Dear Ms. Smith and Mr. Calme,

I am sorry you could not reach me for comment on today's article.  I did not
receive any messages from you on my home phone, cell phone, office phone or
via email or fax, so I am not certain how you actually tried to reach me.
Nonetheless, since you seem to have run out of stories to report and have
decided to focus on transactions for 1997, I thought it would be helpful to
address some of the facts that you did not present in your story.

Three other partners, David Cox, Edward Ondarza and Sean Shaub, started
Paper & Print Management to develop a derivatives market for pulp and paper
products.  Mr. Cox and Mr. Ondarza were also brought into Enron when Enron
purchased the rights to the company and gave me the contract you described.
Mr. Cox received the same compensation terms as I did and Mr. Ondarza
received slightly lower compensation.  Both Mr. Cox and Mr. Ondarza are
still with Enron.  You may be familiar with Mr. Cox as he was featured in an
article that Fortune ran on Enron a couple of years ago.

The $1 million payment was used to purchase rights to the business from the
Southern Company, who had funded our startup costs.  With the acquisition,
and to this date, Enron is the leading market maker in pulp and paper
derivatives.  I believe they have transacted over $15 billion notional since
they acquired our company.  I do not have access to the specific P/L because
I am no longer with Enron, but the pulp and paper trading organization at
Enron generated enough profit to fully repay the cost of purchase, including
the contracts provided to myself, Mr. Cox and Mr. Ondarza, inside of two
years.

If I can answer any additional questions, please feel free to contact me.
Email is best.

Take care,
Mark


Mark Lay
713-552-9518

CONFIDENTIALITY STATEMENT:
This information is intended only for the use of the individual or
entity to which it is addressed and may contain information that is
confidential under applicable law.  If you are not the intended recipient,
you are hereby notified that any dissemination of this information is
strictly prohibited.  If you have received this information in error, please
notify us immediately by telephone at (713) 552-9518 or by fax at (713)
552-9403, and confirm that you have destroyed this information and any
copies.
Thank you.