New Issue: Barclays prices $16.22 million autocallable optimization securities on Merck via UBS

By Jennifer Chiou

New York, July 19 - Barclays Bank plc priced $16.22 million of 0% autocallable optimization securities with contingent protection due July 21, 2011 linked to the common stock of Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If Merck stock closes at or above the initial share price on any of 12 monthly observation dates, the notes will be called automatically and investors will receive par of $10 plus an annualized call premium of 18.78%.

If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to 80% of the initial share price. Otherwise, investors will be fully exposed to the share price decline.

UBS Financial Services Inc. and Barclays Capital Inc. are the underwriters.

Issuer:	Barclays Bank plc
Issue:	Autocallable optimization securities with contingent protection
Underlying stock:	Merck & Co., Inc. (Symbol: MRK)
Amount:	$16,222,470
Maturity:	July 21, 2011
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final share price is greater than or equal to trigger price, par; otherwise, par plus stock return
Call:	Automatically at par plus annualized call premium of 18.78% if Merck stock closes at or above initial share price on any of 12 monthly observation dates
Initial share price:	$36.49
Trigger price:	$29.19, 80% of initial share price
Pricing date:	July 15
Settlement date:	July 20
Underwriters:	UBS Financial Services Inc. and Barclays Capital Inc.
Fees:	1.25%
Cusip:	06740L295

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