Fitch Downgrades 2 & Upgrades 7 From Morgan Stanley Capital I 1999-CAM1.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 15, 2004

Fitch Ratings downgrades Morgan Stanley Capital I Inc.'s commercial mortgage pass-through certificates, series 1999-CAM1 as follows:

-- $6 million class M to 'CCC' from 'B-';

-- $3.5 million class N to 'D' from 'C'.

The following classes are upgraded by Fitch:

-- $26.2 million class B to 'AAA' from 'AA+';

-- $26.2 million class C to 'AA+' from 'A+';

-- $12.1 million class D to 'AA-' from 'A-';

-- $20.2 million class E to 'A-' from 'BBB';

-- $8.1 million class F to 'BBB+' from 'BBB-';

-- $14.1 million class G to 'BBB' from 'BB+';

-- $14.1 million class H to 'BB+' from 'BB'.

In addition, Fitch affirms the following classes:

-- $87.8 million class A-2 at 'AAA';

-- $128.5 million class A-3 at 'AAA';

-- $205.8 million class A-4 at 'AAA';

-- $6 million class J at 'BB-';

-- $8.1 million class K at 'B+';

-- $6 million class L at 'B';

-- Interest only class X at 'AAA'.

Class A-1 has been paid in full.

The downgrade of classes N and M are the result of a principal loss incurred by class N due to the liquidation of an office property in Mountain Valley, California. The trust incurred a 92% loss on the asset, which depleted the balance on the unrated class O, reduced the balance of class N, and lowered the credit enhancement available to class M.

The ratings upgrades reflect stable loan performance, strong payment history, and paydown. As of the May 2004 distribution date, the balance of the transaction has been reduced 28% to $572.7 million from $806.5 million at issuance. 129 of the original 152 loans remain outstanding. There are currently no delinquent or specially serviced loans in the transaction.

Key Commercial Mortgage, the master servicer, provided year-end (YE) 2003 borrower operating statements for 89% of the pool. The weighted average debt service coverage ratio (WADSCR) for YE 2003 is 1.38 times (x). Five loans (5.13%) reported a YE 2003 DSCR below 1.00x but remain current. The WADSCR for the top five loans (14.17%) in the pool increased to 1.87x at YE 2003. More than 95% of the loans in the pool were found to be in good to excellent condition at their 2003 site inspections.