New Issue: Lehman prices $500,000 17% bearish reverse exchangeables linked to Amazon.com

By Angela McDaniels

Seattle, July 10 - Lehman Brothers Holdings Inc. priced $500,000 of 17% bearish reverse exchangeable notes due July 12, 2008 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Amazon.com stock advances beyond the trigger price of $93.561 - 130% of the initial share price - during the life of the notes and finishes above the initial share price, in which case the payout will be a cash amount equal to par minus 1% for each 1% share price gain. Lehman may opt to instead pay a number of Amazon.com shares equal to the cash amount divided by the final share price.

Lehman Brothers Inc. is the underwriter.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Bearish reverse exchangeable notes
Underlying stock:	Amazon.com, Inc.
Amount:	$500,000
Maturity:	July 12, 2008
Coupon:	17%, payable monthly
Price:	Par
Payout at maturity:	If Amazon.com stock closes above the trigger price during the life of the notes and finishes above the initial share price, par minus 1% for each 1% share price gain or a number of Amazon.com shares equal to the sum of par minus 1% for each 1% share price gain divided by the final share price; otherwise, par
Initial share price:	$71.97
Trigger price:	$93.561, 130% of initial share price
Pricing date:	July 9
Settlement date:	July 12
Underwriter:	Lehman Brothers Inc.
Fees:	2.65%

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