Subject: "Viewing of All Employee Meeting".

Body: All, The viewing of the All Employee Meeting today was not a complete success despite our successful testing yesterday. There were several IT teams (your local IT Support as well as Houston based Web and Network teams) that worked together to troubleshoot the audio and video feeds while watching the performance of your sites communication links with Houston to ensure your trading business was not compromised. I would like to provide you some history as well as go forward actions to provide better audio/video streaming services. You may have noticed that the medium for viewing the meeting has changed from the previous IPTV application to a web based application. This new medium has been in the development stages with the production target of October 2001 which was set by business. Last Friday business approached IT infrastructure and advised that there would be an All Employee Meeting on Aug, 16 (today). This didn't provide much time for preparation and testing. During the troubleshooting for each of your sites, the Network team (Scott Shishido and George Nguyen) were able to determine some but not all causes to the poor performance. I will be meeting with the Web (Edward Ray) and Network (Steve Hardy and Scott Shishido) teams to determine what the action plan is for resolving the performance issues. My understanding is that the meeting will be available for viewing if you wish to do so. I will be communicating to you when your site will be able to view this replay of the All Employee Meeting. Please contact me if you have any questions or concerns. Regards,

Subject: "B2B at Enron".

Body: Tom, I am sending you the information about our new B2B unit. I have talked yesterday with Greg Whalley who is heading the new unit about the E-commerce project at Wharton and recommended that Enron join this program. I have sent him this morning a copy of the materials you gave me. The meeting with Jeff Skilling has been pushed till the 2nd half of July. I talked to him briefly twice that Jeff Shankman and I want to discuss with him building a relationship with Wharton. Jeff Shankman is, by the way, a great friend of your institution. Vince ****************************************************************************** *********************** COMPANIES & FINANCE: THE AMERICAS: Enron sees bricks and bytes mix reshaping energy market: Purchase of MG only a start in building B2B platforms, writes Hillary Durgin: COMPANIES & FINANCE: THE AMERICAS: Enron sees bricks and bytes mix reshaping energy market: Purchase of MG only a start in building B2B platforms, writes Hillary Durgin: 99% match; Financial Times ; 16-Jun-2000 12:00:00 am ; 604 words By HILLARY DURGIN If Jeffrey Skilling is right, Enron's acquisition of MG is only the tip of the iceberg. Enron's president and chief operating officer is engineering a fundamental strategy shift at the Houston energy company, aimed at making it a dominant "new economy" player across various industrial markets. The Dollars 446m acquisition last month of MG, the UK-based metals trader, is only the first of more than Dollars 1bn in estimated new investments the company is targeting. It is seeking vehicles on which to build business-to-business (B2B) platforms in sectors such as logistics, chemicals, agricultural products and pulp & paper. Mr Skilling wants to take the business model the company developed in natural gas and power and apply it to other wholesale commodity markets. He argues the electronic platforms it creates will not only become the principal B2B sites for those sectors, but reshape those industries. As an example, he points to Enron's new e-commerce platform, EnronOnline, which has changed the way the company does business with its customers while significantly increasing sales. The company - the largest wholesale merchant of natural gas and power - saw wholesale, physical deliveries of natural gas surge 53 per cent in the first quarter. Critics argue that Enron's move away from its familiar energy business into new industries, where the learning curve is steep and the competition entrenched, is risky. Yet a number of industry analysts point out Enron has proved it understands markets and how to manage risks while becoming the largest importer of coal in the UK, the largest trader of gas and power in the US and grabbing an advantage in bandwidth. "It's a prudent strategy, but it's got to be done in an orderly way," says Ronald Barone, analyst with Paine-Webber in New York. "What they're doing here is what they've been incredibly successful at doing," he adds, noting that Enron posted Dollars 1.3bn in earnings before interest and taxes (ebit) from its wholesale energy and services business in 1999, up 34 per cent from the previous year. Earnings from that division accounted for two-thirds of the company's overall income before interest and taxes last year, and Mr Barone sees the unit's ebit increasing 15-30 per cent annually over several years. As with gas and power and now broadband, where Enron is standardising contracts and creating a market in bandwidth, it wants to create markets by entering as a physical player and providing merchant, risk management and financial services over the internet. "We will provide electronic commerce, but we will provide liquidity and we will provide settlement, or fulfilment of that contract," Mr Skilling says. "That is an extremely powerful model. If you look at other B2B sites, they don't do that." Mr Skilling argues Enron's e-commerce platform will triumph over the other, bulletin board-type exchanges, where striking a deal depends on two parties hooking up and working through uncertainties over timing, price, credit and fulfilment. Not everyone shares that view. Some energy companies, for example, would rather not do business with a competitor. BP Amoco recently purchased a 3 per cent stake in Altra Energy Technologies, a Houston- based, neutral wholesale energy exchange. With Koch Industries and American Electric Power, it also committed to carry out a fixed volume of transactions on the site to lend it liquidity. Just as in gas and power and now broadband and metals, Enron believes it needs networks of strategic physical assets. In acquiring MG, Enron got a stable of warehouses, lending it a strong physical position. "It should provide (MG) with a more vibrant, more active physical spot market in more markets in the world," says Greg Whalley, chief executive officer of Enron Net Works, the new division Enron is launching to identify and enter commodity markets. He argues that in metals and other markets, Enron will deliver better pricing, price risk management services, cross-commodity transactions and flexible transactions for a wider range of customers. Mr Skilling says there are significant rewards for restructuring an industry. "If you can take that platform, and you use the capabilities the bricks bring to the table, e-commerce the industry and change the structure, you're selling for more than a 50 multiple." Copyright , The Financial Times Limited

Subject: "Next step on Panda/Delta/Sunlaw".

Body: Hi there, I think a good next step while the counterparties are reviewing the docs is the creation of a closing checklist, since we have a good starting point with the Intergen closing list. We can get organized on putting together a package of the next traunche of docs, such as the parent guaranty, escrow agreement, etc. Thanks,

Subject: "Houston Flood Relief Effort".

Body:
On Saturday, June 9, Tropical Storm Allison left Houston in chaos dumping more than 20 inches of rain and flooding the city in a matter of hours. As of Sunday night, 17 people had died in the storm and many others are still missing. One of those who perished in the fatal flood was one of our employees, a summer intern in ETS and student at Texas A & M University, Chad Garren. Our condolences go out to his family and co-workers. At this time, Enron Community Relations and Aggies@Enron <mailto:Aggies@Enron> are planning to establish a scholarship fund in his memory. More information on the fund will be forthcoming. Enron has made a corporate contribution of $500,000 to the American Red Cross to aid in the victim relief effort. Enron employees are encouraged to donate to relief efforts and to take advantage of our Matching Gift Program to double the impact of your individual donation. Enron will match your contribution dollar for dollar and your donation will not be counted against your $15,000 annual limit. Although Enron is supporting the American Red Cross, please feel free to make your donation to the non-profit organization of your choice that is offering aid to flood victims (they must provide proof of their 501c 3 status). Please send your check to EB1635a before Friday, June 15, and we will send it, along with a matching check to the appropriate agency. On the memo line of your check, please make sure to write "Houston Flood Relief." We know that many Enron employees have been severely impacted by this devastating flood. Enron cares about you and your family and would like to make sure that your immediate needs are being met. If you have been displaced because of the flood, please contact the Community Relations hotline at ext. 37181 for assistance. Also, if you would like to help your co-workers who have been displaced, an account has been set up at the Enron Federal Credit Union to accept donations. Please bring/send your contribution to the Enron Federal Credit Union and make your checks out to Employee Flood Relief . There are many agencies in Houston in need of volunteer assistance. If you would like to volunteer, please e-mail your name and extension to communityrelations@enron.com <mailto:communityrelations@enron.com>. Please note if you are willing to lead a project. Again, our hearts go out to Chad's family and to all of you who have been impacted by this tragedy. Please continue to watch your e-mail for more information.