New Issue: JPMorgan prices $1 million of 8.75% reverse exchangeables linked to Gilead

By Laura Lutz

Washington, Dec. 20 - JPMorgan Chase & Co. priced $1 million of 9.75% reverse exchangeable notes due Dec. 27, 2007 linked to Gilead Sciences, Inc. common stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash if Gilead stock stays at or above the protection price, 70% of the initial price of $64.00, between Dec. 19, 2006 and Dec. 21, 2007 and finishes at or above the initial price.

Otherwise, the payout will be in Gilead stock, with the number of shares equal to $1,000 divided by the initial share price.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	Gilead Sciences, Inc.
Amount:	$1 million
Maturity:	Dec. 27, 2007
Coupon:	9.75%
Price:	Par
Payout at maturity:	Par in cash if Gilead stock stays at or above the protection price of $44.80 and finishes at or above the initial price; otherwise 15.625 shares of Gilead stock
Initial price:	$64.00
Protection price:	$44.80, 70% of $64.00
Pricing date:	Dec. 19
Settlement date:	Dec. 22
Agent:	J.P. Morgan Securities Inc.
Agent's fee:	2.35%, including 1.85% for selling concessions

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