-----Original Message-----
From: 	Thode, Eric  
Sent:	Friday, July 13, 2001 8:19 AM
To:	Cash, Michelle
Subject:	FW: Changes at EBS

Here is teh e-mail I told you about...


	EBS Office of the Chairman Sent by: EBS Announcements 07/12/01 11:10 AM 	   To: EBS Worldwide  cc:   Subject: Changes at EBS	



To:		All EBS Employees Worldwide

From:		EBS Office of the Chairman

Subject:	Changes at EBS

Date:		July 12, 2001

Since its inception, EBS has seen dramatic changes in the communications industry.  The growth and opportunity anticipated in this industry two years ago has significantly changed in the past nine months.  While Enron remains committed to extending our business model into telecom, we need to quickly respond to these changes in the market to achieve our objectives.

The Enron Corp. earnings release issued today states that we will be adjusting the EBS business to better match the revenue opportunities.  This means that we must reduce our overall cost structure and better focus our commercial efforts.

To achieve this, we will take the following steps:

EBS will become a business unit within Enron Wholesale Services.  This will involve the integration of all EBS commercial support functions into those units within EWS, and will enable us to better manage the resources and costs of the support functions.

All EBS commercial functions will be consolidated into the following units:

Europe - headed by Matthew Scrimshaw
Asia - headed by Anthony Duenner
Americas - headed by Rich DiMichele
We will consolidate the North American EBS origination teams into one group, led by Stewart Seeligson.  
North American trading and risk management will continue to report to Paul Racicot.  Paul will also oversee the global portfolio from a risk management perspective.

Global Network Operations will continue to report to the EBS Office of the Chairman.

All EBS asset positions will continue to be reviewed and repositioned to most effectively meet the future needs of EBS.

The Portland office will be closed by October 1.  Portland employees will be advised by their supervisors of their relocation or redeployment status by July 27.

These changes will affect many EBS employees through relocation, redeployment, severance or movement to another part of Enron.  We have not yet worked out all of the details of these changes, but your supervisor will apprise you of how this affects you as soon as possible, and no later than July 27.