The first quarter of 2001 was a record quarter for the performance of the 
businesses under the Enron Global Markets group.  We posted a gross margin 
number of $100 million for the first quarter.  This represents a 38% increase 
in gross margin after a very successful Q1 of 2000.  When combined with 
outstanding results posted in December of 2000, EGM has contributed over $187 
million to the Wholesale group in the last 4 months.  This was due to 
tremendous contributions from each business group.

In order to keep the momentum going and to facilitate more growth, the 
following changes and additions have been made within the organization. 

Crude and Products group
Mid-marketing
Bill Berkeland has joined the group and is responsible for creating a focused 
mid-marketing function specifically within this group.  Fred Lagrasta is 
responsible for mid-marketing for Enron Americas and still maintains some 
responsibility for various contacts and deal flow as well.  The purpose of 
this group is to be very focused in the development of crude and product 
specific products and services.  This group reports to Randy Maffett.  

Origination
In order to manage the increased origination opportunities around the world, 
the Origination group has been changed in order to insure that the proper 
focus is placed on these opportunities and to manage its wide scope.  Doug 
Friedman will lead our NGL and Petchem origination efforts reporting to John 
Nowlan.  Joining Doug will be Rick Cantrell recently hired from Union 
Carbide.  The global crude and products origination group has added Randy O,
Conner from Red Meteor, who has extensive experience in these markets.  Both 
Randy and Doug Leach,s growing fuels origination group will report to Randy 
Maffett. 

Trading
Lee Jackson will assume the role of U.S. NGL,s lead financial trader, 
supported by Chad South.  The petchem and plastic trading businesses have 
been reorganized under Stuart Bland.  Alan Engberg will be responsible for 
plastics trading in the Americas.  

Shipping
Scott Moncrieff will assume responsibility of our global shipping network 
related to crude and products.  Scott will be charged with expanding all 
aspects of the shipping portfolio taking advantage of our growing presence in 
these markets and the successes we have had marketing shipping on line.

Weather
The weather group under Mark Tawney,s direction is expanding its efforts 
around the world.  Europe will have an expanded focus and the London office 
will focus on new opportunities in Europe.  Paul Murray has joined Enron from 
Castlebridge Partners and will be moving to London to develop and expand the 
continental opportunities.  Ross McIntyre, currently based in London, will 
report to Paul.  Bill Windle has joined the weather group and has 
responsibility for origination activities for North America.  Bill,s most 
recent assignment has been in the EBS organization.  The Oslo weather office 
managed by Thor Lien will have responsibility for Scandinavia weather 
activities.  In addition, employees are being added in the Australia and 
Japan regions.  We are now making markets in 32 cities around the world on 
EnronOnline.  

Coal
Mark Schroeder has joined the coal group and is responsible for origination 
activities with generators in the U.S.  Mark,s most recent assignment was as 
the head of all regulatory activities for Enron Europe, Japan and Australia.

Enron Japan
The momentum of power deregulation process has slowed in Japan.  The decision 
has been made to scale back the wholesale power activities.   Joe Hirl, 
President and CEO of Enron Japan, will now report into the EGM organization.  
Joe will maintain his direct responsibility of the office and will be 
increasing his focus on the business lines within EGM.  All of these products 
have high growth potential in both the near and long-term and he will 
coordinate and help implement with all the business lines and their 
activities.

LNG
LNG continues to expand with the vision to increase the number of 
transactions and create a portfolio of assets and contractual access around 
the world.  Jonathan Whitehead has joined the LNG group and has 
responsibility for all trading and shipping activities.

Neal Gerstandt, previously an independent energy consultant,  Jared Kaiser, 
from Enron Americas - East Gas Desk, and Kurt Lindahl, from Enron Global 
Assets, have also joined the LNG group with responsibilities in the area of 
origination in the Western Region.

Enron Freight Markets
EFM has concluded over 2,000 transactions in its first two months.  Chris 
Kravas continues to focus on building the spot trading and mid-market 
capabilities that will enable it to be the dominant player in its market, and 
has hired four new traders in the last two weeks.  Kellie Metcalf, from EBS, 
has joined Shawn Cumberland's origination effort, and Deirdre McCaffrey, from 
Gas Structuring and Mid-Market, has joined Matt Arnold's forward trading 
group focusing on diesel products.  

Global Risk Markets
David Hoog joined Enron from Ace Insurance in December 2000 and has quickly 
built a team of people specialized in trading unit contingent power price 
call options, a hybrid insurance derivative product. Drawing on Ace and Enron 
resources, this team is based in New York and includes Alex Tartakovski and 
Larry Marcus from Ace, as well as Joana Bekerman and Tony Chang who recently 
moved to New York from Houston. Their first transaction closed just 3 months 
after startup.

Brad Blesie will be moving to London in June to establish a base of operation 
for GRM and expand our insurance derivative activities into the European 
market place. Among the opportunities he is currently exploring are 
contingent call options applied to shipping and charter rates, trading 
insolvent insurance claims, and combining North Sea oil and gas VPP risk with 
decommissioning insurance.

In April this year, EGM established a hedge fund origination effort in New 
York reporting to Per Sekse and led by Russell Dyk who recently moved to New 
York from LNG in Houston. Russell is responsible for expanding our commodity 
trading relationship with hedge funds to include crude oil, products, liquids 
and other commodities traded by EGM. Joining Russell in this effort is 
Stephen Plauche, who comes to us from Enron Americas, power trading desk.

Financial Trading
Elsa Piekielniak has assumed responsibility for Enron,s developing 
agriculture business.  Billy Lemmons has changed groups and now runs the 
Analyst and Associate program for Enron Corp.  

Please congratulate everyone on their new assignment and we look forward to 
the continued growth in all the EGM businesses.