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|------------------------------------------------- | ------- | --------- | ------------- | ----- | -------------- |  | ----------------------- |  | --------------- |  | --------- |  |  |  | -------------- | 
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|Morgan Stanley ABS Capital I Inc. Series 2004-HE4
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|2004 Annual Statement                            
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | DISTRIBUTION IN DOLLARS |  |                 |  |           |  | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  | ENDING BALANCE | 
|PERIOD                                            |         | CLASS     |               | CUSIP |                |  | INTEREST                |  |                 |  | PRINCIPAL |  | 
|200407                                            | A-1     | 61746RGF2 | $799,757.36   |       | $11,258,973.80 |  | $617,852,026.20         | 
|200408                                            | A-1     | 61746RGF2 | $934,501.19   |       | $18,579,931.98 |  | $599,272,094.22         | 
|200409                                            | A-1     | 61746RGF2 | $1,087,678.85 |       | $21,753,910.95 |  | $577,518,183.27         | 
|200410                                            | A-1     | 61746RGF2 | $990,443.68   |       | $22,161,119.84 |  | $555,357,063.43         | 
|200411                                            | A-1     | 61746RGF2 | $1,134,162.54 |       | $21,579,082.28 |  | $533,777,981.15         | 
|200412                                            | A-1     | 61746RGF2 | $1,170,078.85 |       | $24,190,394.85 |  | $509,587,586.30         | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $6,116,622.47           |  | $119,523,413.70 |  |           |  | 
|200407                                            | A-2     | 61746RGG0 | $189,000.00   |       | $3,085,601.68  |  | $146,914,398.32         | 
|200408                                            | A-2     | 61746RGG0 | $220,371.60   |       | $3,109,916.02  |  | $143,804,482.30         | 
|200409                                            | A-2     | 61746RGG0 | $259,027.82   |       | $3,536,765.16  |  | $140,267,717.14         | 
|200410                                            | A-2     | 61746RGG0 | $238,922.68   |       | $5,529,761.43  |  | $134,737,955.71         | 
|200411                                            | A-2     | 61746RGG0 | $273,368.34   |       | $6,440,593.87  |  | $128,297,361.84         | 
|200412                                            | A-2     | 61746RGG0 | $279,579.66   |       | $6,012,108.50  |  | $122,285,253.34         | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $1,460,270.10           |  | $27,714,746.66  |  |           |  | 
|200407                                            | A-3     | 61746RGH8 | $329,984.28   |       | $7,978,707.68  |  | $279,589,292.32         | 
|200408                                            | A-3     | 61746RGH8 | $384,435.28   |       | $8,041,579.39  |  | $271,547,712.93         | 
|200409                                            | A-3     | 61746RGH8 | $451,787.51   |       | $9,145,320.19  |  | $262,402,392.74         | 
|200410                                            | A-3     | 61746RGH8 | $416,345.13   |       | $14,298,783.38 |  | $248,103,609.36         | 
|200411                                            | A-3     | 61746RGH8 | $470,294.18   |       | $16,654,001.74 |  | $231,449,607.62         | 
|200412                                            | A-3     | 61746RGH8 | $474,468.67   |       | $15,546,029.99 |  | $215,903,577.63         | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $2,527,315.05           |  | $71,664,422.37  |  |           |  | 
|200407                                            | A-4     | 61746RGJ4 | $139,166.25   |       | $0.00          |  | $100,300,000.00         | 
|200408                                            | A-4     | 61746RGJ4 | $164,659.17   |       | $0.00          |  | $100,300,000.00         | 
|200409                                            | A-4     | 61746RGJ4 | $196,295.46   |       | $0.00          |  | $100,300,000.00         | 
|200410                                            | A-4     | 61746RGJ4 | $184,106.22   |       | $0.00          |  | $100,300,000.00         | 
|200411                                            | A-4     | 61746RGJ4 | $218,654.00   |       | $0.00          |  | $100,300,000.00         | 
|200412                                            | A-4     | 61746RGJ4 | $233,251.91   |       | $0.00          |  | $100,300,000.00         | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $1,136,133.01           |  | $0.00           |  |           |  | 
|200407                                            | B-1     | 61746RGN5 | $46,328.15    |       | $0.00          |  | $18,009,000.00          | 
|200408                                            | B-1     | 61746RGN5 | $53,276.63    |       | $0.00          |  | $18,009,000.00          | 
|200409                                            | B-1     | 61746RGN5 | $61,328.15    |       | $0.00          |  | $18,009,000.00          | 
|200410                                            | B-1     | 61746RGN5 | $55,187.58    |       | $0.00          |  | $18,009,000.00          | 
|200411                                            | B-1     | 61746RGN5 | $64,552.26    |       | $0.00          |  | $18,009,000.00          | 
|200412                                            | B-1     | 61746RGN5 | $66,382.94    |       | $0.00          |  | $18,009,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $347,055.71             |  | $0.00           |  |           |  | 
|200407                                            | B-2     | 61746RGP0 | $49,029.50    |       | $0.00          |  | $18,009,000.00          | 
|200408                                            | B-2     | 61746RGP0 | $56,278.13    |       | $0.00          |  | $18,009,000.00          | 
|200409                                            | B-2     | 61746RGP0 | $64,629.80    |       | $0.00          |  | $18,009,000.00          | 
|200410                                            | B-2     | 61746RGP0 | $57,988.98    |       | $0.00          |  | $18,009,000.00          | 
|200411                                            | B-2     | 61746RGP0 | $67,753.86    |       | $0.00          |  | $18,009,000.00          | 
|200412                                            | B-2     | 61746RGP0 | $69,484.49    |       | $0.00          |  | $18,009,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $365,164.76             |  | $0.00           |  |           |  | 
|200407                                            | B-3     | 61746RGQ8 | $68,614.29    |       | $0.00          |  | $18,009,000.00          | 
|200408                                            | B-3     | 61746RGQ8 | $78,039.00    |       | $0.00          |  | $18,009,000.00          | 
|200409                                            | B-3     | 61746RGQ8 | $88,566.76    |       | $0.00          |  | $18,009,000.00          | 
|200410                                            | B-3     | 61746RGQ8 | $78,299.13    |       | $0.00          |  | $18,009,000.00          | 
|200411                                            | B-3     | 61746RGQ8 | $90,965.46    |       | $0.00          |  | $18,009,000.00          | 
|200412                                            | B-3     | 61746RGQ8 | $91,970.73    |       | $0.00          |  | $18,009,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $496,455.37             |  | $0.00           |  |           |  | 
|200407                                            | M-1     | 61746RGK1 | $130,340.14   |       | $0.00          |  | $90,045,000.00          | 
|200408                                            | M-1     | 61746RGK1 | $153,826.88   |       | $0.00          |  | $90,045,000.00          | 
|200409                                            | M-1     | 61746RGK1 | $182,828.87   |       | $0.00          |  | $90,045,000.00          | 
|200410                                            | M-1     | 61746RGK1 | $170,885.40   |       | $0.00          |  | $90,045,000.00          | 
|200411                                            | M-1     | 61746RGK1 | $202,701.30   |       | $0.00          |  | $90,045,000.00          | 
|200412                                            | M-1     | 61746RGK1 | $215,606.57   |       | $0.00          |  | $90,045,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $1,056,189.16           |  | $0.00           |  |           |  | 
|200407                                            | M-2     | 61746RGL9 | $149,193.98   |       | $0.00          |  | $75,637,000.00          | 
|200408                                            | M-2     | 61746RGL9 | $173,334.79   |       | $0.00          |  | $75,637,000.00          | 
|200409                                            | M-2     | 61746RGL9 | $202,108.37   |       | $0.00          |  | $75,637,000.00          | 
|200410                                            | M-2     | 61746RGL9 | $184,722.36   |       | $0.00          |  | $75,637,000.00          | 
|200411                                            | M-2     | 61746RGL9 | $217,330.31   |       | $0.00          |  | $75,637,000.00          | 
|200412                                            | M-2     | 61746RGL9 | $226,699.91   |       | $0.00          |  | $75,637,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $1,153,389.72           |  | $0.00           |  |           |  | 
|200407                                            | M-3     | 61746RGM7 | $53,514.59    |       | $0.00          |  | $25,213,000.00          | 
|200408                                            | M-3     | 61746RGM7 | $61,981.96    |       | $0.00          |  | $25,213,000.00          | 
|200409                                            | M-3     | 61746RGM7 | $71,993.62    |       | $0.00          |  | $25,213,000.00          | 
|200410                                            | M-3     | 61746RGM7 | $65,497.77    |       | $0.00          |  | $25,213,000.00          | 
|200411                                            | M-3     | 61746RGM7 | $76,927.66    |       | $0.00          |  | $25,213,000.00          | 
|200412                                            | M-3     | 61746RGM7 | $79,910.87    |       | $0.00          |  | $25,213,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $409,826.47             |  | $0.00           |  |           |  | 
|200407                                            | P       | MS04H4102 | $250,193.88   |       | $0.00          |  | $0.00                   | 
|200408                                            | P       | MS04H4102 | $563,897.56   |       | $0.00          |  | $0.00                   | 
|200409                                            | P       | MS04H4102 | $598,196.91   |       | $0.00          |  | $0.00                   | 
|200410                                            | P       | MS04H4102 | $912,894.85   |       | $0.00          |  | $0.00                   | 
|200411                                            | P       | MS04H4102 | $580,057.76   |       | $0.00          |  | $0.00                   | 
|200412                                            | P       | MS04H4102 | $984,441.26   |       | $0.00          |  | $0.00                   | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $3,889,682.22           |  | $0.00           |  |           |  | 
|200407                                            | R       | MS04H4103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200408                                            | R       | MS04H4103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200409                                            | R       | MS04H4103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200410                                            | R       | MS04H4103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200411                                            | R       | MS04H4103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200412                                            | R       | MS04H4103 | $0.00         |       | $0.00          |  | $0.00                   | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $0.00                   |  | $0.00           |  |           |  | 
|200407                                            | REMIC I | MS04H4201 | $8,139,715.19 |       | $22,323,600.91 |  | $1,418,392,029.45       | 
|200408                                            | REMIC I | MS04H4201 | $8,333,183.72 |       | $29,731,442.52 |  | $1,388,660,586.93       | 
|200409                                            | REMIC I | MS04H4201 | $8,202,671.54 |       | $34,435,996.30 |  | $1,354,224,590.63       | 
|200410                                            | REMIC I | MS04H4201 | $8,323,669.18 |       | $41,989,664.65 |  | $1,312,234,925.98       | 
|200411                                            | REMIC I | MS04H4201 | $7,759,419.27 |       | $44,673,677.89 |  | $1,267,561,248.09       | 
|200412                                            | REMIC I | MS04H4201 | $7,875,089.34 |       | $45,748,533.34 |  | $1,221,812,714.75       | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $48,633,748.24          |  | $218,902,915.61 |  |           |  | 
|200407                                            | X       | MS04H4101 | $5,934,592.77 |       | $317.75        |  | $28,814,312.61          | 
|200408                                            | X       | MS04H4101 | $5,488,581.53 |       | $15.13         |  | $28,814,297.48          | 
|200409                                            | X       | MS04H4101 | $4,938,229.42 |       | $0.00          |  | $28,814,297.48          | 
|200410                                            | X       | MS04H4101 | $4,968,375.40 |       | $0.00          |  | $28,814,297.48          | 
|200411                                            | X       | MS04H4101 | $4,362,651.60 |       | $0.00          |  | $28,814,297.48          | 
|200412                                            | X       | MS04H4101 | $3,983,213.48 |       | $0.00          |  | $28,814,297.48          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $29,675,644.20          |  | $332.88         |  |           |  | 
|                                                  |         |           |               |       |                |  | $97,267,496.48          |  | $437,805,831.22 |  |           |  |