MORGAN STANLEY IMPLEMENTS ELECTRONIC PAYMENT SYSTEM FROM CLAREON

PORTLAND, Maine and NEW YORK, N.Y.-March 25, 2002-Clareon Corporation, provider of the only bank-neutral, electronic payment solution enabling secure, information-rich, business-to-business transactions, and Morgan Stanley (NYSE:MWD), a leading global financial services firm and a market leader in securities, asset management and credit services, today announced that Morgan Stanley has implemented PayMode, Clareon's business-to-business payment solution, and is using it to initiate and send payments, along with detailed remittance information, to vendors and suppliers.

"By using Clareon's PayMode, we include detailed remittance information with our vendor payments, helping us to cut costs internally and realize maximum efficiency in our accounts payable process," said Eileen Gargiulo, executive director at Morgan Stanley.

Clareon earlier integrated PayMode with Morgan Stanley's accounts payable workflow and its GEAC accounts payable system, allowing the company to generate, approve and transmit electronic payments with remittance to its vendors, while continuing to work within its current accounts payable environment. Clareon is also employing its successful Accelerated Enrollment Program to quickly and easily enable Morgan Stanley's vendors and suppliers to receive payments and remittance using PayMode. Once a vendor or supplier has agreed to use PayMode, enrollment takes only minutes and is accomplished online.

"Morgan Stanley is a valuable customer, and with PayMode we receive and reconcile Morgan Stanley's payments and the related payment data in a streamlined and cost-effective manner," said Norman Fidelman, vice president of Finance at Long Island City, New York-based Petrocelli Electric Co. Inc., a leading electrical and communications contractor serving Greater New York City.

"Enrolling in PayMode was very simple and very fast," said Russell Madris, chairman and CEO of MoreDirect, Inc., a one-stop source for corporate technology buyers to procure goods from leading distributors and manufacturers. "Clareon has made the payment process very straightforward and efficient."

"Morgan Stanley recognizes the importance of enhancing its business performance through electronic payments," said Paul Walsh, chairman and CEO of Clareon. "Our solution will enable Morgan Stanley to receive better terms from vendors and suppliers, increase the return on its existing technology investments, predict cash flow more accurately and lower overhead costs."

About Morgan Stanley
Morgan Stanley is a global financial services firm and a market leader in securities, asset management and credit services. With more than 700 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations. For more information about Morgan Stanley, go to www.morganstanley.com.

About Clareon Corporation
Clareon's market-leading PayMode enables businesses to send and receive electronic payments, along with rich remittance information, to and from suppliers and customers, providing enhanced business performance. PayMode works seamlessly with any bank and integrates quickly and easily with any ERP system or accounting software. Clareon also ensures that its customers realize value quickly by signing up their suppliers, vendors, service providers and customers on their behalf with its proven Accelerated Enrollment Program. PayMode lowers payment costs, creates a more efficient business process, strengthens relationships with suppliers and customers, and enables more effective management of working capital. Clareon's growing list of PayMode users now includes more than 50 Fortune 500 enterprises. Clareon is headquartered in Portland, Maine. For more information on Clareon, visit www.clareon.com.

Contacts:
David A. Goldberg   
Clareon Corp.   
207-771-3712   
david.goldberg@clareon.com   

Judy Hitchen
Morgan Stanley
212-762-7846
judyhitchen@morganstanley.com

Carissa B. Caramanis/Tim King
Schwartz Communications
781-684-0770
clareon@schwartz-pr.com