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
Mid-marketing
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
Maffett.

Origination
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.

Trading
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.

Shipping
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.

Weather
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.

Coal
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
Australia.

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
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.