Q1.

Please describe the businesses that the two joint venture companies operate?

A1.

Mitsubishi UFJ Morgan Stanley Securities (MUMSS) comprises M&A advisory, bond and equity underwriting, sales and trading, research, and retail and middle markets businesses, while businesses of Morgan Stanley MUFG Securities (MSMS) include bond and equity underwriting, sales and trading and research.

Q2.

What are the competitive advantages of the joint venture?

A2.

Through a joint ownership structure, Morgan Stanley UFJ Financial Group (MUFG) and Morgan Stanley will leverage their respective strengths and networks, combining MUFG’s expansive client base and Morgan Stanley’s global reach and capabilities in product development.

Q3.

How will the clients of MUMSS and MSMS benefit from the joint venture?

A3.

First, the new structure will allow us to collaborate in providing cross-border M&A advisory and global offerings to a wider range of institutional clients, leveraging both companies’ networks and expertise. For retail clients, the joint venture offers an opportunity to allow MUMSS to provide unique financial products leveraging Morgan Stanley’s global network.

Q4.

What are the specific areas of business collaboration that the two joint venture companies plan to form?

A4.

MUMSS and MSMS have created strong bonds through cross shareholdings and the exchange of senior leadership. The two companies’ business alliances, which strategically leverage each other’s strengths, have the potential to include the provision of Morgan Stanley’s unique financial products to MUMSS’ retail clients, to offer joint IR conferences by the research teams of both companies, and to cooperate in debt and equity underwriting.

Q5.

How strong will the new joint venture companies be in M&A advisory and securities underwriting?

A5.

We expect that combination of the new companies will achieve high ranking in all areas, including debt and equity underwriting and M&A advisory. Note, we are especially enthusiastic about our capabilities in cross-border transactions.

Q6.

Why do MUMSS and MSMS continue to have global capital markets and sales and trading divisions at each entity, while the investment banking divisions are integrated?

A6.

We agreed this is the best structure to provide our clients with the best possible service. There are many advantages to combining the global reach and robust client list in the investment banking function, leveraging a seamless coordination among the two joint venture entities as well as MUFG and Morgan Stanley. At the same time, the global capital markets and sales and trading functions of each entity offer unique value propositions, and we agreed that to offer clients a wide range of choices, we would keep these businesses separate.

Q7.

MUMSS and MSMS each have their own equity and fixed income research products. Why don’t they combine their research functions?

A7.

Much as with sales and trading, each of the two research functions makes a unique product offering to our clients. To keep offering our clients a wide range of choices, it was decided that we would keep these two businesses separate. Having said that, MUMSS and MSMS may pursue joint IR conferences or wider research distribution by sharing the global research product with the domestic client base.

Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities will combine MUFG’s broad client footprint with Morgan Stanley’s global reach to create Japan’s leading securities venture in terms of domestic market presence, global reach and, above all, customer service.