Morgan Stanley Investment Management Launches Morgan Stanley Global Long/Short Fund

New York —

Morgan Stanley Investment Management (MSIM) announced today that it has launched the Morgan Stanley Global Long/Short Fund (“the Global Long/Short Fund”).  The Global Long/Short Fund, a fund of hedge funds registered under the Investment Company Act of 1940, offers a diversified, institutional-quality portfolio of long/short equity hedge funds to eligible individual investors and smaller institutional clients.

With the launch of the Global Long/Short Fund, investors have the opportunity to gain access to long/short hedge fund managers around the globe in a fund-of-funds structure for a relatively low minimum investment of $100,000, and the expertise and track record of Morgan Stanley Alternative Investment Partners’ (“Morgan Stanley AIP”) investment team.

“The Global Long/Short Fund offers investors the potential to capture the upside return of global equity markets while helping to reduce downside exposure,” said Mustafa Jama, Head and Chief Investment Officer of Morgan Stanley AIP’s Fund of Hedge Funds team.  “As such, it may serve as an attractive alternative to long only equities investing for those seeking to enhance the risk/reward profile of their equity portfolio.”

Employing a disciplined investment process, extensive due diligence and diversification by manager and geography, the Global Long/Short Fund is intended to be managed for long-term capital appreciation and to have moderate volatility as compared to the equity markets.  The long and short equity strategies in which the Global Long/Short Fund will primarily invest allow the underlying hedge fund managers to use leveraged or short-sale positions to take advantage of perceived inefficiencies across the global capital markets.  The Global Long/Short Fund will invest in approximately 20-25 long/short equity hedge funds.  Additionally, unlike most hedge fund products which provide delayed K-1 tax reporting, the Global Long/Short Fund will deliver Form 1099 tax reporting by January 31 of each year.

“Launching the Global Long/Short Fund demonstrates our continued commitment to expand and enhance our sophisticated line-up of alternative product offerings for our clients,” said Stu Bohart, Head of Alternative Investments for MSIM.  “The Global Long/Short Fund may be an attractive option for investors seeking practical entry into the long/short equity hedge fund marketplace as well as equity-like exposure with potentially less downside volatility in their portfolios.”

Morgan Stanley AIP, founded in April 2000, manages portfolios of hedge funds and private equity funds for some of the world’s largest institutions and high net worth individuals.  The launch of the Global Long/Short Fund augments Morgan Stanley AIP’s current registered fund offerings for eligible individual investors and smaller institutional clients.  Morgan Stanley AIP launched the Absolute Return Fund and Absolute Return Fund STS in 2006.  The Absolute Return Fund has over $900 million in net assets as of December 31, 2007.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has nearly 800 investment professionals around the world and approximately $597 billion in assets under management or supervision as of November 30, 2007.  By leveraging its global ‘community of boutiques’ structure and the strength of Morgan Stanley, MSIM strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 33 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

There is no assurance that The Fund will achieve its investment objective.  Investing in a fund of hedge funds is not for everyone, as it entails risks that are different from those of more traditional investments. An investment in the Fund involves significant risks, including, but not limited to, limitations on transfers, valuation of the underlying investments, and transparency with respect to the Fund’s underlying investments. The Funds’ shares are not readily marketable and liquidity is provided only through expected quarterly repurchase offers.  There can be no assurance that the Fund will achieve their investment objective or that there will be any return of capital. Investors should have the financial ability and willingness to accept the risk, including the risk of loss of the entire investment.

Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, contact your financial advisor. Please read the prospectus carefully before investing.

Member SIPC, Morgan Stanley Distribution Inc.

IU08-00156P-T12/07

Media Relations Contact: Erica Platt, 212.762.6848