We are pleased to announce that EES, FieldCentrix and a group of outside investors have formed a new company to be referred to as The Facility Services Group.  This group is charged with creating a national service network to provide predictable and scalable repair, maintenance and other facilities services for retail customers, including many of EES's existing and future customers.  The Facility Services Group is expanding its vendor management platform to allow service technicians to focus on efficient, predictable service while capturing data on a real time basis and will provide scalable execution capability for the vendor management and O&M products.  We expect these products and services to create significant value.

The Facility Services Group includes Enron Building Services, Inc. (EBSI), The Linc Company, the HVAC Services business (all three, formerly part of Enron Facility Services), Interactive Process Technologies (IPT) and FieldCentrix, Inc., a mobile workforce management software company.  The Management Team of the Facility Services Group will include existing management from these companies.

FieldCentrix is a leading provider of wireless, Internet-based field force automation software.  Founded in 1994, the 125-employee company was recently named one of Frontline Solutions Top 100 companies and also received the Cingular Best Solution award for 2001.  The Facility Services Group will use the FieldCentrix and IPT platforms to provide a superior predictive and preventative maintenance program through vendor management to customers.  Tracy Price, President and CEO of FieldCentrix, will lead The Facility Services Group.  

The remaining components of Enron Facility Services (EFS) will be re-organized into The Construction Services Group.  This group will be led by Steve Wurzel and will include: Limbach Facility Services, the Architecture & Engineering group and the Construction Management Services group.  The Construction Services Group will continue to provide Engineering and Construction Services to Third Parties and EES.  We expect this group to continue to be an important and valuable part of EES's financial performance.

Dave Whaley will continue to manage the shared services groups, including legal, finance, HR, and IT, across The Facility Services Group and The Construction Services Group.  The centralization and sharing of these support services is cost effective, scalable and responsive.  In addition, Dave will assist in the transition of the EFS companies to The Facility Services Group.

Joe Earle has decided to leave Enron at the end of this year.  Until then, Joe will continue to work with the line businesses and assist with the transition of the EFS companies to The Facility Services Group and The Construction Services group.  Under his leadership, EFS and all of its companies have continued to be leaders in their fields.  Please join us in thanking Joe for his 10 years of leadership with the EFS companies.  
The re-alignment of our activities and the creation of a new entity to focus solely on serving the $136 billion facility services market will assist our entire organization in achieving our 2002 and beyond goals and objectives.