A global alliance in corporate and investment banking consisting of the creation of a loan marketing joint venture in the Americas starting initially in the U.S., and business referral arrangements in Asia, Europe, the Middle East and Africa;

A commodities-specific initiative, in the form of a referral agreement for commodities transactions executed outside of Japan; and

Secondment of personnel for sharing of best practices and expertise.

"We are delighted to be strengthening our strategic alliance with MUFG through these important initiatives," said Morgan Stanley Chairman and CEO John J. Mack. "Looking ahead, the newly formed loan marketing JV provides our clients with even stronger financing capabilities, and the commodities referral agreement gives MUFG's clients access to an industry-leading commodities platform."

Nobuo Kuroyanagi, President and Chief Executive Officer of MUFG, said, "Today's announcement demonstrates that our strategic alliance with Morgan Stanley is delivering significant tangible benefits. I am confident that the initiatives we have announced today will enhance both companies' global presence, enable us to better meet the needs of our respective clients and generate increased revenues."

U.S. Loan Marketing Joint Venture

The two firms will come together to create Morgan Stanley MUFG Loan Partners, a new loan marketing joint venture that will generate attractive credit opportunities for both firms and provide clients in the U.S., Canada and Latin America (subject to clearance of any regulatory requirement in each jurisdiction) with access to expanded, world-class lending and capital markets services from both companies.

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a subsidiary of MUFG, and Morgan Stanley, if combined, would constitute one of the largest lenders to major U.S. corporations, with total loan commitments over US$100 billion.

Business Referral Arrangements in Asia and EMEA -- Summary of Terms

MUFG and Morgan Stanley have agreed on term sheets under which they will pursue arrangements to leverage their respective relationships with customers in Asia, specifically, ASEAN, India, Australia, Korea, Taiwan and Hong Kong, and in Europe, the Middle East, and Africa through referrals of new business opportunities.