Here is an update of some recent Enron developments.

Enron Europe Closes Certain Operations

Following Enron's credit rating downgrade yesterday and the impact that had on Enron Europe's ability to trade, Enron Europe has asked a court to appoint an Administrator.  What this means is that PricewaterhouseCoopers has been appointed the Administrator to handle the liquidation of the company's major physical assets and trading positions.  This action does not include Enron Credit, Enron Direct, Enron Metals, Teesside Power Station or the utilities and service businesses at the Wilton chemical complex.  It also does not include Wessex Water or power plants in Turkey, Italy and Poland.

Efforts are being made to preserve as much of the business as possible.  There is already interest by outside parties to buy Enron Europe's metals business, and negotiations are expected to lead to a successful deal in the near term.

This action will impact a significant number of Enron Europe's employees.  Every effort is being made to retain as many employees as possible who are part of businesses that may be preserved.

Enron Appoints New Board Member

Yesterday, Enron announced the election of Raymond S. Troubh to the Board of Directors.  Mr. Troubh will chair a newly-formed Special Litigation Committee of the Board to evaluate claims in shareholder and other derivative lawsuits.  He will also serve on the Special Committee set up to investigate all of the SEC-related matters.  Mr. Troubh is a financial consultant in New York City and has been a non-executive director of more than 25 public companies.  Board member William C. Powers, Jr. will also serve on the Special Litigation Committee.

Enron Evaluates Dividends

Today Enron announced that it is evaluating whether previously declared dividends will be paid on Enron common stock and other Enron equities.

New Enron Employee Q&A

A new Q&A has been posted to <http://home.enron.com/updates/> based on recent developments and employee concerns.