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                                                                     May 5, 1998

      J.P. Morgan briefs investors and analysts on strategy and performance

         At a briefing today in New York for institutional investors and
securities analysts, executives of J.P. Morgan & Co. Incorporated discussed the
firm's strategy for generating superior long-term returns for stockholders.
Morgan's chairman, Douglas A. Warner III, hosted the meeting, which focused on
several key business initiatives:

- -        Peter Hancock, head of Fixed Income, outlined Morgan's integration of
         lending and fixed income activities and the significant potential to
         increase the firm's return on equity through transformation of its
         credit business. With its leading credit, distribution, derivatives,
         and securitization skills, he said, Morgan is well positioned to assist
         clients in accessing credit in new ways as rapid changes in the global
         capital and credit markets gather momentum. He described significant
         opportunities to increase revenues; to reduce by an estimated $1.5
         billion over the next two years the capital employed in credit
         activities; and to redeploy capital for higher returns.

- -        Clayton Rose, head of the firm's Equities group, gave an update on J.P.
         Morgan's rapidly growing equities business. Morgan is ranked fifth
         among lead underwriters of equity issues in the United States in 1998
         to date. The firm has more than recouped its $1.8 billion investment in
         building its equities capabilities since the early 1990s, Rose said,
         with roughly 80% of the investment completed. Gains in market share and
         operating leverage are expected to continue to improve margins, with
         revenues estimated to grow 25% annually over the next several years and
         costs to rise at less than half that rate.

- -        Ramon de Oliveira, head of Morgan's Asset Management Services group,
         reviewed the firm's global institutional investment management
         franchise, its operating plan to expand margins, and its strategic plan
         to increase assets under management. He estimated 15% to 20% annual
         growth in assets under management (excluding market appreciation) over
         the next three years from the year-end level of $257 billion, with
         expenses rising at 5% to 7% over the same period. Morgan had completed
         a two-year investment program to strengthen its investment platform, he
         said, highlighting the firm's business partnership with American
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         Century Companies and the early success of efforts to jointly market
         highly competitive defined- contribution pension plan services. He
         noted recent innovative mutual fund alliances with Deka in Germany and
         Banques Populaires in France and said that similar alliances are being
         actively explored in Japan and other markets of strategic importance.
         Morgan is consistently ranked among the top managers of equity, bond,
         and international assets for institutions, with a competitive position
         based on consistent, disciplined investment philosophy and superior
         investment performance.

- -        Tony Mayer, chief financial officer, discussed Morgan's plans to
         improve the firm's productivity through specific cost-control
         initiatives. The objective, he said, is to identify $300 million to
         $500 million of savings annually in 1998 and 1999 (including the $250
         million announced in this year's first quarter) to fund business
         growth, and to improve the firm's efficiency ratio (the ratio of
         expenses to revenues) from 71% currently to the mid-sixties range.

         Warner summed up with remarks on the firm's strategic positioning in a
time of industry change. "Our fundamental strategy has not changed: to be our
clients' number one provider of sophisticated financial services. Our momentum
is excellent. We are now at a point in our evolution where we are markedly
shifting our mindset - from a drive for strategic transformation to an
uncompromising drive for superior performance. We're out to capture the rewards
of leadership."

         J.P. Morgan is a leading global financial firm that meets critical
financial needs for business enterprises, governments, and individuals. The firm
advises on corporate strategy and structure, raises capital, makes markets in
financial instruments, and manages investment assets. Morgan also commits its
own capital to promising enterprises and invests and trades to capture market
opportunities.

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Estimates or targets may differ from actual results and are subject to risks and
uncertainties, as discussed in J.P. Morgan's 1997 Annual Report filed with the
Securities and Exchange Commission.