Enron Principal Investments Developments

Three headed monster, (Dave, Ken and Greg)

For the next 30-45 days, I will be dealing with many integration, logistical
and new strategy issues. During that time, I will provide you with a weekly
update email as to our activities. Once I have our new strategy mostly
baked, I will schedule a meeting to get your collective views and feedback.
I expect that will be at the end of July. After that, I hope to have regular
monthly meetings with you

Meanwhile, here is what is happening:

? Personnel - Top priority was to immediately address personnel issues. My
target is to reduce the 54 people associated with this effort to an ideal
structure of 28. I concluded a week long interview and review process to
select VP's/Directors/Managers. The result was the following:
New Group
MD - Gene Humphrey will remain during a transition period (3 months) and
will then retire (this was consistent with his own goals).
VP - Patrick Hickey (EBS)
Barbara Paige (EIP)
Dick Lydecker (Special Assets - his entire group (10) remains in tact)
Jempy Neyman (Special Assets)
Andrew Marsden (EBS - London)
Director Steven Sheldon (EBS)
Kevin Kuykendall (EWS)
John Godbold (EIP)
John Enerson (Special Assets)
Manager Kyle Kettler (EWS)
Michel Nezi Marvin (EBS)
Mark Gandy (EBS)
Patrick Johnson (Special Assets)
Mark Meier (Special Assets)

Redeployed
VP - Jon Thomsen (EBS)
Michael Miller (EWS)
Director Charlie Vetters (EWS)
Manager Mic Johns (EIP - Washington D.C.)
Jennifer Adams (EWS)
Christain Hackett (EBS - London)
Andreas Kraemer (EWS)
Fabricio Soares (EIP)

Next we are evaluating the Analyst/Associates/Admins. This will be
completed by June 19. This will be decreased from 28 people to 15 people.

? Integration - A detailed integration plan is underway (more in the coming
weeks). This will begin with a full day offsite on June 20th. You are
welcome to attend.

? New Strategy - We are working towards a new strategy and charter.

? Funding sources - Patrick Hickey is working with Shirley Hudler, Michael
Kopper and others to restructure part of JEDI II, in order to optomize that
vehicle for our investment needs. This will hopefully take shape in the next
30 days.

Thanks,

KG