Municipal Bond New Issues

RE: $200,000,000*
THE CITY OF NEW YORK GENERAL OBLIGATION BONDS FISCAL 2009 SERIES E
TAX-EXEMPT AND TAXABLE BONDS

LADIES AND GENTLEMEN:

WE HAVE A RELEASE ON THE FOLLOWING FOR THE RETAIL ORDER PERIOD. RETAIL
ORDERS, AS DEFINED BELOW, WILL BE ACCEPTED UNTIL 5:00 PM, ET, TODAY,
WEDNESDAY, OCTOBER 15th.

THE CITY INTENDS TO RUN A SECOND DAY OF RETAIL UNTIL 12:00PM TOMORROW.
WE MAY ACCELERATE THE SCHEDULE AND PRICE SOONER SUBJECT TO DEMAND AND
MARKET CONDITIONS.

[More:]

THE CITY’S INTENTION IS TO HAVE BONDS PLACED, WITHOUT FURTHER SALE, WITH
RETAIL BUYERS.

THE FOLLOWING ARE THE RETAIL ORDER PERIOD RULES SET BY THE CITY:

THE CITY RESERVES THE RIGHT TO CHANGE OR HOLD THE PRICE ON BONDS FOR
WHICH ORDERS WERE TAKEN DURING THE RETAIL ORDER PERIOD. BUYERS SHOULD
BE INFORMED OF THIS.

THE STATUS OF THE RETAIL ORDERS RECEIVED WILL BE COMMUNICATED VIA DALNET
AT THE END OF THE RETAIL ORDER PERIOD.

IF MORE ORDERS ARE RECEIVED THAN BONDS ARE AVAILABLE FOR A MATURITY, THE
ORDERS WILL BE ALLOCATED ON A PRO-RATA BASIS AGAINST THE AVAILABLE BONDS
FOR THAT MATURITY.

THE CITY MAY CLOSE THE RETAIL ORDER PERIOD ON MATURITIES WHICH ARE FULLY
SUBSCRIBED FOR BEFORE THE END OF THE RETAIL ORDER PERIOD. THE SYNDICATE
MEMBERS WILL BE INFORMED VIA DALNET.

ORDERS PLACED FOR INDIVIDUALS, BANK TRUSTS AND INVESTMENT ADVISORS WILL
BE RECOGNIZED IN THE AMOUNT OF UP TO $5000M BONDS, UNLESS OTHERWISE
APPROVED BY THE CITY.

PLEASE USE THE FOLLOWING RETAIL SCALE:

$155,000,000*
TAX-EXEMPT

MOODY’S: Aa3 S&P: AA FITCH: AA-

DATED:10/23/2008 FIRST COUPON:04/15/2009

DUE: 10/15

ADD’L
TAKEDOWN
MATURITY AMOUNT* COUPON PRICE ( Pts )
10/15/2010 5,755M 3.25% 100.00 3/8
10/15/2011 5,950M 3.50% 100.00 1/2
10/15/2012 7,030M 4.00% 100.00 1/2
10/15/2013 7,310M 4.25% 100.00 1/2
10/15/2014 7,620M 4.50% 100.00 1/2
10/15/2015 7,965M 4.75% 100.00 1/2
10/15/2016 2,500M 5.00% 100.00 1/2

10/15/2023 36,790M 6.00% 6.17 5/8
(Approx. $ Price 98.351)

10/15/2028 74,080M 6.25% 6.40 3/4
(Approx. $ Price 98.319)

—————————————

CALL FEATURES: Optional call in 10/15/2018 @ 100.00

—————————————

Sinking Fund Schedule

2023 Term Bond

10/15/2021 11,555
10/15/2022 12,250
10/15/2023 12,985

Sinking Fund Schedule

2028 Term Bond

10/15/2024 13,765
10/15/2025 14,640
10/15/2026 15,575
10/15/2027 16,570
10/15/2028 13,530

$45,000,000*
TAXABLE

*********************** ATTENTION
********************** THE BONDS ARE TAXABLE MUNICIPAL SECURITIES AND
THIS OFFERING IS SUBJECT TO REGULATION BY THE MUNICIPAL SECURITIES
RULEMAKING BOARD. ALL ACTIVITY UNDERTAKEN WITH RESPECT TO THIS OFFERING
MUST BE SUPERVISED BY A MUNICIPAL SECURITIES PRINCIPAL.

MOODY’S: Aa3 S&P: AA FITCH: AA-

DATED:10/23/2008 FIRST COUPON:04/15/2009

DUE: 10/15

ADD’L
TAKEDOWN
MATURITY AMOUNT* COUPON PRICE ( Pts )

10/15/2020 45,000M NRO
(PRO RATA SINKING FUND AVERAGE LIFE 10.225 YEARS)

—————————————

CALL FEATURES: No optional call

—————————————

Sinking Fund Schedule

2020 Term Bond

10/15/2016 5,840
10/15/2017 8,850
10/15/2018 9,440
10/15/2019 10,085
10/15/2020 10,785

* - APPROXIMATE SUBJECT TO CHANGE

TAXABLE INFORMATION

MATURITY SPREAD VS TREASURY TREASURY COUPON
Coupon
Maturity

10/15/2020 4.00
8/15/2018

PRIORITY OF ORDERS
1. RETAIL (DURING THE RETAIL ORDER PERIOD)

Order period until today 5:00 PM, Eastern, Wednesday, 10/15/08.
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.

The compliance addendum MSRB Rule G-11 will apply.

The Award is expected on Friday, October 17, 2008.

Delivery is expected on Thursday, October 23, 2008.

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

Morgan Stanley & Co. Incorporated
Citigroup Global Markets Inc.
J.P. Morgan Securities Inc.
Merrill Lynch & Co.
Banc of America Securities LLC
Barclays Capital
M.R. Beal & Company
DEPFA First Albany Securities LLC
Goldman, Sachs & Co.
Loop Capital Markets
Prager, Sealy & Co., LLC
Ramirez & Co., Inc.
RBC Capital Markets
Siebert Brandford Shank & Co.
Wachovia Bank, National Association
Cabrera Capital Markets Inc.
Commerce Capital Markets, Inc.
Jackson Securities, LLC
Janney Montgomery Scott LLC
Raymond James & Associates
Roosevelt & Cross, Inc.
Southwest Securities, Inc.

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