New Issue: JPMorgan prices $228,000 14% reverse exchangeables linked to Tesoro

By Susanna Moon

Chicago, April 29 - JPMorgan Chase & Co. priced $228,000 of 14% annualized reverse exchangeable notes due Oct. 31, 2008 linked to the common stock of Tesoro Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Tesoro stock falls by more than 40% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Tesoro 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:	Tesoro Corp. (NYSE: TSO)
Amount:	$228,000
Maturity:	Oct. 31, 2008
Coupon:	14%, payable monthly
Price:	Par
Payout at maturity:	If Tesoro stock falls by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 37.8358 Tesoro shares or equivalent cash; otherwise, par
Initial share price:	$26.43
Protection amount:	$10.572, or 40% of initial price
Pricing date:	April 25
Settlement date:	April 30
Agent:	J.P. Morgan Securities Inc.
Fees:	3.86%, including 2.68% for selling concessions

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