New Issue: JPMorgan Chase prices $128,000 8.25% reverse exchangeables linked to Merrill Lynch

By E. Janene Geiss

Philadelphia, May 30 - JPMorgan Chase & Co. priced a $128,000 issue of 8.25% reverse exchangeable notes due May 30, 2008 linked to the common stock of Merrill Lynch & Co. Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Merrill Lynch stock falls by more than 15% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Merrill Lynch 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:	Merrill Lynch & Co. Inc.
Amount:	$128,000
Maturity:	May 30, 2008
Coupon:	8.25%, payable monthly
Price:	Par
Payout at maturity:	If Merrill Lynch stock falls below the protection level of $78.72 during the life of the notes and finishes below the initial share price, 10.798 Merrill Lynch shares or the equivalent cash value; otherwise, par
Initial share price:	$92.61
Protection level:	$78.72, 85% of initial share price
Pricing date:	May 24
Settlement date:	May 31
Agent:	J.P. Morgan Securities Inc.
Fees:	3.75%, including 2.875% for selling concessions

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