New Issue: JPMorgan prices $783,000 17.5% reverse exchangeables linked to Freeport-McMoRan

By Jennifer Chiou

New York, July 30 - JPMorgan Chase & Co. priced $783,000 of 17.5% annualized reverse exchangeable notes due Jan. 30, 2009 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Freeport-McMoRan stock falls by more than 40% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Freeport-McMoRan shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
Amount:	$783,000
Maturity:	Jan. 30, 2009
Coupon:	17.5%, payable monthly
Price:	Par
Payout at maturity:	If Freeport-McMoRan stock falls by more than the protection level during the life of the notes and finishes below the initial share price, a number of Freeport-McMoRan shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value; otherwise, par
Initial share price:	$95.58
Protection amount:	$38.232, 40% of initial price
Pricing date:	July 28
Settlement date:	July 31
Agent:	J.P. Morgan Securities Inc.
Fees:	3.979%, including 2.739% for selling concessions

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