Position Report

Here is a draft position report we talked about previously. We had delayed
distribution because we were waiting for some important input on the Sithe
contract.

The report attempts to view various assets and positions entirely on an
economic basis, regardless of accounting treatment. Currently this is not
exhaustive since the universe of economic exposure is significant but if
useful we will spread the net.

Here are the highlights:

Enron stock option plans:

ENE is low and volatility is around 45 - 50%. We are working with Global
Finance and Accounting on a hedging proposal.

J Block CRTA:

We have not factored in the impact of yesterday's House of Lords ruling on
this contract.

Korea:

USD/KRW has gone from 1205 to 1368. Economic outlook is bleak. Enron's
currency translation account (CTA) has gone from $19m Dr to $40m Dr since
January.

Brazil:

Argentina's woes are not helping. USD/BRL is currently 2.17 from 1.95 in
January. CTA has suffered $173m in losses and now stands at $663m Dr.

Thoughts and comments welcome.

Rgds
DP