Jun. 29, 2007

Discover Financial Services Names Additional Directors

Board of Directors Designees in Place for June 30 Spin-off

Riverwoods, Illinois, June 29, 2007 – Discover Financial Services today announced the addition of Gregory C. Case, Chief Executive Officer of Aon Corporation, and E. Follin Smith, former Chief Financial Officer for Constellation Energy Group, to the company's previously announced Board of Directors designees.

Discover Financial Services is expected to spin off from Morgan Stanley tomorrow, after which it will trade for the first time as an independent company under the symbol “DFS” on the New York Stock Exchange (NYSE). Earlier today, Chief Executive Officer David Nelms and other company officials conducted the ceremonial ringing of the opening bell at the NYSE to mark the occasion.

Case and Smith join the other director designees led by Dennis D. Dammerman, who will serve as Non-Executive Chairman of the Discover Board. Dammerman retired in 2005 as Vice Chairman of the Board and Executive Officer of General Electric Company.

“Greg and Follin join a highly qualified group of individuals who bring to the table many years of leadership experience at established public companies,” said Nelms, who also will serve on the board. “Our management team and our Board designees have the knowledge and expertise necessary to help drive Discover's success as an independent company.”

Case has been President and CEO of Aon since 2005 and is a member of the company's Board of Directors. Prior to joining Aon, he headed the Global Insurance and Financial Services practice at McKinsey & Company. He also worked for the investment banking firm of Piper, Jaffray and Hopwood; and the Federal Reserve Bank in Kansas City. He serves as a Director for Children's Memorial Hospital, the Economic Club of Chicago, and the Financial Services Roundtable, among others.

Smith retired from Constellation Energy Group in May 2007 where she was Executive Vice President, Chief Financial Officer and Chief Administrative Officer. Before that, she served as Senior Vice President and CFO of Armstrong Holdings, Inc. She also served as CFO for the former GM division Delphi Chassis Systems. Smith is on the Board of Directors for Ryder Systems, Inc., and the Board of Trustees of the Darden Foundation of the University of Virginia.

Discover's Board also will include the following outside directors: Jeffrey S. Aronin, President and CEO of Ovation Pharmaceuticals, Inc.; Mary K. Bush, former U.S. Government representative on the IMF Board and former head of International Finance at Fannie Mae; Robert M. Devlin, former Chairman, President and CEO of American General; Philip A. Laskawy, former Chairman and CEO of Ernst & Young LLP; Michael Rankowitz, senior advisor to Morgan Stanley; and Lawrence A. Weinbach, former Chairman and CEO of Unisys Corporation and former Managing Partner and Chief Executive of Andersen Worldwide. David H. Komansky, Chairman Emeritus of Merrill Lynch & Co., Inc., will join the Board later in the year.

About Discover Financial Services
Discover Financial Services, a business unit of Morgan Stanley (NYSE: MS), operates the Discover Card with more than 50 million cardmembers, the Discover Network with millions of merchant and cash access locations, and the Goldfish credit card business in the United Kingdom. Discover also operates the PULSE ATM/debit network, which serves more than 4,400 financial institutions and includes nearly 260,000 ATMs, as well as point-of-sale terminals, nationwide. For more information, visit www.discoverfinancial.com.

Jon Drummond
Corporate Public Relations

Multimedia Files: