-----Original Message-----
From:  Hartfield, Rita  
Sent: Thursday, July 12, 2001 12:15 PM
To: Reyna, Margo
Subject: Changes at EBS


Rita Hartfield
Phone:  713-853-5854
Cell:  713-304-5428
Fax:  713-646-4702
rita_hartfield@enron.net
----- Forwarded by Rita Hartfield/Enron Communications on 07/12/01 12:18 PM 
-----


	EBS Office of the Chairman Sent by: EBS Announcements 07/12/01 11:10 AM 	   
To: EBS Worldwide  cc:   Subject: Changes at EBS


To:  All EBS Employees Worldwide

From:  EBS Office of the Chairman

Subject: Changes at EBS

Date:  July 12, 2001

Since its inception, EBS has seen dramatic changes in the communications 
industry.  The growth and opportunity anticipated in this industry two years 
ago has significantly changed in the past nine months.  While Enron remains 
committed to extending our business model into telecom, we need to quickly 
respond to these changes in the market to achieve our objectives.

The Enron Corp. earnings release issued today states that we will be 
adjusting the EBS business to better match the revenue opportunities.  This 
means that we must reduce our overall cost structure and better focus our 
commercial efforts.

To achieve this, we will take the following steps:

EBS will become a business unit within Enron Wholesale Services.  This will 
involve the integration of all EBS commercial support functions into those 
units within EWS, and will enable us to better manage the resources and costs 
of the support functions.

All EBS commercial functions will be consolidated into the following units:

Europe ) headed by Matthew Scrimshaw
Asia ) headed by Anthony Duenner
Americas ) headed by Rich DiMichele
We will consolidate the North American EBS origination teams into one group, 
led by Stewart Seeligson.  
North American trading and risk management will continue to report to Paul 
Racicot.  Paul will also oversee the global portfolio from a risk management 
perspective.

Global Network Operations will continue to report to the EBS Office of the 
Chairman.

All EBS asset positions will continue to be reviewed and repositioned to most 
effectively meet the future needs of EBS.

The Portland office will be closed by October 1.  Portland employees will be 
advised by their supervisors of their relocation or redeployment status by 
July 27.

These changes will affect many EBS employees through relocation, 
redeployment, severance or movement to another part of Enron.  We have not 
yet worked out all of the details of these changes, but your supervisor will 
apprise you of how this affects you as soon as possible, and no later than 
July 27.