Singapore 20 May 2009...Morgan Stanley Asia (Singapore) Pte (Morgan Stanley) the arranger of the Pinnacle Notes Series 1 (the Notes), has informed MAS and distributors of the Notes that credit events have occurred in relation to the underlying securities of the Notes.

2   The terms of the Notes provide for the Notes to be early redeemed should a Mandatory Redemption Event occur. Morgan Stanley has informed MAS that while a Mandatory Redemption Event has not occurred as a result of the credit events, it is likely that a Mandatory Redemption Event may shortly occur. Morgan Stanley will issue a notice, if and when that occurs.

3   The total issue size of the Notes was approximately S$14.7 million, of which approximately S$11.4 million was sold to about 342 retail investors. The main distributors are Maybank, OCBC Securities, CIMB-GK Securities, Phillip Securities, Kim Eng Securities, DMG and Partners Securities.

4   Should a Mandatory Redemption Event occur in relation to the Notes, MAS expects the distributors of the Notes to ensure that all affected investors are informed.

5   Investors who consider they have a legitimate claim against the financial institution for the sale of the Notes should lodge their complaints with the relevant distributor that sold them the products. MAS requires financial institutions to have a rigorous process to look into every complaint and to ensure that legitimate grievances are dealt with expeditiously. If investors are not satisfied with the outcome of the financial institutions’ complaints resolution process, they may wish to refer their complaints to the Financial Industry Disputes Resolution Centre (FIDReC).

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