New Issue: JPMorgan prices $1.18 million 16% reverse exchangeables linked to Apple

By Susanna Moon

Chicago, April 29 - JPMorgan Chase & Co. priced $1.18 million of 16% annualized reverse exchangeable notes due July 31, 2008 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Apple 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 Apple 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:	Apple Inc. (Nasdaq: AAPL)
Amount:	$1,178,000
Maturity:	July 31, 2008
Coupon:	16%, payable monthly
Price:	Par
Payout at maturity:	If Apple 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, 5.8917 Apple shares or equivalent in cash; otherwise, par
Initial share price:	$169.73
Protection amount:	$33.946, or 20% of initial price
Pricing date:	April 25
Settlement date:	April 30
Agent:	J.P. Morgan Securities Inc.
Fees:	2.72%, including 1.985% for selling concessions

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