COPENHAGEN, 13 March 2007 - Morgan Stanley (NYSE: MS), RNK Capital LLC, and Evolution Markets announce today the completion of the first trade of European Union emissions allowances (EUAs) for delivery post-2012. The trade is between Morgan Stanley and environmental funds managed by RNK Capital LLC. The transaction was brokered by Evolution Markets.

Under the terms of the transaction 50,000 EUAs for delivery in 2013 were sold for EUR 20.05 per tonne. This forward transaction between the global financial institution Morgan Stanley and RNK Capital LLC marks the first trade of EUAs beyond the first commitment period of the Kyoto Protocol, therefore demonstrating the viability of the European Emissions Trading Scheme (ETS) beyond its second phase.

“Increased certainty around the policy and architecture for Phase Three is enabling us to structure transactions and trade these markets to effectively manage and mitigate compliance and market risk,” said Robert Koltun, Managing Member of RNK Capital LLC.

Countries participating in the EU Emissions Trading Scheme have recently announced allocation levels for the second phase of the program, which coincides with the Kyoto Protocol and runs from 2008-2012. Trading in EUAs for delivery in phase two has been in place since 2004. This transaction effectively initiates trading for the next or “third” phase of the EU ETS.

“This trade is a clear indication of our confidence in the political will of European governments to continue to build on the success of the EU emissions trading scheme,” said Imtiaz Ahmad Vice President of Morgan Stanley. “Emissions trading will remain part of the European approach to climate change, and we are pleased to initiate trading activity for this third phase of the program.”

“When European nations recently agreed on a 20% reduction target for phase three of the European Emissions Trading Scheme, they sent a clear signal to the market that it will extend beyond the initial term of the Kyoto Protocol,” said Andrew Ertel, President and CEO of Evolution Markets Inc. “This trade makes it official: emissions trading is here to stay.”

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 30 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

About Evolution Markets Inc.

Evolution Markets Inc. is the largest global broker of environmental products. Formed in 2000, the company structures transactions in the global carbon, U.S. emissions, renewable energy, weather derivative, and over the counter (OTC) coal, natural gas, nuclear fuel, and biofuels markets. Evolution Markets personnel are pioneers in energy and environmental markets having facilitated the first trades in Kyoto carbon credits, European emissions allowances, SO2 allowances, NOx allowances, ERCs in several states, weather derivatives, and OTC natural gas and coal trades. Based in White Plains, NY, Evolution Markets serves clients on five continents from offices in New York, San Francisco, London, Calgary, Bratislava, and Prague. www.evomarkets.com

About RNK Capital LLC

Formed in February 2004, RNK Capital LLC is a leader in global environmental finance. RNK Capital invests in environmental assets by targeting international environmental and emissions markets as well as providing direct investments into project activities that generate environmental market products and commodities. The firm is also a specialist in structured and managed transactions for the global carbon markets, and a leading investor in early stage environmental compliance projects. RNK Capital manages a portfolio of environmental products in the global carbon, North American criteria pollutant (SO2 and NOx allowances), RPS driven REC, European ETS, regional pollutants markets, as well as many other environmental attribute.