New Issue: JPMorgan prices $464,000 13% reverse exchangeables linked to United States Steel

By Angela McDaniels

Tacoma, Wash., May 29 - JPMorgan Chase & Co. priced $464,000 of reverse exchangeable notes due Aug. 29, 2008 linked to the common stock of United States Steel Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 3.25% for an annualized coupon of 13%. Interest is payable monthly.

The payout at maturity will be par unless United States Steel stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of United States Steel shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent amount in cash.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	United States Steel Corp. (Symbol: X)
Amount:	$464,000
Maturity:	Aug. 29, 2008
Coupon:	13%, payable monthly
Price:	Par
Payout at maturity:	If United States Steel stock declines by more than the protection amount during the life of the notes and the final share price is less than the initial share price, 5.9154 United States Steel shares or the equivalent cash amount; otherwise, par
Initial share price:	$169.05
Protection amount:	$42.2625, 25% of initial share price
Pricing date:	May 27
Settlement date:	May 30
Agent:	J.P. Morgan Securities Inc.
Fees:	4.301%, including 2.193% for selling concessions

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