10:05     MS-CK(H)@EC0510<03788>&MS-HWL @EC0507<03789>-Announcement(1)        

    This announcement appears for information purposes only and does not      
    constitute an invitation or offer to acquire, purchase or subscribe       
    for the Warrants described below.                                         
                                                                              
    The Stock Exchange of Hong Kong Limited (the `Stock Exchange') takes      
    no responsibility for the contents of this announcement, makes no         
    representation as to its accuracy or completeness and expressly           
    disclaims any liability whatsoever for any loss howsoever arising         
    from or in reliance upon the whole or any part of the contents of         
    this announcement.                                                        
                                                                              
    259,000,000 European Style (Cash Settled) Call Warrants 2005              
    relating to the existing issued ordinary shares of HK$0.50 each of        
    Cheung Kong (Holdings) Limited                                            
    (`Series A')                                                              
                                                                              
    400,000,000 European Style (Cash Settled) Call Warrants 2005              
    relating to the existing issued ordinary shares of HK$0.25 each of        
    Hutchison Whampoa Limited                                                 
    (`Series B')                                                              
    Issued by                                                                 
    MSDW ASIA SECURITIES PRODUCTS LLC                                         
    (incorporated with limited liability in the Cayman Islands)               
                                                                              
    Unconditionally and irrevocably guaranteed by                             
                                                                              
    Morgan Stanley                                                            
    (Incorporated under the laws of the State of Delaware, USA)               
                                                                              
    Sponsor                                                                   
    MORGAN STANLEY DEAN WITTER ASIA LIMITED                                   
    Manager                                                                   
    MORGAN STANLEY & CO. INTERNATIONAL LIMITED                                
                                                                              
                                                                              
    MSDW Asia Securities Products LLC (the `Issuer') announces its            
    intention to issue the series of Warrants detailed below (the             
    `Warrants'). In respect of Series A and Series B, every ten Warrants      
    relate(s) to one ordinary share of the relevant par value specified       
    below (the `Share') of the relevant company specified below (each a       
    `Company').                                                               
                                                                              
    Company   Warrants  Share     Issue     Expiry    Board     Exercise      
                                  Price     Date      Lots      Price         
    Cheung    Series A  HK$0.50   HK$0.386  October   10,000    HK$78.25      
    Kong                                    3, 2005                           
    (Holdings                                                                 
    )                                                                         
    Limited                                                                   
    Hutchison Series B  HK$0.25   HK$0.250  July 15,  10,000    HK$77.00      
     Whampoa                                2005                              
    Limited                                                                   
                                                                              
    The Warrants are European style and may only be exercised on the          
    relevant Expiry Date. The Warrants are in registered form and             
    exercisable only in the board lots specified above. In respect of         
    Series A and Series B, every ten Warrants entitle the holder on           
    exercise thereof to receive from the Issuer a payment of an amount in     
    Hong Kong dollars calculated by the Issuer (the `Cash                     
    Settlement Amount') equal to (1) the Entitlement (as defined in the       
    terms and conditions of the Warrants) (subject to adjustment)             
    multiplied by (i) the arithmetic mean of the closing price of one         
    Share (as derived from the Daily Quotation Sheet of the Stock             
    Exchange, subject to any adjustments) for each Valuation Date (being      
    each of the five Business Days (as defined in the terms and               
    conditions of the Warrants) immediately preceding the Expiry Date as      
    more fully described in the terms and conditions of the Warrants)         
    less (ii) the relevant Exercise Price (subject to adjustment); less       
    (2) the Exercise Expenses (as defined in the terms and conditions of      
    the Warrants). For the avoidance of doubt, if the Cash Settlement         
    Amount is a negative figure, it shall be deemed to be zero.               
                                                                              
    The payment and delivery obligations of the Issuer in relation to         
    the Warrants will be unconditionally and irrevocably guaranteed by        
    Morgan Stanley (the `Guarantor').                                         
                                                                              
    If, on any Expiry Date, the Cash Settlement Amount is more than           
    zero, the Warrants will be automatically exercised (without any           
    notice being given to the holders of the Warrants) and the Issuer         
    will pay to the holders the Cash Settlement Amount calculated as          
    described above.                                                          
                                                                              
    The implied volatility, gearing, effective gearing and premium of         
    the Warrants are detailed below. These values may not be comparable       
    to similar information provided by other issuers of derivative            
    warrants as each issuer may use different pricing models.                 
                                                                              
    Warrants     Implied      Gearing      Effective    Premium               
                 Volatility                Gearing                            
    Series A     28 per cent. 18.46X       6.82X        15.24 per             
                                                        cent.                 
    Series B     29 per cent. 27.50X       8.30X        15.64 per             
                                                        cent.