This has been reviewed by HR and Gene Humphrey.  Please respond with any 
comments.  It is intended to go out on Tuesday at noon.  I will have the 
reorg group meeting Tuesday morning.

KG



Announcing the Formation of One Corporate Equity Investing Unit

To better develop and manage equity investment opportunities related to our 
core businesses, Enron has formed one corporate equity investment unit.  This 
new unit, Enron Principal Investments, will combine the existing investment 
units of ENA, EBS and Enron Investment Partners.  Additionally, the Enron 
Wholesale Restructuring Group will also become part of Enron Principal 
Investments.  The strategy of Enron Principal Investments will be to work 
with the all the business units of Enron to identify, execute, and manage 
equity investments, which leverage the Enron's unique and proprietary 
knowledge.   These investments may be in the form of venture capital, LBO's, 
traditional private equity and distressed debt positions.   

Kevin Garland will serve as Managing Director of Enron Principal Investments, 
overseeing all of its activities.  Gene Humphrey, Michael Miller, Richard 
Lydecker, and their groups, will join Kevin and his group to form this new 
investments unit.

This new investment unit will report to Greg Whalley, in his capacity as an 
Enron Policy Committee member.  Please join me in congratulating and 
supporting Kevin, Gene, Michael, Richard and the other members of this group 
in this effort.

Jeff Skilling