TO: All Enron Employees

FROM: Mike McConnell

RE: Global Technology Organization Update

The purpose of this memo is to clarify and provide an update of some of the 
activities within the new Global Technology function.  A company-wide 
technology meeting is scheduled for September 27th at the Hyatt Regency for 
all technology employees (details to follow) to discuss our overall strategy, 
but I did not want any further delay in addressing some of these items now 
and in a corporate-wide communication.

Recognizing that the world is becoming increasingly digital and networked, 
Enron,s Office of the Chairman has determined that Information Technology has 
the potential to be a significant, offensive, commercial business expanding 
from its traditional support function.  To achieve the vision of a truly 
+wired, Enron, the Global Technology group has been established to position 
Enron as the leader in eCommerce by developing and executing a global 
eBusiness strategy to further leverage our leading position in the energy and 
technology businesses.  We will also more fully integrate Enron as one 
company by leveraging the benefits of network economies, knowledge management 
and the advantages of rapid, frictionless information flow across all 
businesses.  By consolidating formerly separate IT functions run by separate 
CIO,s, we hope to realize significant gains in information sharing and 
levering of technologies, products, ideas and intellectual capital.  While 
retaining accountability to individual business units, we will optimize the 
full spectrum of the technology group's capabilities through a more 
centralized organization.

We have already taken several steps to reach our goals as stated above.  A 
technology management committee was created which meets every Monday and 
includes every CIO.  In this meeting we discuss Enron,s overall corporate 
activities and ways to improve the use of IT within Enron.  This group will 
be expanding as the organization continues to grow.  We have also added two 
senior management players to the technology organization.  Jay Fitzgerald 
will be joining the group as Managing Director, Global eCommerce.  Also, 
David Pope has joined the group as a Vice President in the London office to 
add additional senior level commercial skills and to work on technology 
related transactions and eCommerce.  They are both members of the technology 
management committee.  With regard to the previous EI business units, Everett 
Plante continues to have responsibility and accountability as CIO.  The 
regional offices are a top priority with regard to improving IT 
infrastructure and developing a proactive technology strategy.  Over the next 
several months we will be refining the IT organizational structure to insure 
that we are positioned to meet the exciting technology and eCommerce 
opportunities at Enron.

As part of a larger EES energy management transaction, a strategic 
partnership with IBM is currently being negotiated and examined.   We are in 
active discussions with IBM to form an alliance to assist Enron in moving 
forward with our technology vision and to capitalize on IBM,s strength and 
expertise.  The purpose of this transaction is to increase our capabilities 
and move intellectual capital around within Enron to leverage our business 
needs and existing strengths. The scope of the transaction is still being 
developed and it will affect each organization in different ways. Technology 
is one of our key growth areas and we will continue to invest and develop our 
technology professionals. 

Two other initiatives are under development.  Enron is implementing the new 
mySAP.com procurement portal.  I believe that this will provide us with both 
a new eCommerce initiative and will provide a mechanism to reduce Enron,s 
procurement costs.  Also, we are in the process of adding commercial staff in 
the various regions to include a technology origination position to be a part 
of the commercial staff and examine technology opportunities.  The goal is to 
provide additional technology expertise and the ability to quickly review new 
or leveraged business opportunities to all areas of the world.

As we clarify our needs in the future, we will be looking at expanding the 
eCommerce group within the technology organization.  The group's activities 
will include building new businesses, acquisitions and investment 
opportunities that lever Enron,s capabilities on a global basis.  There are 
also other very exciting initiatives under development that will be discussed 
in the follow-up meeting.

I look forward to addressing the technology employees in the near future.   I 
am very excited about the expanding future of the technology group and look 
forward to the tremendous opportunities available to us.

Management Committee members
Philippe Bibi
Mohammad Fahim
Jay Fitzgerald
Tom Mathews
Mike McConnell
Mark Pickering
Everett Plant
David Pope
Jenny Rub