Update on BMC/EBS situation

Bob,

I want to make sure I keep you in the loop on the EBS/BMC/NetWorks/Global
Strategic Sourcing interactions.

EBS has worked out an additional 25% discount, which brings the total
discount structure to Enron to a 45%-off pricing level, if EBS and Enron
aggregate their spend opportunity. This should come as good news to anyone
at Net Works who might be about to implement a BMC solution.

Also, there is additional flexibility in the situation, in that BMC will be
willing to work with Enron business units with regard to the timing of their
software purchases as it relates to applicability in EBS' deal. For example,
if Randy Matson's team chose the BMC solution at the conclusion of their
current testing, they could lock in the discount at 45% by sending an e-mail
(or other form of written communication) committing to the purchase in 2001
(the preference would be to get the "buy" done by end of 1st Qtr, if
possible). This would be sufficient commitment for BMC to go forward with
their purchases of EBS' solutions currently proposed to BMC.

I'm going to contact your leads (Randy, Bruce, et. al.) to let them know of
the additional possible discount and the relative ease of securing it...and
to also help make sure that what BMC is pricing out to all is the correct
application solution in each instance.

Thank you for your help and cooperation,

Jeff Youngflesh