfrom the Stanford University Graduate School of Business in 1986.

Neal Shear

Neal Shear, formerly Managing Director and Head of Fixed Income,was also a Managing Director in charge of worldwide commodity trading.He started his career in trading in 1979 at J Aron and Co., joiningMorgan Stanley in 1982. Mr. Shear received his B.S. from theUniversity of Maryland and his MBA from Cornell University.

Jon Anda

Jon A. Anda joined Morgan Stanley in 1986 and was most recentlyManaging Director and Head of Corporate Finance in the Americas,encompassing the Firm's generalist investment banking practice andregional offices. From 1999 to 2003, Jon was Global Head of EquityCapital markets and Co-Head of Global Capital Markets after the Firm'sdebt and equity issuance businesses merged in 2002. He joined MorganStanley in 1986 and worked in Equity Capital Markets in New York andin Corporate Finance in Chicago. He was Head of Global EquitySyndicate in New York. He moved to Hong Kong in 1995 and headed boththe Asian Institutional Equity and Asian Investment Banking Divisionsduring his four years in the region. Before joining Morgan Stanley,Mr. Anda spent six years in the Capital Markets Group at ContinentalIllinois Bank. He graduated from the University of Illinois in 1979and received a Master of Management in Finance from NorthwesternUniversity's Kellogg Graduate School of Management in 1980.

Franck Petitgas

Franck Petitgas was most recently Managing Director and Head ofMorgan Stanley's Global Capital Markets activities in Europe, withresponsibility for the origination, execution and pricing of MorganStanley's European equity and convertible new issue business. Hejoined Morgan Stanley in 1993 from S.G. Warburg, where he had workedboth in London and New York in the areas of equity capital markets andcorporate finance. He earned a Master's Degree from Ecole Superieurede Commerce de Paris.

Cordell Spencer

Prior to his recent appointment as Co-Head of Investment Banking,Mr. Spencer held a variety of positions within corporate finance andM&A at Morgan Stanley. He joined Morgan Stanley's Corporate FinanceDepartment in 1985. After receiving an MBA from Harvard BusinessSchool in 1989, he returned to the Firm's Corporate Finance Departmentand joined the M&A department in 1991. He was named a ManagingDirector in 1998. He served as Operations Officer for the Mergers andAcquisitions Department from 1994 to 1997. He founded the East CoastTechnology M&A practice in 1996. He became Deputy Head of InvestmentBanking in 2002.

Mike Uva

Prior to his recent appointment as Co-Head of Investment Banking,Mr. Uva was Head of Investment Banking for Europe and Global Co-Headof the Corporate Finance Department. He joined Morgan Stanley'sCorporate Finance Department in New York in 1985 and was named aManaging Director in 1995. Mr. Uva moved to London in 1987, where hewas responsible for establishing the firm's European technology,telecom and healthcare practices. Under his leadership, Morgan Stanleyhas cemented its position as a dominant player in Europe with leadingmarket positions across product areas.

About Morgan Stanley

Morgan Stanley is a global financial services firm and a marketleader in securities, investment management, and credit services. Withmore than 600 offices in 28 countries, Morgan Stanley connects people,ideas and capital to help clients achieve their financial aspirations.