New Issue: Lehman prices $12.8 million bearish securities linked to iShares Dow Jones U.S. Real Estate

By Angela McDaniels

Seattle, June 28 - Lehman Brothers Holdings Inc. priced $12,801,400 of bearish return optimization securities with partial protection due Aug. 29, 2008 linked to the iShares Dow Jones U.S. Real Estate index fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus triple the absolute value of any decline in the fund's share price, subject to a maximum return of 22%. Investors will receive par if the share price gains 10% or less and will lose 1% for each 1% the share price advances beyond 10%.

UBS Financial Services Inc. and Lehman Brothers Inc. are the underwriters.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Bearish return optimization securities with partial protection
Underlying index fund:	iShares Dow Jones U.S. Real Estate
Amount:	$12,801,400
Maturity:	Aug. 29, 2008
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus triple the absolute value of any share price decline, capped at 22% maximum return; par if share price advances 10% or less; 1% loss for each 1% share price gain beyond 10%
Initial share price:	$76.90
Pricing date:	June 26
Settlement date:	June 29
Underwriters:	UBS Financial Services Inc. and Lehman Brothers Inc.
Fees:	1.5%

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