RE: Amber and StorageApps Acquired

Great job and great team. Stick to your guns going forward. Rick

-----Original Message-----
From: Garland, Kevin
Sent: Wednesday, July 25, 2001 5:14 PM
To: Rice, Ken; Hannon, Kevin; Skilling, Jeff; Whalley, Greg; Buy, Rick; Crews, David; Golden, Mike; Gorte, David; Petersen, Randy; Donahue, Jeff; Fastow, Andrew; Howard, Kevin A.; Fallon, Jim; Hannon, Kevin
Cc: Sheldon, Steven; Hickey, Patrick; Paige, Barbara; 'stan@tta.com'
Subject: Amber and StorageApps Acquired

In a absolutely dead tech market, two of the EBS portfolio companies announced they were being acquired today. StorageApps is being acquired by Hewlett Packard for $350 million, and Amber Networks is being acquired by Nokia for $421 million. If I am not mistaken, these are the 2 largest technology acquisitions of 2001 (where only a handful of acquisitions have been made in total all year).

Net gains to Enron on both of these investments (which were both made in 2000) will be small, but the acquisitions are a verification of EBS Ventures ability to pick the best telecom investments in the market (no other single investor is in both of these deals). Steven Sheldon and Patrick Hickey deserve tremendous credit for originating and managing these investments.

Thanks,

Kevin Garland
Enron Principal Investments