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JPMorgan First to Launch Instalment Warrants over iShares

May 19, 2008

Sydney, May 19, 2008 - JPMorgan, one of the world's leading investment banks and structured investment providers, today launched three new geared international investment products over iShares, uniquely available to Australian retail investors.

Investors are now able to use JPMorgan's Instalment Warrants over iShares to access leveraged exposure to the largest 500 US stocks as represented by the S&P 500 index, 23 emerging markets via the MSCI Emerging Markets index and Chinese companies that make up the FTSE/Xinhua China 25 index.

Mr. Mark Flynn, Vice President, Equity Derivatives and Structured Products with JPMorgan said: "Through JPMorgan offering Instalment Warrants over three quite different iShares funds, investors can now make optimal use of diversified internally geared investment strategies. The underlying ASX listed iShares makes this opportunity a uniquely Australian, transparent, and liquid investment vehicle aimed at maximising gearing in an active and varied portfolio."

Investors in the new Instalment Warrants over iShares can access up to 60 per cent gearing against the value of stocks at the time of purchase.

The Instalment Warrants over iShares run for ten years until 6 April 2018, with the first instalment paid on entry, and the second and final payment made at maturity or on any annual reset date.

JPMorgan Instalment Warrants and other retail investments are available through financial advisers and stockbrokers. The Instalments are listed with the IQE series and the ASX codes are IVVIQE (S&P 500 index), IEMIQE (MSCI Emerging Markets

For further information, please visit www.jpmorgansp.com.au or contact:

JPMorgan Australia
Mark Flynn
Vice President, Equity Derivatives & Structured Products
02 9220 3268
mark.p.flynn@jpmorgan.com

BlueChip Communication
Carden Calder
02 9018 8600
0403 333 904
carden@bluechipcommunication.com.au

About JPMorgan
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of US$1.6 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com or www.jpmorgan.com.au.

About Instalment Warrants
Instalment Warrants are derivatives that offer investors exposure to an underlying asset at a fraction of its cost. They offer leveraged exposure to an asset - so they increase risk - but also offer investors the potential for higher returns. They are issued by banks and other financial institutions and traded on the ASX. Other key characteristics typically include:

• Long-term investment - typically ten years
• Payment in two instalments: initial purchase and at maturity or reset date
• Tend to experience lower market trading volumes
• Generally have a relatively low risk/return profile
• Offer leveraged exposure to underlying shares giving greater return potential
• Offer portfolio diversification by unlocking cash from existing share holdings
• Generate an income stream through dividends and franking credits (where eligible)
• Require no credit checks or margin calls
• Suitable for self-managed superannuation funds
• A put option set for the reset or investment expiry date allows the holder to sell the underlying share for the greater of either: the outstanding loan amount or the closing value of the underlying asset

Instalment Warrants over iShares

The iShares FTSE/Xinhua China 25 is designed to represent the performance of the largest companies in the China equity market as available to international investors through H Shares or Red Chips. The Index consists of 25 of the largest and most liquid Chinese companies predominantly in the Financials, Telecommunications, and Oil & Gas sectors.

The iShares MSCI Emerging Markets incorporates stocks from 23 emerging markets, predominantly Brazil, China, Korea, Taiwan and the Russian Federation. Stocks represent a diverse range of sectors including Financials, Energy, Materials and Information Technology.

The iShares S&P 500 seeks investment results that correspond to the price and yield performance of US large-cap stocks as represented by the Standard & Poor's 500 Index. The largest stocks include:Exxon Mobil, General Electric, Microsoft Corp, AT&T Inc and Procter & Gamble.