New Issue: Lehman sells $898,000 of 10.5% reverse exchangeables linked to Cisco

By Laura Lutz

Des Moines, Nov. 29 - Lehman Brothers Holdings Inc. priced an $898,000 issue of 10.5% reverse exchangeable notes due Nov. 28, 2008 linked to the common stock of Cisco Systems, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

Payout at maturity will be par unless Cisco stock falls below the knock-in price of $21.992 - 80% of the initial value - during the life of the notes and finishes below its initial price of $27.49, in which case the payout will be a number of Cisco shares equal to par divided by the initial share price.

Lehman Brothers is the agent.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Cisco Systems, Inc. (Symbol: CSCO)
Amount:	$898,000
Maturity:	Nov. 28, 2008
Coupon:	10.5%, payable monthly
Price:	Par
Payout at maturity:	Par unless Cisco stock falls below the knock-in price of $21.992 during the life the notes and finishes below its initial value, in which case payout will be a number of shares equal to par divided by the initial share price
Initial price:	$27.49
Knock-in price:	$21.992, 80% of $27.49
Pricing date:	Nov. 27
Settlement date:	Nov. 30
Agent:	Lehman Brothers
Fees:	3%

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