New Issue: JPMorgan prices $794,000 14.75% reverse exchangeables linked to Wachovia

By E. Janene Geiss

Philadelphia, May 22 - JPMorgan Chase & Co. priced $794,000 of 14.75% annualized reverse exchangeable notes due Aug. 27, 2008 linked to the common stock of Wachovia Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Wachovia stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Wachovia shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent value in cash.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Wachovia Corp. (NYSE: WB)
Amount:	$794,000
Maturity:	Aug. 27, 2008
Coupon:	14.75%, payable monthly
Price:	Par
Payout at maturity:	If Wachovia stock declines by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 38.9712 Wachovia shares or the equivalent cash value; otherwise, par
Initial share price:	$25.66
Protection amount:	$7.698, 30% of initial share price
Pricing date:	May 21
Settlement date:	May 27
Agent:	J.P. Morgan Securities Inc.
Fees:	2.917% including 2.209% for selling concessions

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