New Issue: JPMorgan prices $335,000 23.75% bearish reverse exchangeables linked to KB Home

By Angela McDaniels

Tacoma, Wash., Sept. 11 - JPMorgan Chase & Co. priced $335,000 of bearish reverse exchangeable notes due March 16, 2009 linked to the common stock of KB Home, according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 11.875% for an annualized coupon of 23.75%. Interest is payable monthly.

The payout at maturity will be par unless KB Home stock increases by more than 40% during the life of the notes and finishes above the initial share price, in which case the payout will be par minus the share price return.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Bearish reverse exchangeable notes
Underlying stock:	KB Home (NYSE: KBH)
Amount:	$335,000
Maturity:	March 16, 2009
Coupon:	23.75%, payable monthly
Price:	Par
Payout at maturity:	If KB Home stock increases by more than protection amount during life of notes and final share price is greater than initial share price, par minus share price return; otherwise, par
Initial share price:	$21.82
Protection amount:	$8.728, 40% of initial price
Pricing date:	Sept. 10
Settlement date:	Sept. 15
Agent:	J.P. Morgan Securities Inc.
Fees:	4.56%, including 3% for selling concessions

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