Morgan Stanley Mutual Fund ("MSMF") announces interim dividend of Rs. 2.00 per unit of face value Rs. 10 each in Morgan Stanley Growth Fund ("MSGF") for FY 2006-2007

Mumbai —

October 16, 2006

Morgan Stanley Investment Management Private Limited (“MSIM”), the asset management company of MSMF, announced today that it will pay out an interim dividend of Rs.2.00 per unit of face value Rs.10/- each in MSGF, for the Financial Year ended March 31, 2007. The dividend was approved by the Board of Trustees of MSMF last Friday. MSGF is a close-ended equity scheme of MSMF, listed on the BSE, NSE, ASE, CSE, MSE and DSE. It is proposed to fix October 27, 2006 as the Record Date for the dividend. As of September 30, 2006 the assets under management are approximately Rs.2830 crore.

The NAV of the scheme, pursuant to payment of the dividend would fall to the extent of the dividend payout and statutory levy (if applicable). Past performance may or may not be sustained in the future.

Morgan Stanley Investment Management has recently appointed Narayan Ramachandran, Managing Director, as the CEO for Morgan Stanley Investment Management India, as the Firm continues to commit additional resources and people to significant growth markets such as India. Mr.Ramachandran has re-located from Singapore where he was Co-Head of Global Emerging Markets-Equity. He has been with Morgan Stanley for ten years.

"I am delighted to take on my new role as CEO for MSIM India," said Mr.Ramachandran. "Morgan Stanley has renewed and accelerated its commitment to the dynamic asset management industry in India. While the competitive environment is challenging, I am excited to play my part in building our business in this vibrant country."

Commenting on the market environment, he added, "Indian equities provide investors with a broad and diversified opportunity to build wealth for the long term. If investors are able to look beyond short term volatility and stay invested, there is every likelihood that they will reap healthy returns over time. Our investment team remains focused on identifying high quality companies that will provide steady returns to the Fund in the years to come. We continue to adhere to our disciplined approach of selecting stocks without getting swayed by short term speculation."

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Nandini Goswami

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