NOTE FROM MARK FREVERT

With the wide and varied activities of our three organizations, we created 
this e-mail newsletter to keep everyone better informed about our various 
businesses.  I hope you find it informative and more importantly, that you 
will use this newsletter to help spread the word about the successes in your 
group.

To provide content for future e-mails, contact Michelle Vitrella in our 
Public Relations group via e-mail or call her at ext. 3-9767.  Communication 
is one of the core Enron values and I believe this is a great way to improve 
communication across our wholesale businesses.

Additionally, I would like to again encourage everyone to take a few minutes 
to complete &The Pulse8 survey.  This annual survey regarding the work 
experience at Enron and how we can make it better is an important part of the 
two-way communication process at Enron.  Please go to the Enron intranet and 
type survey.enron.com.  It only takes a few minutes, it,s confidential and 
your comments will help make Enron a better place to work.

BUSINESS HIGHLIGHTS

Natural Gas
Middle Marketing,s biggest trade of the year so far occurred this month.  The 
significant transaction was a five year, multimillion dollar restructuring 
with a subsidiary of Formosa Plastics, one of the world,s largest producers 
of polyvinyl chloride.

Additionally, Continental Airlines, the fifth largest US carrier, has hedged 
a considerable amount (1.2 million barrels/month) of crude oil.   Winter 
Nymex hedges were put in place for the undisputed heavyweight chip champ of 
the world, Frito Lay.

Pulp & Paper
With the acquisition of Garden State Paper and launch of Clickpaper.com, 
Enron is creating an efficient spot physical market for pulp and paper 
commodities.  Buyers and sellers will benefit from improved price 
transparency and reliability and access to Enron,s online financial markets.

Improved price transparency and the ability to imbed financial derivatives 
into physical trading flows will facilitate the growth of Enron,s trading 
business.  To date, Clickpaper.com has traded over 1 millions tons of pulp 
and paper product with a notional value of over $675 million.

Upstream Origination
Upstream Origination, headed by Julie Gomez and Jean Mrha, focuses on natural 
gas products to optimize commercial value associated with the natural gas 
grid on the continent and in the Gulf of Mexico (GOM).  Through products such 
as storage, electric compression and producer services & outsourcing, ENA 
creates value for its customers and reconfigures the natural gas 
infrastructure to be more efficient.  In addition, Upstream Origination 
transactions exploit the unique relationship between development of strategic 
assets through sophisticated financing structures and the utilization of the 
market information created by those assets.

&THE PULSE8 SURVEY RESULTS

As of Wednesday, October 18, the total responses to &The Pulse8 from 
ENA/EGM/EIM are 689.  This is approximately 30% of all employees.  Since our 
goal is a 100% response rate, we have a long way to go!  Please take a few 
minutes to log on and give Enron your thoughts.  The Pulse is located at 
survey.enron.com on the Enron intranet page.

If you like competition, here are the results by group:

Commercial - Origination  131
Energy Operations   126
Risk Management and Trading 106
Other/None of the Above  91
Bus. Analysis & Rep./Fin. Ops. 90
Legal     46
Gas Assets    37
Human Resources   30
Tax     18
Technology/IT    14

WELCOME

Transferred Into ENA/EIM/EGM
ENA - Kathleen Neal/HR, Suzanne Kelly/Infocentral, Tobias Monk/Finance Direct
EIM - Eric Connor/Industrial Energy Group
EGM - Eric Calub/Global Product Mgmt

New Hires ENA/EIM/EGM
ENA - Lance Cunningham/CTS Research, Anita Dupont/CTS Research, Yvette 
Hales/Gas Logistics ) East, Angela Howell/Equity Trading, Farid Mithani/Power 
Risk-Credit
EGM - Heather Purcell/Enron Global Markets

IN THE NEWS

&No company illustrates the transformative power of innovation more 
dramatically than Enron.  Over the past decade Enron,s commitment to the 
invention*and later domination*of new business categories has taken it from a 
$200 million old-economy pipeline operator to a $40 billion new-economy 
trading powerhouse.8
From &The World,s Most Admired Companies,8 Fortune, Monday, October 2

NUGGETS & NOTES

&What,s the message we,re trying to get across?8 ) Ray Bowen, COO EIM

&I,m not a micro-manager8 - John Lavorato, COO ENA

&Make it so, number one8 ) Jeff Shankman, COO EGM


CONTEST

Enron is & The Most Innovative Company8 based on Fortune Magazine,s Most 
Admired Survey.  ENA Public Relations is ready to put Enron North America, 
Industrial Markets and Global Markets to the test.  We need your creative 
minds to help name the NEW Electronic Newsletter we now call AmeriFlash.  Put 
on your thinking caps and submit your ideas for a new name to 
michelle.vitrella@enron.com.  The ENA Public Relations Team will narrow the 
list to the TOP TEN and then send it to our official judge, Mark Frevert, to 
make the final decision.  The winner will receive a gift certificate to any 
Pappas restaurant.  GOOD LUCK!