Morgan Stanley Announces Creation of Carbon Bank

Morgan Stanley announced today the creation of the Morgan Stanley
Carbon Bank to assist clients seeking to become carbon neutral. The
new service, which leverages Morgan Stanley's expertise in carbon
trading, is being offered in conjunction with Det Norske Veritas
(DNV), a leading international provider of emissions data
certification. It is the market's first broadly offered service
providing integrated carbon verification and offsetting capabilities
based on the highest recognized international standards.

Commenting on the new service, Simon Greenshields, Managing
Director and Global Head of Power, Power Fuels and Carbon Trading at
Morgan Stanley, said, "We are pleased to offer clients a transparent
and credible way to verify and offset greenhouse gas emissions by
leveraging the expertise of two firms with a wealth of experience in
the carbon market. Many companies have begun seeking ways to reduce
their direct greenhouse gas emissions; our new service will help them
more easily and reliably take the next step to achieve a zero carbon
footprint. This is the first service we have seen giving clients a
single source for everything from certifying emissions to buying and
cancelling carbon credits, all in accordance with the highest
international standards."

Luc Larmuseau, Global Director of Climate Change Services at DNV,
said, "Our highly trained professionals have provided expertise in
greenhouse gas verification and certification to a wide variety of
companies, governments and international organizations worldwide. We
serve companies across the carbon market, from checking the number of
emission reductions delivered by projects under the Kyoto Protocol to
verifying companies' annual greenhouse gas emissions under mandatory
emissions trading programmes. We are pleased to build on those
capabilities by now partnering with Morgan Stanley, which has been an
important leader in the carbon markets, to offer companies an
innovative way to reduce their carbon footprint through a single,
one-stop service."

David Yarnold, Executive Vice President, Environmental Defense,
said, "Today's announcement reinforces the need for market-based
solutions to meet the challenge of climate change. Although the
regulated carbon market is based on environmentally effective and
standardized procedures, it has been difficult for companies to find a
high-quality, standards-based service to offset their emissions in the
voluntary market. By offering this new service to companies in the
voluntary carbon market, Morgan Stanley is not only helping to meet a
growing need for many companies, it also is supporting a significant,
credible and responsible expansion of the carbon market itself."

Morgan Stanley-DNV Partnership Provides End-to-End Offsetting
Service for Clients

Under the new service, clients will compile their emissions
inventory and calculate their carbon footprint by applying the
monitoring standards of the Greenhouse Gas Protocol Initiative, which
has provided the accounting framework for many mandatory greenhouse
gas programs across the world, including the EU Emissions Trading
Scheme. DNV will then verify these emissions inventories and
calculated carbon footprints. Carbon quantification, monitoring and
verification will be conducted consistent with ISO 14064 standards.
Morgan Stanley's Commodities Group will procure and cancel carbon
credits equivalent to a client's verified carbon footprint. Clients
will be able to select their preferred sources of carbon credits,
although all carbon credits will be generated according to the
standards of the Kyoto Protocol. Carbon credits will be procured from
various sources including from Morgan Stanley's own direct investments
in emission reductions as well as those of MGM International, one of
the carbon market's largest developers of emission reduction projects.
Morgan Stanley last year acquired a 38 percent stake in MGM.

Clients utilizing the service of the Morgan Stanley Carbon Bank
will receive a "carbon zero" certificate from Morgan Stanley and DNV.

For businesses interested in further information about the
Voluntary Offsetting Service please contact the following:

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London:
Olivia Hartridge, +44 20 7677-9936, Olivia.Hartridge@morganstanley.com

New York:
Lewis Nash, +1 914 225-1460, Lewis.Nash@morganstanley.com

Singapore:
Emile Abdurahman, +65 6834-6920, Emile.Abdurahman@morganstanley.com
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All media inquiries should be directed to the media relations
contact listed at the bottom of this press release.

Morgan Stanley's Commitment to the Environment

As part of Morgan Stanley's commitment to advancing sustainable
global development, the Firm has done extensive energy efficiency and
greenhouse gas reductions to date, including committing to reduce
greenhouse gas emissions by 7-10 percent below 2006 levels by 2012
through new green buildings and additional energy use improvements.
Morgan Stanley is committed to being globally carbon neutral by 2008
by offsetting the greenhouse gases emitted from its worldwide offices
and employee business travel through the purchase of carbon credits,
which meet the standards of the Kyoto Protocol.

Morgan Stanley also believes markets must play a critical role in
addressing the various challenges facing the environment. To that end,
the Firm actively engages with clients, regulators and policy makers
to establish and enhance strong and well-structured global markets for
environmental commodities. The members of the Firm's carbon trading
team, through the diversity of their career experiences, have been
involved in designing, implementing and trading in the carbon market
from its very beginning. Building on that leadership, in October 2006,
Morgan Stanley announced plans to invest approximately $3 billion in
initiatives related to greenhouse gas emission reductions over the
next five years.

For further information about Morgan Stanley and its commitment to
the environment, please visit www.morganstanley.com.

Morgan Stanley (NYSE: MS) is a leading global financial services
firm providing a wide range of investment banking, securities,
investment management and wealth management services. 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, please visit
www.morganstanley.com.

Established in 1864, DNV is a global provider of risk-management
services. With 7,400 employees in 300 offices in 100 countries, DNV is
one of the world's leading certification bodies/registrars offering
the latest in certification services. With more than 65,000
certificates issued worldwide, the DNV name evokes a strong commitment
to safety, quality, and concern for the environment. DNV has
specialized in delivering independent, third-party services for
climate change activities, and has over the last eight years been
engaged in a wide range of diverse validation, verification, and
certification activities.

DNV has been a member of the World Business Council for
Sustainable Development (WBCSD) since 1999 and is a signatory to the
Global Compact. With its objective of safeguarding life, property and
the environment, DNV is committed to its clients' work towards
sustainable products and systems, offering a wide range of services
under the Corporate Social Responsibility (CSR) umbrella. In addition
to these external services, DNV's own CSR performance is a corporate
priority area. As part of DNV's CSR efforts, a partnership has been
established with the Red Cross, which was chosen as partner in a
corporate web-based poll among DNV employees worldwide, providing
financial support as well as cross-fertilization of ideas to address
complex problems. For further information about DNV please visit
www.dnv.com.