New Issue: JPMorgan Chase sells $729,000 9.05% notes linked to Lehman Brothers

By E. Janene Geiss

Philadelphia, April 26 - JPMorgan Chase & Co. priced a $729,000 issue of 9.05% reverse exchangeable notes due April 28, 2008 linked to the common stock of Lehman Brothers Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable at maturity.

The payout at maturity, in addition to interest, will be par unless Lehman Brothers stock falls by more than 20% during the life of the notes and finishes below the initial share price of $76.43, in which case the payout will be a number Lehman Brothers shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Lehman Brothers Holdings Inc.
Amount:	$729,000
Maturity:	April 28, 2008
Coupon:	9.05%, payable at maturity
Price:	Par
Payout at maturity:	If Lehman Brothers stock falls by more than 20% during the life of the notes and finishes below the initial share price, 13.084 Lehman Brothers shares or, at JPMorgan's option, the equivalent cash value; otherwise, par
Initial share price:	$76.43
Pricing date:	April 24
Settlement date:	April 27
Agent:	J.P. Morgan Securities Inc.
Agent fees:	3.74%, includes 2.87% for selling concessions

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