MORGAN STANLEY TRUST COMPANY TO OPEN BRANCH OFFICE IN BOMBAY.

LONDON--(BUSINESS WIRE)--Dec. 5, 1994--Morgan Stanley today announced that it has received the approval of the Reserve Bank of India to open a branch of Morgan Stanley Trust Company (MSTC) in Bombay, India, for the purposes of providing its global custody, clearing and other related services to foreign institutional investors ("FIIs") in India. The opening of the Bombay branch is subject to the approval of MSTC's U.S. bank regulator, the New York State Banking Department. As a U.S. bank, MSTC's Bombay branch will qualify as an "eligible oreign custodian" to custody assets of U.S. mutual funds under the SEC's Rule 17f-5.

MSTC, a unit of Morgan Stanley Services Division, also announced that it will enter into an arrangement with Stock Holding Corporation of India Limited (SHCIL). MSTC has signed a Memorandum of Understanding with SHCIL to collaboate and provide custody and clearing services for FIIs in the Indian securities markets according to international standards. This is a further implementation of Morgan Stanley's strategy to sevice both domestic and foreign clients in the Indian market. With this announcement, Morgan Stanley is further demonstrating its commitment and involvement in India. Morgan Stanley opened its first office in Bombay last year for Morgan Stanley Asset Management and launched its first domestic mutual fund in January 1994. The Investment Banking Division opened a representative office in Bombay this year. Morgan Stanley has also been recently approved for corporate membership of the Bombay Stock Exchange.

The active participation of FIIs in the Indian capital market has created extensive demand for custodial services of international standards in recent months. The existing eligibl foreign custodians have been unable to meet this demand due to capacity constraints. Considering the positive trend witnessed in 1993-94 and the growth potential of the Indian economy, it is likely that portfolio investment including Euro-issues during 1994-95 will be in the region of US$6-8 billion. These estimates are indicative of the nature of custodial services and capacities required to efficiently manage the anticipated increase in business. The arrangement between MSTC and SHCIL will help meet this need and is an enhancement of the satisfactoy working relationship between Morgan Stanley and SHCIL over the last three years.

Morgan Stanley Services is a division of Morgan Stanley Group Inc., which provides global securities services, including custody and clearing, securities lending, prime brokerage, correspondent services, Morgan Stanley Capital International (providing benchmark indices such as the World, EAFE and Emerging Markets indices), and ADR depositary services. Morgan Stanley Services has US$90 billion in custody assets held throughout a 54 country network, of which 22 are emerging markets. MSTC is a trust company organized under New York State banking law and is headquartered in New York.

The Stock Holding Corporation of India Limited, headquartered in Bombay, was set up by seven of the largest Indian financial institutions, namely, Unit Trust of India, Industrial Development Bank of India, Industrial Finance Corporation of India Ltd., Life Insurance Corporation of India, Industrial Reconstruction Bank of India, Industrial Credit and Investment Corporation of India Limited and General Insurance Corporation of India. SHCIL is in its seventh year of operation and is committed to its mission of establishing a central securities depository in India. It is a leading custodian in the country and has US$25 billion of assets in custody in India.

Morgan Stanley Group Inc. is a global financial services firm with more than 9,500 employees in over 23 offices worldwide. Morgan Stanley provides a wide range of financial services to corporations, governments, financial institutions and high net worth individuals and families. Its activities include securities underwriting, distribution and trading; merger, acquisition, restructuring, real estate, project finance and other corporate advisory services; brokerage and research services; asset management; foreign exchange and commodities trading; derivatives trading on a broad range of asset categories; and global custody, securities clearance services and securities lending.

CONTACT: Morgan Stanley Trust Company

             James Tanner (London), 011-4471-425-6011
             or Pradip Darooka (Bombay), 011-9122-204-6875
             or Lorrie Harte (London), 011-4471-425-8006