Morgan Stanley Restructures Investment Management Unit to Focus on Institutional Client Base

Will Sell Retail Asset Management Business, Including Van Kampen Investments, to
Invesco and Maintain Minority Stake in Combined Firm

Long-Only Institutional Business to be Led by Its Portfolio Managers and
Dedicated to Fundamental Research and Active Management
NEW YORK--(Business Wire)--
Morgan Stanley (NYSE: MS) today announced as part of a restructuring of its
investment management division a definitive agreement to sell its retail asset
management business, including Van Kampen Investments, Inc., to Invesco Ltd.
(NYSE: IVZ), a leading independent global investment management company. This
transaction allows the Firm to focus on its institutional client base -
including corporations, pension plans, large intermediaries, foundations and
endowments, sovereign wealth funds, and central banks, among others.

Under the terms of the definitive agreement, Invesco will purchase Morgan
Stanley`s retail asset management business, operating under both the Morgan
Stanley and Van Kampen brands, in a stock and cash transaction valued at $1.5
billion. Morgan Stanley will receive a 9.4 percent minority interest in Invesco,
allowing the Firm to participate in the future growth of the combined Invesco
and Morgan Stanley/Van Kampen businesses. The transaction, which has been
approved by the Boards of Directors of both companies, is expected to close in
mid-2010, subject to customary closing conditions and regulatory approvals.

James Gorman, Co-President of Morgan Stanley, said, "Our objective in Asset
Management is straightforward: deliver superior performance for our clients,
return our investment business to strong and consistent profitability, and
reignite a best-in-class investment culture. This transaction is an important
step in that direction. By taking a minority interest in Invesco, Morgan Stanley
will be able to realize significant value in partnership with a world-class
player.

"The combination of Invesco`s strong and diversified product portfolio with Van
Kampen`s own product strengths and leading distribution capabilities will create
a formidable new contender in the retail space - with the size and scale
necessary to compete in today`s rapidly changing and consolidating marketplace.
In addition, this transaction will mitigate certain affiliated product sales
restrictions faced by Van Kampen portfolio managers since the closing of the
Morgan Stanley Smith Barney joint venture."

Going forward, Morgan Stanley Investment Management (MSIM) will be comprised of
several distinct institutional-focused businesses. These include: a long-only
institutional business (including equity and fixed income), a direct hedge fund
business, a fund of funds business, a liquidity business, and a merchant banking
business, including the Firm`s real estate, private equity and infrastructure
units. In Japan, MSIM`s equity management businesses will be sold to Invesco as
part of the transaction, but MSIM will retain its fixed income investment team
and a sales and client service team to serve Japanese investors. The
restructured MSIM would have approximately $267 billion in assets under
management on a pro-forma basis as of June 30, 2009.

MSIM`s long-only institutional business will now be led by an Operating
Committee comprised primarily of senior portfolio managers whose interests will
be aligned with their individual portfolios and the broader business. Stu
Bohart, Co-Head of MSIM, will chair the Operating Committee.

Mr. Bohart said, "Our role as a fiduciary is at the heart of everything we do at
MSIM. We believe a more streamlined, portfolio manager-led organization
dedicated to fundamental research and active asset management will put us in an
even stronger position to produce superior long-term investment results in
equity, fixed income and asset allocation; develop durable products of
appropriate size; and deliver first-class client service. And by further
aligning the interests of the Firm, senior staff and clients, we expect to
enhance our ability to attract top investment management talent."

Mr. Bohart continued, "We are refocusing our efforts towards greater
profitability from a solid foundation, building on the strength and momentum
already achieved in key businesses. We continue to see strong long-term
performance in many of our actively managed strategies across the 1-year,
3-year, 5-year and 10-year time periods and look forward to building on the
success of our investment partnerships with institutional investors and
intermediaries globally."

Morgan Stanley 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 1,200
offices in 37 countries. For further information about Morgan Stanley, please
visit www.morganstanley.com.

Forward-Looking Statements

Statements about the expected effects, timing, benefits, financial and operating
results, synergies and cost savings related to the transaction and all other
statements in the press release, other than historical facts, constitute
forward-looking statements. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on which they are
made and which reflect current estimates, projections and expectations. Any such
statement may be influenced by factors that could cause actual outcomes and
results to be materially different from those projected or anticipated. These
forward-looking statements are subject to numerous risks and uncertainties.
There are important factors that could cause actual results to differ materially
from those in any such forward-looking statements, many of which are beyond the
control of Morgan Stanley and Invesco, including: (1) the risks associated with
transactions of this nature, (2) the impact of general economic and industry
conditions, (3) adverse changes in the stock markets, the public debt markets
and other capital markets, (4) changes in investor participation in the markets,
(5) the risks of market fluctuations of Invesco common stock, (6) the impact of
the transaction on Invesco`s common stock, (7) the impact of any restructuring
or reorganization of the investment management business to be retained by Morgan
Stanley after consummation of the transaction on the financial condition or
results of operations of Morgan Stanley, (8) the impact of U.S. or foreign
legislative or regulatory requirements applicable to the transaction, or changes
in such requirements, including changes in trade, tax, monetary and fiscal
policies and laws, as well as any changes in bank, investment management or
broker-dealer regulation, (9) the impact of changes in accounting standards,
rules or interpretations and (10) the impact of political conditions in the U.S.
and abroad both generally and as they pertain to financial services companies
specifically. The actual results or performance and expected benefits of the
transaction could differ materially from those expressed in, or implied by,
these forward-looking statements. Accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what impact they will have on the results of
operations or financial condition of Morgan Stanley. For a discussion of
additional risks and uncertainties that may affect the future results of Morgan
Stanley, please see Morgan Stanley`s periodic reports filed with the Securities
and Exchange Commission and available on www.sec.gov.

Morgan Stanley
Media Relations
Mark Lake, 212-762-6927
Erica Platt, 212-762-6848
or
Investor Relations
Suzanne Charnas, 212-761-3043

Copyright Business Wire 2009