New Issue: JPMorgan prices $1.01 million 13% reverse exchangeables linked to Goldman Sachs

By E. Janene Geiss

Philadelphia, Aug. 31 - JPMorgan Chase & Co. priced a $1.01 million issue of reverse exchangeable notes due Feb. 29, 2008 linked to the common stock of the Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 6.5% for an annualized rate of 13%. Interest will be payable monthly.

The payout at maturity will be par unless the 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 Goldman Sachs shares equal to $1,000 divided by the initial share price or, at the bank's option, the equivalent cash value.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	The Goldman Sachs Group, Inc. (Symbol: GS)
Amount:	$1.01 million
Maturity:	Feb. 29, 2008
Coupon:	13%, payable monthly
Price:	Par
Payout at maturity:	Par unless the stock falls by more than 20% during life of notes and finishes below initial share price, in which case the payout will be a number of Goldman Sachs shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value
Initial share price:	$170.95
Protection level:	$136.76, or 80% of the initial share price
Pricing date:	Aug. 28
Settlement date:	Aug. 31
Agent:	J.P. Morgan Securities Inc.
Fees:	3.63%

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