New Issue: JPMorgan prices $795,000 20% notes linked to Elan

By E. Janene Geiss

Philadelphia, Feb. 27 - JPMorgan Chase & Co. priced a $795,000 offering of 20% reverse exchangeable notes due Feb. 27, 2008 linked to the American Depositary Shares of Elan Corp. plc, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be paid monthly.

The payout at maturity will be par unless Elan stock falls by more than 30% during the life of the notes and finishes below the initial share price of $13.87, in which case the payout will be a number of Elan ADRs 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:	American Depositary Shares of Elan Corp. plc
Amount:	$795,000
Maturity:	Feb. 27, 2008
Coupon:	20% payable monthly
Price:	Par
Payout at maturity:	Par unless Elan stock falls by more than 30% during the life of the notes and finishes below the initial share price, in which case payout will be 72.098 Elan ADRs
Initial share price:	$13.87
Protection amount:	$4.16, 30% of $13.87
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	J.P. Morgan Securities Inc.
Agent fees:	2.67%, including 2.335% for selling commissions

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