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NEW YORK--([ BUSINESS WIRE ])--The Board of Directors of the Morgan Stanley Eastern Europe Fund, Inc. (NYSE: RNE) (the aFunda) approved a policy designed to attempt to narrow the trading discount for the Fund (the aPolicya).

The Policy requires the Fund to conduct up to four consecutive, semiannual tender offers, each to purchase up to 5 percent of the Fundas outstanding shares of common stock for cash at a price equal to 98 percent of its net asset value per share as of the close of trading on the New York Stock Exchange on the day after the date on which the tender offer expires, if the Fundas shares trade at an average discount of at least 10 percent over a 12-week period. The Policy is intended to be responsive to the concerns of the Fundas stockholders. The first 12-week measurement period will commence on April 9, 2012. The Fund currently maintains a share repurchase program for purposes of enhancing stockholder value and reducing the discount at which the Fund's shares trade from their net asset value. The Board of the Fund will also periodically monitor whether any additional action with respect to the Fundas trading discount is necessary and in the best interests of the Fund and its stockholders.

The Board of Directors of the Fund also approved changes to the Fundas investment strategy and concentration investment restriction that will be submitted for stockholder approval at the Fundas next annual stockholder meeting (the aMeetinga) to be held in June 2012. If approved by stockholders, the Fundas investment focus will include equity securities of issuers in Central, Eastern and Southern Europe, the Middle East and Africa, the Fundas name will be changed to the Morgan Stanley Emerging Europe, Middle East and Africa Fund and the Fund will not concentrate its investments in any industry or group of industries. Further information about the proposed changes to the Fundas investment strategy and concentration investment restriction will be included in a proxy statement expected to be mailed to stockholders in the second quarter of 2012.

Any solicitation of proxies by the Fund in connection with the Meeting will be made only pursuant to separate proxy materials filed with the U.S. Securities and Exchange Commission (the aSECa) under applicable federal securities laws. Because the proxy materials will contain important information, including a more detailed description of the Plan, stockholders are urged to read them carefully when they become available. The Fund and the Board may be deemed to be participants in the solicitation of proxies from stockholders in connection with the Meeting. The Fund plans to file a proxy statement with the SEC in connection with the solicitation of proxies for the Meeting. Information regarding the names of the Fundas Directors will be set forth in the Fundas proxy statement relating to the 2012 annual meeting of stockholders, which may be obtained free of charge at the SECas website at [ www.sec.gov ]. Additional information regarding the interests of such potential participants will be included in the proxy statement and other relevant documents to be filed with the SEC in connection with the Meeting.

Promptly after filing its definitive proxy statement for the Meeting with the SEC, the Fund will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the Meeting. We urge stockholders to read the proxy statement (including any supplements thereto) and any other relevant documents that the Fund will file with the SEC when they become available because they will contain important information. Stockholders will be able to obtain, free of charge, copies of the proxy statement and any other documents filed by the Fund with the SEC in connection with the Meeting at the SECas website at [ www.sec.gov ], by calling 1-800-231-2608 or by writing to the Fund at 522 Fifth Avenue, New York, New York 10036.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has 620 investment professionals around the world and approximately $287 billion in assets under management or supervision as of December 31, 2011. MSIM strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firmas employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 43 countries. For further information about Morgan Stanley, please visit [ www.morganstanley.com ].

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.