New Issue: JPMorgan prices $1.58 million 26% reverse exchangeables linked to Whole Foods

By Angela McDaniels

Tacoma, Wash., July 2 - JPMorgan Chase & Co. priced $1.58 million of reverse exchangeable notes due Oct. 8, 2008 linked to the common stock of Whole Foods Market, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 6.5% for an annualized coupon of 26%. Interest is payable monthly.

The payout at maturity will be par unless Whole Foods 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 Whole Foods shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, a cash amount equal to the value of those shares.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Whole Foods Market, Inc. (Nasdaq: WFMI)
Amount:	$1,581,000
Maturity:	Oct. 8, 2008
Coupon:	26%, payable monthly
Price:	Par
Payout at maturity:	If Whole Foods 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, 42.2119 Whole Foods shares or the equivalent cash value; otherwise, par
Initial share price:	$23.69
Protection amount:	$4.738, 20% of initial price
Pricing date:	June 30
Settlement date:	July 8
Agent:	J.P. Morgan Securities Inc.
Fees:	2.3%, including 1.73% for selling concessions

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