Mitsubishi UFJ, Morgan Stanley To Form Securities Joint Venture in Japan

New Industry Leader Will Offer Clients in Japan Unmatched Retail and Institutional Platform

Mitsubishi UFJ Financial Group, Inc. (“MUFG”) (NYSE: MTU) and Morgan Stanley (NYSE: MS) today announced that they have signed a memorandum of understanding (“MOU”) to form a securities joint venture combining Mitsubishi UFJ Securities Co., Ltd. and Morgan Stanley Japan Securities Co., Ltd.

The signing of the MOU is a significant step forward in one of a number of areas of planned cooperation, reflecting the two companies’ goal of maximizing the strategic benefits of a global alliance formed in October 2008. The proposed joint venture will create a new industry leader in Japan offering a large domestic retail brokerage network, a full range of institutional businesses and significant global reach.

Upon closing, the two securities businesses will operate as a single joint venture, with a management team drawn from both companies. MUFG will own a 60 percent stake while Morgan Stanley will own a 40 percent stake. The joint venture, which will be named at a future date, will have five representative directors, comprising three from MUFG and two from Morgan Stanley. The allocation of the remaining board seats will reflect the ownership structure.

Nobuo Kuroyanagi, President and Chief Executive Officer of MUFG, said, “This understanding is an important initiative in our two organizations’ overall strategic alliance and a key step toward our goal of combining two strong franchises in Japan to create a stronger, more sophisticated institution that is better able to respond to the needs of both companies’ clients.”

John J. Mack, Chairman and Chief Executive Officer of Morgan Stanley, said, “The joint venture, one of many areas of collaboration that we are pursuing with MUFG, reinforces the strong potential of our strategic alliance to enhance Morgan Stanley’s global footprint and capture financial services opportunities around the world. Today’s understanding also underscores our strong commitment to Japan and our goal of continuing to realize attractive growth opportunities in this market.”

Morgan Stanley will appoint the joint venture’s Chairman, while MUFG will designate its President and Chief Executive Officer. MUFG also will name a Deputy President and Chief Executive Officer of the joint venture’s retail and middle markets business, with managerial responsibility for the venture’s retail and middle markets operations. Morgan Stanley will appoint a Deputy President and Chief Executive Officer of the institutional securities business, with managerial responsibility for the venture’s institutional businesses and for providing connectivity with Morgan Stanley’s global network. MUFG will appoint a Deputy Head of the institutional securities business. Additional senior management will be drawn from the ranks of both companies.

Both parties will work to conclude definitive agreements regarding the joint venture in the coming months with a targeted closing date prior to the end of March 2010. The joint venture will be subject to regulatory approval.

MUFG is a significant investor in Morgan Stanley and recently nominated Nobuyuki Hirano, a director of MUFG, to serve on Morgan Stanley’s board, and Morgan Stanley’s board elected Mr. Hirano as a director on March 10, 2009.

In addition to this joint venture in Japan, MUFG and Morgan Stanley are discussing specific initiatives in other business areas to maximize the strategic benefits of the global alliance, which the companies intend to announce in due course.

About MUFG
MUFG is one of the world’s leading financial groups, with total assets of more than JPY190 trillion (approximately US$1.8 trillion) as of March 31, 2008. MUFG’s services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management and leasing. The Group’s operating companies include The Bank of Tokyo-Mitsubishi UFJ, Japan’s largest commercial bank, Mitsubishi UFJ Trust and Banking Corporation, Japan’s leading trust bank, and Mitsubishi UFJ Securities, one of Japan’s largest securities firms. For more information about MUFG, please visit http://www.mufg.jp/english/index.html.