Morgan Stanley Russia & New Europe Fund, Inc.
Ticker: RNE 1221 Avenue of the Americas
Exchange: New York Stock Exchange New York, New York 10020
Industry: Financial (212) 296-7100

Type of Shares:Common Shares Filing Date:8/12/96
U.S. Shares:5,000,000 Offer Date:9/24/96
Non-U.S. Shares:0 Filing Price:$20.00
Primary Shares:5,000,000 Offer Price:$20.00
Secondary Shares:0 Gross Spread:$0.00
Offering Amount: $100,000,000 Selling:$0.00
Expenses:$420,000 Reallowance:$0.00
Shares Out After:5,000,000
Type of fund: Regional

ManagerTierPhone
Morgan Stanley & Co. IncorporatedLead Manager (212) 703-4797
A.G. Edwards & Sons, Inc.Co-manager (314) 289-3000
Cowen & CompanyCo-manager (212) 495-6000
Donaldson, Lufkin & Jenrette Securities Corp.Co-manager (212) 504-4525
Everen Securities, Inc.Co-manager (312) 574-6000
Fahnestock & Co. Inc.Co-manager (212) 668-8000

Auditor: Price Waterhouse
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
9/12/96
Revenue:Assets:$0.18
Net Income:Liabilities:$0.08
EPS:Equity:$0.10

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The Fund is a non-diversified, closed-end management investment company. The Fund's investment objective is long-term capital appreciation. The Fund intends to invest primarily in equity securities of issuers that, in the opinion of Morgan Stanley Asset Management Inc., are likely to benefit from market and political developments in Russia, the other former Soviet Republics and in other countries in Central and Eastern Europe. The Fund also may invest, from time to time, in debt securities issued or guaranteed by the governments of or governmental entities in those countries. It is the policy of the Fund, under normal market conditions, to invest substantially all, but not less than 65%, of its total assets in equity securities of Russian and other RNE country issuers and in Sovereign Debt. The Fund expects that, from time to time, a significant portion of its assets will be invested in the securities of Russian issuers.

Use of Proceeds
The proceeds from the proposed offering will be invested in accordance with the stated objectives of the fund.

Last updated: 11/27/96

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