Oct. 15, 2003

Discover® Card Launches Their Own Gift Card

RIVERWOODS, Ill., October 15, 2003…Discover Financial Services, a business unit of Morgan Stanley (NYSE:MWD), today announced that it has launched the Discover® Gift Card. The Discover Gift Card, a prepaid stored value card that is completely independent from the Cardmember's Discover Card credit account, can be used for purchases wherever Discover® Cards are accepted in the U.S.

It works just like a credit card, allowing consumers to conveniently make both in-store and online purchases. Purchasers may choose from among five festive card designs varying in denominations from $25 to $500 and can be purchased using their Discover Card exclusively online at Discovergiftcard.com. Other benefits of the Discover Gift Card include:

·Personalization – Customize a personal message and address for direct shipment to the recipient.

·Presentation – All Gift Card orders are individually packaged in a greeting card to match the selected gift card design.

· Choice – The Gift Card can be used for purchases wherever Discover Cards are accepted in the U.S., unlike merchant gift cards and certificates that are limited to one store/merchant use.

“Gift Cards are growing in popularity among consumers based on their convenience and wide spread acceptance,” said Joe Hurley, vice president, Network Strategic Development, Discover Financial Services, Inc. “The Discover Gift Card is different from other gift cards because Cardmembers earn a Cashback Bonus® Award every time they purchase a new Discover Gift Card, benefiting both the purchaser and the recipient. It's just another example of how we reward our Cardmembers everyday.”

Discover Financial Services, a business unit of Morgan Stanley, operates the Discover Card brands and the Discover Novus Network for more than 50 million Cardmembers. The Discover Novus Network is the largest proprietary credit card network in the United States with more than 4 million merchant and cash access locations.

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