New Issue: Lehman sells $500,000 24.80% reverse exchangeables linked to Countrywide

By E. Janene Geiss

Philadelphia, July 19 - Lehman Brothers Holdings Inc. priced a $500,000 issue of 24.80% annualized reverse exchangeable notes due Oct. 20, 2007 linked to the common stock of Countrywide Financial Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be paid at maturity.

Payout at maturity will be par unless Countrywide stock falls below the knock-in price of $27.952 - 80% of the initial value - during the life of the notes and finishes below its initial price of $34.94, in which case the payout will be a number of Countrywide shares equal to $1,000 divided by the initial share price.

Lehman Brothers is the agent.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse exchangeable notes
Underlying stock:	Countrywide Financial Corp.
Amount:	$500,000
Maturity:	Oct. 20, 2007
Coupon:	24.80% annualized, payable monthly
Price:	Par
Payout at maturity:	Par unless Countrywide stock falls below the knock-in price of $27.952 during the life of the notes and finishes below its initial value, in which case payout will be a number of shares equal to $1,000 divided by the initial share price
Initial price:	$34.94
Knock-in price:	$27.952, 80% of $34.94
Pricing date:	July 17
Settlement date:	July 20
Agent:	Lehman Brothers
Fees:	1.25%

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