IN: Dear Ken: I just wanted to let you know that despite all that has happened in the last few days,I am confident that under your leadership we will come back even stronger! The Enron you have built over the past years still remains the best place to work today, as it did when I first came on-board as an Associate in the Research Group. God Bless! Regards,

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OUT: We have faith in you!

IN: Per David's request, I'm attaching a (very old) form from Houston, not often used here anymore. I'm not sending this directly to David (if only to avoid "form shopping"). Let me know if I can be of further assistance. Thanks. Sara

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OUT: Tolling Agreements: For Brazil

IN: I have received questions about interpreting the ratio. Let me use yesterday's closing price. The merger probability is derived from a two scenario test, merger closure or merger non closure (there is also a competing offer scenario in reality). Let's use a closing DYN price of $46.20 yesterday (note I had a typo), at the exchange ratio, (not taking into account timing and dividends), this yields a merged ENE price of $12.40 ($46.20 * .2685). ENE closed at $10.00 yesterday. Thus if the market thought there was complete certainty of merger, the prices would converge at $12.40. Now comes the artful part, the non merger ENE price. I included another tab (Merger) to sensitize this. Say we pick an ENE price with no merger of $4.00. Looking at a deterministic probability, one can look at the distance (difference) in dollars to calculate the probability. For instance: ENE merged 12.40 ENE close 14-Nov 10.00 ENE no merger 4.00 Probability of merger = (1-((12.40-10.00) / (12.40 - 4.00))) or 71.4%. Said another way, there is a 71.4% chance of being worth $12.40 and a 28.6% chance of being worth $4.00, which yields a weighted price of $10.00 ($12.40 * 71.4%)+($4.00 * 28.6%). I also included a $1 distressed ENE price and a $7 previously observed low end ENE price as scenarios. Regards,

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OUT: Exchange ratio prices and probability

IN: 16TH ANNUAL NORTH AMERICAN CONFERENCE In order to improve our conferences ? we ask that you fax or send in your questionnaire that was in the front of your notebook. To everyone who has already sent it in ? thank you. Regards,

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OUT:
2001 Conference Questionnaire Reply