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Published on 2/3/2006 in the Prospect News Convertibles Daily.

New Issue: Morgan Stanley prices $5.5 million 0% notes linked to Nikkei, Hang Seng, MSCI Taiwan

New York, Feb. 3 - Morgan Stanley priced $5.5 million of 0% notes due Feb. 17, 2010 linked to a basket of three Asian indexes, according to an FWP filing with the Securities and Exchange Commission.

At maturity, investors will receive par plus an amount based on the gain of the Russell 100 Growth index, if any, calculated using the average of three determination dates: Feb. 7, 2012, Aug. 7, 2012, and Feb. 7, 2013.

Investors will not receive less than par.

Issuer:Morgan Stanley
Issue:Capital-protected medium-term notes, series F
Underlying indexes:Nikkei 225 index, Hang Seng index, MSCI Taiwan index (equally weighted)
Amount:$5.5 million
Maturity:Feb. 17, 2010
Coupon:0%
Price:Par
Payout at maturity:Par plus 130% of any gain on the basket, calculated using the average on the determination dates of May 10, 2009, June 10, 2009, July 10, 2009, Aug. 10, 2009, Sept. 10, 2009, Oct. 10, 2009, Nov. 10, 2009, Dec. 10, 2009, Jan. 10 , 2010, Feb. 10, 2010; otherwise par
Pricing date:Feb. 2
Settlement date:Feb. 9
Agent:Morgan Stanley & Co. Inc.

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