Contact: Media Relations
Jay Sapsford 81-3-5424-5015
Natsuo Nishio 81-3-5424-5020

For Immediate Release

Morgan Stanley to Adopt Holding Company Structure in Japan; Key Real EstateBusinesses to Be Combined into Morgan Stanley Capital K.K.
TOKYO, October 22, 2007 – U.S. investment bank Morgan Stanley (NYSE: MS) will begin
conducting its businesses in Japan under the oversight of a holding company named Morgan
Stanley Japan Holdings Co., Ltd.
Under the new structure, which will take effect on December 1, 2007, all of Morgan Stanley’s
primary businesses in Japan will be owned by the holding company. Those companies include
Morgan Stanley Japan Securities Co., Ltd., Morgan Stanley Asset & Investment TrustManagement Co., Limited, Panorama Hospitality, K.K. and Jipang Mortgage Finance Co., Ltd.
Also reporting to the holding company will be property asset manager Morgan Stanley Properties
Japan, K.K., which will merge with the real estate investing business and change its name toMorgan Stanley Capital K.K.
“This locally incorporated holding company represents a strengthening of our Firm’s commitment
to Japan,” said John J. Mack, Chairman and CEO of Morgan Stanley. “It will enhance ourposition in a market that is increasingly important to the future of the Firm.”
This development underscores Morgan Stanley’s continued growth in Japan, from two employees
when it established a representative office in Tokyo in 1970, to more than 1,600 employees today.
The structure will strengthen Morgan Stanley’s corporate governance and oversight of its growing
business operations in Japan.
“This will allow us to build upon our record as the premier financial service provider in theJapanese market,” said Jonathan Kindred, President and Representative Director of Morgan
Stanley Japan Securities Co., Ltd. and CEO and Representative Director of the new holdingcompany.
This development also sets the stage for further growth across Morgan Stanley’s broad array ofbusiness in Japan. The new Morgan Stanley Capital corporate entity, for example, will align its
real estate investing teams under the Firm’s Investment Management umbrella, which was part ofa global reorganization announcement earlier in the year. Morgan Stanley Capital will leverage
combined resources, services and best practices to further develop its strong real estate client
relationships and product offerings.
“We are anticipating continued growth in Japan’s real estate market,” said Morgan Stanley
Capital President, CEO and Representative Director Fred Schmidt. “This new structure will
ensure our team will continue to provide our clients and investors with the highest quality service
across all our functions.”1

Outline of New Holding Company in Japan:
Name: Morgan Stanley Japan Holdings Co., Ltd.
CEO and Representative Director: Jonathan Kindred
Location: Yebisu Garden Place Tower, 4-20-3, Ebisu, Shibuya-ku, Tokyo
Outline of Morgan Stanley Capital K.K.:
President, CEO and Representative Director: Fred Schmidt
Location: Yebisu Garden Place Tower, 4-20-3, Ebisu, Shibuya-ku, Tokyo
Morgan Stanley is a leading global financial services firm providing a wide range of investmentbanking, securities, investment management and wealth management. The Firm’s employees
serve clients worldwide including corporations, governments, institutions and individuals from
more than 600 offices in 32 countries. For further information about Morgan Stanley in Japan,
please visit www.morganstanley.co.jp.
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