Filed Pursuant to Rule 433
Registration No. 333-134553

Final Note Terms

15YR NC 2YR Lehman NON-Inversion Note

Lehman Brothers Holdings Inc. has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for this offering. Before you invest, you should read the prospectus dated May 30, 2006, the prospectus supplement dated May 30, 2006 for its Medium Term Notes, Series I, and other documents Lehman Brothers Holdings Inc. has filed with the SEC for more complete information about Lehman Brothers Holdings Inc. and this offering. Buyers should rely upon the prospectus, prospectus supplement and any relevant free writing prospectus for complete details. You may get these documents and other documents Lehman Brothers Holdings Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers Holdings Inc.” as a search term. Alternatively, Lehman Brothers Inc. or any other dealer participating in the offering will arrange to send you the prospectus, prospectus supplement and final pricing supplement (when completed) if you request it by calling your Lehman Brothers sales representative, such other dealer or 1-888-603-5847.

Issuer:		Lehman Brothers Holdings (A1, A+, A+)

Principal Amount:		USD 2,000,000

CUSIP:		52517PQ87

Trade Date:		December 18, 2006

Issue Date:		December 21, 2006

Maturity Date:		December 21, 2021, subject to Issuer’s Call Option.

Issue Price:		97.50%

Redemption Price:		100.0%

Coupon:
		From the Issue Date to but excluding December 21, 2008: 8.75%

		From and including December 21, 2008, to but excluding the Maturity Date:

		8.75% x Interest Accrual Factor, subject to a minimum Coupon of 0.00%

Interest Period:		Quarterly from and including each Interest Payment Date (or the Issue Date, in the case of the first Interest Calculation Period) to but excluding the next succeeding Interest Payment Date (or the Maturity Date, in the case of the final Interest Period)

Daycount Basis / Business Day Convention:		Unadjusted modified following 30/360

Interest Payment Dates:		Quarterly on the 21st of each March, June, September and December, starting on March 21, 2007 and ending on the Maturity Date, subject to Issuer’s Call Option

Interest Accrual Factor:		For any Interest Period commencing on or after December 21, 2008, the number of calendar days (including non Business Days) in respect of which SPREAD REF1, SPREAD REF2, and SPREAD REF3 are ALL greater than or equal to 0.00% during that Interest Period divided by the total number of calendar days (including non Business Days) in that Interest Period.

SPREAD REFs:		For any day in an Interest Period commencing on or after December 21, 2008 (subject to the Rate Cut Off):

		SPREAD REF1 = 30yr CMS Rate — 2yr CMS Rate

		SPREAD REF2 = 30yr CMS Rate — 10yr CMS Rate

		SPREAD REF3 = 10yr CMS Rate — 2yr CMS Rate

30yr CMS Rate:		On any Business Day during an Interest Period, the rate for U.S. Dollar swaps with a maturity of 30 years, expressed as a percentage, which appears on Reuters Screen ISDAFIX1 as of 11:00a.m., New York City time, on that day.

10yr CMS Rate:		On any Business Day during an Interest Period, the rate for U.S. Dollar swaps with a maturity of 10 years, expressed as a percentage, which appears on Reuters Screen ISDAFIX1 as of 11:00a.m., New York City time, on that day.

2yr CMS Rate:		On any Business Day during an Interest Period, the rate for U.S. Dollar swaps with a maturity of 2 years, expressed as a percentage, which appears on Reuters Screen ISDAFIX1 as of 11:00a.m., New York City time, on that day.

		If the 30yr CMS Rate, 10yr CMS Rate or 2yr CMS Rate does not appear on Reuters Screen ISDAFIX1 on any Business Day during an Interest Period, the rate for such date shall be determined as if the parties had specified “USD-CMS-Reference Banks” as the applicable rate, as described under “Description of the Notes—Floating Rate Notes—CMS Rate Notes” in the prospectus supplement dated May 30, 2006

Rate Cut Off:		SPREAD REF1, SPREAD REF2 or SPREAD REF3 for Saturday, Sunday or a day which is not a Business Day will be SPREAD REF1, SPREAD REF2 or SPREAD REF3, as applicable for the immediately preceding Business Day. SPREAD REF1, SPREAD REF2 and SPREAD REF3 in effect on the fifth Business Day prior to an Interest Payment Date will remain in effect until that Interest Payment Date.

Issuer’s Call Option:		The Issuer has the right on every Interest Payment Date commencing on or after December 21, 2008, provided that the Issuer gives 5 Business Days notice to the investor, to call the Note at the Redemption Price. All amounts that may otherwise be payable following the call date shall cease to be payable. Notwithstanding the above, all payments due on the call

		date shall be made in full regardless of any calling of the Note by the Issuer.

Business Days:		New York

Calculation Agent:		Lehman Brothers Special Financing Inc.

Underwriter:		Lehman Brothers Inc.

Denomination:		US$1,000/1,000

U.S. Federal Income Tax Treatment:

Lehman Brothers Holdings Inc. intends to treat the notes as contingent payment debt instruments, as described under “Supplemental United States Federal Income Tax Consequences—Contingent Payment Debt Instruments” in the prospectus supplement dated May 30, 2006.

Historical Levels of the 30yr CMS Rate, 10yr CMS Rate and 2yr CMS Rate

The following shows for illustrative purposes (a) the 30yr CMS Rate, 10yr CMS Rate and 2yr CMS Rate, and (b) SPREAD REF1 (equal to the 30yr CMS Rate minus the 2yr CMS Rate), SPREAD REF2 (equal to the 30yr CMS Rate minus the 10yr CMS Rate) and SPREAD REF3 (equal to the 10yr CMS Rate minus the 2yr CMS Rate), in each case in effect on the Business Day preceding the Trade Date and on the hypothetical historical Interest Payment Dates listed below; the Coupon payable on any Interest Payment Date for the Notes, however, will be determined based on SPREAD REF1, SPREAD REF2 and SPREAD REF3 in effect on each day during the related Interest Period. The historical experience of the 30yr CMS Rate, 10yr CMS Rate and 2yr CMS Rate, and their relative relationship, should not be taken as an indication of the future performance of the 30yr CMS Rate, 10yr CMS Rate and 2yr CMS Rate, or their relative relationship, during the term of the Notes. Fluctuations in the level of the 30yr CMS Rate, 10yr CMS Rate and 2yr CMS Rate, as well as fluctuations in their relative relationship, make the Notes’ effective interest rate difficult to predict and can result in effective interest rates to investors that are lower than anticipated. In addition, historical interest rates are not necessarily indicative of future interest rates. Fluctuations in interest rates and interest rate trends that have occurred in the past are not necessarily indicative of fluctuations that may occur in the future, which may be wider or narrower than those that have occurred historically.

Hypothetical	30yr	10yr	2yr	SPREAD REF1: 30yr CMS	SPREAD REF2: 30yr CMS	SPREAD REF3: 10yr CMS
Interest Payment Dates	CMS Rate (in %)	CMS Rate (in %)	CMS Rate (in %)	Rate — 2yr CMS Rate (in %)	Rate — 10yr CMS Rate (in %)	Rate — 2yr CMS Rate (in %)
12/18/2006	5.227	5.082	5.077	0.150	0.145	0.005
9/21/2006	5.307	5.190	5.121	0.186	0.117	0.069
6/21/2006	5.802	5.732	5.656	0.146	0.070	0.076
3/21/2006	5.325	5.252	5.155	0.170	0.073	0.097
12/21/2005	5.199	5.034	4.899	0.300	0.165	0.135
9/21/2005	4.906	4.627	4.342	0.564	0.279	0.285
6/21/2005	4.748	4.447	4.047	0.701	0.301	0.400
3/21/2005	5.319	4.965	4.123	1.196	0.354	0.842

12/21/2004	5.190	4.570	3.434	1.756	0.620	1.136
9/21/2004	5.167	4.453	2.828	2.339	0.714	1.625
6/21/2004	5.768	5.179	3.183	2.585	0.589	1.996
3/22/2004	4.961	4.089	1.802	3.159	0.872	2.287
12/22/2003	5.294	4.554	2.164	3.130	0.740	2.390
9/22/2003	5.460	4.662	1.982	3.478	0.798	2.680
6/23/2003	4.678	3.680	1.348	3.330	0.998	2.332
3/21/2003	5.345	4.570	2.105	3.240	0.775	2.465
12/23/2002	5.273	4.422	2.101	3.172	0.851	2.321
9/23/2002	5.119	4.299	2.336	2.783	0.820	1.963
6/21/2002	5.876	5.273	3.253	2.623	0.603	2.020
3/21/2002	6.373	6.049	4.140	2.233	0.324	1.909
12/21/2001	6.207	5.884	3.620	2.587	0.323	2.264
9/21/2001	6.063	5.385	3.450	2.613	0.678	1.935
6/21/2001	6.405	6.053	4.536	1.869	0.352	1.517
3/21/2001	6.054	5.684	4.774	1.280	0.370	0.910
12/21/2000	6.219	6.027	5.818	0.401	0.192	0.209
9/21/2000	7.092	7.032	6.777	0.315	0.060	0.255
6/21/2000	7.340	7.344	7.284	0.056	-0.004	0.060
3/21/2000	7.230	7.273	7.091	0.139	-0.043	0.182
12/21/1999	7.340	7.209	6.787	0.553	0.131	0.422
9/21/1999	7.074	6.869	6.220	0.854	0.205	0.649
6/21/1999	6.754	6.685	6.018	0.736	0.069	0.667
3/22/1999	6.226	5.985	5.519	0.707	0.241	0.466
12/21/1998	5.777	5.487	5.087	0.690	0.290	0.400
9/21/1998	5.928	5.526	5.165	0.763	0.402	0.361
6/22/1998	6.105	6.006	5.847	0.258	0.099	0.159
3/23/1998	6.272	6.063	5.861	0.411	0.209	0.202
12/22/1997	6.286	6.182	6.021	0.265	0.104	0.161
9/22/1997	6.689	6.484	6.098	0.591	0.205	0.386
6/23/1997	7.017	6.780	6.302	0.715	0.237	0.478
3/21/1997	7.286	7.097	6.498	0.788	0.189	0.599
12/23/1996	6.929	6.660	6.009	0.920	0.269	0.651
9/23/1996	7.418	7.162	6.425	0.993	0.256	0.737
6/21/1996	7.499	7.321	6.551	0.948	0.178	0.770
3/21/1996	7.041	6.710	5.924	1.117	0.331	0.786
12/21/1995	6.491	6.149	5.480	1.011	0.342	0.669
9/21/1995	6.991	6.608	5.991	1.000	0.383	0.617
6/21/1995	7.002	6.540	5.851	1.151	0.462	0.689
3/21/1995	7.906	7.540	6.967	0.939	0.366	0.573
12/21/1994	8.359	8.173	8.002	0.357	0.186	0.171
9/21/1994	8.349	7.897	6.753	1.596	0.452	1.144
6/21/1994	8.082	7.578	6.260	1.822	0.504	1.318
3/21/1994	7.521	6.952	5.364	2.157	0.569	1.588
12/21/1993	6.982	6.176	4.376	2.606	0.806	1.800
9/21/1993	6.778	5.778	4.022	2.756	1.000	1.756
6/21/1993	7.445	6.255	4.348	3.097	1.190	1.907
3/22/1993	7.605	6.299	4.133	3.472	1.306	2.166

12/21/1992		7.752		7.068		4.926		2.826		0.684		2.142
9/21/1992		7.681		6.738		4.062		3.619		0.943		2.676