Owen D. Thomas Named President of Morgan Stanley Investment Management

-- Thomas Was Strongest Candidate Based on His Past Track Record of Growing Businesses, Progress He's Already Made Implementing Asset Management Growth Strategy, and Enthusiastic Support He Received from Division's Employees

-- John Carrafiell and Jay Mantz To Become Co-Heads of Morgan Stanley Real Estate

Morgan Stanley (NYSE:MWD) announced today that Owen D. Thomas, 44,who has been serving as Acting President of Morgan Stanley InvestmentManagement since September 2005, has been named President of thedivision. He will report to Zoe Cruz, Morgan Stanley's ActingPresident.

John J. Mack, Chairman and Chief Executive Officer of MorganStanley, said, "As interim head of asset management, Owen has in ashort period of time provided strong leadership for the business, madeimportant progress in beginning to implement the changes necessary toimprove growth, and earned the enthusiastic support of the division'semployees. Morgan Stanley is firmly committed to the asset managementbusiness, and we have outlined a clear strategy to capitalize on thesignificant growth opportunities it offers. As we evaluated candidatesto implement that strategy, it became very clear that Owen was thestrongest candidate to lead our asset management business forward. Heknows how to build and lead talented teams; he has tremendouscredibility in the marketplace; he understands the importance ofinvestment excellence to driving growth; and he has a proven trackrecord of success, having built and led a world-class real-estatefranchise."

Ms. Cruz said, "Since Owen became acting president of assetmanagement in September, he has attracted key talent to the businessfrom inside and outside the Firm, improved the internal partnershipculture to better serve our clients, and increased accountability forresults. We have seen strong support within the division for Owen'sstrategic thinking and his ability to implement decisions. His trackrecord at Morgan Stanley Real Estate, where he dramatically increasedrevenue, marketshare and assets under management and supervised thedevelopment of innovative new product offerings, along with hisprogress to date in investment management, make it clear that Owen isthe right person to help us pursue our strategy for growth in theasset management business."

As interim head of investment management during the past threemonths, Mr. Thomas has initiated a number of changes that mark thebeginning of an ongoing initiative to better capitalize on growthopportunities, including those in alternative investments and othernew products, as well as growth opportunities outside the U.S. Thechanges he has made so far include creating a new organizationalstructure to improve accountability for results, speed decision-makingand establish a dedicated alternative investments group. Mr. Thomasalso has attracted new talent from inside and outside the Firm, seedednew investment products in alternatives and other areas, and movedfunctions such as product development closer to investors.

Mr. Thomas, who joined Morgan Stanley in 1987, for the past fiveyears led Morgan Stanley Real Estate, the Firm's industry-leading realestate financial services franchise. Mr. Thomas and his team haveincreased revenues more than two-and-a-half fold since 1999. Since Mr.Thomas first assumed responsibility for the real estate investingbusiness in 1994, Morgan Stanley Real Estate's assets under managementhave grown from $2 billion to more than $30 billion today. The Firmsaid that John Carrafiell and Jay Mantz will succeed Mr. Thomas asCo-Heads of Morgan Stanley Real Estate. Mr. Carrafiell formerly headedthe Firm's real estate franchise in Europe, and Mr. Mantz formerly ledthe real estate investing business globally. Mr. Thomas will beChairman of Morgan Stanley Real Estate. In that role, Mr. Thomas willnot be involved in the day-to-day management of the real estatebusiness. He will be available to work with select clients andinvestors to the extent permitted by his primary role as President ofAsset Management.

Mr. Thomas said, "Over the last three months, I've greatly enjoyedthe opportunity to work with the talented people in Morgan Stanley'sasset management business. This franchise has tremendous potentialand, over the past three months, the organization has begun to make aseries of changes to realize that potential and build a world-classasset management franchise. In our real estate business, we haveachieved an industry-leading position through the efforts of andleadership provided by the partners in the business. John Carrafielland Jay Mantz have been key members of that partnership and criticalto its success. Their new roles as co-heads of the group are a naturalnext step for them and the group, and I am confident that MorganStanley Real Estate will continue to achieve new levels of success."

Owen D. Thomas

Mr. Thomas was named Acting President of Morgan Stanley InvestmentManagement in September 2005. As Acting President, he has undertaken athorough review of the investment management business and initiatedchanges designed to sharpen the focus on growth while improvinginternal coordination and increasing accountability for results.

Since 2000, Mr. Thomas has served as Head of Morgan Stanley RealEstate, the Firm's industry-leading real estate financial servicesfranchise. Morgan Stanley Real Estate is one of the largest globalreal estate investment management businesses as well as a leader inmergers and acquisitions, restructuring and recapitalization, publicand private debt and equity underwriting and mortgage financing.

Mr. Thomas first joined Morgan Stanley in 1987. He began managingthe real estate investing business in 1994, was named ManagingDirector in 1995 and was appointed Head of Morgan Stanley Real Estatein 2000. He is a Trustee of the Urban Land Institute, Vice Chairman ofthe Pension Real Estate Association and a member of the Real EstateRoundtable. He received a bachelor's degree from the University ofVirginia and an MBA from Harvard Business School.

John Carrafiell

John Carrafiell has served as the Head of Morgan Stanley'sEuropean Real Estate Group since 1995 and, since 1999, has been aManaging Director of the Firm and a Member of the European InvestmentBanking Division Operating Committee, which is responsible for themanagement of the Firm's Investment Banking business in Europe. Mr.Carrafiell has been at Morgan Stanley for nearly 19 years. He joinedthe New York office in 1987, moved to the Firm's London office in1989, and initiated the Morgan Stanley Real Estate Funds' (MSREF)European investment program in 1994 as Director of Acquisitions(Europe).

He is a Trustee of the Urban Land Institute, a director of theManagement Board of the European Public Real Estate Association (EPRA)and a director of several Morgan Stanley private equity investmententities including Canary Wharf. He graduated with a BA from YaleUniversity in 1987.

Jay Mantz

Jay Mantz is a Managing Director of Morgan Stanley and has servedas Head of the Morgan Stanley Real Estate Investing Group. Over thelast six years, Mr. Mantz has been responsible for the globalinvestment activities of Morgan Stanley Real Estate's principalbusiness, including the Morgan Stanley Real Estate Funds and otherinstitutional accounts and proprietary funds managed by MorganStanley.

Mr. Mantz graduated from Boston University in 1986 and received anMBA in 1990 from the Wharton School of the University of Pennsylvania.He joined Morgan Stanley in 1993, in the New York office of MorganStanley Realty, and moved to London in 1996, as Head of the MorganStanley Real Estate Funds in Europe.

Morgan Stanley Investment Management

Morgan Stanley Investment Management, with $428 billion in assetsunder management and more than 400 investment professionals around theworld, is one of the 20 largest businesses in the highly fragmentedglobal investment management industry. The division, which serves bothinstitutional and individual clients, contributed more than 12 percentof Morgan Stanley's profit before taxes in 2004, up from more than 8percent in 2003.

The division has three distinct sets of clients:

-- Institutional clients, including 401(k)/defined contribution plans, endowments, foundations, pension funds, corporations, governments, and high-net-worth individuals;

-- Individual investors who own Morgan Stanley funds managed by Morgan Stanley Investment Advisors; and

-- Investors who make investments through other brokerage firms, banks and financial planners via Van Kampen Investments, a wholly owned subsidiary.

As of August 31, 2005, assets under management or supervisionincluded $227 billion in institutional assets and $201 billion inretail assets.

Morgan Stanley Real Estate

Morgan Stanley Real Estate is comprised of three major globalbusinesses: Investing, Banking, and Lending. Since 1991, MorganStanley has acquired $73.1 billion of real estate assets worldwide andcurrently has approximately $30.0 billion in real estate assets onbehalf of its clients. Using its own capital, Morgan Stanley alsooriginates upwards of $24 billion in commercial mortgages annually. Inaddition, Morgan Stanley Real Estate provides a complete range ofinvestment banking services including merger, acquisition andrestructuring advisory and recapitalizations, as well as public andprivate debt and equity financing. Morgan Stanley established its realestate organization in 1969.

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.