New Issue: JPMorgan prices $977,000 17% reverse exchangeables linked to Monsanto

By Angela McDaniels

Tacoma, Wash., May 5 - JPMorgan Chase & Co. priced $977,000 of reverse exchangeable notes due Nov. 7, 2008 linked to the common stock of Monsanto Co., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 8.5% for an annualized coupon of 17%. Interest is payable monthly.

The payout at maturity will be par unless Monsanto stock falls by more than 35% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Monsanto shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent value in cash.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Monsanto Co. (NYSE: MON)
Amount:	$977,000
Maturity:	Nov. 7, 2008
Coupon:	17%, payable monthly
Price:	Par
Payout at maturity:	If Monsanto 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, 8.679 Monsanto shares or cash equivalent; otherwise, par
Initial share price:	$115.22
Protection amount:	$40.327, 35% of initial share price
Pricing date:	May 2
Settlement date:	May 7
Agent:	J.P. Morgan Securities Inc.
Fees:	3.15% for $850,000 of notes, including 2.025% for selling concessions; none on $127,000 of notes that went unsold and will be held for at least 30 days

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