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MORGAN STANLEY EASTERN EUROPE FUND, INC. ANNOUNCES PROPOSED RECORD DATE FOR ITS
RIGHTS OFFERING

     NEW YORK, May 17, 2006--Morgan Stanley Eastern Europe Fund, Inc. (the
"Fund") (NYSE: RNE), a closed-end management investment company, announced the
proposed record date for an anticipated rights offering of its shares of common
stock (the "Offering"). Subject to the registration statement for the Offering
becoming effective under the Securities Act of 1933, as amended, the Fund will
issue to stockholders of record as of May 26, 2006 (the "Record Date") one
non-transferable right for each share of common stock held. Four rights will
entitle the holder to purchase one share of common stock at the subscription
price.

     The Offering will only be made by means of a prospectus to be distributed
to Record Date stockholders on or about May 31, 2006. The subscription price has
not yet been determined by the Fund. The subscription price, which will be
determined on the expiration date of the Offering (the "Expiration Date"), will
equal 95% of the average of the last reported sales price per share of the
Fund's common stock on the New York Stock Exchange on the Expiration Date of the
Offering and for the four preceding trading days, with a requirement that the
price be no lower than the net asset value per share of common stock of the Fund
at the close of trading on the New York Stock Exchange on the Expiration Date.

     Stockholders who fully exercise all rights issued to them will be entitled
to subscribe for additional shares at the subscription price pursuant to an
oversubscription privilege. If all available shares are then subscribed for, the
Fund may issue additional shares in an amount up to 25% of the shares available
pursuant to the Offering. If all subscription rights are exercised (including
the additional 25%), the Fund will issue approximately 1,137,088 shares of its
common stock in the Offering.

     The subscription rights are exercisable from June 1, 2006 until, up to and
including, 5:00 p.m. New York City time on June 21, 2006, the Expiration Date,
unless extended by the Fund.

     For further information regarding the Fund's rights offering, or to obtain
a Prospectus, when available, please contact the Fund's Information Agent:

     GEORGESON SHAREHOLDER COMMUNICATIONS, INC.,
     17 State Street, 10th Floor
     New York, NY 10004
     Toll free: (800) 868-1348 or
     For Banks and Brokers: (212) 440-9800

     The Fund's U.S. investment adviser is Morgan Stanley Investment Management
Inc. ("MSIM"), a wholly owned subsidiary of Morgan Stanley. MSIM, with over 400
investment professionals around the word, has more than $442 billion in assets
under management or supervision as of February 28, 2006. MSIM offers 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.



     Investors should consider the Fund's investment objective, risks and
charges and expenses carefully before investing. The prospectus contains this
and other information about the Fund and can be obtained from Georgeson
Shareholder Communications, Inc., as set forth above. Investors should read the
prospectus carefully before investing.

     Please note that a registration statement relating to the Fund's shares of
common stock has been filed with the Securities and Exchange Commission but has
not yet become effective. The information in this registration statement, and
this press release, is not complete and may be changed. These securities may not
be sold nor may offers to buy be accepted prior to the time the registration
statement becomes effective. This communication shall not constitute an offer to
sell or the solicitation of any offer to buy, nor shall there by any sale of
these securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any
state.

For media inquiries, please contact:


Andrea Slattery
Media Relations
212-762-3487

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