From: corporate.benefits@enron.com
To: enron.worldwide@enron.com
Date: 1999-07-22 17:57:00+00:00
Subject: Enron Corp. Common Stock 2-for-1 Split

Last week, Enron Corp. announced a 2-for-1 stock split of its common shares 
for shareholders of record on July 23, 1999. This means that each shareholder 
will receive one additional share for every share owned.  The anticipation of 
the impending stock split has resulted in a number of questions from 
employees.  The answers to some of the most frequently asked questions 
concerning the stock split and how it will affect your stock holdings are 
listed below.

What is a stock split?

A stock split is an increase in the number of shares of Company stock without 
a change in shareholders, equity or in the aggregate market value at the time 
of the split.  For example, one share of stock with a value of $80 will be 
converted to two shares of stock with a value of $40 per share.  The Company,
s total number of outstanding shares will double when the 2-for-1 split 
becomes effective.

What is the effective date of the stock split?

The split will be effective August 13.  On August 16 (the first business day 
following the split), the opening market price of Enron Corp. common stock 
will be roughly half of the August 13 closing price.  

How will the stock split affect my stock holdings?

Stock Options

If you have stock options, you will continue to hold options with an 
equivalent value after the split.  If you have 1,000 options at a grant price 
of $50.00, after the split you will hold 2,000 options at an adjusted grant 
price of $25.00.  The vesting provisions and the option term will not change.

Savings Plan/ESOP/Phantom Stock/Restricted Stock

If you hold shares of Enron Corp. common stock or phantom stock through a 
Company-sponsored plan (including holdings in the Employee Stock Ownership 
Program (ESOP) and the Savings Plan), the shares in your accounts will 
double.  For example, if you hold 100 shares in your ESOP account, you will 
hold 200 following the effective date of the split.  And, if you hold shares 
with a value of $2,500 in your Savings Plan account on August 13, the value 
of your investment will remain essentially unchanged when the market opens on 
August 16 (the first business day following the split).  The number of shares 
reported on your 3rd quarter Savings Plan statement will reflect the stock 
split.
 
Other Personal Holdings

If you own shares outright and hold the stock certificates, you will receive 
new stock certificates.  Our transfer agent, First Chicago Trust Company, 
will mail stock certificates to shareholders of record on or around August 
13.  Your certificate will be mailed to the address on file with our transfer 
agent, which is the address where you received your latest dividend check.  
To correct your address, contact First Chicago Trust Company directly at 
(800) 519-3111.  If your stock is held in a brokerage account, the shares 
will be sent directly to your broker.  Note that if you sell your shares 
between July 23 and August 12, the buyer of the stock is entitled to the 
split shares.

How will the dividend rate apply to the post-split shares?

The current annual dividend rate is $1.00 per common share.  On a post-split 
basis, the annual dividend rate will be $0.50 per common share.

If you have any questions concerning how the split will affect your Stock 
Plan holdings, contact Corporate Compensation.  ESOP and Savings Plan 
questions should be directed to Corporate Benefits, or your human resources 
representative.