New Issue: Lehman prices $1.397 million 25% reverse convertibles linked to Fannie Mae

New York, April 29 - Lehman Brothers Holdings Inc. priced $1.397 million of 25% reverse convertible notes due Oct. 30, 2008 linked to Federal National Mortgage Association (Fannie Mae) stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Fannie Mae stock falls below the protection price of $18.558, 60% of the initial price of $30.93, during the life of the notes and finishes below the initial price in which case the payout will be Fannie Mae shares equal to $1,000 principal amount divided by the initial price.

Lehman Brothers is the agent.

Issuer:	Lehman Brothers Holdings Inc.
Issue:	Reverse convertible notes
Underlying stock:	Federal National Mortgage Association (Fannie Mae ) (Symbol: FNM)
Amount:	$1.397 million
Maturity:	Oct. 30, 2008
Coupon:	25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Fannie Mae stock falls below the protection price of $18.558, 60% of the initial price, and finishes below the initial price, in which case Fannie Mae shares equal to $1,000 principal amount divided by the initial price
Initial price:	$30.93
Protection price:	$18.558, 60% of $30.93
Pricing date:	April 25
Settlement date:	April 30
Agent:	Lehman Brothers
Fees:	2.485%

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