As you are aware, Enron utilizes temporary staffing services to satisfy 
staffing requirements throughout the company.  For the past several months, a 
project team, representing Enron,s temporary staffing users, have researched 
and evaluated alternative Managed Services programs to determine which source 
would best meet our current and future needs in terms of quality, performance 
and cost containment objectives.  The Business Unit Implementation Project 
Team members are: 

Laurie Koenig, Operations Management, EES
Carolyn Vigne, Administration, EE&CC
Linda Martin, Accounting & Accounts Payable, Corporate
Beverly Stephens, Administration, ENA
Norma Hasenjager, Human Resources, ET&S
Peggy McCurley, Administration, Networks
Jane Ellen Weaver, Enron Broadband Services
Paulette Obrecht, Legal, Corporate
George Weber, GSS

In addition, Eric Merten (EBS), Kathy Cook (EE&CC), Carolyn Gilley (ENA), 
Larry Dallman (Corp/AP), and Diane Eckels (GSS) were active members of the 
Selection Project Team.

As a result of the team,s efforts, we are pleased to announce the beginning 
of a strategic alliance with CORESTAFF,s Managed Services Group.  This group 
will function as a vendor-neutral management entity overseeing all staffing 
vendors in the program scope. They will also provide a web based online 
technology tool that will enhance the ordering and reporting capabilities.  
The goal of our alliance with CORESTAFF is to make obtaining a temporary 
worker with the right skills and experience easier while protecting the best 
interests of the organization. 

We plan to implement Phase I of this improvement effective January 2, 2001.  
This Phase I of the implementation will encompass administrative/clerical 
temporary workers at the Houston locations only. If you currently have 
administrative/clerical temporary workers in your department, the enhancement 
will not affect their position. In an effort to preserve relationships, all 
current staffing vendors will be invited to participate in this enhanced 
program.  CORESTAFF shares our commitment to minimize any disruptions in 
service during this transition. 
 
We expect to incorporate the administrative/clerical workers in Omaha, 
Seattle and Portland in Phase II, which is scheduled for February, 2001.  The 
scope and timing of any additional phases will be determined after these two 
phases have been completed.

Realizing the impact that the temporary workforce has in business today, we 
selected CORESTAFF,s Managed Services Group based on their exceptional 
management team, commitment to quality service, and creative solutions to our 
staffing needs.  The relationship promises to offer Enron a cost effective 
and simple means for obtaining temporary employees.

In the coming weeks, Enron and CORESTAFF,s Managed Services Group will be 
communicating to Enron,s administrative/clerical temporary staffing vendors 
about the new process.  

There are many benefits to this new Managed Services program, which are 
outlined on the attached page.  More details on how to utilize CORESTAFF,s 
Managed Services program will be announced soon and meetings will be 
scheduled to demonstrate the reporting system and to meet the Managed 
Services team.

What is Managed Services?

CORESTAFF,s Managed Services program includes:

? Vendor-neutral management model
? Equal distribution of staffing orders to all staffing partners
? Web-based application with online ordering, data capture and customized 
reporting
? Benchmarking and performance measurement for continuous improvement
? Methodologies for accurate skill-matching and fulfillment efficiencies 

Key Benefits

? More vendors working on each order from the outset ) faster access to 
available talent pools
? Standardized mark-ups and fees to manage costs more effectively
? Online access to requisition status for users 
? Robust databases offering managers enhanced tracking and reporting of 
temporary usage and expenditures
? Standard and customized reporting capabilities -- online
? Tenured, experienced Managed Services team on-site to assist users in 
accessing web site, identifying usage trends, preparing specialized reports, 
etc.  

Corestaff/Managed Services/Staffing

Joseph Marsh ) Lead / Operations (josephm@corestaff.com; 713-438-1400)
Amy Binney, Sharon B. Sellers ) Operations
Cherri Carbonara ) Marketing / Communications
Cynthia Duhon )Staffing Partner management