Fitch Ratings Upgrades Morgan Stanley, Series 1997-HF1, Class E.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 3, 2004

Fitch Ratings upgrades Morgan Stanley Capital I, Inc.'s commercial mortgage pass-through certificates, series 1997-HF1 as follows:

-- $9.3 million class E to 'AA+' from 'AA'.

In addition, Fitch affirms the following certificates:

-- $100.9 million class A-2 'AAA';

-- Interest only class X 'AAA';

-- $55.7 million class B 'AAA';

-- $34 million class C 'AAA';

-- $27.8 million class D 'AAA';

-- $41.7 million class F 'BBB-';

-- $4.6 million class G 'BB+';

-- $10.8 million class H 'B'.

The $7.7 million class J remains at 'CCC'. Fitch does not rate the $4.0 million class K certificates.

The upgrade to class E is the result of increased subordination levels due to loan payoffs and amortization. As of the May 2004 distribution date, the pool's collateral balance has been reduced 49% to $296.6 million from $616.4 million at issuance.

Two loans (2.6%) are currently being specially serviced, including a 60 days delinquent (1.1%) and a 90 days delinquent (1.45%) loans. The 90 days delinquent loan is secured by a healthcare property located in East Northport, N.Y. The special servicer, GMAC Commercial Mortgage Corp., is currently determining a workout strategy. The 60 days delinquent loan, secured by a multifamily property in San Antonio, TX recently transferred to the special servicer. The special servicer is evaluating options.