To:  Participants in the Enron Corp. Savings Plan
From:  Enron Benefits
Re:  Changes to the Savings Plan

Yesterday, the Enron Board of Directors met.  A press release outlining the Board's actions states:

" ... Enron believes that the total amount of the liquidated, undisputed claims against Enron and its subsidiaries exceeds and will exceed the current fair market value of the consolidated operations and assets of Enron and its subsidiaries.  Consequently, Enron believes that its existing equity does not and will not have value and that any Chapter 11 plan of reorganization confirmed by the Bankruptcy Court will not provide Enron's existing equity with any interest in the reorganized debtor."

Essentially, this means that any holdings in Enron stock will carry no value as the company reorganizes.  Consequently, the Board also decided that employees participating in the Enron Corp. Savings Plan should no longer be able to invest contributions into Enron stock (Enron Corp. Stock Fund.)

IMPORTANT CHANGES TO THE ENRON CORP. SAVINGS PLAN

Effective with the February 15, 2002 paycheck, employees who participate in the Enron Corp. Savings Plan will no longer be able to invest contributions directly into Enron stock.

If your investment election currently includes Enron stock, we strongly encourage you to review the other investment options available and revise your investment elections accordingly.  If you do not actively change your investment elections, any portion of your contribution still allocated to Enron stock will be redirected to Fidelity Freedom 2000, a money market fund, where your investment will remain until you take further action.

Within the Enron Corp. Savings Plan, there are a wide range of investment options to meet your individual investment goals and retirement needs.  Information on other available investment funds, including past performance, is available through the Savings Plan website.  You may elect to contribute to any of these funds in one percent increments.

You may change your investment choices at any time.  Changes are enacted the following business day.

To review and make changes to your investment elections online, visit  <http://resources.hewitt.com/enron>.  To change investment elections via the website, access the "Change Future Investments" option from your main account screen.  To review and make changes to your investment elections by phone, call the Benefits Service Center at 800-332-7979, option 3.  Follow the instructions to access your account.  Then, follow voice prompts to "Investment Options."  From there, select "Investment Elections" to make necessary changes.

TRANSFERRING FUNDS WITHIN YOUR SAVINGS PLAN ACCOUNT

This change in investment elections will not affect any existing balances in the Enron Corp. Stock Fund - it only effects future contributions to that fund.  Until March 14, 2002, you will still be able to transfer funds from other investments within the Savings Plan into the Enron Corp. Stock Fund.  However, as set forth in the press release quoted above, the board believes that holdings in Enron stock will carry no value as the company reorganizes.  Consequently, we strongly recommend that employees participating in the Enron Corp. Savings Plan no longer invest in Enron stock.  Effective March 15, 2002, transfers into the Enron Corp. Stock Fund will no longer be allowed from other investments within the Savings Plan.

If you participated in the Employee Stock Ownership Plan (ESOP), you may still elect to roll your ESOP shares directly into Enron stock within the Savings Plan.

At any time, you may transfer funds, including company-matching contributions, out of the Enron Corp. Stock Fund into any of the other investment options available within the Savings Plan.  To transfer funds online, visit <http://resources.hewitt.com/enron> and access the "Transfer Money" option from your main account screen.  To transfer funds by phone, listen for the prompts from the "Investment Options" to either "Fund Reallocation" or "Fund Transfer" to change your existing account balances.

As always, we encourage you to review your investment elections to ensure they are consistent with your investment goals.

To review the entire press release outlining the Board's actions, click on the following link:  http://www.enron.com/corp/pressroom/releases/2002/ene/021202releaseltr.html