JPMorgan Chase to Reduce Quarterly Dividend to $0.05 Per Share – Retaining
  $5 Billion in Additional Capital Per Year

  First Quarter Financial Performance Quarter-to-Date is Solidly Profitable;
                    Company Positioned Well for the Future

Dividend Action is Being Taken as a Precautionary Step to Maximize Capital and
    Operational Flexibility and to Protect Fortress Balance Sheet Even If
                       Conditions Worsen Significantly

Business Wire

NEW YORK -- February 23, 2009

JPMorgan Chase today announced that the Board of Directors has reduced the
company’s quarterly common stock dividend from $0.38 to $0.05 per share,
effective for the dividend payable April 30, 2009, to shareholders of record
on April 6, 2009. The Board anticipates maintaining this level for the time
being. This action will enable the company to retain an additional $5 billion
in common equity per year.

First-quarter 2009 financial performance quarter-to-date is solidly profitable
even after significant additions to reserves, and the outlook for the quarter
is roughly in line with analyst expectations.

“While we recognize our tremendous obligation to shareholders to maintain
dividend levels, we also understand that extraordinary times require
extraordinary measures. Our action today is being done as a strong
precautionary measure to help ensure that our fortress balance sheet remains
intact – even if conditions worsen significantly. As always, our highest
obligation during an economic crisis is to keep our company and franchise
healthy, vibrant and strong for the future,” said Jamie Dimon, Chief Executive
Officer.

“While our performance and capital are already strong, today’s action provides
us with maximum flexibility to protect our company in a more highly stressed
environment and to continue to build and invest in our market-leading
businesses. Today’s capital action is not directly related to TARP. Our reason
for accepting TARP capital still holds -- namely to help stabilize the banking
system and economy. The decision to retain additional common equity does,
however, help position our company to repay TARP as soon as is prudent -- and
still maintain a strong capital position. Our repayment of TARP will
ultimately be worked out in consultation with the U.S. Treasury and other
regulators, and in consideration of the best interests of the banking system
overall,” Dimon added.

The company said it hopes to return to a more normalized dividend payout ratio
as soon as feasible after the environment has stabilized.

JPMorgan Chase & Co. will host a conference call today, Monday, February 23,
2009 at 5:00 p.m. (Eastern Time). The general public can access the conference
call by dialing the following numbers: (866) 541-2724 or (877) 368-8360 in the
U.S. and Canada; (706) 634-7246 for international callers. Please dial in 10
minutes prior to the start of call. The live audio webcast and presentation
slides will be available on http://investor.shareholder.com/jpmorganchase/
under Investor Relations, Investor Presentations.

A replay of the conference call will be available beginning at approximately
8:00 p.m. on February 23, 2009 through midnight, Tuesday, March 10, 2009 by
telephone at (800) 642-1687 in the U.S. and Canada or (706) 645-9291 for
international callers; conference ID: 87249843. The replay will also be
available via webcast on http://investor.shareholder.com/jpmorganchase/ under
Investor Relations, Investor Presentations.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm
with assets of $2.2 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 & Co. serves millions of consumers in the United
States and many of the world’s most prominent corporate, institutional and
government clients under its J.P. Morgan, Chase, and WaMu brands. Information
about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

Contact:

JPMorgan Chase & Co.
Media:
Joseph Evangelisti, 212-270-7438
joseph.evangelisti@jpmchase.com
or
Investor:
Julia Bates, 212-270-7325
julia.b.bates@jpmorgan.com