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|------------------------------------------------- | ---- | --------- | ------------- | ----- | -------------- |  | ----------------------- |  | --------------- |  | --------- |  |  |  | -------------- | 
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|Morgan Stanley ABS Capital I Inc. Series 2004-HE7
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|2004 Annual Statement                            
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | DISTRIBUTION IN DOLLARS |  |                 |  |           |  | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  | ENDING BALANCE | 
|PERIOD                                            |      | CLASS     |               | CUSIP |                |  | INTEREST                |  |                 |  | PRINCIPAL |  | 
|200409                                            | A-1  | 61744CFX9 | $396,227.81   |       | $4,301,060.90  |  | $364,163,939.10         | 
|200410                                            | A-1  | 61744CFX9 | $610,379.22   |       | $6,572,507.23  |  | $357,591,431.87         | 
|200411                                            | A-1  | 61744CFX9 | $714,388.22   |       | $10,125,288.50 |  | $347,466,143.37         | 
|200412                                            | A-1  | 61744CFX9 | $746,709.86   |       | $12,156,769.75 |  | $335,309,373.62         | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $2,467,705.11           |  | $33,155,626.38  |  |           |  | 
|200409                                            | A-2A | 61744CFY7 | $277,666.07   |       | $4,338,765.86  |  | $249,511,234.14         | 
|200410                                            | A-2A | 61744CFY7 | $425,000.80   |       | $5,826,942.21  |  | $243,684,291.93         | 
|200411                                            | A-2A | 61744CFY7 | $494,408.35   |       | $8,043,250.64  |  | $235,641,041.29         | 
|200412                                            | A-2A | 61744CFY7 | $513,498.03   |       | $10,044,152.11 |  | $225,596,889.18         | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $1,710,573.25           |  | $28,253,110.82  |  |           |  | 
|200409                                            | A-2B | 61744CGM2 | $71,425.60    |       | $1,084,682.92  |  | $62,377,317.08          | 
|200410                                            | A-2B | 61744CGM2 | $109,160.30   |       | $1,456,724.08  |  | $60,920,593.00          | 
|200411                                            | A-2B | 61744CGM2 | $126,850.21   |       | $2,010,796.81  |  | $58,909,796.19          | 
|200412                                            | A-2B | 61744CGM2 | $131,417.17   |       | $2,511,018.24  |  | $56,398,777.95          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $438,853.28             |  | $7,063,222.05   |  |           |  | 
|200409                                            | A-3  | 61744CFZ4 | $248,523.03   |       | $3,917,226.59  |  | $221,117,773.41         | 
|200410                                            | A-3  | 61744CFZ4 | $380,076.88   |       | $5,549,793.42  |  | $215,567,979.99         | 
|200411                                            | A-3  | 61744CFZ4 | $441,195.80   |       | $5,892,155.18  |  | $209,675,824.81         | 
|200412                                            | A-3  | 61744CFZ4 | $460,526.91   |       | $8,716,174.12  |  | $200,959,650.69         | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $1,530,322.62           |  | $24,075,349.31  |  |           |  | 
|200409                                            | A-4  | 61744CGA8 | $88,468.75    |       | $3,565,253.25  |  | $86,434,746.75          | 
|200410                                            | A-4  | 61744CGA8 | $133,109.51   |       | $5,051,129.56  |  | $81,383,617.19          | 
|200411                                            | A-4  | 61744CGA8 | $149,926.71   |       | $5,362,729.18  |  | $76,020,888.01          | 
|200412                                            | A-4  | 61744CGA8 | $151,914.08   |       | $7,933,002.42  |  | $68,087,885.59          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $523,419.05             |  | $21,912,114.41  |  |           |  | 
|200409                                            | A-5  | 61744CGB6 | $80,600.25    |       | $0.00          |  | $74,405,000.00          | 
|200410                                            | A-5  | 61744CGB6 | $125,579.11   |       | $0.00          |  | $74,405,000.00          | 
|200411                                            | A-5  | 61744CGB6 | $149,636.72   |       | $0.00          |  | $74,405,000.00          | 
|200412                                            | A-5  | 61744CGB6 | $160,858.50   |       | $0.00          |  | $74,405,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $516,674.58             |  | $0.00           |  |           |  | 
|200409                                            | A-6  | 61744CGC4 | $48,466.74    |       | $0.00          |  | $40,410,000.00          | 
|200410                                            | A-6  | 61744CGC4 | $75,117.70    |       | $0.00          |  | $40,410,000.00          | 
|200411                                            | A-6  | 61744CGC4 | $89,171.40    |       | $0.00          |  | $40,410,000.00          | 
|200412                                            | A-6  | 61744CGC4 | $95,019.10    |       | $0.00          |  | $40,410,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $307,774.94             |  | $0.00           |  |           |  | 
|200409                                            | B-1  | 61744CGJ9 | $25,339.50    |       | $0.00          |  | $13,630,000.00          | 
|200410                                            | B-1  | 61744CGJ9 | $38,588.04    |       | $0.00          |  | $13,630,000.00          | 
|200411                                            | B-1  | 61744CGJ9 | $45,221.31    |       | $0.00          |  | $13,630,000.00          | 
|200412                                            | B-1  | 61744CGJ9 | $46,720.43    |       | $0.00          |  | $13,630,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $155,869.28             |  | $0.00           |  |           |  | 
|200409                                            | B-2  | 61744CGK6 | $19,545.10    |       | $0.00          |  | $10,223,000.00          | 
|200410                                            | B-2  | 61744CGK6 | $29,737.57    |       | $0.00          |  | $10,223,000.00          | 
|200411                                            | B-2  | 61744CGK6 | $34,826.35    |       | $0.00          |  | $10,223,000.00          | 
|200412                                            | B-2  | 61744CGK6 | $35,922.35    |       | $0.00          |  | $10,223,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $120,031.37             |  | $0.00           |  |           |  | 
|200409                                            | B-3  | 61744CGL4 | $37,568.63    |       | $0.00          |  | $13,630,000.00          | 
|200410                                            | B-3  | 61744CGL4 | $56,609.93    |       | $0.00          |  | $13,630,000.00          | 
|200411                                            | B-3  | 61744CGL4 | $65,817.76    |       | $0.00          |  | $13,630,000.00          | 
|200412                                            | B-3  | 61744CGL4 | $66,673.24    |       | $0.00          |  | $13,630,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $226,669.56             |  | $0.00           |  |           |  | 
|200409                                            | M-1  | 61744CGD2 | $50,957.46    |       | $0.00          |  | $41,572,000.00          | 
|200410                                            | M-1  | 61744CGD2 | $78,894.42    |       | $0.00          |  | $41,572,000.00          | 
|200411                                            | M-1  | 61744CGD2 | $93,583.19    |       | $0.00          |  | $41,572,000.00          | 
|200412                                            | M-1  | 61744CGD2 | $99,541.30    |       | $0.00          |  | $41,572,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $322,976.37             |  | $0.00           |  |           |  | 
|200409                                            | M-2  | 61744CGE0 | $44,846.49    |       | $0.00          |  | $36,120,000.00          | 
|200410                                            | M-2  | 61744CGE0 | $69,390.53    |       | $0.00          |  | $36,120,000.00          | 
|200411                                            | M-2  | 61744CGE0 | $82,273.33    |       | $0.00          |  | $36,120,000.00          | 
|200412                                            | M-2  | 61744CGE0 | $87,419.96    |       | $0.00          |  | $36,120,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $283,930.31             |  | $0.00           |  |           |  | 
|200409                                            | M-3  | 61744CGF7 | $30,244.00    |       | $0.00          |  | $23,852,000.00          | 
|200410                                            | M-3  | 61744CGF7 | $46,749.92    |       | $0.00          |  | $23,852,000.00          | 
|200411                                            | M-3  | 61744CGF7 | $55,389.64    |       | $0.00          |  | $23,852,000.00          | 
|200412                                            | M-3  | 61744CGF7 | $58,755.12    |       | $0.00          |  | $23,852,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $191,138.68             |  | $0.00           |  |           |  | 
|200409                                            | M-4  | 61744CGG5 | $65,091.25    |       | $0.00          |  | $42,935,000.00          | 
|200410                                            | M-4  | 61744CGG5 | $99,847.73    |       | $0.00          |  | $42,935,000.00          | 
|200411                                            | M-4  | 61744CGG5 | $117,641.90   |       | $0.00          |  | $42,935,000.00          | 
|200412                                            | M-4  | 61744CGG5 | $123,139.40   |       | $0.00          |  | $42,935,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $405,720.28             |  | $0.00           |  |           |  | 
|200409                                            | M-5  | 61744CGH3 | $32,049.25    |       | $0.00          |  | $19,764,000.00          | 
|200410                                            | M-5  | 61744CGH3 | $49,036.68    |       | $0.00          |  | $19,764,000.00          | 
|200411                                            | M-5  | 61744CGH3 | $57,666.96    |       | $0.00          |  | $19,764,000.00          | 
|200412                                            | M-5  | 61744CGH3 | $60,087.79    |       | $0.00          |  | $19,764,000.00          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $198,840.68             |  | $0.00           |  |           |  | 
|200409                                            | P    | MS04H7102 | $153,336.21   |       | $0.00          |  | $0.00                   | 
|200410                                            | P    | MS04H7102 | $342,683.02   |       | $0.00          |  | $0.00                   | 
|200411                                            | P    | MS04H7102 | $247,672.38   |       | $0.00          |  | $0.00                   | 
|200412                                            | P    | MS04H7102 | $739,462.13   |       | $0.00          |  | $0.00                   | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $1,483,153.74           |  | $0.00           |  |           |  | 
|200409                                            | X    | MS04H7101 | $5,806,230.48 |       | $372.17        |  | $45,660,980.83          | 
|200410                                            | X    | MS04H7101 | $4,912,982.98 |       | $0.00          |  | $45,660,980.82          | 
|200411                                            | X    | MS04H7101 | $4,387,639.49 |       | $0.00          |  | $45,660,980.82          | 
|200412                                            | X    | MS04H7101 | $4,093,972.70 |       | $0.00          |  | $45,660,980.81          | 
|                                                  |      |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |      |           |               |       |                |  | $19,200,825.65          |  | $372.17         |  |           |  | 
|                                                  |      |           |               |       |                |  | $30,084,478.75          |  | $114,459,795.14 |  |           |  |