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Published on 6/29/2011 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley prices $1.01 million performance allocation notes linked to three indexes

By Angela McDaniels

Tacoma, Wash., June 29 - Morgan Stanley priced $1.01 million principal amount of 0% performance allocation securities due Dec. 30, 2016 linked to the S&P 500 index, the MSCI EAFE index and the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes priced at 103.5 for proceeds of $1.05 million.

The payout at maturity will be par of $10 plus the return of the best-performing index. The return could be positive or negative.

UBS Financial Services Inc. is the dealer, and Morgan Stanley & Co. LLC is the agent.

Issuer:Morgan Stanley
Issue:Performance allocation securities
Underlying indexes:S&P 500, MSCI EAFE and MSCI Emerging Markets
Amount:$1,012,750
Proceeds:$1,048,196.25
Maturity:Dec. 30, 2016
Coupon:0%
Price:103.5
Payout at maturity:Par of $10 plus return of best-performing index, which could be positive or negative
Initial index levels:1,280.10 for S&P 500; 1,634.73 for MSCI EAFE; 1,112.54 for MSCI Emerging Markets
Pricing date:June 27
Settlement date:June 30
Agents:UBS Financial Services Inc. (dealer) and Morgan Stanley & Co. LLC (agent)
Fees:3.5%
Cusip:61760E374

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