Morgan Stanley Emerging Markets Debt Fund, Inc. (NYSE: MSD) today declared a quarterly dividend of $0.1850 per share of net investment income. The dividend has been reduced from the prior quarter by $0.0150. -0- *T RECORD DATE PAYABLE DATE ----------- ------------ 06/30/06 7/14/06 *T

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 $442 billion in assets under management or supervision as of February 28, 2006. These entities offer investment management services to a diverse client base, which includes governments, institutions, corporations and individuals.

Morgan Stanley (NYSE: MS) is a global financial services firm and a market leader in securities, investment management and credit services. With more than 600 offices in 30 countries, Morgan Stanley connects people, ideas, and capital to help clients achieve their financial aspirations.