In the past few months, Enron has received numerous requests from other companies to share some of the processes and systems that we have developed within HR.  Also, several new businesses have been created recently by consulting companies to pursue what some financial analysts believe is a huge untapped market in aggregating HR services.  Recently, we completed an internal review to consider what role Enron could play in this arena and have decided to explore some very specific external opportunities.  Due to the time commitment required to pursue these opportunities, we are assigning dedicated resources to this effort.  Effective immediately, the HR community will have three major areas of focus that will be working together in order to optimize HR transformation and commercialization.  Taking the lead roles will be myself, Mary Joyce and David Oxley (see below and attached chart).

?	I will lead this new effort in addition to continuing to lead those areas of HR that are our prime candidates for commercial opportunities.  Reporting to me on this commercialization effort will be:  Brad Coleman with the overall lead; Andrea Yowman who will focus on software applications such as PEP, Expertfinder and Global Compensation; Sarah Davis who will focus on Worklife; Elyse Kalmans who will focus on Community Relations; Cynthia Barrow who will focus on Benefits and Wellness; and Yevgeny Frolov and Dan Brown who will focus on E-learning and Talent Management.  I will continue to report to Steve Kean.

?	David Oxley will take the overall lead for HR across all business units focusing on continuing to increase the value HR brings internally to Enron.  The networked recruiting, Organization Development and Training and Business Unit Compensation consulting functions, the Global PEP team, as well as the generalist consulting responsibilities for all Corp. groups, will report directly to David. The HR leads for EWS, EES, EBS, ETS and EGAS will report jointly to their business unit OTC's and to David from a functional HR perspective. In this regard David will now report to Steve Kean.

?	Mary Joyce will add Global Information Management, Corporate Compensation services and Reporting/ Analysis, to her current Executive Compensation responsibilities.  Kathy Schultea, Felecia Acevedo, Cindy Ward and Suzanne Brown will report into Mary's organization. Mary will continue to report to Steve Kean.

?	With Drew Lynch's promotion to COO Metals and David's increased responsibilities, Robert Jones will take the HR lead for EWS Americas. Robert will report to the EWS OTC. Jon Chapman has been appointed head of HR for EEL, based in London, and will report to the EEL OTC. Both Robert and Jon will report to David from a functional HR perspective.

Additional realignment of resources will enable our team to further improve daily employee services, partner with Business Unit initiatives and maximize opportunities for commercialization.  These modifications are as follows:  

?	Scott Gilchrist will lead HR for the newly formed EGAS.  As such he will focus his attention on the asset positions in South America, Latin and Central America, the Middle East and Asia.  The European assets will continue to be a part of EEL.  Scott will also work closely with Rebecca McDonald and Sandip Mallick in relation to our assets in India.  Scott will report to the EGAS OTC, Rebecca McDonald and David as above.

?	Michelle Cash has agreed to take the lead of the Corporate OLER function for an interim period to determine how it should operate and be organized.  She will report to me for this particular function, but of course will remain primarily a part of the EWS legal function reporting to Mark Haedicke.  

?	Sheila Walton will lead the HR Generalist activities for all Corp functions.  Jo Ann Hill, and all of the corporate generalist functions currently under Jo Ann, will report to Sheila Walton.  Sheila will continue to report to David.

?	Sarah Davis will add the Click at Home program to her current responsibilities, and will continue to report to me.