New Issue: JPMorgan sells $575,000 11% reverse exchangeables linked to Corning

By Susanna Moon

Chicago, June 23 - JPMorgan Chase & Co. priced $575,000 of 11% annualized reverse exchangeable notes due Oct. 3, 2008 linked to Corning, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Corning stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Corning 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:	Corning, Inc. (NYSE: GLW)
Amount:	$575,000
Maturity:	Oct. 3, 2008
Coupon:	11%, payable monthly
Price:	Par
Payout at maturity:	If Corning stock falls by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 39.5883 Corning shares; otherwise, par
Initial share price:	$25.26
Protection amount:	$5.052, or 20% of initial price
Pricing date:	June 20
Settlement date:	July 3
Agent:	J.P. Morgan Securities Inc.
Fees:	2.87%, including 1.8% for selling concessions

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