New Issue: JPMorgan prices $784,000 11.25% upside auto callable reverse exchangeables on Alcoa

By Jennifer Chiou

New York, Aug. 9 - JPMorgan Chase & Co. priced $784,000 of 11.25% annualized upside auto callable reverse exchangeable notes due Feb. 10, 2011 linked to the common stock of Alcoa Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The notes will be automatically called at par if Alcoa stock closes above the initial share price on Nov. 5, 2010.

If the notes are not called, the payout at maturity will be par unless the final price of Alcoa stock is less than 70% of the initial share price, in which case the payout will be a number of Alcoa shares equal to $1,000 divided by the initial share price or, at JPMorgan's option, an equivalent amount in cash.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Upside auto callable reverse exchangeable notes
Underlying stock:	Alcoa Inc. (NYSE: AA)
Amount:	$784,000
Maturity:	Feb. 10, 2011
Coupon:	11.25%, payable monthly
Price:	Par
Payout at maturity:	If final price of Alcoa stock has declined from initial price by more than protection amount, 86.3558 Alcoa shares or equivalent in cash; otherwise, par
Call:	Automatically at par if Alcoa stock closes above initial share price on Nov. 5, 2010
Initial share price:	$11.58
Protection amount:	$3.474, 30% of initial price
Pricing date:	Aug. 5
Settlement date:	Aug. 10
Agent:	J.P. Morgan Securities Inc.
Fees:	3.41%, including 2.3% for selling concessions
Cusip:	48124AYH4

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