Municipal Bond New Issues

Cleveland, OH (Prelim)

RE: $10,815,000*
CITY OF CLEVELAND, OHIO
AIRPORT SYSTEM REVENUE BONDS, SERIES 2007B

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LADIES AND GENTLEMEN:

WE HAVE A RELEASE. ORDERS UNTIL 10:30AM.

THIS IS A GROUP NET TRANSACTION:

MORGAN STANLEY 80%
GOLDMAN SACHS 10%
RICE FINANCIAL 10%

MOODY’S: Aaa/A3 S&P: AAA/A- FITCH: AAA/A

XL Capital Assurance INSURED

DATED:10/03/2007 FIRST COUPON:01/01/2008

DUE: 01/01

ADD’L
TAKEDOWN
MATURITY AMOUNT* COUPON PRICE ( Pts )
01/01/2010 480M 4.00% 3.63 1/4
(Approx. $ Price 100.786)
01/01/2011 490M 4.00% 3.66 3/8
(Approx. $ Price 101.026)
01/01/2012 515M 4.00% 3.71 3/8
(Approx. $ Price 101.124)
01/01/2013 535M 4.00% 3.76 3/8
(Approx. $ Price 101.128)
01/01/2014 555M 4.00% 3.83 3/8
(Approx. $ Price 100.931)
01/01/2015 585M 5.00% 3.91 1/2
(Approx. $ Price 106.813)
01/01/2016 615M 5.00% 3.98 1/2
(Approx. $ Price 107.103)
01/01/2017 645M 5.00% 4.06 1/2
(Approx. $ Price 107.179)
01/01/2018 680M 5.00% 4.16 1/2
(Approx. $ Price 106.942)
01/01/2019 710M 5.00% 4.24 1/2
(Approx. $ Price 106.735)
01/01/2020 745M 5.00% 4.30 1/2
(Approx. $ Price 106.603)
01/01/2021 780M 5.00% 4.35 1/2
(Approx. $ Price 106.485)
01/01/2022 820M 5.00% 4.39 1/2
(Approx. $ Price 106.402)

01/01/2027 2,660M 5.00% 4.56 1/2
(Approx. $ Price 105.590)

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CALL FEATURES: No optional call

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Sinking Fund Schedule

2027 Term Bond

01/01/2023 860
01/01/2024 905
01/01/2025 285
01/01/2026 295
01/01/2027 315

* - APPROXIMATE SUBJECT TO CHANGE

Order period until today 10:30 AM, Eastern, Thursday, 09/20/07.

The managers reserve the right to terminate or extend the order period prior to or later than the above-mentioned time and date and to confirm bonds at their discretion.

PRIORITY OF ORDERS AS FOLLOWS:
1. Group Net
2. Member

PRIORITY POLICY:

The Senior Manager requests the identification of all priority orders at the time the orders are entered.

The compliance addendum MSRB Rule G-11 will apply.

The Award is expected on Friday, September 21, 2007.

Delivery is expected on Wednesday, October 3, 2007.

This Issue is book entry. This issue is clearing through DTC.

A reasonable number of preliminary statements are available from Image Master Financial Publishing

Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
Rice Financial Products Company (formerly Apex Pryor Securities)