Dear Optionee:

According to our records, you exercised Enron stock options on either 
December 27th or 28th.  When your stock options were initially exercised and 
processed, the income was treated as year 2001 income. 

We wanted to let you know that the income associated with your exercise will 
be reported as income in the year 2000.  Therefore, your 2000 Form W-2 will 
include these amounts as income.

Based on this, you will receive a revised confirmation of exercise from 
PaineWebber.  If you reached the maximum limit for Social Security taxes for 
the year 2000, then the Social Security taxes that were withheld on your 
December 27th or 28th exercise will be refunded to you on your January 12, 
2001 Enron paycheck.

If you have any questions, please feel free to contact Monique Blacklock at 
(713) 345-7885.