Shareholders and Former Senior Executives of Morgan Stanley Outline Plan to Address Firm Leadership, Strategy and Governance NEW YORK, April 5 /PRNewswire/ -- In light of the surprising recent changes in Morgan Stanley's strategy and governance, institutional investors have asked us to set forth our plan for restructuring the Firm and improving its performance. We propose that the Board of Directors immediately replace Philip J. Purcell with Robert G. Scott as President and CEO. Second, we propose that the Board of Directors name a new non-executive Chairman of the Board with substantial financial experience. Third, we propose the establishment of an Office of the President to include senior Morgan Stanley executives. We recognize that these actions will require technical changes in the Firm's bylaws. Robert Scott said, "My first priority will be to contact the extraordinarily talented individuals who have left the Firm in recent times, including Stephan Newhouse, Vikram Pandit, John Havens, and others and ask them to rejoin the Firm's senior management team. Second, I would invest in and implement changes to improve the profitability of the Firm's retail business and to increase the rate of growth and profitability of the Firm's asset management business. Third, I promise to create an environment in which talent is recognized and supported and which encourages free and open discussion." In authorizing this release, the Group believes that these changes, if acted upon immediately, should rapidly restore the confidence of the Firm's shareholders, employees and clients. The Group also reiterated its request, so far ignored, to meet with the Board of Directors to discuss the magnitude of the crisis which the Board's actions precipitated. Mr. Scott, age 59, had a distinguished 33-year career at Morgan Stanley, which included roles as Head of Investment Banking, Chief Financial Officer and most recently as President and Chief Operating Officer. Up until April 2004, Mr. Scott also served on the Board of Directors of Morgan Stanley. He has worked with a broad spectrum of clients, employees and shareholders of the Firm. DATASOURCE: Shareholders and Former Senior Executives of Morgan Stanley CONTACT: Andrew Merrill of Edelman, +1-212-704-4559, , for Shareholders and Former Senior Executives of Morgan Stanley

Copyright