Catalytica

Guys, I suggest that we write it down in order to ensure that we don't get it
back as other groups use up the Raptor capacity. We have sufficient market
data points to do this. Please advise.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 12/12/2000
12:30 PM ---------------------------

Richard Lydecker@ENRON
12/12/2000 10:50 AM
To: Thomas E White/HOU/EES@EES, David W Delainey/HOU/ECT@ECT, Brian
Redmond/HOU/ECT@ECT
cc: Wes Colwell/HOU/ECT@ECT, Andrea V Reed/HOU/ECT@ECT, Barton
Clark/HOU/ECT@ECT
Subject: Catalytica

Catalytica filed a prospectus supplement with the SEC yesterday, December
11th which disclosed that because of recent market conditions the Board had
decided not to proceed with the planned stock split prior to the spin-off.
The supplement indicates an expected initial trading range "at a price
between $20 and no less than $10 per share". Based upon these new
Catalytica's estimates, the value of the Enron investment would be $13.5 to
$27.0 million. Enron's Catalytica investment is part of the raptor structure
so that the impact is on raptor capacity rather than earnings. The
investment has also been monetized in a FAS 125 structure for cash flow
purposes.