Morgan Stanley Emerging Markets Debt Fund, Inc. (NYSE: MSD) today declared a quarterly dividend of $0.1550 per share of net investment income. The dividend has been reduced from the quarter ended September 2006 (the most recent quarter representing regular dividends to stockholders) by $0.0300 per share of net investment income.*

RECORD DATE

PAYABLE DATE

03/30/07  04/13/07  
    For more information, contact: Mark Kucera, JPMorgan Investor Services
                               Phone Number: (617) 557-8844

Morgan Stanley Emerging Markets Debt Fund, Inc. (the ?Fund?), advised by Morgan Stanley Investment Management Inc., is a closed-end management investment company seeking high current income and capital appreciation by investing primarily in debt securities of government and government related issuers located in emerging countries and in securities of entities organized to restructure outstanding debt of such issuers.

The Fund's primary investment objective is to seek high current income and its secondary objective is to seek capital appreciation.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 400 investment professionals around the world and more than $478 billion in assets under management or supervision as of November 30, 2006. These entities offer investment management services to a diverse client base, which includes governments, institutions, corporations and individuals.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 30 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

* The dividend for the quarter ended December 2006 had special year-end adjustments.