We want to update you on a new development related to our bankruptcy and our efforts to structure a new company.

Enron's sale agreement with Northwest Natural Gas to sell Portland General Electric will be terminated.  The termination is a mutual decision between our company and Northwest Natural and is subject to bankruptcy court approval.  Our bankruptcy added unforeseeable complications that prohibited the sale being completed as originally structured.

Once the sale agreement is terminated, we will plan to move forward with PGE as part of our existing energy asset platform while continuing to evaluate options related to PGE.

To read the press release, click on the following link:
http://www.enron.com/corp/pressroom/releases/2002/ene/24-051602ReleaseLtr.html