New Issue: JPMorgan prices $1 million 12.2% reverse exchangeables tied to McMoRan

By Marisa Wong

Madison, Wis., Oct. 1 - JPMorgan Chase & Co. priced $1 million of 12.2% annualized reverse exchangeable notes due Jan. 4, 2011 linked to the common stock of McMoRan Exploration Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the price of McMoRan stock falls by more than the protection amount - $8.02, or 47.121% of the initial share price of $17.02 - during the life of the notes and finishes below the initial price, in which case the payout will be a number of McMoRan 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 LLC is the agent.

Issuer:	JPMorgan Chase & Co.
Issue:	Reverse exchangeable notes
Underlying stock:	McMoRan Exploration Co. (NYSE: MMR)
Amount:	$1 million
Maturity:	Jan. 4, 2011
Coupon:	12.2% per year, payable monthly
Price:	Par
Payout at maturity:	If McMoRan shares fall by more than the protection amount during the life of the notes and finish below the initial price, 58.7544 shares of McMoRan stock or, at issuer's option, equivalent value in cash; otherwise, par
Initial share price:	$17.02
Protection amount:	$8.02, 47.121% of initial price
Pricing date:	Sept. 30
Settlement date:	Oct. 5
Agent:	J.P. Morgan Securities LLC
Fees:	1.9%, including 1.25% for selling concessions
Cusip:	48124AM87

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