New Issue: JP Morgan prices $1 million 12% reverse exchangeables linked to Flextronics

By Susanna Moon

Chicago, Aug. 6 - JPMorgan Chase &Co. priced a $1 million issue of 12% annualized reverse exchangeable notes due Aug. 8, 2008 linked to the common stock of Flextronics International Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par unless the stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Flextronics shares equal to $1,000 divided by the initial share price or, at the bank's option, the equivalent cash value.

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

Issuer:	JPMorgan Chase &Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Flextronics International Ltd. (Nasdaq: FLEX)
Amount:	$1 million
Maturity:	Aug. 8, 2008
Coupon:	12%, payable monthly
Price:	Par
Payout at maturity:	Par unless the stock falls by more than 30% during life of notes and finishes below initial share price, in which case the payout will be a number of Flextronics shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value
Initial share price:	$11.22
Protection amount:	$3.37, or 30% of initial share price
Pricing date:	Aug. 3
Settlement date:	Aug. 8
Agent:	J.P. Morgan Securities Inc.
Fees:	2.9%, including 2.4% for selling concessions.

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