It is amazing and yet not surprising how much Enron has accomplished in the 
first six months of this year. You continue to make it happen.  We recognize 
that you work hard every day to accomplish Enron,s business goals, and we are 
pleased that many of you have shared in the company,s financial success 
through Enron stock options. 

As you may know, the current employee stock option program (also known as the 
All Employee Stock Option Program or AESOP) began in 1994 and provided value 
to participants through 2000.  Employees who have participated in this 
program from its inception have realized a 1,119% increase in the value of 
their stock options (assuming a stock price of $70) over the life of the 
program.   

Enron stock options are a valuable part of your total compensation package 
and a contributing factor to your performance and to Enron,s continued 
success.  Therefore, the Enron Executive Committee and the Compensation and 
Management Development Committee of the Enron Board of Directors have decided 
to continue to offer stock options as a part of your compensation package.

On May 1, 2000, the Committee approved an employee stock option program for 
calendar years 2001 - 2005 (EnronOptions ) Your Stock Option Program).  It is 
expected that EnronOptions ) Your Stock Option Program will be granted, 
effective on or about December 29, 2000, for those employees who are eligible 
on that date (please see note below).  The new program, which is subject to 
final approval by Enron,s Board of Directors, is as follows:

? EnronOptions ) Your Stock Option Program will give stock options to 
eligible full-time and part-time regular employees in domestic and 
international companies/locations.
? The grant of non-qualified stock options will equal 25% of annual base 
salary (5% of annual base salary for each year of a 5-year period) on 
December 29, 2000. (Salary calculation and value may vary in some 
international locations.)
? The Board will grant the stock options on December 29, 2000.
? Eligible employees hired in subsequent years will receive a prorated grant 
of stock options.

Why commit your talent and energy to Enron?  EnronOptions ) Your Stock Option 
Program, among other good reasons( that,s why.

In the coming weeks, you will be receiving more details about EnronOptions ) 
Your Stock Option Program.  To provide information and answer your questions, 
we will introduce a special link on the Human Resources web-site, host 
several eSpeak sessions and continue to communicate with you on a regular 
basis.  In the meantime, if you have immediate questions, please contact your 
Human Resources representative. 

Note: In addition to final approval by Enron,s Board of Directors, granting 
of options will be subject to New York Stock Exchange and state and federal 
regulatory requirements.  It is expected that EnronOptions ) Your Stock 
Option Program will be available to most Enron employees; however, some Enron 
companies, employees may not be eligible due to legal, accounting, tax, labor 
or business issues.  As you know, Enron changes to meet the needs of the 
marketplaces we serve.  Given that need to change, we will continue to refine 
the eligibility for EnronOptions ) Your Stock Option Program and will 
communicate more details throughout the year with final eligibility being 
determined on December 29, 2000.