New Issue: JPMorgan prices $1.839 million 10% reverse exchangeables linked to Lehman

By Angela McDaniels

Seattle, July 30 - JPMorgan Chase & Co. priced a $1.839 million issue of 10% reverse exchangeable notes due July 31, 2008 linked to the common stock of Lehman Brothers Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Lehman stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Lehman 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 and Incapital is the distributor.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Lehman Brothers Holdings Inc. (Symbol: LEH)
Amount:	$1.839 million
Maturity:	July 31, 2008
Coupon:	10%, payable monthly
Price:	Par
Payout at maturity:	If Lehman stock falls by more than the protection amount of $12.90 during the life of the notes and finishes below the initial share price, 15.50388 Lehman shares or the equivalent cash value; otherwise, par
Initial share price:	$64.50
Protection amount:	$12.90, 20% of initial share price
Pricing date:	July 26
Settlement date:	July 31
Agent:	J.P. Morgan Securities Inc.
Distributor:	Incapital
Fees:	4.9%, including 3.451% for selling concessions

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