New Issue: JPMorgan prices $10,000 9.5% reverse exchangeables linked to Bank of America

By Angela McDaniels

Seattle, Sept. 27 - JPMorgan Chase & Co. priced $10,000 of 9.5% reverse exchangeable notes due Sept. 29, 2008 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 20% during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Bank of America shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Bank of America Corp. (Symbol: BAC)
Amount:	$10,000
Maturity:	Sept. 29, 2008
Coupon:	9.5%, payable monthly
Price:	Par
Payout at maturity:	If Bank of America stock falls by more than the protection amount during the life of the notes and finishes below the initial share price, 19.91239 Bank of America shares; otherwise, par
Initial share price:	$50.22
Protection amount:	$10.044, 20% of initial share price
Pricing date:	Sept. 25
Settlement date:	Sept. 28
Agent:	J.P. Morgan Securities Inc.
Fees:	2.4%, including 2% for selling concessions

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