New Issue: JPMorgan prices $140,000 15.7% single observation reverse exchangeables linked to GE

By Angela McDaniels

Tacoma, Wash., Dec. 16 - JPMorgan Chase & Co. priced $140,000 of single observation reverse exchangeable notes due June 17, 2009 linked to the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 7.85% for an annualized coupon of 15.7%. Interest is payable monthly.

If the final share price is less than 50% of the initial share price, the payout at maturity will be a number of GE shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the value of those shares in cash. Otherwise, the payout will be par.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Single observation reverse exchangeable notes
Underlying stock:	General Electric Co. (NYSE: GE)
Amount:	$140,000
Maturity:	June 17, 2009
Coupon:	15.7%, payable monthly
Price:	Par
Payout at maturity:	If final price of GE stock has declined from initial price by more than the protection amount, 58.4454 GE shares; otherwise, par
Initial share price:	$17.11
Protection amount:	$8.555, 50% of initial share price
Pricing date:	Dec. 12
Settlement date:	Dec. 17
Agent:	J.P. Morgan Securities Inc.
Fees:	6%, including 3.75% for selling concessions

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