New Issue: JPMorgan prices $1.9 million 12.5% reverse exchangeables linked to Target

By Angela McDaniels

Tacoma, Wash., June 25 - JPMorgan Chase & Co. priced $1.9 million of reverse exchangeable notes due Sept. 30, 2008 linked to the common stock of Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 3.125% for an annualized coupon of 12.5%. Interest is payable monthly.

The payout at maturity will be par unless Target stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case investors will receive a number of Target shares equal to par divided by the initial share price or, at JPMorgan's option, the value of those shares in cash.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Target Corp. (NYSE: TGT)
Amount:	$1,899,000
Maturity:	Sept. 30, 2008
Coupon:	12.5%, payable monthly
Price:	Par
Payout at maturity:	If Target shares fall by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 20.3376 Target shares or the value of those shares in cash; otherwise, par
Initial share price:	$49.17
Protection amount:	$12.2925, 25% of initial share price
Pricing date:	June 24
Settlement date:	June 30
Agent:	J.P. Morgan Securities Inc.
Fees:	2.321%, including 1.841% for selling concessions

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