New Issue: JPMorgan prices $10,000 14.3% reverse exchangeables linked to AIG

By Angela McDaniels

Tacoma, Wash., Aug. 28 - JPMorgan Chase & Co. priced $10,000 of 14.3% reverse exchangeable notes due Aug. 28, 2009 linked to the common stock of American International Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless AIG stock falls by more than 50% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of AIG 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:	American International Group, Inc. (Symbol: AIG)
Amount:	$10,000
Maturity:	Aug. 28, 2009
Coupon:	14.3%, payable monthly
Price:	Par
Payout at maturity:	If AIG stock declines by more than protection amount during life of notes and final share price is less than initial share price, 50.9165 AIG shares or equivalent cash value; otherwise, par
Initial share price:	$19.64
Protection amount:	$9.82, 50% of initial share price
Pricing date:	Aug. 26
Settlement date:	Aug. 29
Agent:	J.P. Morgan Securities Inc.
Fees:	5.98%, including 2% for selling concessions

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