Riverwoods, Illinois and Tokyo,Japan- August 23, 2006-Discover Financial Services LLC, a business unit of Morgan Stanley(NYSE:MS), and JCB, the largest card issuer and acquirer in Japan, today announced they have entered into a strategic relationship that will lead to increased card acceptance for both companies.

The two parties have agreed to an arrangement that will facilitate acceptance of JCB cards on the Discover Network in the U.S., and of Discover Network cards on the JCB network in Japan, and acceptance of PULSE cards at targeted ATMs in Japan at the option of the card issuer.In 2007, Discover Network will begin enabling its systems so JCB cardholders will be able to use their JCB cards at Discover Network merchant locations throughout the United States.Upon completion of a JCB system enhancement, Discover Network cardholders will be able to use their cards for purchases at JCB merchant locations and for cash advances at targeted ATMs throughout Japan beginning in 2008.