As you are all aware, EBS has grown to be a significant part of Enron.  The 
EBS/Blockbuster movies on-demand announcement this week, as Merrill Lynch put 
it, &confirms the tremendous inroads Enron has made in the telecommunications 
business.8  We expect this deal to be a springboard for enabling EBS to 
accomplish even greater things.

Because we believe that EBS is integral to Enron,s success, it is becoming 
increasingly important for greater interaction among EBS senior management, 
corporate leadership and our Houston-based business units.   In short, we 
determined that it is necessary for the CEO to be based in Houston, although 
the Portland office will remain an integral part of EBS. 

Joe Hirko as CEO and Ken Rice as Chief Commercial Officer have accomplished 
great things, and we believe that both are completely qualified to fill the 
CEO role moving forward.  However, Joe has decided to stay in Portland for 
family reasons, and as a result, Ken will assume the role of CEO for EBS, 
effective immediately.  

Joe, unfortunately, has decided to leave Enron.  We want to recognize Joe for 
his role in making EBS a success.  He started the business, demonstrated its 
value to Enron management, and brought the team together to create the EBS 
vision.

We do believe that EBS will continue to grow and succeed under Ken,s 
leadership.  Throughout his 19-year career with Enron, he has consistently 
been a driving force in building businesses.

Please join us in wishing both Joe and Ken great success.