All,

Here is what the press have to say about our Japanese office opening, the 
last sentence is of particular importance to the regulatory team.

Xi Xi



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02 November 2000
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Enron Broadband Services (EBS) has announced plans to enter Japan's telecoms 
market with a variety of broadband-related services scheduled to start within 
the next three years. 

The announcement came at the launch of its wholly-owned subsidiary in Tokyo, 
Enron Japan Corp., where Kenneth L. Lay, chairman and chief executive officer 
of U.S.-based energy giant Enron Corp., spelled out the company's plans for 
Japan. 

Enron is to offer its clients, including other service providers and 
corporates, a broadband fibre optic network - a backbone infrastructure for 
network-based video content distribution - and the leasing of bandwidth on 
high-capacity telecoms circuits, amongst other services, he said. The company 
plans to have its Japanese fiber-optic network in place within the next two 
or three years. 

&Japan is a large and technologically advanced market, and we believe the 
opportunities for our business here are tremendous,8 said Ken Rice, chairman 
and chief executive of Enron Broadband Services. &We look forward to 
developing mutually beneficial relationships with content providers and 
distribution partners in Japan. This will extend our global reach and provide 
our Japanese partners with the opportunity to give their customers the 
highest quality Internet experience.8

EBS recently announced an agreement with i2, a U.S. electronic software 
developer, to provide bandwidth capacity to meet its international networking 
needs, including linking i2's Dallas headquarters with its Tokyo location. In 
addition, EBS is developing a pooling point in Tokyo, which will facilitate 
the buying and selling of bandwidth between Japan and the U.S. 

The company also said it hoped to eventually supply Japan with the same 
video-on-demand service planned for the U.S., which it is developing with 
video rental store chain Blockbuster Inc. 

As a first step to competing in Japan, Enron must find a Japanese affiliate 
to obtain a Type 1 telecoms carrier license.