Exhibit 99.1

                                Contact: Media Relations  Investor Relations
                                         Ray O'Rourke     William Pike
                                         212-762-7557     212-761-0008
                                                          For Immediate Release

Morgan Stanley [Logo]

     Morgan Stanley Board of Directors Reaffirms Commitment to Management;
     Initiates Governance Changes

     NEW YORK, May 1, 2005 - Morgan Stanley (NYSE: MWD) announced today that
     its board of directors met yesterday and unanimously concluded that
     suggestions for management changes or a corporate re-organization beyond
     the proposed spin off of its Discover Card business would not be in the
     best interest of shareholders. The directors also approved a number of
     positive changes to strengthen the company's governance policies.

     "We have said consistently that management enjoys the confidence of the
     board and we reiterate that commitment today. We have thoroughly examined
     all of the issues surrounding leadership, structure and strategy and
     conclude that it is in the best interest of shareholders that we support
     management and not split up the company," the directors said in a
     statement.

     To further enhance the company's governance, the board approved the
     following changes:

          o    The acceleration of the planned "de-staggering" of the board of
               directors. Earlier this year, the board approved a measure to
               de-stagger its three classes of directors. Now, commencing with
               the company's 2006 annual meeting, the entire board will stand
               for election by shareholders each year.

          o    The creation of a "lead director" position which the board
               expects to fill shortly.



          o    The naming of two additional outside directors to the board,
               which will bring the total number of directors to 15. The
               Nominating and Governance Committee has initiated a search and
               the board will move quickly to fill the positions.

          o    The elimination of a provision in Morgan Stanley's corporate
               bylaws that requires a supermajority vote of the board of
               directors to remove the chief executive officer. Henceforth, a
               simple majority of the board could effect such a change.

          o    The reaffirmation of Board policy that directors should not
               stand for election following their seventy-second birthday.

          o    The broadening of the Compensation Committee's charter to
               include oversight of plans for management development and
               succession.

          o    The initiation at the June board meeting of the practice of
               rotating board committee chairs.

     "We have listened carefully to our institutional shareholders, to our
     clients, and to the leadership ranks within the firm, and we have put in
     place a program that positions Morgan Stanley at the forefront of good
     governance practices. We are now moving forward, helping Morgan Stanley's
     leadership team build the best integrated securities firm in the world,"
     the board said.

     Morgan Stanley is a global financial services firm and a market leader in
     securities, investment management and credit services. With more than 600
     offices in 28 countries, Morgan Stanley connects people, ideas and
     capital to help clients achieve their financial aspirations.

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