Dean Witter/Morgan Stanley Merger Shows Bankers and Financial Servicers the Way to Future Survival and Success.

PALO ALTO, Calif.--(BUSINESS WIRE)--Feb. 7, 1997--Dean Witter, Discover & Co. and Morgan Stanley Group Inc.'s announced merger confirms a Killen & Associates study conclusion: Financial services companies must seek complementary services providers if they plan to survive and succeed in the next millennium.

According to "Internet Retail Banking Opportunities: Requirements for Success," offering a full spectrum of financial services is a critical need of major financial services firms.

"Eventually, every financial services institution -- bank and non-bank alike -- that wants to be successful will have to follow this path," stated Michael Killen, president of the research firm.

"This move puts Morgan Stanley, Dean Witter, Discover & Co. in a strong position to leverage its sizable customer base and credit card operations for a full range of products and services," Killen continued.

"It is poised to take a greater position in financial services, particularly in online retail banking services, one of the key drivers in the market. The new company has retail customers, technology, the Discover Card -- a totally independent credit card from VISA, MasterCard, and American Express -- and more. Through the 76% ownership of SPS Transaction Services, it issues private label independent cards for specialty retailers, including Goodyear and Tandy/Radio Shack." -0-

The study provides:

-- A template of required capabilities for full-service providers.

-- Details on new business ventures, acquisition candidates,

licensing opportunities, and product release strategies.

-- Insights on how to build and leverage the brand in cyberspace.

-- Competitive and market analyses, and comparisons of online

banking companies and products.

-- Business case analyses of existing services, including payments.

-- Insights on key banking products and functionality in the age of

electronic commerce.

-- Insights on links between electronic commerce, payments, and

online banking. -0-

Additional details from this and a related study on E-cash are available at the company's Web site, http://www.killen.com . For additional information, contact Mr. Jules Street at telephone [phone], FAX [phone], [e-mail] .

Killen & Associates is a leading research and consulting firm that helps banks, other financial services vendors, and their information technology suppliers to seize emerging business opportunities.

The company produces, studies and seminars that enable high-level executives and their teams to identify business opportunities created by advances in computer and telecommunications technology, changes in public policy, and dynamic forces in the industries.

CONTACT: Killen & Associates, Inc.

Jules Street, 415/617-6130