Municipal Bond New Issues

RE: $127,430,000*
CITY OF INDIANAPOLIS, INDIANA
GAS UTILITY DISTRIBUTION SYSTEM
SECOND LIEN MULTI-MODE REVENUE REFUNDING BONDS SERIES 2008 A ND B

LADIES AND GENTLEMEN:

WE HAVE A RELEASE. ORDERS UNTIL 2:15PM EST.

$56,050,000*
SERIES 2008 A

MOODY’S: Aaa S&P: AAA FITCH:

A2 A+ NAF

AGC Insured

DATED:04/10/2008 FIRST COUPON:08/15/2008

DUE: 08/15

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MANDATORY ADD’L
MATURITY TENDER DATE AMOUNT* COUPON PRICE TAKEDOWN
( Pts )
08/15/2030 08/15/2013 56,050M 5.00% 4.25 0.45
(Approx. $ Price 103.548)

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CALL FEATURES: No Optional Call prior to mandatory tender date.



$71,380,000*
SERIES B

MOODY’S: Aaa S&P: AAA FITCH:

A2 A+ NAF

AGC Insured

DATED:04/10/2008 FIRST COUPON:08/15/2008

DUE: 08/15


ADD’L
TAKEDOWN
MATURITY AMOUNT* COUPON PRICE ( Pts )
08/15/2025 19,090M 5.25% 5.06 1/2
(Approx. $ Price PTC 08/15/2018 101.509 )
08/15/2026 20,095M 5.25% 5.14 1/2
(Approx. $ Price PTC 08/15/2018 100.867 )
08/15/2027 21,145M 5.25% 5.20 1/2
(Approx. $ Price PTC 08/15/2018 100.389 )

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CALL FEATURES: Optional call in 08/15/2018 @ 100.00


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* - APPROXIMATE SUBJECT TO CHANGE

Order period until today 2:15 PM, Eastern, Tuesday, 03/25/08.
Please enter orders on (212) 761-2760, or if available use Electronic
Order Entry.

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

The compliance addendum MSRB Rule G-11 will apply.


The Award is expected on Thursday, March 27, 2008.

Delivery is expected on Thursday, April 10, 2008.

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

Morgan Stanley & Co. Incorporated
City Securities Corp.
J.P. Morgan Securities Inc.

By: Morgan Stanley & Co. Incorporated New York, NY