Municipal Bond New Issues

Wednesday, October 8, 2008 10:01AM
PREL PRICING

RE: $97,635,000*
STATE OF CALIFORNIA
(CALIFORNIA DEPARTMENT OF TRANSPORTATION)
FEDERAL HIGHWAY GRANT ANTICIPATION BONDS
SERIES 2008A

WE HAVE A RELEASE FOR THE RETAIL ORDER PERIOD
ORDERS UNTIL 5:00PM EDT

MOODY’S: Aa3 S&P: AA- FITCH: AA-

DATED:10/16/2008 FIRST COUPON:02/01/2009

DUE: 02/01

[More:]

ADD’L
TAKEDOWN
MATURITY AMOUNT* COUPON PRICE ( Pts )
02/01/2009 2,005M 4.00% 2.40 1/8
(Approx. $ Price 100.457)
02/01/2010 6,945M 4.00% 2.91 1/4
(Approx. $ Price 101.368)
02/01/2011 7,225M 4.00% 3.27 1/4
(Approx. $ Price 101.595)

02/01/2012 7,510M 4.00% 3.57 3/8
(Approx. $ Price 101.320)
02/01/2013 7,815M 5.00% 3.78 3/8
(Approx. $ Price 104.785)
02/01/2014 8,205M 5.00% 4.00 3/8
(Approx. $ Price 104.720)
02/01/2015 8,615M 4.125% 4.21 1/2
(Approx. $ Price 99.529)
02/01/2016 8,970M 4.375% 4.42 1/2

(Approx. $ Price 99.716)
02/01/2017 9,360M 5.00% 4.62 1/2
(Approx. $ Price 102.586)
02/01/2018 9,830M 5.00% 4.79 1/2
(Approx. $ Price 101.552)
02/01/2019 10,320M 5.00% 4.98 1/2
(Approx. $ Price 100.152)
02/01/2020 10,835M 5.125% 5.18 1/2
(Approx. $ Price 99.526)

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CALL FEATURES: No optional call


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* - APPROXIMATE SUBJECT TO CHANGE

Order period until today 5:00 PM, Eastern, Wednesday, 10/08/08. Please
enter orders on (212) 834-7359, or if available use Electronic Order
Entry.

The managers reserve the right to terminate or extend the order period
prior to or later

than the above-mentioned time and date and to confirm bonds at their
discretion.

PRIORITY OF ORDERS AS FOLLOWS:
1. California Retail
2. National Retail

The compliance addendum MSRB Rule G-11 will apply.

YOU MUST PROVIDE ZIP CODES ON ALL RETAIL ORDERS

The Award is expected on Thursday, October 9, 2008.

Delivery is firm for Thursday, October 16, 2008.

This Issue is book entry. This issue is clearing through DTC.

J.P. Morgan Securities Inc.
Ramirez & Co., Inc.
Great Pacific Securities Inc.
Jackson Securities, LLC
Merrill Lynch & Co.
Morgan Keegan & Co., Inc.
Morgan Stanley & Co. Incorporated

Piper Jaffray
Siebert Brandford Shank & Co.

By: J.P. Morgan Securities Inc. New York, NY

Wednesday, October 8, 2008 10:01AM