I'm sure that many of you are aware that there has been a great deal of 
activity lately related to Enron's evaluation of possible acquisitions.  John 
Goodpasture's group has kept a large number of ET&S people engaged in looking 
at a number of potential deals.  While these deal evaluation projects have 
become routine around here, we all must remember that these projects are 
extremely confidential.  Even after a potential seller has announced that it 
is up for sale, the fact that Enron is looking at a potential deal, as well 
as any of our internal analysis of the deal, remains strictly confidential.  

I realize that many of you have ongoing business relationships with employees 
of some of the companies that we have evaluated or may evaluate in the 
future.  If you find yourself in such a situation, and a business contact at 
the target company asks whether Enron is evaluating the contact's company or 
assets, the only appropriate response is that Enron personnel are not 
permitted to discuss potential acquisitions.  Please be aware that the 
confidentiality agreements that we typically sign as part of the acquisition 
evaluation process preclude any communication by Enron people with employees 
of the target company.  

If you have any questions or concerns regarding this requirement, please do 
not hesitate to give me a call.  Thank you for your assistance.  DF