Morgan Stanley Eastern Europe Fund, Inc. Amends Investment Policy

Business Wire, Oct 27, 2008

NEW YORK -- Morgan Stanley Eastern Europe Fund, Inc. (NYSE: RNE) (the "Fund") announced today that at a Special Meeting of Stockholders held on October 24, 2008, stockholders approved an amendment to the Fund's investment restrictions regarding concentration of investments in any one industry.

Under the amended investment restrictions, the Fund will be required to invest between 25 percent and 35 percent of its total assets in the securities of issuers in one or more industries if, at the time of investment, each such industry represents 25 percent or more of the Fund's benchmark index (the ''Benchmark Index''). The Fund Benchmark Index is currently the Morgan Stanley Capital International (MSCI) Emerging Markets Eastern Europe Index (the ''Index''). The Index is a composite index comprised of the market capitalization weighted MSCI local indices for Russia, Poland, the Czech Republic and Hungary. The Board may approve a new Benchmark Index in the future. The Fund will notify its stockholders of any investments of 25 percent or more of the Fund's total assets in an industry in its next semi-annual or annual report. Such notice will, to the extent applicable, include a discussion of any increased investment risks peculiar to such industry to which the Fund may be exposed.

The Fund is a non-diversified, closed-end management investment company, the shares of which are listed on the New York Stock Exchange (RNE). The Fund's investment objective is long-term capital appreciation which it seeks to achieve by investing primarily in equity securities of Eastern European country issuers and in debt securities issued or guaranteed by Eastern European country governments or governmental entities.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has nearly 1,000 investment professionals around the world and approximately $570 billion in assets under management or supervision as of August 31, 2008. By leveraging its global 'community of boutiques' structure and the strength of Morgan Stanley, MSIM strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management, and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 35 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.