New Issue: JPMorgan Chase prices $909,000 19% reverse exchangeables linked to US Airways

By E. Janene Geiss

Philadelphia, May 29 - JPMorgan Chase & Co. priced a $909,000 issue of reverse exchangeable notes due Aug. 31, 2007 linked to the common stock of US Airways Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 4.75% for an annualized rate of 19%. Interest is payable monthly.

The payout at maturity will be par unless US Airways 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 US Airways shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, the equivalent cash value.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	US Airways Group, Inc.
Amount:	$909,000
Maturity:	Aug. 31, 2007
Coupon:	19%, payable monthly
Price:	Par
Payout at maturity:	If US Airways stock falls below the protection level of $28.104 during the life of the notes and finishes below the initial share price, 28.466 US Airways shares or the equivalent cash value; otherwise, par
Initial share price:	$35.13
Protection level:	$28.104, 80% of initial share price
Pricing date:	May 24
Settlement date:	May 31
Agent:	J.P. Morgan Securities Inc.
Fees:	2.54%, including 1.895% for selling concessions

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