New Issue: Goldman Sachs prices $11.4 million 0% notes linked to U.S. inflation

By Jennifer Chiou

New York, May 2 - Goldman Sachs Group, Inc. priced $11.4 million of 0% U.S. inflation-linked notes due May 14, 2011 linked to the Consumer Price Index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable annually on May 14. If the annual inflation rate is less than or equal to the lower threshold of 2%, interest will not accrue. If the annual inflation rate is greater than 2% but less than 6%, interest will be equal to 3.5 times the annual rate minus a spread of 2%. If the annual inflation rate is greater than 6%, interest will be 14%.

At maturity, the payout will be par.

Goldman Sachs & Co. is the agent.

Issuer:	Goldman Sachs Group, Inc.
Issue:	U.S. inflation-linked notes
Underlying index:	Consumer Price Index
Amount:	$11,396,000
Maturity:	May 14, 2011
Coupon:	None if the annual inflation rate is less than or equal to the lower threshold of 2%; if the annual inflation rate is greater than 2% but less than 6%, interest will be equal to 3.5 times the annual rate minus a spread of 2%; if the annual inflation rate is greater than 6%, interest will be 14%; payable annually
Price:	Par
Payout at maturity:	Par
Pricing date:	April 30
Settlement date:	May 14
Agent:	Goldman Sachs & Co.
Fees:	0.25%

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