RE: Draft of Organizational Announcement

this announcement has not gone out for that reason. we have had a number of
discussions about it since this was drafted and there seems to be some
concern about it being inside one of the business units since it is supposed
to handle investments across the company and would be bringing the EBS assets
with it. your suggestion that it might report to andy has some merit, but
there may be other options. what would you think if we established an
investment committee consisting of me, rice, and delainey and made garland
responsible to that group. we would have all of the relevent business units
represented and the p&l would ultimately be allocated to the one in which the
investment originated. do you think that would work? it might go a long way
to satisfying all constituents.

From: Mark Frevert/ENRON@enronXgate on 06/06/2001 03:17 PM
To: Greg Whalley/HOU/ECT@ECT
cc:
Subject: RE: Draft of Organizational Announcement

I Shouldn't Kevin report into the OTC for wholesale as we discussed? Mark
-----Original Message-----
From: Whalley, Greg
Sent: 04 June 2001 12:21
To: Frevert, Mark
Subject: FW: Draft of Organizational Announcement

---------------------- Forwarded by Greg Whalley/HOU/ECT on 06/04/2001 12:19
PM ---------------------------
From: Kevin Garland/ENRON@enronXgate on 06/03/2001 11:08 PM
To: Greg Whalley/HOU/ECT@ECT
cc: Liz M Taylor/HOU/ECT@ECT
Subject: FW: Draft of Organizational Announcement

This has been reviewed by HR and Gene Humphrey. Please respond with any
comments. It is intended to go out on Tuesday at noon. I will have the
reorg group meeting Tuesday morning.

KG

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. Additionally, the Enron
Wholesale Restructuring Group will also become part of Enron Principal
Investments. The strategy of Enron Principal Investments will be to work
with the all the business units of Enron to identify, execute, and manage
equity investments, which leverage the Enron's unique and proprietary
knowledge. 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 of Enron Principal Investments,
overseeing all of its activities. Gene Humphrey, Michael Miller, Richard
Lydecker, and their groups, will join Kevin and his group to form this new
investments unit.

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, Gene, Michael, Richard and the other members of this group
in this effort.

Jeff Skilling