New Issue: JPMorgan prices $0.7 million 28.5% reverse exchangeables linked to Elan

By Jennifer Chiou

New York, May 4 - JPMorgan Chase & Co. priced a $0.7 million issue of 28.5% annualized reverse exchangeable notes due Aug. 8, 2007 linked to the American Depositary Shares representing Elan Corp., plc stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable at maturity.

If Elan ADSs fall by more than 25% of the initial price during the life of the notes and finishes below the initial share price, the payout will be a number of Elan ADSs equal to $1,000 divided by the initial price.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying securities:	American Depositary Shares representing Elan Corp., plc stock
Amount:	$0.7 million
Maturity:	Aug. 8, 2007
Coupon:	28.5% annualized, payable at maturity
Price:	Par
Payout at maturity:	Par unless Elan ADSs fall by more than $3.70 during the life of the notes and finishes below the initial price, in which case payout will be 67.5676 Elan ADSs
Initial price:	$14.80
Protection amount:	$3.70, 25% of the initial price
Pricing date:	May 3
Settlement date:	May 8
Agent:	J.P. Morgan Securities Inc.
Fees:	1.75%, including 1% for selling concessions

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