New Issue: Morgan Stanley prices $6.61 million 9% RevCons linked to Cisco

By E. Janene Geiss

Philadelphia, May 27 - Morgan Stanley priced a $6.61 million issue of 9% reverse convertible securities (RevCons) due Nov. 28, 2008 linked to the common stock of Cisco Systems, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Cisco shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	Cisco Systems, Inc. (Symbol: CSCO)
Amount:	$6.61 million
Maturity:	Nov. 28, 2008
Coupon:	9%, payable monthly
Price:	Par
Payout at maturity:	If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 39.09304 Cisco shares; otherwise, par
Initial share price:	$25.58
Trigger price:	$20.464, 80% of initial share price
Exchange ratio:	39.09304
Pricing date:	May 22
Settlement date:	May 28
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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