BUSINESS HIGHLIGHTS

Enron Industrial Markets 
The Transaction Development group (TD) is responsible for corporate 
development, transaction execution and portfolio management activities within 
EIM.  TD is responsible for asset and corporate acquisitions to support EIM,s 
efforts in the Forest Products and Steel industries.  TD works with EIM,s 
Forest Products and Steel Origination groups to structure and execute complex 
transactions for EIM,s customers.  TD also manages EIM,s equity investments, 
such as EIM,s ownership position in Papier Masson, Ltee, a paper mill in 
Quebec, Canada.

TD is comprised of approximately 20 professionals with a wide range of 
backgrounds including investment banking, commercial banking, management 
consulting, law, project development, accounting and engineering.  In 
addition, the majority of the analysts and associates within EIM work in TD 
since it provides a strong base of deal experience for junior members of our 
organization.  

Enron Freight Markets
Enron Freight Markets has continued to expand the transportation services 
offered to its customers and completed several flatbed truck moves outbound 
from Georgia this week.  There was a shortage of flatbed equipment supply in 
this market and EFM was able to obtain more than three times the normal 
margin on each move.

       
IN THE NEWS

"Enron's bilateral internet trading platform, EnronOnline, was launched in 
November 1999 and is the largest e-commerce site on the planet based on the 
value of its transactions.  As EPRM went to press, it had average daily 
trading volume of $3.5 billion, accounting for nearly 50% of the company's 
revenues from wholesale marketing activities." -- Energy Power Risk 
Management, May 2001


WELCOME
New Hires
EIM   - Cheryl Lindeman
ENA  - Chris Bystriansky, Paula Craft, Eugene Lee, Bhalachandra Mehendale, 
Sarah Wooddy

Transfers (to or within)
ENA - Grace Taylor, Steven Irvin, Dina Snow


NUGGETS & NOTES

Enron is hosting the Chicago Energy Risk Management Seminar at The Drake 
Hotel in Chicago on June 14, 2001.  Topics include: Power Outlook, Natural 
Gas Outlook, Hedging Strategies, Weather Risk Management and Pulp and Paper 
Risk Management. The RSVP deadline is June 8th so please contact Laura Pena 
as soon as possible at x 3-5376.  This is a great event for "new" as well as 
established customers.  There will be a cocktail reception immediately after 
the presentations.  Enron will also be hosting seminars in Atlanta, Houston, 
Denver and San Francisco.  Dates to be announced soon.

Travel tip of the week:
Flights reserved through Travel Agency in the Park provide you with $150,000 
of flight insurance at no additional charge.

EnronOnline Statistics
Below are the latest figures for EnronOnline as of May 29, 2001.

* Total Life to Date Transactions >  1,015,000
* Life to Date Notional Value of Transactions > $610 billion


NEWS FROM THE GLOBAL FLASH

Enron arranges first gas pipeline import into Italy
Enron has continued its pioneering activities in the Continental gas market 
by arranging the first gas import into Italy.  The Italian team worked with 
the Continental Gas desk to arrange this strategically important agreement 
with Blugas SpA., the wholesale gas company formed by the municipalities of 
Cremona, Lodi, Mantova and Pavia in north-eastern Italy.  Enron has sourced 
100,000 cubic metres per day of natural gas from northern Europe to transport 
to Italy, transiting it through Germany and Switzerland, despite fierce 
resistance from Ruhrgas and TransitGas respectively.  

Aside from isolated LNG imports by incumbent monopolies this is the first 
time that any company has managed to import natural gas by pipeline into 
Italy since the Italian gas sector was officially liberalised in August 2000. 
The gas, which started flowing at 06.00 on Thursday 17th May 2001, will be 
used to meet the needs of two thirds of Blugas' residential customers within 
the four municipalities. The current contract lasts for five months.

Congratulations to Fabio Greco, Carsten Haack, Didier Magne, Michael Schuh, 
Marco Lantieri and Daniela Uguccioni.

Enron in the Middle East 
Enron has relinquished its stake in Dolphin Energy, the joint venture company 
formed to develop gas reserves in Qatar.
Enron has agreed to transfer its 24.5 per cent stake in the project to the 
United Arab Emirates Offset Group (UOG), the majority shareholder. The 
agreement allows Enron to deploy capital elsewhere and gives UOG the 
opportunity to seek new partners before the project moves into its next phase.

Development of the Emden/Oude gas hub moves ahead fast
An important milestone in the evolution of the new gas trading hub on the 
Dutch-German
border was reached last week. Last Friday some of the major European gas 
players held a meeting to officially establish the Emden/Oude gas hub. 
Although Enron had already initiated the development of the Emden/Oude hub by 
making a market through EnronOnline as early as December 2000, the goal of 
this meeting was to set up a working group similar to the Zeebrugge focus 
group who can  work on setting a legal framework for the Emden/Oude hub. 

Enron was elected as the only new market entrant in this group, reflecting 
the high level of respect industry peers have for Enron as a major player in 
the Continental gas market -- even from incumbents!


LEGAL STUFF
The information contained in this newsletter is confidential and proprietary 
to Enron Corp. and its subsidiaries.  It is intended for internal use only 
and should not be disclosed.