Edward A. Brennan, John W. Madigan and Miles L. Marsh to Step Down from Morgan Stanley Board of Directors

Speaking for all three directors, Miles Marsh said, "A successfultransition to new management is now complete, the activities of 2005are drawing to a close, and Morgan Stanley has elected fouroutstanding new directors in the last several months. We have beenprivileged to serve on the Board and think this is an appropriate timefor us to step aside. We commend John Mack for his leadership and theclear strategic priorities he has established, and wish him and hisstrong management team continued success in the future."

John J. Mack, Chairman and Chief Executive Officer, said, "EdBrennan, John Madigan and Miles Marsh brought many years ofoutstanding corporate experience to their roles as Board members. Iespecially appreciate the leadership that Miles Marsh provided MorganStanley as Lead Director of the Board. He helped to guide the Firmthrough a challenging period, and I am grateful for the counsel andsupport that he provided upon my return to the Firm. Ed, John andMiles all demonstrated tremendous commitment throughout their serviceas Director, and Ed, in particular, provided many years of servicefirst to the Dean Witter board and then the Board of the combinedcompany. The entire Morgan Stanley Board of Directors joins me inthanking Ed, John and Miles for their service and their contributionsto the Firm."

Since June 2005, the Board of Directors has been substantiallyreshaped through the resignation of nine directors (three managementdirectors and six independent directors, including those whoseresignations were announced today) and the election of five newdirectors. With the resignations of Mr. Brennan, Mr. Madigan and Mr.Marsh, the Board will have nine directors, including seven independentdirectors.

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