New Issue: Lehman Brothers prices $1 million 15% reverse exchangeables linked to least-performing stock in basket

By E. Janene Geiss

Philadelphia, Feb.13 - Lehman Brothers Holdings Inc. priced a $1 million offering of 15% reverse exchangeable notes due Feb. 15, 2008 linked to the least-performing stock in a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes General Electric Co., International Business Machines Corp., Intel Corp. and Wal-Mart Stores, Inc.

Interest is payable monthly.

If any stock in the basket falls below its trigger price - 80% of its initial share price - the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price.

If no such trigger event occurs, investors will receive par.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	General Electric Co., International Business Machines Corp., Intel Corp., Wal-Mart Stores, Inc.
Amount:	$1 million
Maturity:	Feb. 15, 2008
Coupon:	15%, payable monthly
Price:	Par
Payout at maturity:	A number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price if any stock in the basket falls below its trigger price, 80% of its initial share price; otherwise par
Initial share price:	Closing price of each stock on pricing date
Pricing date:	Feb. 9
Settlement date:	Feb. 14
Agent:	Lehman Brothers
Agent fees:	1%

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