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Media Relations

Jeanmarie McFaddenMark Lake

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For Immediate Release

Morgan Stanley Announces Leadership Transition
John J. Mack to Step Down as Chairman and Retire from Firm at Year EndCEO, James P. Gorman was Elected by Board to Additional Position of Chairman in 2012

NEW YORK, September 15, 2011 – Morgan Stanley (NYSE: MS) announced today that John J.
Mack will step down as Chairman and leave the Board as expected at the end of 2011. Mr. Mackalso will retire from a full-time role at Morgan Stanley – and become a senior advisor to the Firm
at that time.

James P. Gorman, President and Chief Executive Officer, was elected by the Board to theadditional position of Chairman, effective January 1, 2012.

Mr. Mack said, “Working with the remarkable people of Morgan Stanley has enriched my life formore than three decades, and helping to lead this great firm, most recently as Chairman, was thegreatest honor of my career. However, I made clear back in 2009 that I would serve in theChairman role for two years and then move on. Now that time has come. I leave knowing thatthe people of Morgan Stanley have accomplished a great deal these last few years – carrying ourcompany and our clients through the most challenging market conditions of our lifetime, whilestaying true to the culture and client-centered values that have long defined the Firm. Today,Morgan Stanley is well positioned for the future and continuing to improve its performance acrossour global franchise. I’m confident that with James’s superb leadership – and the help of the restof our senior team – the Firm will realize even greater success in the years to come.”

CEO and Chairman-elect Gorman commented, “Morgan Stanley would not be the world-classfranchise it is today if not for John Mack's leadership. For more than thirty years, he has helped todefine the Firm’s distinctive culture and build our franchise across the globe. His contributions to
the Firm are innumerable, but none was more critical than the leadership he provided in guiding
Morgan Stanley through a financial crisis that claimed many of our peers. I know my partners
across the Firm join me in thanking John for his counsel, his support and his friendship over manyyears – and for many years to come.”

C. Robert Kidder, Morgan Stanley’s Lead Independent Director, said, “We are grateful foreverything that John has done for Morgan Stanley during his long and successful career on WallStreet. As Chairman and CEO, he sharpened the Firm’s strategic focus, re-invigorated our culture
and strengthened our client franchise. Most profoundly, his foresight in strengthening our balance
sheet and his iron-willed leadership in the face of unprecedented challenges helped Morgan
Stanley continue serving our clients even during the darkest days of the financial crisis. Jameshas built on that leadership position – continuing to strengthen our global platform, attract top
talent and focus on strategic execution across our businesses. So, we are very pleased to nameJames as the Firm’s new Chairman and complete the seamless leadership transition we began twoyears ago.”

Morgan Stanley is a leading global financial services firm providing a wide range of investmentbanking, securities, investment management and wealth management services. The Firm'semployees serve clients worldwide including corporations, governments, institutions andindividuals from more than 1,300 offices in 42 countries. For further information about Morgan
Stanley, please visit www.morganstanley.com.

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