New Issue: JPMorgan prices $2.137 million 10.9% reverse exchangeables linked to GM

By Angela McDaniels

Seattle, July 30 - JPMorgan Chase & Co. priced a $2.137 million issue of 10.9% reverse exchangeable notes due July 31, 2008 linked to the common stock of General Motors Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless GM 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 GM 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 and Incapital is the distributor.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	General Motors Corp. (Symbol: GM)
Amount:	$2.137 million
Maturity:	July 31, 2008
Coupon:	10.9%, payable monthly
Price:	Par
Payout at maturity:	If GM stock falls by more than the protection amount of $12.88 during the life of the notes and finishes below the initial share price, 30.95975 GM shares or the equivalent cash value; otherwise, par
Initial share price:	$32.30
Protection amount:	$12.88, 40% of initial share price
Pricing date:	July 26
Settlement date:	July 31
Agent:	J.P. Morgan Securities Inc.
Distributor:	Incapital
Fees:	5.96%, including 3.983% for selling concessions

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