Common use of Interest Only Term Clause in Contracts

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average of Date Date Gross Remaining Comb Mortgage Principal Principal Interest Term Original Interest Only Term Loans Balance ($) Balance Rate (%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ 0 3,827 592,175,474 87.11 7.106 350 79.89 24 376 78,870,268 11.60 6.588 356 81.96 36 43 8,197,499 1.21 6.559 356 80.53 120 2 597,500 0.09 4.716 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ Total: 4,248 679,840,741 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004-HE8 Group 2 Table of Contents

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average of Date Date Gross Remaining Comb Mortgage Principal Principal Interest Term Original Interest Only Term Loans Balance ($) Balance Rate (%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------------------------------- 0 3,827 592,175,474 87.11 7.106 5,835 1,010,725,539 84.33 7.160 350 79.89 78.09 24 376 78,870,268 11.60 6.588 527 150,789,524 12.58 6.393 356 81.96 82.45 36 43 8,197,499 1.21 6.559 88 25,421,330 2.12 6.065 356 80.53 78.16 120 2 597,500 0.09 4.716 38 11,553,983 0.96 4.615 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ 80.89 -------------------------------------------------------------------------------------------------------------------------------- Total: 4,248 679,840,741 6,488 1,198,490,375 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ 7.016 350 78.67 -------------------------------------------------------------------------------------------------------------------------------- This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004-HE8 NC8 Group 2 1 Table of Contents

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average Weighted of Date Date Gross Remaining Comb Combined Average Back Mortgage Principal Principal Interest Term Original FICO DTI Interest Only Term Loans Balance ($) Balance Rate (%Rate(%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ Score Ratio ----------------------------------------- -------- ----------- --------- -------- --------- -------- ------- ----- 0 3,827 592,175,474 87.11 7.106 350 79.89 24 376 78,870,268 11.60 6.588 651 99,487,852 44.98 7.135 356 81.96 36 43 8,197,499 1.21 6.559 356 80.53 120 2 597,500 0.09 4.716 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ 80.44 651 42.79 60 445 121,711,591 55.02 6.717 357 79.57 675 43.73 Total: 4,248 679,840,741 1,096 221,199,443 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ 6.905 357 79.96 664 43.30 This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004MSHEL 2005-HE8 Group 2 4 Wilmington 2,160 records Balance: 340,522,162 Table of Contents

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average of Date Date Gross Remaining Comb Mortgage Principal Principal Interest Term Original Interest Only Term Loans Balance ($) Balance Rate (%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------------------------------------- 0 3,827 592,175,474 87.11 7.106 350 79.89 3,868 607,133,564 90.02 7.078 349 77.70 24 376 78,870,268 11.60 6.588 241 54,202,608 8.04 6.568 356 81.96 85.61 36 43 8,197,499 1.21 6.559 30 7,136,818 1.06 6.427 356 80.53 82.18 120 2 597,500 0.09 4.716 21 5,979,730 0.89 4.702 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ 82.42 ---------------------------------------------------------------------------------------------------------------------------- Total: 4,248 679,840,741 4,160 674,452,720 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ 7.009 349 78.43 ---------------------------------------------------------------------------------------------------------------------------- This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004-HE8 NC8 Group 2 Table of Contents

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average of Date Date Gross Remaining Comb Mortgage Principal Principal Interest Term Original Interest Only Term Loans Balance ($) Balance Rate (%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------- 0 3,827 592,175,474 87.11 7.106 350 79.89 1,967 403,591,974 77.02 7.284 351 78.67 24 376 78,870,268 11.60 6.588 286 96,586,916 18.43 6.295 355 80.67 36 58 18,284,513 3.49 5.923 356 81.96 36 43 8,197,499 1.21 6.559 356 80.53 76.59 120 2 597,500 0.09 4.716 17 5,574,253 1.06 4.521 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ 79.25 ------------------------------------------------------------------------------------------------------------------------------- Total: 4,248 679,840,741 2,328 524,037,656 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ 7.025 352 78.97 ------------------------------------------------------------------------------------------------------------------------------- This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004-HE8 Group 2 Table of Contents.

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average of Date Date Gross Remaining Comb Mortgage Principal Principal Interest Term Original Interest Only Term Loans Balance ($) Balance Rate (%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------------------------------------- 0 3,827 592,175,474 87.11 7.106 350 79.89 24 376 78,870,268 11.60 6.588 356 81.96 36 43 8,197,499 1.21 6.559 356 80.53 120 2 597,500 0.09 4.716 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ 929 149,048,263 96.21 7.038 352 78.41 60 26 5,863,904 3.79 6.147 357 77.70 ---------------------------------------------------------------------------------------------------------------------------- Total: 4,248 679,840,741 955 154,912,167 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ 7.004 352 78.38 This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004-HE8 Group 2 3 Table of Contents

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average Weighted of Date Date Gross Remaining Comb Combined Average Back Mortgage Principal Principal Interest Term Original FICO DTI Interest Only Term Loans Balance ($) Balance Rate (%Rate(%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ Score Ratio --------------------------------------------------------------------------------------------------------------------------------- 0 3,827 592,175,474 87.11 7.106 934 107,569,648 60.78 8.076 350 79.89 24 376 78,870,268 11.60 6.588 85.63 629 40.90 60 252 69,412,198 39.22 6.920 356 81.96 36 43 8,197,499 1.21 6.559 356 80.53 120 2 597,500 0.09 4.716 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ 81.23 664 42.11 --------------------------------------------------------------------------------------------------------------------------------- Total: 4,248 679,840,741 1,186 176,981,845 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ 7.622 352 83.91 643 41.38 --------------------------------------------------------------------------------------------------------------------------------- This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004MSHEL 2005-HE8 Group 2 4 Mila 8 records Balance: 800,841 Table of Contents

Interest Only Term. of Mortgage Pool by Aggregate Aggregate Weighted Weighted Weighted Number Cut-off Cut-off Average Average Average Weighted of Date Date Gross Remaining Comb Combined Average Back Mortgage Principal Principal Interest Term Original FICO DTI Interest Only Term Loans Balance ($) Balance Rate (%Rate(%) (months) LTV ------------------------------------------------------------------------------------------------------------------------------------ Score Ratio --------------------------------------------------------------------------------------------------------------------------------- 0 3,827 592,175,474 87.11 7.106 350 79.89 24 376 78,870,268 11.60 6.588 356 81.96 36 43 8,197,499 1.21 6.559 356 80.53 120 2 597,500 0.09 4.716 296 75.45 ------------------------------------------------------------------------------------------------------------------------------------ 1,625 243,036,837 55.29 7.656 347 82.81 617 43.01 60 704 196,547,759 44.71 6.704 358 81.26 654 43.61 --------------------------------------------------------------------------------------------------------------------------------- Total: 4,248 679,840,741 2,329 439,584,596 100.00 7.037 351 80.13 ------------------------------------------------------------------------------------------------------------------------------------ 7.231 352 82.12 634 43.28 --------------------------------------------------------------------------------------------------------------------------------- This information is being delivered to a specific number of prospective sophisticated investors in order to assist them in determining whether they have an interest in the type of security described herein. It has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. This material is based on information that Morgan Stanley & Co. Incorporated ("Morgan Stanley") considers reliaxxx. Xoxxxx Xxanley makes no represexxxxxxn xx xxxranty with respect to txx xxxuxxxx xx completeness of the information, or with respect to the terms of any future offer of securities conforming to the terms hereof. Any such offer of securities would be made pursuant to a definitive Prospectus or Private Placement Memorandum, as the case may be, prepared by the issuer which could contain material information not contained herein and to which the prospective purchasers are referred. In the event of any such offering, this information shall be deemed superseded, amended and supplemented in its entirety by such Prospectus or Private Placement Memorandum. Such Prospectus or Private Placement Memorandum will contain all material information in respect of any securities offered thereby and any decision to invest in such securities should be made solely in reliance upon such Prospectus or Private Placement Memorandum. The information contained here in may be based on certain assumptions regarding market conditions and other matters and is therefore subject to change. We make no representations regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied on for such purposes. No representation is made that any returns indicated will be achieved. Changes to the assumptions may have a material impact on any returns detailed. Morgan Stanley disclaims any and all liability relating to this infoxxxxxxn, xxxxxding without limitation any express or implied representations or warranties for, statements contained in, and omissions from the information contained here in. Additional information is available upon request. Morgan Stanley and others associated with it may have positions in, xxx xxy xxxxxx transaction in, securities and instruments of issuers mentioned herein and may also perform or seek to perform investment banking services for the issuers of such securities and instruments. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Information contained in this material is current as of the date appearing on this material only. Information in this material regarding any assets backing any securities discussed herein supercedes all prior information regarding such assets. Morgan Stanley is acting as the lead underwriter and not acting as axxxx xox xxx xssuer or its affiliates in connection with the proposed transaction. To our readers worldwide: In addition, please note that this publication has been issued by Morgan Stanley, approved by Morgan Stanley International Limited, a xxxxxx xx Xxx Securities and Xxxxxex Xxxxxrity, and by Morgan Stanley Japan Ltd. We recommend that such investors obtain thx xxxxcx xx xxeir Morgan Stanley, Morgan Stanley International or Morgan Stanley Japan Xxx. rxxxxxxxxxxxxx xxxxx xxx investments concexxxx. NXX XXX DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. MORGAN STANLEY MSAC 2004MSHEL 2005-HE8 Group 2 4 Meritage 1,186 records Balance: 176,981,845 Table of Contents