Stock Options Exercised on December 27 or 28, 2000

Dear Optionee:

According to our records, you exercised Enron stock options on either
December 27th or 28th. When your stock options were initially exercised and
processed, the income was treated as year 2001 income.

We wanted to let you know that the income associated with your exercise will
be reported as income in the year 2000. Therefore, your 2000 Form W-2 will
include these amounts as income.

Based on this, you will receive a revised confirmation of exercise from
PaineWebber. If you reached the maximum limit for Social Security taxes for
the year 2000, then the Social Security taxes that were withheld on your
December 27th or 28th exercise will be refunded to you on your January 12,
2001 Enron paycheck.

If you have any questions, please feel free to contact Monique Blacklock at
(713) 345-7885.