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Discover Network And Motorola Announce Mobile Payments And Account Management Trial

February 13, 2007
Riverwoods and Schaumburg, Ill., -- February 13, 2007 -- Discover Financial Services, a business unit of Morgan Stanley (NYSE: MS), and Motorola Inc. (NYSE: MOT), today announced the launch of a mobile payments and account management trial that enables participants to check their Discover Card account balances, review payment history, and make purchases using their mobile phones in place of a traditional plastic credit card.

The pilot project is being conducted by Discover Network, a division of Discover Financial Services, and Motorola, and involves up to 1,000 participants with Discover Card accounts and multiple merchants in the Chicago and Salt Lake City areas. The pilot uses Motorola phones and its “M-Wallet” software, with Motorola's system integration and hosting services enabling the solution. It is designed to test the entire infrastructure associated with accessing real time account information over the air, as well as the use of near field communications (NFC) technology, which is required for consumers to make payments using their cellular devices.

“Not only will this pilot give us feedback on the technology, but also it will provide valuable information about how merchants and Cardmembers interface with it,” said Joby Orlowsky, vice president of marketing for Discover Network. “This ensures that we deliver a customer experience that is seamless and relevant, and that meets their expectations every step of the way.”

Discover Network's contactless platform, combined with Motorola's “M-Wallet” software solution, allows cardholders to download any of their Discover Card accounts to their cellular device. Once the software is downloaded, participants can check their credit card balances, review payment history, and receive statements and rewards information.

The Motorola M-Wallet solution enables high-speed, secure financial transactions via NFC mobile phones in CDMA and GSM technologies. Key solution features include an easy to use “virtual wallet” interface and the flexibility to accommodate a variety of functions, such as bill payments, mobile banking, couponing, person-to-person transactions, stored value cards, ticketing, and point of sale transactions. As part of the Motorola Global Applications Management (GAMA) framework, M-Wallet is device agnostic, interoperable with a mobile network operators' applications environment, and offered in a hosted business model.

“The Motorola M-Wallet solution creates value for financial institutions and retailers by streamlining electronic transactions and optimizing the customer management processes,” said Navin Mehta, vice president, Services, Motorola Networks & Enterprise. “For the end-user, Discover Network's innovative platform combined with M-Wallet's flexible end-to-end infrastructure result in a reliable and easy to use experience. Mobile network operators also benefit from the solution, providing an added opportunity to increase traction with their subscribers by simplifying their day-to-day tasks.”

This mobile payments trial is the latest initiative in Discover Network's contactless payment program. Contactless payment technology is gaining consumer acceptance and offers value to merchants who are searching for innovative ways to improve customer service and transaction volume, and drive customer loyalty. According to a recent study by the Aberdeen Group, more than 58 percent of retail respondents in the survey indicated that they plan to implement contactless payment solutions within the next 18-24 months.

NFC is a new, short-range wireless connectivity technology that evolved from a combination of existing contactless identification and interconnection technologies. Products with built-in NFC will dramatically simplify the way consumer devices interact with one another, helping people speed connections, receive and share information and make fast and convenient payments.

Discover Network's contactless payment solutions will help drive merchant transaction volume and customer loyalty by enabling them to offer their customers a faster, safer and more convenient way to pay for purchases. Discover Network cardholders with this technology can complete transactions at the point of sale by simply waving or holding their Discover Network contactless payment device in front of a radio frequency (RF) reader.

About 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, 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.

About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of seamless mobility, the people of Motorola are committed to helping you connect simply and seamlessly to the people, information and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence
and impact, Motorola had sales of US $42.9 billion in 2006. For more information about our company, our people and our innovations, please visit www.Motorola.com.


Media Contacts:


Leslie Beyer
Discover Financial Services
224-405-5154
lesliebeyer@discoverfinancial.com

Lisa Barclay
Motorola, Inc.
Networks & Enterprise
847-576-6931



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© Motorola, Inc. 2007