Jun. 14, 2006

Discover Network Announces New Merchant Advisory Council

RIVERWOODS, Ill., June 14, 2006 – Discover Network, a business unit of Discover Financial Services and Morgan Stanley (NYSE:MS), today announced the establishment of its Merchant Advisory Council. The council provides a forum for Discover Network and member merchants to identify and address relevant issues and trends in the payments industry, such as security and fraud protection, merchant support, and new payment technologies.

“As the payments industry landscape continues to evolve, it becomes increasingly important that we leverage our partnerships to focus on ways to further improve efficiencies, security and value to the products and services we provide,” said Harit Talwar, executive vice president of Discover Network for Discover Financial Services. “This council enables Discover Network to do that, while deepening our strong relationships with merchants as we exchange ideas and views.”

Discover Network's Merchant Advisory Committee is currently made up of 21 member companies including American Airlines Inc., Darden Restaurants Inc., Enterprise Rent-A-Car, Knowledge Learning Corp., Kohl's Department Stores Inc., QuikTrip Corp., The Sharper Image Corp., SUPERVALU, and Wal-Mart Stores Inc.

The Discover Network Merchant Advisory Council, along with the existing PULSE Financial Institution Oversight Committee, ensures a broad representation of views and perspectives for merchants and issuers in the PULSE and Discover Networks. Discover acquired the PULSE EFT Association in January of 2005.

The Merchant Advisory Council will meet approximately every six months. The first meeting is scheduled for June 19 – 20, 2006, and will be held in Chicago.

Discover's expansion and diversification initiatives over the last two years represent important steps as it evolves from a single product issuer into a broad-based payments company supporting multiple issuers and products, while bringing choice and value to merchants, issuers and consumers. Recent initiatives include the launch of Discover Debit, the company's signature debit program; the strategic alliance with China UnionPay; agreements with GE Consumer Finance to issue co-branded credit cards on the Discover Network; and the acquisition of the PULSE ATM/debit network.

About Discover Network and Discover Financial Services
Discover Financial Services LLC, a business unit of Morgan Stanley (NYSE: MS), operates the Discover Card with more than 50 million Cardmembers, and the Discover Network, which is the largest proprietary credit card network in the U.S. with more than 4 million merchant and cash access locations. Discover Financial Services also operates the PULSE ATM/debit network, which serves more than 4,200 financial institutions and includes nearly 250,000 ATMs and approximately 3.4 million POS terminals. For more information, visit www.discovercard.com, www.discovernetwork.com or www.pulse-eft.com.

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Leslie Beyer
Discover Financial Services LLC
(224) 405-5154

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