New Issue: JPMorgan prices $278,000 24.75% reverse exchangeables linked to Bucyrus

By Angela McDaniels

Tacoma, Wash., May 6 - JPMorgan Chase & Co. priced $278,000 of reverse exchangeable notes due Aug. 7, 2009 linked to the common stock of Bucyrus International, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes pay 6.1875% for an annualized coupon of 24.75%. Interest is payable monthly.

The payout at maturity will be par unless Bucyrus 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 Bucyrus 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:	Reverse exchangeable notes
Underlying stock:	Bucyrus International, Inc. (Nasdaq: BUCY)
Amount:	$278,000
Maturity:	Aug. 7, 2009
Coupon:	24.75%, payable monthly
Price:	Par
Payout at maturity:	If Bucyrus 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, 39.32363 Bucyrus shares or the equivalent cash value; otherwise, par
Initial share price:	$25.43
Protection amount:	$7.63, 30% of initial price
Pricing date:	May 5
Settlement date:	May 8
Agent:	J.P. Morgan Securities Inc.
Fees:	4%, including 2.5% for selling concessions

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