New Issue: JPMorgan prices $6.7 million 0% annual review notes linked to S&P 500

By Laura Lutz

Des Moines, Aug. 8 - JPMorgan Chase & Co. priced a $6.7 million offering of 0% annual review notes due Aug. 19, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at increasing premiums if the index level is at or above the initial index level on one of three annual review dates.

For each $1,000 principal amount, the redemption amount will be par plus 11.65% if the notes are called on Aug. 15, 2008, par plus 23.3% if called on Aug. 17, 2009 and par plus 34.95% if called on Aug. 16, 2010.

If the notes are not called, the payout at maturity will be par unless the index declines by more than 10%. Investors will lose 1.1111% for every 1% decline in the index beyond 10%.

Issuer:	JPMorgan Chase & Co.
Issue:	Annual review notes
Underlying index:	S&P 500
Amount:	$6.7 million
Maturity:	Aug. 19, 2010
Coupon:	0%
Price:	Par
Call:	Automatically called if index level is at or above the initial index level on an annual review date; payout will be par plus 11.65% if called on Aug. 15, 2008, par plus 23.3% if called on Aug. 17, 2009 and par plus 34.95% if called on Aug. 16, 2010
Payout at maturity:	Par unless the index declines by more than 10%, in which case investors will lose 1.1111% for every 1% decline beyond 10%
Initial index level:	1,467.67
Pricing date:	Aug. 6
Settlement date:	Aug. 9
Agent:	J.P. Morgan Securities Inc.
Fees:	3.2%, including 1.6% for selling concessions

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