Free Writing Prospectus

Price to Public

Underwriting Discount

Proceeds to Us

Term sheet no. 1 to
Prospectus dated May 30, 2006
Prospectus supplement dated May 30, 2006
Product supplement no. 730-I dated March 5, 2008
Underlying supplement no. 1190 dated March 5, 2008
Registration Statement no. 333-134553
Dated March 6, 2008
Rule 433

Lehman Brothers Holdings Inc. Notes Linked to a Basket of Global Indices due September 30, 2009

These Return Optimization Securities Linked to a Basket of Global Indices (the “Notes”) provide potential enhanced returns based on the positive performance of a basket composed of five global equity indices: the S&P 500^® Index, the Russell 2000^® Index, the MSCI EAFE Index^®, the Dow Jones EURO STOXX 50^® Index and the NASDAQ-100 Index^®. The Notes are designed to enhance returns in a moderate-return environment – meaning an environment in which stocks generally experience no more than moderate appreciation. If the Basket Return is positive, at the maturity of the Notes you will receive your principal plus a return equaling 300% of the Basket Return, up to the Maximum Gain, providing you with an opportunity to outperform the Basket Return. If the Basket Return is negative, at maturity of the Notes you will receive your principal reduced by a percentage equal to the absolute value of the Basket Return. Investing in the Notes is subject to significant risks, including potential loss of principal, and a capped appreciation at maturity.

We are offering Return Optimization Securities Linked to a Basket of Global Indices. The Notes are linked to a basket of indices (the “Basket”) consisting of the S&P 500^® Index, the Russell 2000^® Index, the MSCI EAFE Index^®, the Dow Jones EURO STOXX 50^® Index and the NASDAQ-100 Index^® (each, a “Basket Index” and, collectively, the “Basket Indices”). The return on the Notes is subject to, and will not exceed, a predetermined Maximum Gain. The Maximum Gain will be between 22.05% and 25.05% and will be determined on the Trade Date. The Notes are offered at a minimum investment of $1,000.

See “Additional Information about Lehman Brothers Holdings Inc. and the Notes” on page 2. The Notes offered will have the terms specified in the base prospectus dated May 30, 2006, the MTN prospectus supplement dated May 30, 2006, product supplement no. 730-I dated March 5, 2008 underlying supplement no. 1190 dated March 5, 2008 and this term sheet. See “ Key Risks” on page 5, the more detailed “Risk Factors” beginning on page SS-1 of product supplement no. 730-I for risks related to an investment in the Notes and “Risk Factors” beginning on page US-1 of underlying supplement no. 1190 for risks related to the Basket Indices.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the Notes or passed upon the accuracy or the adequacy of this term sheet, the accompanying base prospectus, MTN prospectus supplement, product supplement no. 730-I, underlying supplement no. 1190 or any other related prospectus supplements, or any other relevant terms supplement. Any representation to the contrary is a criminal offense. The Notes are not deposit liabilities of Lehman Brothers Holdings Inc. and are not FDIC insured.

Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC, for this offering. Before you invest, you should read this term sheet together with the base prospectus, as supplemented by the MTN prospectus supplement relating to our Series I medium-term notes of which the Notes are a part, and the more detailed information contained in product supplement no. 730-I (which supplements the description of the general terms of the Notes) and underlying supplement no. 1190 (which describes the Basket Indices, including risk factors specific to each). Buyers should rely upon the base prospectus, the MTN prospectus supplement, product supplement no. 730-I, underlying supplement no. 1190, this term sheet, any other relevant terms supplement and any other relevant free writing prospectus for complete details. To the extent that there are any inconsistencies among the documents listed below, this term sheet shall supersede product supplement no. 730-I, which shall, likewise, supersede the base prospectus and the MTN prospectus supplement. You should carefully consider, among other things, the matters set forth in “Risk Factors” in the accompanying product supplement no. 730-I and “Risk Factors” in the accompanying underlying supplement no. 1190, as the Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisors before you invest in the Notes. 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 or through the links below, or by calling UBS Financial Services Inc. toll-free at 1-877-827-2010 or Lehman Brothers Inc. toll-free at 1-888-603-5847.

You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):

References to “Lehman Brothers,” “we,” “our” and “us” refer only to Lehman Brothers Holdings Inc. and not to its consolidated subsidiaries. In this document, “Notes” refers to the Return Optimization Securities Linked to a Basket of Global Indices that are offered hereby, unless the context otherwise requires.

The Notes may be suitable for you if, among other considerations:

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You believe that the Basket will appreciate moderately—meaning that you believe the Basket will appreciate over the term of the Notes and that such appreciation, as leveraged by the Leverage Factor, is unlikely to exceed the indicative Maximum Gain at maturity

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You are willing to risk losing some or all of your investment

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You are willing to hold the Notes to maturity

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You do not seek current income from this investment

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You are willing to invest in the Notes based on the range indicated for the Maximum Gain (the actual Maximum Gain will be determined on the Trade Date)

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You seek an investment with a return linked to the performance of the Basket and exposure to U.S. and global developed markets

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You are willing to invest in securities for which there may be little or no secondary market

The Notes may not be suitable for you if, among other considerations:

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You do not seek an investment with exposure to U.S. and global developed markets

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You are unable or unwilling to hold the Notes to maturity

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You seek an investment whose return is not subject to a cap that is equivalent to the Maximum Gain, which will be between 22.05% and 25.05% (the actual Maximum Gain will be determined on the Trade Date)

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You prefer the lower risk, and therefore accept the potentially lower returns, of fixed income investments with comparable maturities and credit ratings

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You seek current income from your investments

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You seek an investment for which there will be an active secondary market

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You seek an investment that offers principal protection when the Notes are held to maturity

The suitability considerations identified above are not exhaustive. Whether or not the Notes are a suitable investment for you will depend on your individual circumstances, and you should reach an investment decision only after you and your investment, legal, tax, accounting, and other advisors have carefully considered the suitability of an investment in the Notes in light of your particular circumstances. You should also review carefully the “Key Risks” on page 5, “Risk Factors” in product supplement no. 730-I, underlying supplement no. 1190 and the MTN prospectus supplement for risks related to an investment in the Notes.

Indicative Terms


Issuer		Lehman Brothers Holdings Inc. (A+/A1/AA-)¹

Issue Price		$10 per Note

Term		18 months

Basket		The Notes are linked to a basket consisting of the S&P 500^® Index (SPX), the Russell 2000^® Index (RTY), the MSCI EAFE Index^® (MXEA), the Dow Jones EURO STOXX 50^® Index (SX5E) and the NASDAQ-100 Index^® (NDX) (each, a “Basket Index” and, collectively, the “Basket Indices”).


Index Weightings	S&P 500^® Index	40	%
	Russell 2000^® Index	20	%
	MSCI EAFE Index^®	20	%
	Dow Jones EURO STOXX 50^® Index	10	%
	NASDAQ-100 Index^®	10	%


Leverage Factor		3

Principal Protection		None. You may lose the entire principal amount of your investment.

Payment at Maturity (per $10)		If the Basket Return (as defined below) is positive, you will receive a cash payment, per $10 principal amount Note, equal to: $10 + ($10 × Leverage Factor × Basket Return); provided, however, that in no event will you receive an amount greater than $10 + ($10 × the Maximum Gain). If the Basket Return is less than or equal to 0%, you will receive a cash payment, per $10 principal amount Note, equal to: $10 + ($10 × Basket Return) *In this scenario, you could lose some or all of your principal, depending on how much the Basket declines.*

Basket Return		Basket Ending Level - Basket Starting Level
		Basket Starting Level

Maximum Gain		22.05% to 25.05%. The actual Maximum Gain will be determined on the Trade Date.

Basket Starting Level		Set equal to 100 on the Trade Date

Basket Ending Level		The Basket closing level on the Final Valuation Date. On the Final Valuation Date, the Basket closing level will be calculated as follows: 100 × [1+ (the S&P 500^® Index Return × 40%) + (the Russell 2000^® Index Return × 20%) + (the MSCI EAFE Index^® Return × 20%) + (the Dow Jones EURO STOXX 50^® Index Return × 10%) + (the NASDAQ-100 Index^® Return × 10%)] The “S&P 500^® Index Return,” the “Russell 2000^® Index Return,” the “MSCI EAFE Index^® Return,” the “Dow Jones EURO STOXX 50^® Index Return” and the “NASDAQ-100 Index^® Return” are the performance of the respective Basket Indices, calculated, in each case, as the percentage change from the related index closing level on the Trade Date to the related index closing level on the Final Valuation Date. See the definition of Index Return under “Description of Notes—Payment at Maturity” in the accompanying product supplement no. 730-I.

CUSIP		52522L848

ISIN		US52522L8485

The following scenario analysis and examples reflect the Leverage Factor of 3 and assume a Maximum Gain of 23.55% (the midpoint of the range of 22.05% to 25.05%) and assume a range of Basket Returns from +40% to -40%. The actual Maximum Gain will be set on the Trade Date.

Example 1—The level of the Basket increases from the Basket Starting Level of 100 to a Basket Ending Level of 105. Because the Basket Ending Level is 105 and the Basket Starting Level is 100, the Basket Return is 5%, calculated as follows:

Because the Basket Return is 5%, the Payment at Maturity is equal to $11.50 per $10 principal amount Note calculated as follows:

Example 2—The level of the Basket increases from the Basket Starting Level of 100 to a Basket Ending Level of 115. Because the Basket Ending Level is 115 and the Basket Starting Level is 100, the Basket Return is 15%, calculated as follows:

Because the Basket Return is 15% and the Leverage Factor is 3, the return on the Notes would be equal to 45%, but it is subject to the Maximum Gain of 23.55%. Therefore, the Payment at Maturity is equal to $12.36 per $10 principal amount Note, calculated as follows:

Example 3—The level of the Basket decreases from the Basket Starting Level of 100 to a Basket Ending Level of 90. Because the Basket Ending Level is 90 and the Basket Starting Level is 100, the Basket Return is -10%, calculated as follows:

Because the Basket Return is -10%, the Payment at Maturity is equal to $9.00 per $10 principal amount Note calculated as follows:

Lehman Brothers Holdings Inc. intends to treat, and by purchasing a Note, for all tax purposes, you agree to treat, a Note as a cash-settled financial contract, rather than as a debt instrument.

Recent Tax Law Developments. On December 7, 2007, the Internal Revenue Service released a Notice indicating that the Internal Revenue Service and the Treasury Department are considering and seeking comments as to whether holders of instruments similar to the Notes should be required to accrue income on a current basis over the term of the Notes, regardless of whether any payments are made prior to maturity. In addition, the Notice provides that the Internal Revenue Service and the Treasury Department are considering related issues, including, among other things, whether gain or loss from such instruments should be treated as ordinary or capital, whether foreign holders of such instruments should be subject to withholding tax, whether the tax treatment of such instruments should vary depending upon the nature of the underlying asset, and whether such instruments should be subject to the special “constructive ownership rules” contained in Section 1260 of the Internal Revenue Code of 1986, as amended. It is not possible to predict what changes, if any, will be adopted, or when they will take effect. Any such changes could affect the amount, timing and character of income, gain or loss in respect of the Notes, possibly with retroactive effect. Holders are urged to consult their tax advisors concerning the impact of the Notice on their investment in the Notes. Subject to future developments with respect to the foregoing, Lehman Brothers Holdings Inc. intends to continue to treat the Notes for U.S. federal income tax purposes in accordance with the treatment described in the accompanying product supplement no. 730-I under the headings “Risk Factors” and “Certain U.S. Federal Income Tax Consequences.”

See “Certain U.S. Federal Income Tax Consequences” in the accompanying product supplement no. 730-I.

An investment in the Notes involves significant risks. Investing in the Notes is not equivalent to investing directly in any of the stocks included in the Basket Indices. These risks are explained in more detail in the “Risk Factors” section of the accompanying product supplement no. 730-I and in the “Risk Factors” section of the accompanying underlying supplement no. 1190. You should reach an investment decision only after you have carefully considered with your advisors the suitability of an investment in the Notes in light of your particular circumstances.

The graph below illustrates the hypothetical historical performance of the Basket from February 26, 1998 to February 26, 2008, if the level of the Basket was made to equal 100 on February 26, 2008. The hypothetical historical performance reflects the performance the Basket would have exhibited based on (i) the actual historical performance of the Basket Indices and (ii) the Index Weightings indicated under “Indicative Terms” above. Neither the hypothetical historical performance of the Basket nor the actual historical performance of the Basket Indices should be taken as indications of future performance.

The S&P 500^® Index is published by Standard & Poor’s (“S&P”), a division of The McGraw-Hill Companies, Inc. As discussed more fully in underlying supplement no. 1190 under the heading “The S&P 500^® Index”, the S&P 500^® Index is intended to provide a performance benchmark for the U.S. equity markets. The calculation of the value of the S&P 500^® Index is based on the relative value of the aggregate market value of the common stocks of 500 companies as of a particular time compared to the aggregate average market value of the common stocks of 500 similar companies during the base period of the years 1941 through 1943. The ten main sectors of companies comprising the S&P 500^® Index, along with the number of companies included in each group as of January 31, 2008 are indicated below: Consumer Discretionary (87); Consumer Staples (39); Energy (36); Financials (92); Health Care (51); Industrials (56); Information Technology (71); Materials (28); Telecommunications Services (9); and Utilities (31).

You can obtain the level of the S&P 500^® Index at any time from the Bloomberg Financial Markets page “SPX <Index> <GO>“ or from the S&P website at www.standardandpoors.com.

The information on the S&P 500^® Index provided in this document should be read together with the discussion under the heading “The S&P 500^® Index” beginning on page US-6 of underlying supplement no. 1190. Information contained in the S&P website referenced above is not incorporated by reference in, and should not be considered a part of, this free writing prospectus.

The information on the Russell 2000^® Index provided in this document should be read together with the discussion under the heading “The Russell 2000^® Index” beginning on page US-11 of underlying supplement no. 1190. Information contained in the Russell website referenced above is not incorporated by reference in, and should not be considered a part of, this free writing prospectus.

The MSCI EAFE Index^® is published by Morgan Stanley Capital International Inc. (“MSCI”). As discussed more fully in underlying supplement no. 1190 under the heading “The MSCI EAFE Index^®”, the MSCI EAFE Index^® is intended to provide a performance benchmark for selected developed equity markets in Europe, Asia, Australia and the Far East. The calculation of the value of the MSCI EAFE Index^® is a free float weighted average of the U.S. dollar values of all the equity securities constituting the MSCI indices for 21 selected countries. As of February 29, 2008, the identity and country weight of the five largest countries represented in the Index are as follows: United Kingdom (21.97%), Japan (20.83%), France (10.50%), Germany (8.94%) and Switzerland (7.04%).

You can obtain the level of the MSCI EAFE Index^® at any time from the Bloomberg Financial Markets page “MXEA <Index> <GO>“ or from the MSCI website at www.mscibarra.com.

The information on the MSCI EAFE Index^® provided in this document should be read together with the discussion under the heading “The MSCI EAFE Index^®” beginning on page US-15 of underlying supplement no. 1190. Information contained in the MSCI website referenced above is not incorporated by reference in, and should not be considered a part of, this free writing prospectus.

The Dow Jones EURO STOXX 50^® Index was created by STOXX Limited, a joint venture between Deutsche Börse AG, Dow Jones & Company, Inc. and SWX Group. As discussed more fully in underlying supplement no. 1190 under the heading “The Dow Jones EURO STOXX 50^® Index”, the Dow Jones EURO STOXX 50^® Index is composed of 50 component stocks of market sector leaders from within the Dow Jones EURO STOXX Index, which includes stocks selected from the Eurozone. The component stocks have a high degree of liquidity and represent the largest companies across all market sectors defined by the Dow Jones Global Classification Standard. Changes in the composition of the Dow Jones EURO STOXX 50^® Index are made annually to ensure that the Dow Jones EURO STOXX 50^® Index includes the 50 market sector leaders from within the Dow Jones EURO STOXX Index. A current list of the issuers that comprise the Dow Jones EURO STOXX 50^® Index is available on the STOXX Limited website at www.stoxx.com.

You can obtain the level of the Dow Jones EURO STOXX 50^® Index at any time from the Bloomberg Financial Markets page “SX5E <Index> <GO>“ or from the STOXX Limited website at www.stoxx.com.

The information on the Dow Jones EURO STOXX 50^® Index provided in this document should be read together with the discussion under the heading “The Dow Jones EURO STOXX 50^® Index” beginning on page US-21 of underlying supplement no. 1190. Information contained in the STOXX Limited website referenced above is not incorporated by reference in, and should not be considered a part of, this free writing prospectus.

The information on the NASDAQ-100 Index^® provided in this document should be read together with the discussion under the heading “The NASDAQ-100 Index^®” beginning on page US-26 of underlying supplement no. 1190. Information contained in the Nasdaq website referenced above is not incorporated by reference in, and should not be considered a part of, this free writing prospectus.

We will agree to sell to UBS Financial Services Inc. and Lehman Brothers Inc. (together, the “Agents”), and the Agents will agree to purchase, all of the Notes at the price indicated on the cover of the pricing supplement, the document that will be filed pursuant to Rule 424(b) containing the final pricing terms of the Notes. UBS Financial Services Inc. may allow a concession not in excess of the underwriting discount to its affiliates.

We have agreed to indemnify the Agents against liabilities, including liabilities under the Securities Act of 1933, as amended, or to contribute to payments that the Agents may be required to make relating to these liabilities as described in the MTN prospectus supplement and the base prospectus. We have agreed that UBS Financial Services Inc. may sell all or a part of the Notes that it purchases from us to its affiliates at the price that will be indicated on the cover of the pricing supplement that will be available in connection with the sales of the Notes.

Subject to regulatory constraints, Lehman Brothers Inc. has agreed to use reasonable efforts to make a market in the Notes for so long as the Notes are outstanding.

We expect to deliver the Notes against payment on or about March 31, 2008, which is the fifth business day following the Trade Date. Under Rule 15c6-1 of the Exchange Act, trades in the secondary market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly, if any purchaser wishes to trade the Notes on the Trade Date, it will be required, by virtue of the fact that the Notes initially will settle on the fifth business day following the Trade Date, to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement.

We or our affiliate will enter into swap agreements or related hedge transactions with one of our other affiliates or unaffiliated counterparties in connection with the sale of the Notes, and the Agents and/or an affiliate may earn additional income as a result of payments pursuant to the swap or related hedge transactions.


Trade Date		March 25, 2008
Settlement Date		March 31, 2008
Final Valuation Date		September 25, 2009
Maturity Date		September 30, 2009