New Issue: JPMorgan prices $85,000 12% bearish reverse exchangeables linked to financial services stocks

By Jennifer Chiou

New York, Jan. 30 - JPMorgan Chase & Co. priced $85,000 of 12% bearish reverse exchangeable notes due Jan. 30, 2008 linked to the best performing stock among a basket of financial services stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying basket includes Wells Fargo & Co., Fifth Third Bancorp and Countrywide Financial Corp.

At maturity, investors will receive par in cash unless the final price of any of the stocks is greater than its initial level and it has closed at or above 130% of the initial level at any time during the life of the notes. If the trigger is hit and any of the stocks close above the initial level, investors will receive par minus the gain on the best performing stock, with a floor of zero.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Bearish reverse convertible notes
Underlying stocks:	Wells Fargo & Co., Fifth Third Bancorp and Countrywide Financial Corp.
Amount:	$85,000
Maturity:	Jan. 30, 2008
Coupon:	12%, payable monthly
Price:	Par
Payout at maturity:	Par unless any stock rises by more than its upside protection amount of 130% during the life of the notes and closes above the initial level, in which case payout will be par minus the gain of the best performing stock
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agent:	J. P. Morgan Securities Inc.
Fees:	3.2%, including 0.26% for selling concessions

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