SPINOFF: Morgan Stanley [MS] of Discover Financial Services [DFS]

Issue:

On 6/30/2007 Morgan Stanley [MS] distributed 0.5 shares of Discover Financial Services [DFS] for each share of MS owned in a regular spinoff.

Cause:

This is a normal spinoff.

Resolution:

Enter the spinoff transaction in accordance with the instructions at
http://www.iclub.com/support/kb/default.asp?page=normal_spinoff.

Here's the information you need for the spinoff:

1. Spinoff date - 6/30/2007
2. Parent company - Morgan Stanley [MS]
3. Remaining basis percentage of Parent Company, [MS] - 82.99.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Discover Financial Services [DFS]
6. Number of shares of DFS received - This will be the number of shares
owned in MS multiplied by 0.5 (make sure to include fractional shares).
7. Price per share of daughter company - $28.50.
8. Cash received in lieu of fractional shares - take from broker statement.