Contact: Media Relations
Jeanmarie McFadden

Jennifer Sala

Mika Watanabe

212 762 6901

212 762 6885

+81 3 5424 5019

For Immediate Release

Morgan Stanley Announces Plan to Pursue Global Strategic Alliancewith Mitsubishi UFJ Financial GroupNEW YORK, September 22, 2008 – Morgan Stanley today announced that it has entered into a
letter of intent to pursue a strategic alliance with Mitsubishi UFJ Financial Group, Inc.
(“MUFG”), Japan’s largest banking group and the world’s second largest bank holding company
with $1.1 trillion in bank deposits.
The letter of intent relates to an investment in Morgan Stanley that would eventually reach 20
percent of its equity on a fully diluted basis. The investment would be based on Morgan Stanley’sbook value as agreed upon completion of satisfactory due diligence. Upon the closing, arepresentative of MUFG will join the Morgan Stanley board.
In addition to further strengthening the Firm’s capital position, this alliance would benefit Morgan
Stanley and MUFG by providing each with a valuable strategic partner as it seeks to enhance its
global footprint and capture financial services opportunities around the world. Morgan Stanley
was granted approval yesterday by the U.S. Federal Reserve Board of Governors to become aFederal Bank Holding Company.
John J. Mack, Morgan Stanley’s Chairman and Chief Executive Officer, said, “This strategic
alliance with Mitsubishi UFJ can put Morgan Stanley in an even stronger position as we look torealize the opportunities we see in the rapidly changing financial marketplace. As one of thelargest commercial banks in the world, Mitsubishi UFJ would be a valuable partner as wetransition to a bank holding company and build our bank services and deposit base. This alliancealso would build on Morgan Stanley’s deep ties and market leadership in Japan and throughout
Asia, and help us to continue growing our business in this critically important region. We would
be honored to welcome a distinguished bank like Mitsubishi UFJ as a long-term investor andstrategic partner of Morgan Stanley, and we would look forward to working closely with them tostrengthen both of our businesses.”
The letter of intent is nonbinding and subject to definitive documentation and due diligence. Theclosing of the transaction would be subject to regulatory approvals and other customaryconditions.

The Company’s common stock to be sold in the proposed private placement transaction will not at
the time of issuance be registered under the Securities Act of 1933, as amended, and may not beoffered or sold in the United States absent registration with the Securities and Exchange
Commission or an applicable exemption from the registration requirements.
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range ofinvestment banking, securities, investment management and wealth management services. The
Firm's employees serve clients worldwide including corporations, governments, institutions andindividuals from more than 600 offices in 35 countries. For further information about Morgan
Stanley, please visit www.morganstanley.com.
The information above contains forward-looking statements. Readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as of the date on which they are
made and which reflect management's current estimates, projections, expectations or beliefs andwhich are subject to risks and uncertainties that may cause actual results to differ materially. TheCompany’s actual results or performance may differ materially from those suggested, expressedor implied by forward-looking statements due to a wide range of factors including, but not limited
to, the general business environment, regulatory actions or changes, and the risk that the proposed
private placement transaction is not successfully completed. For a discussion of additional risks
and uncertainties that may affect the future results of the Company, please see “Forward-LookingStatements” immediately preceding Part I, Item 1, “Competition” and “Regulation” in Part I, Item
1, “Risk Factors” in Part I, Item 1A, “Legal Proceedings” in Part I, Item 3, “Management’sDiscussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and“Quantitative and Qualitative Disclosures about Market Risk” in Part II, Item 7A of theCompany's Annual Report on Form 10-K for the fiscal year ended November 30, 2007 and“Management's Discussion and Analysis of Financial Condition and Results of Operations” and“Risk Factors” in the Company's Quarterly Reports on Forms 10-Q and other items throughoutthe Form 10-K, Forms 10-Q and the Company's 2008 Current Reports on Form 8-K.

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