New Issue: JPMorgan prices $4.72 million 13% upside auto callable reverse exchangeables on Transocean

By Angela McDaniels

Tacoma, Wash., Aug. 30 - JPMorgan Chase & Co. priced $4.72 million of 13% upside auto callable single observation reverse exchangeable notes due Aug. 31, 2011 linked to the common stock of Transocean Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The notes will be called at par if Transocean stock closes above the initial share price on Nov. 24, Feb. 23, May 25, 2011 or Aug. 26, 2011.

The payout at maturity will be par unless the final share price is less than 60% of the initial share price, in which case the payout will be a number of Transocean shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, a cash amount equal to the value of those shares.

J.P. Morgan Securities Inc. is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Upside auto callable single observation reverse exchangeable notes
Underlying stock:	Transocean Corp. (NYSE: RIG)
Amount:	$4,715,000
Maturity:	Aug. 31, 2011
Coupon:	13%, payable monthly
Price:	Par
Payout at maturity:	If final share price is less than 60% of initial share price, 19.7433 Transocean shares or the value thereof in cash; otherwise, par
Call:	Automatically at par if Transocean stock closes above initial share price on Nov. 24, Feb. 23, May 25, 2011 or Aug. 26, 2011
Initial share price:	$50.65
Pricing date:	Aug. 26
Settlement date:	Aug. 31
Agent:	J.P. Morgan Securities Inc.
Fees:	4.008%, including 3.254% for selling concessions
Cusip:	48124AZF7

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