Equity investment by ENA employee

This will summarize our conversation this morning in which you asked if there
was a problem with your purchase of an equity investment (through a private
placement) in an internet/communications company. My response was that Enron
prohibits the trading by employees of (i) any security on the Restricted List
maintained by the Compliance Group, (ii) any security, instrument or
commodity within that employees area of responsibility and (iii) any energy
commodity. I suggested that you contact Donna Lowry to confirm both my
understanding and that the security in question is not on teh Restricted List.

While I did not mention it on the phone, I should point out that it would be
unwise to take a position in a competitor of Enron's that would (or might in
the future) give you control or the appearance of control or influence over
the management of that competitor.