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Supporting Our Communities Worldwide MORGAN STANLEY 2005 CHARITABLE ANNUAL REPORT

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Supporting OurCommunities Worldwide

M O R G A N S T A N L E Y

2 0 0 5 C H A R I T A B L E A N N U A L R E P O R T

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3 Our Global Commitment

5 Supporting Our Communities Worldwide

6 2005 Disaster Relief

9 Our Global Giving Priorities

10 2005 Regional Highlights

10 United States

20 Europe

24 Asia Pacific

28 Japan

Table of Contents

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Our Global CommitmentThe quality and commitment of Morgan Stanley’s people is exceptional in terms

of both business and charity. For years, our employees have spent time and

money giving back to the communities where they live and work, with the full

support of the Firm.

In 2005, this tradition allowed the Firm to help an unprecedented 1,000

communities around the world. It also let us assist relief efforts for the many

victims of last year’s devastating global natural disasters.

We are very proud of this generosity and compassion. As the Firm enters

our 70th anniversary year, we look forward to an ever-greater ability to make

a positive difference every day to our neighbors worldwide.

John J. MackChairman and Chief Executive Officer

O U R G L O B A L C O M M I T M E N T | 3

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Supporting Our Communities WorldwideMorgan Stanley and its employees contributed

over $49 million to charitable organizations

in 2005—a 40% increase from four years

ago—through Company contributions, our

Foundations and individual gifts.

In addition to the Firm’s four key charitable

priority areas—youth; diversity; arts and

culture; and employee volunteerism—

Morgan Stanley’s contributions this year

supported hurricane and disaster relief around

the world. Services were delivered locally

across the globe, encompassing communities

in the United States (page 10), Europe (page 20),

Asia Pacific (page 24) and Japan (page 28).

Giving ProgramsWe provide support directly from each of our business units, through both our U.S.-based and international foundations, and through theMorgan Stanley Victims Relief Fund, founded in2001. More than 20,000 employees—close to halfour workforce—participated in our 2005 programs,serving 1,000-plus communities worldwide.

2005 Company Giving by Category

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Hurricane ReliefHurricane Katrina Morgan Stanley Matching Gift ProgramTo provide support to Red Cross hurricane reliefefforts, the Firm joined with employees and createdthe Hurricane Katrina Matching Gift Program.Within just three weeks, over 4,700 employeeshelped raise more than $2 million for disaster relief through a dollar-for-dollar Firm match.

These funds benefited the Red Cross’ efforts to provide safe refuge, food, emergency healthcare,mental health counseling and other assistance to more than 3.7 million hurricane survivors.Additionally, Morgan Stanley employees participateddirectly in the effort—coordinating item donations,volunteering at evacuee shelters, organizing local fundraisers and even personally housing Gulf Coast residents.

Discover® CardIn addition to the Matching Gift Program, Discover Financial Services offered a series of initiatives to support Cardmembers in the affectedareas, both directly and indirectly. Through a special Cashback® Bonus rewards program,Discover Cardmembers donated more than $1 million to support hurricane relief efforts. Each Cashback Bonus donation, which supportedthe American Red Cross efforts, also included a 20% match from Discover Financial Services.

Discover itself also committed significant supportfor Cardmembers, merchants and others affected by Hurricanes Katrina and Rita. The companyoffered Cardmembers assistance that included payment relief, emergency replacement cards, emergency PIN numbers and other special services. Finally, all merchant fees associated with Red Cross disaster contributions via the Discover card were rebated, resulting in an additional$465,000 raised for the relief efforts.

Earthquake ReliefOn October 8th, a massive earthquake measuring7.6 on the Richter scale struck South East Asia in a region bordering Pakistan, Northern India and Afghanistan.

Morgan Stanley employees from across the globeresponded—raising, in conjunction with a grantfrom the Morgan Stanley Foundation, $130,000 for CARE to provide aid to the affected region.Many employees also joined together to gatherwinterized tents, clothes, blankets, sleeping bagsand other supplies to donate to the victims—andone of them even traveled to the affected area topersonally deliver over $44,000 worth of supplies.

Last year also saw a devastating earthquake

that took the lives at least of 80,000 and

affected three million more in Afghanistan,

India and Pakistan. In response to these

tragedies, Morgan Stanley and its employees

contributed skills, money and time to

multinational relief efforts.

Natural disasters hit communities hard

worldwide in 2005. The year marked the

worst hurricane season in recorded history.

In August and September, Hurricanes Katrina

and Rita battered the Gulf Coast of the U.S.,

killing more than 1,300 people in five states,

flooding the city of New Orleans and leaving

hundreds of thousands homeless.

2005 Disaster Relief

6 | 2 0 0 5 D I S A S T E R R E L I E F

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Morgan Stanley is dedicated to making a

difference through our core funding areas of

at-risk youth, diversity, arts and culture as

well as employee volunteerism. The pages

that follow describe how Morgan Stanley

is delivering these services in each region

throughout the world.

Y O U T H

Morgan Stanley funds programs geared towards at-risk and diverse children. We concentrate onhelping the youngest and neediest grow healthy,learn and develop critical skills, so that they canachieve their academic and career aspirations.

D I V E R S I T Y

Morgan Stanley regards diversity as an opportunityfor our clients, our people and the Firm as awhole to drive shared success. As a result, the Firmmakes it a priority to support charitable programsthat celebrate diversity and offer access to educationand job training for minorities, women and thephysically disabled. Our projects in this area rangefrom traditional educational programming to cultural sponsorships.

A R T S A N D C U LT U R E

As a Firm that values creativity and innovation,Morgan Stanley has a long history of helping underwrite cultural institutions as well as both performances and events that entertain, educate and introduce the arts to new audiences.

S U P P O R T O F E M P L O Y E E E F F O R T S

Employees are at the core of virtually all of theFirm’s charitable outreach, because heavy and active participation in charitable programs not only benefits our work environment, it also amplifies Morgan Stanley’s efforts to give back to the communities where we live and work.Through extensive grantmaking programs, matching gifts and volunteer encouragement, the Firm recognizes, rewards and encouragesemployee generosity.

Our Global Giving Priorities

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Children’s Hospital in Chicago, Texas Children’sHospital in Houston and Harbor-UCLA MedicalCenter. These specialty operations target familieswith children suffering from medical complicationsassociated with malnourishment, primarily due to poverty. The goal of the Grow Clinics is to allow such children the healthy start they need as a foundation for consistent and meaningfulachievement in life. Through our grants, totalingmore than $640,000, more than 2,000 familieswill receive direct assistance.

Providing Scholarships In 2005, nearly 400 students received supportthrough The Discover® Card Tribute Award®

Scholarship Program, a unique initiative for high school juniors that rewards well-rounded students by recognizing outstanding achievementsin a broader range of areas than just academics.Since 1991, the program, which makes up to $1 million available for annual scholarships in any post-secondary field of study, has providedmore than $13 million to help nearly 6,000 students achieve their career dreams.

Developing Education LeadersPartnering with the New York City Department of Education, Morgan Stanley gave $1 million tosupport the NYC Leadership Academy, a training anddevelopment program for public school principals.By better preparing school leaders, this initiativealso helps ensure that teachers, students and parentswork together to significantly improve studentachievement. Launched in 2004, the program has

already trained more than 800 aspiring and newlyappointed principals. To bolster the Firm’s efforts inthis area, more than 1,000 employees also currentlyvolunteer within the city’s public school system.

Broadening Access to Educational OpportunitiesMorgan Stanley pledged $1 million to Sponsors for Educational Opportunity (SEO) to ensure thefuture academic and career success of students fromunderrepresented communities. The contribution ispart of a $10 million capital campaign to purchaseand renovate a new, permanent New York Cityheadquarters for the organization, with which theFirm has partnered for over 25 years. Morgan Stanley’sgift will allow SEO to not only more effectively serveits existing constituency but also have the physicalspace necessary to expand its existing programs.

Y O U T H

Providing a Healthy Start—Cradle with Care Building on the success of the Morgan StanleyChildren’s Hospital in New York (ranked among the top five pediatric hospitals in the nation by U.S. News & World Report™), the Firm in 2005launched its Cradle with Care program to providebest-in-class healthcare to babies most in need. This initiative helped underwrite pediatric-care programs across the country, including GrowClinics at Boston Medical Center, La Rabida

Thanks to active participation across our

40,000-strong employee base and offices in

all 50 states, Morgan Stanley is involved in

significant local and national programs in the

U.S. On the next few pages are highlights of

our 2005 projects:

Highlights from the United States“We are just so thankful that a leadingnational firm like Morgan Stanley has chosento focus on these children who are in greatneed—children who are usually invisible tothose with the resources Morgan Stanley canmobilize. This extraordinary generosity hasbuilt a bridge between a financial powerhouseand the most powerless of all our citizens,our youngest impoverished children.”

Dr. Deborah A. Frank,Director of the Boston Medical Center Grow Clinic

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D I V E R S I T Y

Providing Educational Opportunities for the UnderservedMorgan Stanley Scholars ProgramsIn 2005, we provided more than $545,000 inscholarships and internships to minority students at both the undergraduate and graduate levelsthrough our Richard B. Fisher Scholars andMorgan Stanley Fellowship Programs. Studentsinterned in offices across the country, gainingunparalleled real-life exposure to the financial services industry. Since 1993, we have awarded over $3.5 million in scholarships to 284 students.

In addition to the Morgan Stanley-run scholarshipprograms, we also provided over $950,000 to the following organizations to deliver academicopportunities to minority students:

° A Better Chance, Inc.

° Albert G. Oliver Program

° American Indian College Fund

° College Summit

° Consortium for Graduate Study in Management

° Foundation for Investor Education

° Hispanic Alliance for Career Enhancement

° Hispanic Scholarship Fund

° Jackie Robinson Foundation

° Prep for Prep

° The Robert A. Toigo Foundation

° Sponsors for Educational Opportunity

° United Negro College Fund

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Celebrating Cultures and Inclusiveness ¡Azúcar! The Life and Music of Celia CruzMorgan Stanley joined the Smithsonian Institutionto present the first major exhibition showcasing artifacts from the life and music of the legendary“Queen of Salsa,” Celia Cruz. The exhibition, whichopened at the Smithsonian’s National Museum ofAmerican History on May 18, 2005, examines theimpact of Latin music on American culture andCelia’s pioneering role as one of the few women tobe part of the salsa music movement of the 1970s.Morgan Stanley is also the National Sponsor of a traveling exhibition, expected to visit Miami, Los Angeles, and New York in 2006 and 2007.

The HistoryMakersDiscover Financial Services was the Title Sponsor of the HistoryMakers’ 2005 Programs An Eveningwith Denyce Graves, held in Chicago, and AnEvening with Diahann Carroll, held in WashingtonD.C. Both events—focused on contributing to an historical archive of African-Americans who havemade significant contributions to American life,society and culture—will be distributed on publictelevision stations nationally in 2006.

Spelman College Leadership Symposium & Conference for Women of ColorThis past year, Morgan Stanley was again thePremier Sponsor of Spelman College’s LeadershipSymposium & Conference, held in May. Thisimportant two-day conference focused on leadershipdevelopment and building bridges among women of color. Over 700 women attended the event that featured nationally renowned scholars and leadership experts from the private, public and nonprofit sectors.

“The Smithsonian’s National Museum ofAmerican History is deeply grateful forMorgan Stanley’s commitment to celebratingdiversity. The company’s investment in the¡Azúcar! The Life and Music of Celia Cruzexhibition enabled the museum to bring the life of this world-renowned artist toaudiences in Washington and to audiencesthroughout the world via the internet.Morgan Stanley has truly been a leader in helping the museum tell the stories ofAmerica and its rich cultural heritage.”

Brent D. GlassDirector Smithsonian’s National Museum of American History

left: Cruz performing at Madison Square Garden, 1994.Photo by Bernardo Tapia, courtesy of Omer Pardillo-Cid.

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A R T S A N D C U LT U R E

Each year, Morgan Stanley provides over

$670,000 to support major cultural institutions

in cities across the U.S. This funding is

complemented by our arts sponsorships,

some of which are highlighted below:

Alvin Ailey American Dance Theater Morgan Stanley was proud to be the national sponsor of the 2005 Alvin Ailey American Dance Theater U.S. Tour. The Firm also made it possible for Ailey to deliver school-based outreach initiatives in ten cities across the country.Over 1,200 students from 12 public schools participated in the education programs in 2005,many experiencing live arts for the first time—helping to fulfill Ailey’s goal of using the beauty and humanity of the African-American heritage and other cultures to unite people of all races, ages and backgrounds. The Firm’s long-standingcommitment to the Alvin Ailey programs is reflected not only in our support last year, but by the fact that Morgan Stanley signed on to be the national sponsor through 2007.

Kennedy Center’s Festival of ChinaIn recognition of our long-term commitment toChina, Morgan Stanley partnered with the Ministryof Culture of the People’s Republic of China tosponsor the Kennedy Center’s month-long Festivalof China—the largest presentation of Chinese performing arts ever seen outside that country.Throughout October some 50,000 people watchedas more than 600 Chinese dancers, singers, musicians, puppeteers, actors, artists and acrobatsdisplayed the energy and expressiveness of Chineseculture today. For 2006, Morgan Stanley is alsosponsoring the Kennedy Center’s ImaginationCelebration, an educational performance series produced for youth and family audiences.

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S U P P O R T O F E M P L O Y E E E F F O R T S

VolunteerismMore than 15 percent of U.S. employees participatein the Firm’s What a Difference a Day MakesProgram, which encourages all employees to donatetime to their communities. Their combined effortsdelivered more than 202,699 hours of communityservice in 2005 alone. Among the highlights oftheir efforts:

° More than 7,000 employees from DiscoverFinancial Services made the difference throughtwo major initiatives: a nationwide food driveand participation in the Juvenile DiabetesResearch Foundation (JDRF) Walk for the Cureevents. In just one week, the food drive initiativegenerated enough cash and in-kind food contributions to provide over 75,000 meals. The JDRF event involved nearly 1,300 Discoveremployees, who walked in six cities and raisedover $700,000 for the cause.

° Employees in Boca Raton, working in partnership with The Florence Fuller ChildDevelopment Centers—child care centers thatprovide comprehensive services to children fromeconomically disadvantaged families—helpedfulfill the holiday wishes of dozens of children.More than 65 employees also took part in providing Thanksgiving meals and holiday parties to disadvantaged families in the region.

° Nearly 1,000 employees participated in New YorkCares volunteer projects last year. Their effortsincluded one-time cleanup and painting projectsas well as long-term mentoring programs.

In recognition of their outstanding service andhigh degree of firmwide participation, New YorkCares honored Morgan Stanley and its employeesat its annual Winter Benefit Dinner in December.

Workplace GivingSeparate from their generosity in connection withlast year’s hurricane and earthquake relief efforts,nearly 20,000 Morgan Stanley employees also contributed to the 2005 Annual Appeal campaign,raising more than $6 million, which was allocatedto more than 4,600 charities in the U.S.

Financial SupportTo recognize employee volunteer efforts and fosterrelationships with our local communities, theMorgan Stanley Foundation provides grants throughthe Volunteer Incentive Program (VIP). VIP grants,typically ranging between $1,000 and $5,000, areawarded to health and human service charities whereour employees are active and ongoing volunteers. In 2005, the Firm donated over $3 million to morethan 700 organizations through the VIP, supportingthe work of more than 3,500 employee volunteers.

The Firm also offers a Matching Gift Program thatprovides dollar-for-dollar matches up to $2,000 per employee for gifts to accredited educationalinstitutions. Over 2,000 employees participated in the program during 2005 and, with the Firm’smatching support of $2.2 million, contributed over$6.2 million to 1,300 schools throughout the country.

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Highlights from Europe

In 2005, the winning schools and students participated in the inaugural J8 Summit held inEdinburgh in July just ahead of the G8 Summit at Gleneagles, where, with students from the otherG8 countries, they spent two days attending workshops, listening to keynote speakers and puttingtogether a Communiqué on Africa and climatechange. Following the success of the national rollout of J8 in the UK in 2005, the program isbeing expanded to all G8 countries, with winningstudents from each country to attend the 2006 J8 Summit in St. Petersburg.

D I V E R S I T Y

Providing Opportunities for Underserved Young People in LondonThirty local students, ages 13–14 spent a day inLondon’s Cabot Square offices in May as part of the Tower Hamlets Education Business Partnership’sTake Our Students to Work Day program. The effort is an extension of the nationwide Take OurDaughters to Work Day, and is designed to supportlocal parents unable to participate in the originalprogram. For the third year running, the Firm also

provided paid summer internships to two local “A” Level students as part of the Corporation ofLondon’s Business Traineeship Program.

New in 2005 was the Firm’s provision of six, paidsummer internships for minority students whoattend schools and colleges that are part of the UKCareer Academy Foundation’s Academy of Financeprogram. In addition, Morgan Stanley was one ofsix firms in the East London Business Alliance toparticipate in a pilot program to provide unemployeduniversity graduates with new job skills.

A R T S

Soapbox: Communication Workshopsfor Young People To complement Morgan Stanley’s current sponsorshipof The Old Vic Theatre, and following research that identified the need to improve studentcommunication skills, Morgan Stanley fundedSoapbox, an innovative pilot project created by The Old Vic Education Department. This programharnesses the skills of actors, writers, producers,directors, education facilitators and Morgan Stanleyemployees in order to help children communicatemore effectively. In addition to directly involving250 pupils over two summer months, the workshopwas converted into a curriculum insert aimed atprimary schools across London. Following thesuccess of the pilot project, Morgan Stanley willfund an expanded Soapbox program in 2006.

Y O U T H

Inspiring Global CitizenshipStudents aged 13–16 years old from over 5,000schools in the UK were given the opportunity toengage with responsibilities associated with belongingto a worldwide community, through the nationallaunch of the Firm’s J8 Global Citizenship Program.Using the G8 as a framework, Morgan Stanley created the program to help students learn aboutthe G8 and global issues and, through competition,to give students the opportunity to present theirideas to world leaders.

More than 1,100 employees are involved with

our community programs across Europe, with

a concentration on community-based initiatives

in London’s East End. Some of their many

efforts and the Firm’s related support follow:

“I am delighted to say that the J8 programme has elicited an enthusiasticresponse across the country.”

UK Prime Minister Tony Blair

left: J8 delegates present their work to UK Prime Minister Tony Blair.

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S U P P O R T O F E M P L O Y E E E F F O R T S

Volunteerism and Workplace GivingUK Employees Turn Attention to the ElderlyAge Concern—a national charity that supportspeople over age 50—has become a favored philanthropic organization in the UK, especially in Glasgow and London where Morgan Stanleyemployees named it charity of the year for2005–2006. The partnership has promptedunprecedented support, inspiring hundreds ofemployees to not only visit the elderly at homeand in day-care centers, but to also raise moneythrough running, cycling, swimming, dancing,trekking and singing. These efforts exceeded the£150,000 (US$266,000) fundraising target afteronly eight months. In addition, the Londonlaunch of the Christmas Giving Tree Appeal yieldedhundreds of generous gifts—from cashmere tochocolate—for Age Concern’s local clients.

Interoffice FundraiserIn October 2005, colleagues from London andParis joined forces for the second year in a row to raise funds by running the Marseilles-Cassis half-marathon in support of research intoAtaxia-Telangiectasia (A-T), a fatal genetic diseaseaffecting children. This charity was selected inhonor of a Paris-based employee whose young childwas diagnosed with A-T in 2004. This year, generous

donations reached £28,000 (US$49,000), which was matched by the Morgan Stanley InternationalFoundation and was donated to the A-T Society in the UK and APRAT in France.

Financial supportIn addition to raising money for Age Concern and A-T/APRAT, employees in Frankfurt, Glasgow,London, Munich and Zurich have also fundraisedand volunteered in their own time for charities of their choice. Their efforts have resulted in 150 charities receiving a total of just under£788,000 (US$1.4 million), of which £322,000(US$570,000) was matching funds from theMorgan Stanley International Foundation’sEmployee Reward Program.

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Y O U T H

Morgan Stanley’s Mumbai offices increased the scale and scope of its charitable activities in 2005 through the creation of a new committeeand pilot program for employee volunteering at its Morgan Stanley Advantage Services offices. The employees worked with local organization, Door Step, to create cheerful, festive experiences for underprivileged children around Diwali, the Festivalof Lights, one of India’s most important holidays.

At JM Morgan Stanley, the Firm’s joint venture in India, employees and clients participated in awalkathon along Mumbai’s waterfront, raising morethan INR2,500,000 (US$55,000) to support threelocal education programs benefiting underprivilegedand homeless and/or special-needs children.

In Australia, employees raised funds for Youth Off the Streets to give underprivileged teenagers the opportunity to choose their own “cool”Christmas presents. Morgan Stanley’s Singaporeoffice organized a Christmas party for children of employees to meet with youth at risk, and forboth groups to interact in games and a magic show. The underprivileged children also received presentsthat were on their wish lists.

In Hong Kong, the popular annual DragonboatRaces were the backdrop of successful employeefundraising for an environmental education program called Ocean’s 10. The program, organizedin connection with WWF and the local Hong KongYouth Arts Festival, educates children about 10endangered marine species indigenous to localwaters. More than 5,000 students participate in theongoing program and more than 70,000 membersof the community are touched by it.

In mainland China, Morgan Stanley and its jointventure China International Capital Corporation,which marked its 10th anniversary in 2005, contributed to the building of a school in Beijing for children from underprivileged migrant workerfamilies. The Dandelion School project is a public/private venture, which receives funds fromthe Soong Ching Ling Foundation.

A R T S

In Australia, Morgan Stanley’s six-year sponsorshipof the Sydney Symphony allowed the Firm to treat young patients at the Children’s Hospital atWestmead to a special performance on-site at themedical facility. In conjunction with this event,Morgan Stanley’s Australia charity committee alsopresented a major donation, with all funds raisedthrough the local employee workplace giving program, of more than AUD47,000 (US$32,000)to the oncology ward at the Children’s Hospital.

Morgan Stanley was again a sponsor at the annualHong Kong Arts Festival, and in 2005 underwrotethe world premiere of a new music drama fromChina, Amber, directed by China’s renowned director Meng Jinghui and featuring award-winningmovie actors Liu Ye and Yuan Quan. The criticallyacclaimed production later toured on the mainlandas well as in Singapore.

Also in Hong Kong, the Firm organized a masterclass for more than 50 drama students of the Hong Kong Academy for Performing Arts withMr. Meng Jinghui, giving the next generation oftheatre talent a flavor of working with one of theregion’s acclaimed directors.

Highlights from Asia PacificIn addition to actively engaging in relief and

rebuilding efforts in Southeast Asia following

the December 2004 Tsunami that devastated

coastlines across Indonesia, Malaysia, Thailand,

India and Sri Lanka, Morgan Stanley and its

employees supported a range of youth,

education, environmental, arts and culture

causes across the region.

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S U P P O R T O F E M P L O Y E E E F F O R T S

VolunteerismHundreds of Morgan Stanley employees areengaged in fundraising as well as project-based andongoing volunteering across the Asia Pacific region.The Firm’s employee-led charity committees inAustralia, Hong Kong, India, Singapore and Taiwanhelp drive high participation in local philanthropic causes on a continuing basis.

In Singapore, for example, employees focused theirefforts on helping communities across SoutheastAsia that were ravaged by the December 2004Tsunami. Beginning with donations of clothing and essential goods to communities in Indonesia,and later expanding to underwriting constructionprojects, such as the building of a sports track as far afield as Sri Lanka, the Firm has provided valuable time and resources.

In Mumbai, Morgan Stanley employees raisedfunds to aid the city’s flood victims and many volunteered in medical camps organized by The Kherwadi Social Welfare Organisation.

Workplace Giving and Financial SupportWorkplace giving and both team as well as individual fundraising campaigns took placethroughout the year across all Asia Pacific locations.Major programs coordinated by our local charitycommittees raised a total of more than US$430,000through employee donations and Firm grants.

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Highlights from Japan

Thanks to employees’ donations and a matchinggift from the Firm, the wishes of six childrenwith life-threatening illnesses were fulfilled, an educational program for disadvantaged childrenestablished, a children’s home refurbished, and a group of children were able to climb Mt. Fuji.

D I V E R S I T Y

Connecting Cultures Through Education Morgan Stanley continued its support of programsthat promote mutual understanding between Japan and the U.S. by providing grants to studentsparticipating in the U.S.–Japan Bridging Foundationprogram. Through the program, Morgan Stanleyawarded grants to two U.S. students to study inJapan in 2005. In addition, professionals taughtfinance classes at Hitotsubashi University’s GraduateSchool of International Corporate Strategy.

A R T S

The Purple Palace ConcertAs part of Morgan Stanley’s global sponsorship ofOrpheus Chamber Orchestra, the Firm organized a children’s concert in June with KIDS at Toppan Hall in Tokyo. Attended by more than 300 disadvantaged children and caregivers as well as Morgan Stanley volunteers, the concert was supported by employees’ donations to theannual Holiday Season Charity Appeal in Japan. The centerpiece of the program was Orpheus’ Japan premiere of The Purple Palace, a narrated composition which introduces children to classicalmusic and teaches them the value of diversity.

Y O U T H

Enriching the Lives of Disadvantaged ChildrenThe Inspire program supported a number ofJapanese organizations focused on children in 2005. Employees accompanied physically challenged children to Tokyo Disneyland withKnowing Is Doing Something (KIDS), as well as participated in fundraising events for Ashinagaand Make-A-Wish of Japan.

Through the Inspire philanthropy program

in Japan, the Firm expanded its volunteer

activities in 2005, significantly increasing

not only Morgan Stanley’s donations but

also the number of organizations to which

we contributed.

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S U P P O R T O F E M P L O Y E E E F F O R T S

VolunteerismMore than 230 employees were actively involved in volunteer opportunities during 2005. Theseactivities included an annual beach cleanup, feedingthe homeless, supporting an internship program fordisadvantaged children, participating on the boardsof a number of charities and donating clothes andtoys to orphanages and women’s shelters.

Workplace Giving and Financial SupportEmployees in Japan took part in many fundraisingevents throughout the year including the Firm’sannual appeal, charity raffle ticket sales and participation in local charity-sponsored sportingevents such as marathons, a soccer tournament, and a 75km bicycle ride in the outskirts of Tokyo.

One of the highlights of the year was Tokyo’s firstFinancial Industry in Tokyo (FIT) for Charity Runin September, which Morgan Stanley co-organized.Morgan Stanley’s 120 participants were among morethan 1,500 people from the financial industry whoran and walked circuits around Tokyo’s ImperialPalace. The run raised more than JPY16.5 million(US$140,000) to support five community charities.

Underscoring their generosity, employees gaveJPY7.6 million (US$65,000) in support of theFirm’s second annual Inspire Holiday SeasonCharity Appeal. With the Firm’s matching gift,JPY15.2 million (US$130,000) was donated tosupport specific projects at seven local charitiesincluding House for Women “Saalaa,” Ichiryukai,Knowing Is Doing Something (KIDS), Make-A-Wish of Japan, Second Harvest Japan and TokyoEnglish Life Line (TELL).

To support employees’ fundraising activities and volunteer efforts, a number of FundraisingMatching Gift and Organizational Grants wereawarded to employees during the year, raising thetotal given to charities through the Inspire programto more than JPY20 million (US$170,000).

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Contact InformationMorgan Stanley Community Affairs1633 Broadway, 20th FloorNew York, NY 10019

Phone: 212-537-1400E-mail: [email protected]

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© 2006 Morgan Stanley

Morgan Stanley Community Affairs1633 Broadway, 20th FloorNew York, NY 10019