New Issue: Goldman Sachs prices $26.977 million additional 12% buffered exchangeables linked to Cisco

By Jennifer Chiou

New York, March 12 - The Goldman Sachs Group, Inc. reopened its issue of 12% buffered mandatory exchangeable notes due Dec. 12, 2007 linked to Cisco Systems, Inc. stock to issue an additional $26,977,159.40 of notes, according to a 424B2 filing with the Securities and Exchange Commission.

The company priced $35,000,030.36 principal amount of the notes on Nov. 30. The total amount of notes priced is now $61,977,189.76.

Payout at maturity will be par if the price of Cisco stock on Dec. 7, 2007 is at least the buffer price of $29.619 and no more than the participation price of $32.311.

If the price of Cisco stock on the determination date is more than the participation price, investors will receive par plus the final stock price minus $5.385. The payout will be capped at $34.331, 27.5% above the initial price.

If the final price of Cisco stock is less than the buffer price, the payout will be par multiplied by the final stock price dividend by the buffer price.

Payout may be made in cash or shares of Cisco, at Goldman Sachs' option.

Issuer:	The Goldman Sachs Group, Inc.
Issue:	Buffered mandatory exchangeable notes
Underlying stock:	Cisco Systems, Inc.
Amount:	$61,977,189.76, including $26,977,159.40 of reopened notes
Maturity:	Dec. 12, 2007
Coupon:	12%, payable monthly
Price:	Par of $26.926 for the original $35,000,030.36 issue; 95.2350888 for the reopened notes
Payout at maturity:	Par in cash if Cisco stock finishes between the buffer price of $29.619 and the participation price of $32.311; if Cisco stock finishes above the participation price, par plus the final stock price minus $5.385, capped at $34.331; if Cisco stock finishes below the buffer price, par times the final stock price divided by the buffer price
Initial price:	$26.926
Buffer price:	$29.619
Participation price:	$32.311
Cap price:	$34.331
Pricing date:	Nov. 30 for the original issue; March 8 for the reopened notes
Settlement date:	Dec. 11 for the original issue; March 22 for the reopened notes
Underwriter:	Goldman, Sachs & Co.
Underwriting discount:	0.10% for the original issue; 0.05% for the reopened notes

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