Enron Mail

Subject:EGM Organization Update & Announcement
Date:Tue, 15 May 2001 15:52:00 -0700 (PDT)

The first quarter of 2001 was a record quarter for the performance of the
businesses under the Enron Global Markets group. We posted a gross margin
number of $100 million for the first quarter. This represents a 38%
increase in gross margin after a very successful Q1 of 2000. When combined
with outstanding results posted in December of 2000, EGM has contributed
over $187 million to the Wholesale group in the last 4 months. This was
due to tremendous contributions from each business group.

In order to keep the momentum going and to facilitate more growth, the
following changes and additions have been made within the organization.

Crude and Products group
Bill Berkeland has joined the group and is responsible for creating a
focused mid-marketing function specifically within this group. Fred
Lagrasta is responsible for mid-marketing for Enron Americas and still
maintains some responsibility for various contacts and deal flow as well.
The purpose of this group is to be very focused in the development of crude
and product specific products and services. This group reports to Randy

In order to manage the increased origination opportunities around the
world, the Origination group has been changed in order to insure that the
proper focus is placed on these opportunities and to manage its wide scope.
Doug Friedman will lead our NGL and Petchem origination efforts reporting
to John Nowlan. Joining Doug will be Rick Cantrell recently hired from
Union Carbide. The global crude and products origination group has added
Randy O'Conner from Red Meteor, who has extensive experience in these
markets. Both Randy and Doug Leach's growing fuels origination group will
report to Randy Maffett.

Lee Jackson will assume the role of U.S. NGL's lead financial trader,
supported by Chad South. The petchem and plastic trading businesses have
been reorganized under Stuart Bland. Alan Engberg will be responsible for
plastics trading in the Americas.

Scott Moncrieff will assume responsibility of our global shipping network
related to crude and products. Scott will be charged with expanding all
aspects of the shipping portfolio taking advantage of our growing presence
in these markets and the successes we have had marketing shipping on line.

The weather group under Mark Tawney's direction is expanding its efforts
around the world. Europe will have an expanded focus and the London office
will focus on new opportunities in Europe. Paul Murray has joined Enron
from Castlebridge Partners and will be moving to London to develop and
expand the continental opportunities. Ross McIntyre, currently based in
London, will report to Paul. Bill Windle has joined the weather group and
has responsibility for origination activities for North America. Bill's
most recent assignment has been in the EBS organization. The Oslo weather
office managed by Thor Lien will have responsibility for Scandinavia
weather activities. In addition, employees are being added in the
Australia and Japan regions. We are now making markets in 32 cities around
the world on EnronOnline.

Mark Schroeder has joined the coal group and is responsible for origination
activities with generators in the U.S. Mark's most recent assignment was
as the head of all regulatory activities for Enron Europe, Japan and

Enron Japan
The momentum of power deregulation process has slowed in Japan. The
decision has been made to scale back the wholesale power activities. Joe
Hirl, President and CEO of Enron Japan, will now report into the EGM
organization. Joe will maintain his direct responsibility of the office
and will be increasing his focus on the business lines within EGM. All of
these products have high growth potential in both the near and long-term
and he will coordinate and help implement with all the business lines and
their activities.

LNG continues to expand with the vision to increase the number of
transactions and create a portfolio of assets and contractual access around
the world. Jonathan Whitehead has joined the LNG group and has
responsibility for all trading and shipping activities.

Neal Gerstandt, previously an independent energy consultant, Jared Kaiser,
from Enron Americas - East Gas Desk, and Kurt Lindahl, from Enron Global
Assets, have also joined the LNG group with responsibilities in the area of
origination in the Western Region.

Enron Freight Markets
EFM has concluded over 2,000 transactions in its first two months. Chris
Kravas continues to focus on building the spot trading and mid-market
capabilities that will enable it to be the dominant player in its market,
and has hired four new traders in the last two weeks. Kellie Metcalf, from
EBS, has joined Shawn Cumberland's origination effort, and Deirdre
McCaffrey, from Gas Structuring and Mid-Market, has joined Matt Arnold's
forward trading group focusing on diesel products.

Global Risk Markets
David Hoog joined Enron from Ace Insurance in December 2000 and has quickly
built a team of people specialized in trading unit contingent power price
call options, a hybrid insurance derivative product. Drawing on Ace and
Enron resources, this team is based in New York and includes Alex
Tartakovski and Larry Marcus from Ace, as well as Joana Bekerman and Tony
Chang who recently moved to New York from Houston. Their first transaction
closed just 3 months after startup.

Brad Blesie will be moving to London in June to establish a base of
operation for GRM and expand our insurance derivative activities into the
European market place. Among the opportunities he is currently exploring
are contingent call options applied to shipping and charter rates, trading
insolvent insurance claims, and combining North Sea oil and gas VPP risk
with decommissioning insurance.

In April this year, EGM established a hedge fund origination effort in New
York reporting to Per Sekse and led by Russell Dyk who recently moved to
New York from LNG in Houston. Russell is responsible for expanding our
commodity trading relationship with hedge funds to include crude oil,
products, liquids and other commodities traded by EGM. Joining Russell in
this effort is Stephen Plauche, who comes to us from Enron Americas' power
trading desk.

Financial Trading
Elsa Piekielniak has assumed responsibility for Enron's developing
agriculture business. Billy Lemmons has changed groups and now runs the
Analyst and Associate program for Enron Corp.

Please congratulate everyone on their new assignment and we look forward to
the continued growth in all the EGM businesses.