New Issue: JPMorgan prices $7.22 million 31.2% reverse exchangeables linked to SPDR Trust

By Angela McDaniels

Tacoma, Wash., Nov. 19 - JPMorgan Chase & Co. priced $7.22 million of reverse exchangeable notes due Feb. 20, 2009 linked to the SPDR Trust, Series 1, according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 7.8% for an annualized coupon of 31.2%. Interest is payable monthly.

The payout at maturity will be par unless the fund's shares fall by more than 25% during the life of the notes and finish below the initial share price, in which case investors will receive a cash amount equal to par minus the share price decline.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying fund:	SPDR Trust, Series 1
Amount:	$7.22 million
Maturity:	Feb. 20, 2009
Coupon:	31.2%, payable monthly
Price:	Par
Payout at maturity:	If fund shares fall by more than protection amount during life of notes and finish below initial price, par minus share price decline; otherwise, par
Initial share price:	$87.08
Protection amount:	$21.77, 25% of initial price
Pricing date:	Nov. 18
Settlement date:	Nov. 21
Agent:	J.P. Morgan Securities Inc.
Fees:	1.25%, including 0.25% for selling concessions

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