April 17, 2007 -- Morgan Stanley has announced that it will redeem on May 21, 2007 all of its 7 1/4% junior subordinated deferrable interest debentures held by Morgan Stanley Capital Trust II. As a result, the trust will redeem on May 21, 2007, all of the trust's 7 1/4% capital securities (CUSIP 61747N109). There are 32,400,000 capital securities outstanding, having an aggregate liquidation amount of $810,000,000 ($25 liquidation amount per security). The capital securities will be redeemed at a redemption price per security equal to the $25 liquidation amount per security plus accumulated and unpaid distributions to but excluding the redemption date. The Bank of New York, as Property Trustee of the trust, will facilitate the redemption of the capital securities. The capital securities are listed on the New York Stock Exchange under the symbol MWJ.

QUANTUMONLINE.COM SECURITY DESCRIPTION:  Morgan Stanley Capital Trust II, 7 1/4% Capital Securities, liquidation amount $25 per share, guaranteed by Morgan Stanley Dean Witter & Co., now Morgan Stanley (NYSE: MS), redeemable at the issuer's option on or after 7/31/2006 at $25 per share plus accrued and unpaid dividends, maturing 7/31/2031 which may be extended to 7/31/2050, distributions of 7 1/4% ($1.8125) per annum are paid quarterly on 1/31, 4/30, 7/31 & 10/31 to holders of record on the 15th calendar day prior to the payment date (note that the ex-dividend date is at least 2 business days prior to the record date). Dividends paid by trust preferred securities are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. The company has the right, at any time, to defer dividend payments for up to 20 consecutive quarters (but not beyond the maturity date). The trust's assets consist of the 7 1/4% Junior Subordinated Deferrable Interest Debentures due 7/31/2031, and which may be extended to 7/31/2050, which were purchased from the company using the funds generated from the sale of the trust preferred securities. See the IPO prospectus for further information on the trust preferred securities by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Distribution Dates	15% Tax Rate
NYSE Chart	7.25% $1.8125	$25.00 $25.00	Called for 5/21/2007 7/31/2050	A1 A- 12/23/2005	1/31, 4/30, 7/31 & 10/31 Click for MW ExDiv Date Click for Yahoo ExDiv Date	No

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Address:   1585 Broadway, New York, NY 10036
Main Phone Number	212-761-4000
Fax Number	212-761-0086
Investor Contact   William Pike	212-761-0008
Toll Free Phone Number	800-733-2307

CEO - John J. Mack

CFO - David H. Sidwell