New Issue: JPMorgan prices $1.3 million 98% principal-protected dual directional notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 26 - JPMorgan Chase & Co. priced $1.3 million of zero-coupon 98% principal-protected dual directional knock-out notes due Aug. 19, 2009 linked to the S&P 500 index, according to a 424B3 filing with the Securities and Exchange Commission.

A knock-out event will occur if the index closes above the upper knock-out level or below the lower knock-out level during the life of the notes. The upper and lower knock-out levels are 19.65% above and below the initial index level, respectively.

If a knock-out event occurs, the payout at maturity will be 98% of par. If a knock-out event does not occur, the payout will be 98% of par plus the absolute value of the index return.

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

Issuer:	JPMorgan Chase & Co.
Issue:	98% principal-protected dual directional knock-out notes
Underlying index:	S&P 500
Amount:	$1.3 million
Maturity:	Aug. 19, 2009
Coupon:	0%
Price:	Par
Payout at maturity:	98% of par plus absolute value of index return if index never closes above the upper knock-out level or below the lower knock-out level; otherwise, 98% of par
Initial index level:	1,292.2
Upper knock-out level:	1,546.1173, 119.65% of initial level
Lower knock-out level:	1,038.2827, 80.35% of initial level
Pricing date:	Aug. 22
Settlement date:	Aug. 29
Agent:	J.P. Morgan Securities Inc.
Fees:	1.39%, including 0.695% for selling concessions

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