New Issue: Morgan Stanley prices $191,000 10.1% RevCons linked to Hess

By E. Janene Geiss

Philadelphia, July 24 - Morgan Stanley priced a $191,000 issue of 10.1% reverse convertible securities (RevCons) due Jan. 25, 2008 linked to the common stock of Hess Corp., according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Hess stock falls by more than 15% during the life of the notes and finishes below its initial share price, in which case the payout will be a number of Hess 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 (RevCons)
Underlying stock:	Hess Corp.
Amount:	$191,000
Maturity:	Jan. 25, 2008
Coupon:	10.1%, payable monthly
Price:	Par
Payout at maturity:	If Hess stock falls below the trigger price during the life of the notes and finishes below the initial share price, 15.3046 Hess shares or the equivalent cash value; otherwise, par
Initial share price:	$65.34
Trigger price:	$55.539, 85% of initial share price
Pricing date:	July 20
Settlement date:	July 25
Agent:	Morgan Stanley & Co. Inc.
Agent fees:	2.25%

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