New Issue: JPMorgan prices $2 million bearish notes linked to Google

By Laura Lutz

Des Moines, Nov. 5 - Lehman Brothers Holdings Inc. priced a $2 million issue of 0% bearish return-enhanced notes due Jan. 4, 2008 linked to the class A common stock of Google Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If the final level of the stock is less than the initial price, $707.00, the payout will be par plus 400% of the absolute value of the decline in the index. The payout will be capped at 111.65% of par.

Otherwise, the payout will be par minus any percentage increase in the level of the stock.

J.P. Morgan Securities Inc. will act as underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Bearish return-enhanced notes
Underlying shares:	Google Inc. class A common stock (Symbol: GOOG)
Amount:	$2 million
Maturity:	Jan. 4, 2008
Coupon:	0%
Price:	Par
Yield:	0%
Payout at maturity:	If final stock price is less than initial price, par plus 400% of absolute value of decline in index, capped at maximum payout equal to 111.65% of par; otherwise, par minus any increase in the stock level
Initial level:	$707.00, closing price of stock on Oct. 31
Pricing date:	Nov. 1
Settlement date:	Nov. 6
Underwriter:	J.P. Morgan Securities Inc.
Fees:	0.8325%, including 0.375% for selling concessions

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