Geneva, 4^th September, 1998. The MSCI Malaysia Indices will be removed from the MSCI Developed Markets series (in particular the MSCI EAFE Index, the MSCI KOKUSAI Index and the MSCI World Index). This will be effective as of the close of 30^th September, 1998, as announced today by Capital International Perspective S.A. (CIPSA), the Geneva-based manager and calculator of the Morgan Stanley Capital International (MSCI) Indices.

At this time, no decision has been taken regarding Malaysia’s status in the MSCI Emerging Markets Free series (in particular the MSCI EMF Index) or the MSCI All Country (AC) Free Indices, which combine Emerging and Developed markets (in particular the MSCI AC World Index Free - ACWI Free - and the MSCI AC Far East Free ex Japan Index).

The objective of the MSCI indices is to provide an accurate reflection of the investment opportunities available to the international investor. In particular, the MSCI Developed Markets series intend to capture the investment opportunities offered by the more mature equity markets around the world.

The decision to remove Malaysia from the MSCI Developed Markets series follows the recent restrictions imposed by the Malaysian authorities on the foreign exchange and securities markets. Noticeably, the limitations in repatriating investment proceeds would seriously challenge the objective and integrity of the MSCI Developed Markets indices, were the Malaysian securities to remain in these indices.

In addition, the fact that Malaysia is included in both the MSCI Developed Markets and Emerging Markets series has always been an anomaly. Today, this situation is no longer sustainable and the decision to remove Malaysia from the MSCI Developed Markets series is both clearly warranted and irrevocable.

Since the inception of the MSCI Emerging Markets series in 1988, it has always been made clear that Malaysia is most appropriately classified as an emerging market and as such, it has been a key component of the MSCI EMF (Emerging Markets Free) Index.

The anomaly of Malaysia's inclusion in the MSCI Developed Markets series has its origin in the early seventies when a joint MSCI Singapore/Malaysia Index was constructed to reflect the close development of the Stock Exchanges of Malaysia and Singapore at that time. Although the two markets became increasingly independent, the joint MSCI Singapore/Malaysia Index remained a constituent of the EAFE Index for the next 20 years. In May 1993, the MSCI Singapore/Malaysia Index was finally split into two separate indices. At that time, in view of Malaysia’s long history of inclusion in the MSCI EAFE Index, it was decided that it would remain, temporarily, in both the MSCI Developed Markets and Emerging Markets Free series. In light of the recent developments in Malaysia, it is time to put an end to this transition period.

The current economic and financial crisis in Asia, and Malaysia in particular, is both severe and complex. This context must be given thorough consideration when evaluating Malaysia’s status in the MSCI Emerging Markets Free series and the MSCI All Country Free Indices. At this time, no decision has been taken regarding this status. Capital International Perspective S.A. (CIPSA) will continue to actively monitor the developments in Asia and in the Malaysian equities and foreign exchange markets.

As of the close of 2^nd September, 1998, the MSCI Malaysia Index, which currently includes 72 securities, had the following weights:

The World Index 0.18%

EAFE 0.37%

KOKUSAI Index (World ex Japan) 0.20%

Far East 1.61%

EMF (Emerging Markets Free) 4.40%

EMF Far East 17.93%

AC World Index Free 0.18%

AC Asia Pacific Free ex Japan 4.86%

AC Far East Free ex Japan 8.81%

For further information on Capital International Perspective S.A., please contact

Capital International Perspective SA, Geneva +4122-715-1515

For further information on MSCI Indices or MSCI Data, please contact

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Morgan Stanley & Co., Inc. has ownership of the MSCI Indices and databases.
Construction and maintenance of the MSCI Indices, including all additions and deletions, is the full and sole responsibility of Capital International Perspective S.A. No information on potential changes is available to anyone, including Morgan Stanley & Co., Inc. prior to their public announcement. Changes do not reflect any opinion on the intrinsic quality or expected performance of companies or markets.