Enron Mail

Subject:Draft of Organizational Announcement
Date:Thu, 31 May 2001 04:31:00 -0700 (PDT)

Announcing the Formation of One Corporate Equity Investing Unit

To better develop and manage equity investment opportunities related to our
core businesses, Enron has formed one corporate equity investment unit. This
new unit, Enron Principal Investments, will combine the existing investment
units of ENA, EBS and Enron Investment Partners. The strategy of Enron
Principal Investments will be to work with the all the business units across
Enron to identify, execute, and manage equity investments, which leverage the
unique and proprietary knowledge of Enron. These investments may be in the
form of venture capital, LBO's, traditional private equity and distressed
debt positions.

Kevin Garland will serve as Managing Director, overseeing all activities of
Enron Principal Investments. Michael Miller and Gene Humphrey will both join
Enron Principal Investments as senior investment professionals in the group.
Additionally, many other legacy investment positions existing in Enron will
be transferred to Enron Principal Investments. Richard Lydecker will
continue to manage these legacy investments.

This new investment unit will report to Greg Whalley, in his capacity as an
Enron Policy Committee member. Please join me in congratulating and
supporting Kevin, Michael, Gene, Richard and the other members of this group
in this effort.

Jeff Skilling