New Issue: JPMorgan prices $750,000 0% semiannual review notes linked to S&P 500 Financials

By Laura Lutz

Des Moines, March 12 - JPMorgan Chase & Co. priced a $750,000 offering of 0% semiannual review notes due March 19, 2010 linked to the S&P 500 Financials index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at increasing premiums if the index is at or above the initial index level on any of three semiannual review dates.

The redemption amount will be par plus 21.75% if the notes are called on March 16, 2009, par plus 32.625% if called on Sept. 16, 2009 and par plus 43.5% if called on March 16, 2010.

If the notes are not called, the payout at maturity will be par unless the index declines by more than 10%. Investors will lose 1.1111% for every 1% decline in the index beyond 10%.

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

Issuer:	JPMorgan Chase & Co.
Issue:	Semiannual review notes
Underlying index:	S&P 500 Financials index
Amount:	$750,000
Maturity:	March 19, 2010
Coupon:	0%
Price:	Par
Call:	Automatically called if index level is at or above the initial level on an semiannual review date; payout will be par plus 21.75% if called on March 16, 2009, par plus 32.625% if called on Sept. 16, 2009 and par plus 43.5% if called on March 16, 2010
Payout at maturity:	Par unless the index declines by more than 10%, in which case investors will lose 1.1111% for every 1% decline beyond 10%
Initial level:	314.67
Pricing date:	March 10
Settlement date:	March 13
Agent:	J.P. Morgan Securities Inc.
Fees:	2.25%, including 1.125% for selling concessions

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