Enron Mail

Subject:Organizational changes
Date:Wed, 13 Jun 2001 17:49:12 -0700 (PDT)

We are pleased to announce the following organizational changes:

Enron Global Assets and Services

In order to increase senior management focus on our international businesse=
s, we are creating a new business unit, Enron Global Assets and Services (E=
GAS). EGAS will be led by Kevin Hannon, Chief Executive Officer, and Jim H=
ughes, Chief Operating Officer. Kevin will report to the Enron Corp. Offic=
e of the Chairman. With the exception of the Wessex Water Company (which w=
ill remain in the Enron Transportation Services organization) and Enron Ind=
ia (discussed below), EGAS will include all of the assets and activities of=
the former Enron Global Assets group and the Azurix organization. EGAS wi=
ll include Enron's assets and merchant activities in South America. In ord=
er to ensure continuity in the management of our South American merchant bu=
siness, John Lavorato will remain responsible for those merchant activities=
. John will report to Kevin Hannon with respect to the South American merc=
hant business, and will continue to report to the Enron Wholesale Services =
Office of the Chairman for all other activities in his role as Chief Execut=
ive Officer of Enron Americas.

Enron India

Enron's significant interests in India are commanding increased attention f=
rom Enron's senior management. We are pleased to announce that Rebecca McD=
onald will focus exclusively on Enron's business in India, as Chief Executi=
ve Officer of Enron India, reporting to the Enron Corp. Office of the Chair=

Enron Broadband Services

With Kevin's departure from Enron Broadband Services (EBS), we are also mak=
ing a number of changes in the EBS organization. Jim Fallon will now be Pr=
esident and Chief Operating Officer of EBS. Paul Racicot, Marcello Romano =
and Fred Cohagan will maintain their EBS risk management activities within =
their respective regions. Dave Cox will continue as Chief Commercial Offic=
er of EBS and will also join Ken Rice and Jim Fallon in the EBS Office of t=
he Chairman. Finally, Rick Fehl will continue as Vice President of Network=
Engineering and Chief Network Officer but will now report to the EBS Offic=
e of the Chairman.

Enron Principal Investments

In order to better develop and manage equity investment opportunities relat=
ed to Enron's core businesses, we are combining the existing investment gro=
ups in ENA, EBS, Enron Investment Partners and the Enron Special Asset Grou=
p into a single unit, Enron Principal Investments. Enron Principal Investm=
ents will work with all Enron business units to identify, execute, and mana=
ge equity investments that leverage Enron's unique and proprietary knowledg=
e. These investments may be in the form of venture capital, leveraged buy-=
outs, traditional private equity and distressed debt positions. This new b=
usiness unit will be headed by Kevin Garland, Managing Director, and will r=
eport to an investment committee consisting of Dave Delainey, Ken Rice, and=
Greg Whalley.=20

Enron Corporate Development

In order to improve coordination of Enron's corporate development activitie=
s, we are consolidating these activities under Andy Fastow, Executive Vice =
President and Chief Financial Officer. Jeff Donahue, Managing Director of =
Corporate Development for EBS will now head Corporate Development across En=
ron. Corporate Development leaders in the business units will have a dual =
reporting relationship to their business units and to Jeff.

One of Enron's most compelling challenges is the sale of certain assets or =
businesses that are no longer core operations. Mark Metts, Executive Vice =
President of Enron Corp., will head up a new Special Projects group to spec=
ifically focus on the completion of some of these more challenging transact=
ions. =20

Please join us in congratulating all of these individuals on their new resp=