Stan/Mike,  Per our meeting on Monday regarding EDS' CEO, Dick Brown, talking 
to Ken Lay or Joe Sutton, below are the bullet points to reflect our 
position.  Please let me know if you have any comments.   Thanks for your 
support.  Jenny


Message to EDS regarding insourcing

Enron views technology as a strategic focus, and technology staff as 
strategic resources.

We want to incent these strategic resources to minimize the risk of them 
leaving the organization and Enron,s compensation plans allow us to mitigate 
that risk (Enron has 5% attrition, technology industry 20%).  We also believe 
that many of these people want to be part of the Enron organization.

This doesn,t mean we don,t want to do business with EDS, but we do want to 
change the way we do business with EDS, which will position EDS to sell 
services that truly are &value add8 and not time and material.

EDS will continue to have a role at Enron:  GPG infrastructure, Azurix, 
Elektro and possibly EES (work with ATKearney).

And Enron, as a highly visible, &well-decorated8 company*, will continue to 
be a positive reference for EDS and it,s potential customers, including 
discussions of how we have outsourced and then insourced different technology 
functions and continue to maintain a positive relationship.



* Fortune,s most innovative company awards, 24th on Fortune,s best 100 
companies list, etc.