|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|------------------------------------------------- | ------- | --------- | ------------- | ----- | -------------- |  | ----------------------- |  | --------------- |  | --------- |  |  |  | -------------- | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               
|Morgan Stanley ABS Capital I Inc. Series 2004-HE3
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|2004 Annual Statement                            
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | DISTRIBUTION IN DOLLARS |  |                 |  |           |  | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  | ENDING BALANCE | 
|PERIOD                                            |         | CLASS     |               | CUSIP |                |  | INTEREST                |  |                 |  | PRINCIPAL |  | 
|200406                                            | A-1     | 61744CDD5 | $647,654.10   |       | $11,878,435.90 |  | $513,601,564.10         | 
|200407                                            | A-1     | 61744CDD5 | $765,123.66   |       | $13,525,872.77 |  | $500,075,691.33         | 
|200408                                            | A-1     | 61744CDD5 | $783,451.92   |       | $17,323,597.26 |  | $482,752,094.07         | 
|200409                                            | A-1     | 61744CDD5 | $904,959.03   |       | $21,293,014.90 |  | $461,459,079.17         | 
|200410                                            | A-1     | 61744CDD5 | $814,731.64   |       | $23,021,537.27 |  | $438,437,541.90         | 
|200411                                            | A-1     | 61744CDD5 | $920,718.84   |       | $22,225,885.80 |  | $416,211,656.10         | 
|200412                                            | A-1     | 61744CDD5 | $935,661.49   |       | $21,809,859.08 |  | $394,401,797.02         | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $5,772,300.68           |  | $131,078,202.98 |  |           |  | 
|200406                                            | A-2     | 61744CDE3 | $26,406.88    |       | $0.00          |  | $21,149,000.00          | 
|200407                                            | A-2     | 61744CDE3 | $31,870.37    |       | $0.00          |  | $21,149,000.00          | 
|200408                                            | A-2     | 61744CDE3 | $33,485.92    |       | $0.00          |  | $21,149,000.00          | 
|200409                                            | A-2     | 61744CDE3 | $40,033.29    |       | $0.00          |  | $21,149,000.00          | 
|200410                                            | A-2     | 61744CDE3 | $37,668.72    |       | $0.00          |  | $21,149,000.00          | 
|200411                                            | A-2     | 61744CDE3 | $44,788.88    |       | $0.00          |  | $21,149,000.00          | 
|200412                                            | A-2     | 61744CDE3 | $47,908.08    |       | $0.00          |  | $21,149,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $262,162.14             |  | $0.00           |  |           |  | 
|200406                                            | A-3     | 61744CDF0 | $193,212.50   |       | $9,305,363.57  |  | $185,694,636.43         | 
|200407                                            | A-3     | 61744CDF0 | $228,662.31   |       | $10,896,002.06 |  | $174,798,634.37         | 
|200408                                            | A-3     | 61744CDF0 | $230,151.54   |       | $13,713,327.33 |  | $161,085,307.04         | 
|200409                                            | A-3     | 61744CDF0 | $257,669.37   |       | $19,335,621.84 |  | $141,749,685.20         | 
|200410                                            | A-3     | 61744CDF0 | $217,192.02   |       | $17,939,535.88 |  | $123,810,149.32         | 
|200411                                            | A-3     | 61744CDF0 | $226,985.27   |       | $16,246,135.50 |  | $107,564,013.82         | 
|200412                                            | A-3     | 61744CDF0 | $214,021.10   |       | $21,438,218.16 |  | $86,125,795.66          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $1,567,894.11           |  | $108,874,204.34 |  |           |  | 
|200406                                            | A-4     | 61744CDG8 | $285,469.96   |       | $0.00          |  | $236,251,000.00         | 
|200407                                            | A-4     | 61744CDG8 | $345,845.21   |       | $0.00          |  | $236,251,000.00         | 
|200408                                            | A-4     | 61744CDG8 | $364,220.29   |       | $0.00          |  | $236,251,000.00         | 
|200409                                            | A-4     | 61744CDG8 | $436,375.28   |       | $0.00          |  | $236,251,000.00         | 
|200410                                            | A-4     | 61744CDG8 | $411,601.74   |       | $0.00          |  | $236,251,000.00         | 
|200411                                            | A-4     | 61744CDG8 | $489,827.07   |       | $0.00          |  | $236,251,000.00         | 
|200412                                            | A-4     | 61744CDG8 | $524,999.14   |       | $0.00          |  | $236,251,000.00         | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $2,858,338.69           |  | $0.00           |  |           |  | 
|200406                                            | B-1     | 61744CDL7 | $29,539.04    |       | $0.00          |  | $11,641,000.00          | 
|200407                                            | B-1     | 61744CDL7 | $33,581.05    |       | $0.00          |  | $11,641,000.00          | 
|200408                                            | B-1     | 61744CDL7 | $33,952.92    |       | $0.00          |  | $11,641,000.00          | 
|200409                                            | B-1     | 61744CDL7 | $39,108.91    |       | $0.00          |  | $11,641,000.00          | 
|200410                                            | B-1     | 61744CDL7 | $35,220.49    |       | $0.00          |  | $11,641,000.00          | 
|200411                                            | B-1     | 61744CDL7 | $41,209.14    |       | $0.00          |  | $11,641,000.00          | 
|200412                                            | B-1     | 61744CDL7 | $42,408.66    |       | $0.00          |  | $11,641,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $255,020.21             |  | $0.00           |  |           |  | 
|200406                                            | B-2     | 61744CDM5 | $32,821.15    |       | $0.00          |  | $11,641,000.00          | 
|200407                                            | B-2     | 61744CDM5 | $37,089.52    |       | $0.00          |  | $11,641,000.00          | 
|200408                                            | B-2     | 61744CDM5 | $37,348.21    |       | $0.00          |  | $11,641,000.00          | 
|200409                                            | B-2     | 61744CDM5 | $42,843.73    |       | $0.00          |  | $11,641,000.00          | 
|200410                                            | B-2     | 61744CDM5 | $38,389.43    |       | $0.00          |  | $11,641,000.00          | 
|200411                                            | B-2     | 61744CDM5 | $44,830.78    |       | $0.00          |  | $11,641,000.00          | 
|200412                                            | B-2     | 61744CDM5 | $45,917.13    |       | $0.00          |  | $11,641,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $279,239.95             |  | $0.00           |  |           |  | 
|200406                                            | B-3     | 61744CDN3 | $45,480.74    |       | $0.00          |  | $11,641,000.00          | 
|200407                                            | B-3     | 61744CDN3 | $50,622.18    |       | $0.00          |  | $11,641,000.00          | 
|200408                                            | B-3     | 61744CDN3 | $50,444.33    |       | $0.00          |  | $11,641,000.00          | 
|200409                                            | B-3     | 61744CDN3 | $57,249.47    |       | $0.00          |  | $11,641,000.00          | 
|200410                                            | B-3     | 61744CDN3 | $50,612.48    |       | $0.00          |  | $11,641,000.00          | 
|200411                                            | B-3     | 61744CDN3 | $58,799.98    |       | $0.00          |  | $11,641,000.00          | 
|200412                                            | B-3     | 61744CDN3 | $59,449.79    |       | $0.00          |  | $11,641,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $372,658.97             |  | $0.00           |  |           |  | 
|200406                                            | M-1     | 61744CDH6 | $101,797.17   |       | $0.00          |  | $75,670,000.00          | 
|200407                                            | M-1     | 61744CDH6 | $121,849.72   |       | $0.00          |  | $75,670,000.00          | 
|200408                                            | M-1     | 61744CDH6 | $127,377.83   |       | $0.00          |  | $75,670,000.00          | 
|200409                                            | M-1     | 61744CDH6 | $151,560.70   |       | $0.00          |  | $75,670,000.00          | 
|200410                                            | M-1     | 61744CDH6 | $141,839.21   |       | $0.00          |  | $75,670,000.00          | 
|200411                                            | M-1     | 61744CDH6 | $168,323.71   |       | $0.00          |  | $75,670,000.00          | 
|200412                                            | M-1     | 61744CDH6 | $179,231.81   |       | $0.00          |  | $75,670,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $991,980.15             |  | $0.00           |  |           |  | 
|200406                                            | M-2     | 61744CDJ2 | $77,132.55    |       | $0.00          |  | $40,745,000.00          | 
|200407                                            | M-2     | 61744CDJ2 | $89,469.23    |       | $0.00          |  | $40,745,000.00          | 
|200408                                            | M-2     | 61744CDJ2 | $91,676.25    |       | $0.00          |  | $40,745,000.00          | 
|200409                                            | M-2     | 61744CDJ2 | $107,006.56   |       | $0.00          |  | $40,745,000.00          | 
|200410                                            | M-2     | 61744CDJ2 | $97,923.82    |       | $0.00          |  | $40,745,000.00          | 
|200411                                            | M-2     | 61744CDJ2 | $115,263.08   |       | $0.00          |  | $40,745,000.00          | 
|200412                                            | M-2     | 61744CDJ2 | $120,366.99   |       | $0.00          |  | $40,745,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $698,838.48             |  | $0.00           |  |           |  | 
|200406                                            | M-3     | 61744CDK9 | $24,381.43    |       | $0.00          |  | $11,641,000.00          | 
|200407                                            | M-3     | 61744CDK9 | $28,067.74    |       | $0.00          |  | $11,641,000.00          | 
|200408                                            | M-3     | 61744CDK9 | $28,617.46    |       | $0.00          |  | $11,641,000.00          | 
|200409                                            | M-3     | 61744CDK9 | $33,239.91    |       | $0.00          |  | $11,641,000.00          | 
|200410                                            | M-3     | 61744CDK9 | $30,240.73    |       | $0.00          |  | $11,641,000.00          | 
|200411                                            | M-3     | 61744CDK9 | $35,517.98    |       | $0.00          |  | $11,641,000.00          | 
|200412                                            | M-3     | 61744CDK9 | $36,895.35    |       | $0.00          |  | $11,641,000.00          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $216,960.60             |  | $0.00           |  |           |  | 
|200406                                            | P       | MS04H3102 | $154,925.35   |       | $0.00          |  | $0.00                   | 
|200407                                            | P       | MS04H3102 | $504,829.03   |       | $0.00          |  | $0.00                   | 
|200408                                            | P       | MS04H3102 | $575,387.62   |       | $0.00          |  | $0.00                   | 
|200409                                            | P       | MS04H3102 | $761,667.86   |       | $0.00          |  | $0.00                   | 
|200410                                            | P       | MS04H3102 | $817,481.96   |       | $0.00          |  | $0.00                   | 
|200411                                            | P       | MS04H3102 | $804,185.35   |       | $0.00          |  | $0.00                   | 
|200412                                            | P       | MS04H3102 | $909,128.06   |       | $0.00          |  | $0.00                   | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $4,527,605.23           |  | $0.00           |  |           |  | 
|200406                                            | R       | MS04H3103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200407                                            | R       | MS04H3103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200408                                            | R       | MS04H3103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200409                                            | R       | MS04H3103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200410                                            | R       | MS04H3103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200411                                            | R       | MS04H3103 | $0.00         |       | $0.00          |  | $0.00                   | 
|200412                                            | R       | MS04H3103 | $0.00         |       | $0.00          |  | $0.00                   | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $0.00                   |  | $0.00           |  |           |  | 
|200406                                            | REMIC I | MS04H3201 | $6,571,397.32 |       | $21,185,755.31 |  | $1,142,958,076.69       | 
|200407                                            | REMIC I | MS04H3201 | $6,801,576.23 |       | $24,421,874.83 |  | $1,118,536,201.86       | 
|200408                                            | REMIC I | MS04H3201 | $6,731,215.63 |       | $31,036,924.59 |  | $1,087,499,277.27       | 
|200409                                            | REMIC I | MS04H3201 | $6,743,675.31 |       | $40,628,636.74 |  | $1,046,870,640.53       | 
|200410                                            | REMIC I | MS04H3201 | $6,571,835.98 |       | $40,961,073.15 |  | $1,005,909,567.38       | 
|200411                                            | REMIC I | MS04H3201 | $6,328,720.69 |       | $38,472,021.30 |  | $967,437,546.08         | 
|200412                                            | REMIC I | MS04H3201 | $6,216,646.83 |       | $43,248,077.24 |  | $924,189,468.84         | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $45,965,067.99          |  | $239,954,363.16 |  |           |  | 
|200406                                            | X       | MS04H3101 | $4,952,576.45 |       | $1,955.84      |  | $23,282,876.16          | 
|200407                                            | X       | MS04H3101 | $4,564,566.21 |       | $0.00          |  | $23,282,876.16          | 
|200408                                            | X       | MS04H3101 | $4,375,101.34 |       | $0.00          |  | $23,282,876.16          | 
|200409                                            | X       | MS04H3101 | $3,911,961.20 |       | $0.00          |  | $23,282,876.16          | 
|200410                                            | X       | MS04H3101 | $3,878,933.74 |       | $0.00          |  | $23,282,876.16          | 
|200411                                            | X       | MS04H3101 | $3,378,270.61 |       | $0.00          |  | $23,282,876.16          | 
|200412                                            | X       | MS04H3101 | $3,100,659.23 |       | $0.00          |  | $23,282,876.16          | 
|                                                  |         |           |               |       |                |  |                         |  |                 |  |           |  |  |  |                | 
|                                                  |         |           |               |       |                |  | $28,162,068.78          |  | $1,955.84       |  |           |  | 
|                                                  |         |           |               |       |                |  | $91,930,135.98          |  | $479,908,726.32 |  |           |  |