New Issue: JPMorgan sells $192,000 15.75% reverse exchangeables linked to General Motors

By E. Janene Geiss

Philadelphia, Dec. 28 - JPMorgan Chase & Co. priced $192,000 of 15.75% reverse exchangeable notes due Dec. 31, 2007 linked to General Motors Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if General Motors stock stays at or above the protection price, 70% of the initial price of $29.77, between Dec. 26, 2006 and Dec. 26, 2007, and finishes at or above the initial price. Otherwise, the payout will be in General Motors stock, with the number of shares equal to $1,000 divided by the initial share price.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	General Motors Corp.
Amount:	$192,000
Maturity:	Dec. 31, 2007
Coupon:	15.75%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if General Motors stock stays at or above the protection price of $20.84 and finishes at or above the initial price; otherwise shares of General Motors stock equal to $1,000 divided by the initial price
Initial price:	$29.77
Protection price:	$20.84, 70% of $29.77
Pricing date:	Dec. 26
Settlement date:	Dec. 29
Agent:	J.P. Morgan Securities Inc.
Agent fee:	2.85% including 2.425% for selling concessions

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