Enron Mail

Subject:Enron Net Works
Date:Fri, 7 Apr 2000 10:46:00 -0700 (PDT)

It is becoming increasingly clear that the development of eCommerce will ha=
a significant and continuing impact on the conduct of business in a broad=
array of industries. Through EnronOnLine, Enron has quickly become a major=
catalyst for the transition to the web in the gas and electric industries. =
EnronOnLine has been an enormous success since its launch. Since launch, w=
have completed 67,043 transactions on line, with a total dollar value of ov=
$25 billion. EnronOnLine is now the largest eCommerce site in the world.

We believe that the competitive success of EnronOnLine is due to one very=
specific reason. In addition to providing a web-based platform for=20
transactions, Enron acts as principal to provide direct liquidity to the=20
site. We stand ready at all times, in any market conditions, to buy and se=
at the posted price. This converts a =01&bulletin board=018 (the more typi=
eCommerce concept) into a true market. There are very few, if any,=20
competitors that can provide this capability.

We are increasingly convinced that this competitive advantage can be=20
dramatically expanded to other products and other geographies. If we are=
correct, this could provide an enormous new opportunity for growth for Enro=

Accordingly, we are initiating a major new effort to capture this=20
opportunity. Effective today we are creating a new business, Enron Net=20
Works, to pursue new market development opportunities in eCommerce across a=
broad range of industries. It is likely that this business will ultimately=
be our fifth business segment, joining transmission & distribution,=20
wholesale, retail and broadband services.

Included in this business will be our entire IT and technology group along=
with significant talent and resources in market making and finance. =20
Initially, North America will provide primary direct support for staff=20
services and back office, however, over time we will be requesting support=
services from virtually all Enron units to ensure continued growth and=20
success. To facilitate the combining of commercial capabilities with these=
new eCommerce platforms, Enron Net Works will work closely with the merchan=
functions of North America, Europe, South America, CALME, Asia and Broadban=

Enron Net Works will be headed by Greg Whalley, Chief Executive Officer; Mi=
McConnell, Chief Operating Officer; and Jeff McMahon, Chief Commercial=20
Officer. These individuals will comprise the Office of the Chairman for=20
Enron Net Works and remain on the Executive Committee of Enron Corp. =20
Replacing Greg Whalley as President and Chief Operating Officer of Enron=20
North America is Dave Delainey, who will also join Enron=01,s Executive=20

Global Technology will remain intact but will now be a part of Enron Net=20
Works. It will maintain all of the same businesses and services as it did =
an Enron global function. Philippe Bibi will remain the Chief Technology=
Officer for all of Enron Corp. and continues to be responsible for the=20
development of worldwide technology standards and platforms.

EnronOnLine, headed by Louise Kitchen, will also remain intact and will now=
be a part of Enron Net Works. The success of EnronOnLine enables us to=20
utilize this site as a model as we explore other markets. In addition, the=
following individuals are included in Enron Net Works along with their=20
current eCommerce initiatives: Harry Arora, Public Financial Securities; Ja=
Fitzgerald, New Markets Identification; Bruce Garner, Metals; and Greg Pipe=
Pulp and Paper.

Over the next several weeks we will complete staffing and organizational=20
design and will provide full details on this exciting new business=20