Re: Catalytica Write-down

Thanks for the heads up.

From: David Maxwell 12/11/2000 11:05 AM

To: Sally Beck/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, Andrea V
Reed/HOU/ECT@ECT, Brian Redmond/HOU/ECT@ECT, Jeff Donahue/HOU/ECT@ECT,
L'Sheryl Hudson/HOU/ECT@ECT, Gordon McKillop/NA/Enron@ENRON
cc: Michael S Galvan/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, David Port/Market
Risk/Corp/Enron@ENRON
Subject: Catalytica Write-down

On the 12/11 MPR to be issued on 12/12, we will be taking a $56 million loss
on Catalytica Energy Systems. This asset will begin trading on the open
market either Friday, 12/15 or Monday, 12/18 under the ticker CESIV. The
potential trading range of $10 - $20 per share is disclosed in the company's
S-1. This asset is in Raptor I and therefore this write-down will exhaust
$56 M of the remaining Raptor I capacity.

Please call me at x3-6983 with questions.