October 04, 2004

Statement By Discover Financial Services On U.S. Supreme Court Decision To Deny Visa And Mastercard Appeal In Antitrust Case

RIVERWOODS, Illinois – October 4, 2004 – David W. Nelms, Chairman and Chief Executive Officer of Discover Financial Services, a business unit of Morgan Stanley (NYSE:MWD), issued the following statement regarding today's decision by the U.S. Supreme Court to deny an appeal by Visa and MasterCard in an important antitrust case regarding the Visa and MasterCard rules and policies that prevented virtually all U.S. financial institutions from doing business with competing networks:

“This is a victory for consumers, merchants and financial institutions. Today's decision frees financial institutions to partner with Discover Financial Services, which will provide more choice and value to consumers and merchants.

“Discover Financial Services has been in advanced discussions with potential partners regarding issuance of cards on the Discover Network. Now that Visa's and MasterCard's anticompetitive bylaws have finally been struck down, we are eager to move forward with these new partnerships.”

A more competitive marketplace that includes the Discover Network is good for financial institutions, which for the first time will enjoy the benefits of network competition, Nelms said. The ruling is also good for merchants because more competition will mean more volume on Discover's low cost network, with the ultimate winners being consumers who will enjoy the benefits of greater choice in a more competitive market, he added. Nelms said the Discover Network, comprised of more than 4 million merchant and cash access locations, is uniquely qualified to deliver these benefits because it is the most efficient and flexible network.

About Discover Financial Services
Discover Financial Services, a business unit of Morgan Stanley (NYSE:MWD), operates the Discover Card and the Discover Network for its more than 50 million Cardmembers. The Discover Network is the largest proprietary credit card network in the United States with more than 4 million merchant and cash access locations. For more information visit or