New Issue: JPMorgan sells $45,000 12.5% reverse exchangeables linked to D.R. Horton

By E. Janene Geiss

Philadelphia, Dec. 28 - JPMorgan Chase & Co. priced $45,000 of 12.5% reverse exchangeable notes due Dec. 31, 2007 linked to D.R. Horton, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if D.R. Horton stock stays at or above the protection price, 70% of the initial price of $26.11, between Dec. 26, 2006 and Dec. 26, 2007, and finishes at or above the initial price. Otherwise, the payout will be in D.R. Horton stock, with the number of shares equal to $1,000 divided by the initial share price.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	D.R. Horton, Inc.
Amount:	$45,000
Maturity:	Dec. 31, 2007
Coupon:	12.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash if D.R. Horton stock stays at or above the protection price of $18.28 and finishes at or above the initial price; otherwise shares of D.R. Horton stock equal to $1,000 divided by the initial price
Initial price:	$26.11
Protection price:	$18.28, 70% of $26.11
Pricing date:	Dec. 26
Settlement date:	Dec. 29
Agent:	J.P. Morgan Securities Inc.
Agent fee:	4.35% including 3.175% for selling concessions

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