New Issue: JPMorgan prices $575,000 11% reverse exchangeables linked to Microsoft

By Jennifer Chiou

New York, March 3 - JPMorgan Chase & Co. priced $575,000 of 11% reverse exchangeable notes due Sept. 5, 2008 linked to Microsoft Corp. common stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

If Microsoft stock falls by 20% or more during the life of the notes and finishes below the initial share price, the payout at maturity will be a number of Microsoft shares equal to par divided by the initial share price.

Otherwise, the payout will be par.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Microsoft Corp. (Symbol: MSFT)
Amount:	$575,000
Maturity:	Sept. 5, 2008
Coupon:	11%, payable monthly
Price:	Par
Payout at maturity:	Par unless Microsoft stock falls by $5.42 or more during the life of the notes and finishes below the initial share price; otherwise, a number of shares equal to par divided by the initial share price
Initial share price:	$27.10
Protection amount:	$5.42, 20% of the initial share price
Pricing date:	Feb. 29
Settlement date:	March 5
Agent:	J.P. Morgan Securities Inc.
Fees:	3%, including about 2% for selling concessions

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