From: enron.announcements@enron.com
To: all_ena_egm_eim@enron.com
Date: 2001-03-16 00:59:00+00:00
Subject: EnTouch Newsletter

BUSINESS HIGHLIGHTS

ENA Principal Investments:
Three transactions to date in 1Q 2001:
$2.5 million investment in Series C Convertible Preferred Stock of Silicon 
Power Corporation ("SPC"), a leading designer, developer and manufacturer of 
a wide range of power semiconductor devices and systems.  SPC operates 
through three divisions: The Power Components Division manufactures large 
area semiconductors up to 125 mm which are used in high-power diodes, 
thyristors, GTO thyristors and custom high pulse power rated devices.  These 
components are sold directly to OEM's in the heavy industrial, electric 
utility, transportation, military and medical industries. The Industrial 
Power Division specializes in systems level products providing utility and 
power quality protection.  The Commercial Power Division designs and 
manufactures semiconductors made by a planar process used to make discrete 
power semiconductor devices and associates subsystems. More information can 
be obtained from Kevin Kuykendall (33995), Jennifer Adams (33919) or from the 
Company's web page at: www.siliconpower.com

$2.25 million convertible bridge loan to Solo Energy Corporation, an existing 
ENA Principal Investments portfolio company.  The funds are part of a $7.0 
million bridge facility needed to fund overhead while negotiations continue 
regarding a potential acquisition opportunity.  In addition to the conversion 
feature, ENA Principal Investments also received warrants to purchase 2.75 
million additional shares in Solo Energy.  The Company is developing a 100 kW 
microturbine, which utilizes a proprietary catalytic combustion process and 
turbines, sourced from the automotive and marine sectors.  Placement of 50 
beta units is planned at test sites selected by SCANA (a co-investor in Solo 
Energy) in the 2Q and 3Q, 2001.  Once the acquisition is completed, the 
Company plans to complete an additional $30 to $50 million funding round.  
More information can be obtained from Charlie Vetters (39435), Kyle Kettler 
(30423) or from the Company's web page: www.soloenergy.com

$5.0 million Series D Convertible Preferred Stock of Encorp, Inc., an 
existing ENA Principal Investments portfolio company.  The funds are part of 
a total of $38 million raised in the Series D round that should provide 
funding for the company through mid-2002.  Encorp is among the worlds leading 
providers of products, services and solutions addressing the growing demand 
for clean, reliable on-site power systems. The Company,s power technology 
products include grid-interconnection switchgear and energy-automation 
software.  ENCORP,s products, in combination with the Company,s 
engineering-services team, create dependable, on-site power solutions that 
can reduce the overall cost of energy for commercial and industrial customers 
operating in the digital economy.  More information can be obtained from 
Charlie Vetters (39435),  Kyle Kettler (30423) or from the Company's web 
page: www.encorp.com

Enron Credit
Feeling exposed? If you are looking for ways to trade some credit exposure 
out of your portfolio, visit EnronOnlineTM. Enron Credit now offers 3-year 
and 5-year Credit Default Swaps for a number of companies every day on the 
system.

Industrial Markets
Enron Industrial Markets has established its Key Goals and Objectives for 
2001 for the Forest Products and Steel Groups:
_  Firmly establish EIM as a significant physical merchant by moving 3 
million tons of product in each of the forest products and steel industries.
_  Expand international business by generating at least $10 million of gross 
margin.
_  Create a vehicle to gain access to 500,000 tons/year of market pulp.

In addition, both Forest Products and Steel are focused on creating greater 
physical and financial liquidity in each of their respective industries, as 
well as developing world class logistics and operations capabilities.

EIM ORGANIZATIONAL ANNOUNCEMENT
Forest Products Group
The following changes are being implemented in the commercial organization in 
order to better focus on the group,s mission: To be the premier market maker 
in physical products and financial risk management products in the Forest 
Products Sector. 

Rodney Malcolm will assume responsibility for the new Sales and Marketing 
Group. 
Rob Saltiel will create a new Forests Products Origination Group.
Bob Crane will continue to be responsible for trading and risk management in 
all Forest Products markets.
Andy Keleman will take the leadership of the Transaction Development Group.



IN THE NEWS

"Energy and trading giant Enron Corp. (NYSE:ENE - news) wants a piece of 
Madison Avenue.  The Houston-based company's latest venture is Enron Media 
Services, a seven-month old outfit that aims to bring Enron's expertise in 
trading natural gas and electricity to buyers and 
sellers of advertising space.

In the process, Enron wants to tap into a $500 billion-a-year global 
advertising arena.

``What we've identified is that this business is very analogous to what we do 
in gas and power,'' Enron Media Services vice president Edward Ondarza." --- 
Reuters, March 14, 2001


WELCOME
New Hires
EGM  - Sherman Franzen
EIM   -  Jennifer Vanlandingham
ENA  -  Kim Detiveaux,  Diane Fellers, Esemeralda Gonzalez, Eric Linder, 
Michael Lorenz, Noel Ryan, Melissa Prihoda, Steve McDonnell

Transfers
EIM - Lisa Csikos, John Jacobsen
ENA - Robin Rodrigue, Maria Lopez, Roseann Engeldorf


IF YOU LOVE GOLF..(
Would you like to experience the premier golf event, THE MASTERS?  This is 
your golden opportunity to see Augusta and the practice rounds. 

There are 17 spaces now available for Trip #1 - Sunday, April 1 through 
Wednesday, April 4.  The package includes accommodations at six private homes 
in Augusta, food and beverage, ground transportation, access to the Enron 
Tent, passes to the practice rounds and Par 3 tournament, and one round of 
golf at Jones Creek. 

Cost is $4975 per person; additional cost for use of charter aircraft between 
Houston and Augusta is $1740 per person.  This is a high-level 
customer-driven business opportunity.  If you are interested, call Dorie 
Hitchcock at x 3-6978.



ENRONONLINE STATISTICS

Below are the figures for EnronOnline as of March 14, 2001.

? Total Life to Date Transactions > 750,000
? Life to Date Notional Value of Transactions > $450 billion


NEWS FROM THE GLOBAL FLASH

EnPipe Services
The Continental Gas team is launching the first virtual gas transportation 
product in Europe, EnPipe Services.  EnPipe will offer customers the ability 
to swap gas between the NBP in the UK and the Zeebrugge Hub in Belgium.  
Customers will be able to nominate volumes on a day-ahead basis, and will pay 
for the service by an up-front premium.  This new service should encourage 
more participants at the Zeebrugge Hub, which will lead into more liquidity 
at other trading locations developing on the Continent.   Similar to the 
virtual storage service, EnBank, EnPipe demonstrates Enron's ability to offer 
valuable services to the market through smart risk management rather than 
capital-intensive infrastructure.   The first EnPipe auction will close on 15 
March, and customers may submit their bids on EnronOnline.

Teesside Gas Processing Plant
On Thursday, 1st March, the Teesside Gas Processing Plant achieved ISO 
9001:2001Quality Management System Accreditation.  This achievement is the 
result of 12 months hard work, enthusiasm and commitment by all plant staff 
and has also been a great team effort with the Enron Global Asset 
Organisation providing technical and moral support.  

An ISO Team was formed in February 2000 led by Iris Thomas (QA Coordinator) 
and supported by members from all site disciplines including Operations, 
Maintenance, Accounts and IT.  A program was implemented to prepare, write, 
issue and control, detailed procedures to ensure the plant was operated and 
maintained to the quality standards required by ISO 9001:2001.  Customer 
satisfaction and focus is an integral part of the standard and a great deal 
of effort has been put into this area.  Following a pre-audit in January the 
final accreditation audit commenced on Wednesday, 28th February, with 
accreditation being confirmed on Thursday, 1st March.


LEGAL STUFF
The information contained in this newsletter is confidential and proprietary 
to Enron Corp. and its subsidiaries.  It is intended for internal use only 
and should not be disclosed.