[MORGAN STANLEY LOGO]

             MORGAN STANLEY EASTERN EUROPE FUND, INC. ANNOUNCES THE
                         RESULTS OF ITS RIGHTS OFFERING

     NEW YORK, July 25, 2006--Morgan Stanley Eastern Europe Fund, Inc. (the
"Fund") (NYSE: RNE) is pleased to announce the results of its Rights Offering,
which expired on July 21, 2006 (the "Expiration Date"). As of the Expiration
Date, stockholders of record as of May 26, 2006, subscribed for 537,331 shares
of the Fund's common stock. The subscription price for the shares purchased
pursuant to the Rights Offering was determined to be $30.68 per share, which
represents the Fund's net asset value on the Expiration Date. The Rights
Offering generated $16.5 million in new assets for the Fund.

     Persons seeking further information regarding the Fund's Rights Offering
should 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 investment adviser is Morgan Stanley Investment Management Inc.
("MSIM"), a wholly-owned subsidiary of Morgan Stanley. MSIM, with over 400
investment professionals around the world, has more than $440 billion in assets
under management or supervision as of May 31, 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.

     THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN
ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL UNDER THE
SECURITIES LAWS OF ANY SUCH STATE.

For media inquiries, please contact:

Erica Platt
Media Relations
212-762-3268

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