Liz,

Below is a memo to be distributed to Enron worldwide from the Office of the Chairman of Enron Corp.  Please ask Greg to review and approve.  After his approval, would you please make arrangements for its distribution.

Thanks,
KG

																				


Enron Principal Investments (EPI), which was formed in the 2nd quarter, has completed its integration and the development of its new strategy.  This group will be responsible for identifying, closing, managing and exiting all non-E&P equity investments for Enron worldwide.  Kevin Garland will lead EPI, which includes Barbara Paige, Andrew Marsden, Kevin Kuykendall, Steven Sheldon, Michele Nezi Marvin and Mark Gandy.  Additionally, Dick Lydecker and the Special Asset Group will continue to report to Kevin.

EPI will pursue investments related to Enron's core businesses, where Enron has a unique insight into the market, company or technology.  Initially, this will be geographically focused in North America and Europe.  This group will rely heavily on the support and cooperation of the core business units to provide information and market insight.  To further encourage the business units to cooperate with this effort, EPI will provide the business units with a 20% carried interest on all profits from investments made related to that unit.  

EPI may make investments in the form of venture capital, leverage buyouts, growth equity, or private equity in public companies.  The group will not make investments in seed stage companies, other funds, subsidiaries of larger corporations, or project equity.

Please join me in supporting the efforts of Enron Principal Investments.