Stan/Mike, Per our meeting on Monday regarding EDS' CEO, Dick Brown, talki=
ng=20
to Ken Lay or Joe Sutton, below are the bullet points to reflect our=20
position. Please let me know if you have any comments. Thanks for your=
=20
support. Jenny

Message to EDS regarding insourcing

Enron views technology as a strategic focus, and technology staff as=20
strategic resources.

We want to incent these strategic resources to minimize the risk of them=20
leaving the organization and Enron=01,s compensation plans allow us to miti=
gate=20
that risk (Enron has 5% attrition, technology industry 20%). We also belie=
ve=20
that many of these people want to be part of the Enron organization.

This doesn=01,t mean we don=01,t want to do business with EDS, but we do wa=
nt to=20
change the way we do business with EDS, which will position EDS to sell=20
services that truly are =01&value add=018 and not time and material.

EDS will continue to have a role at Enron: GPG infrastructure, Azurix,=20
Elektro and possibly EES (work with ATKearney).

And Enron, as a highly visible, =01&well-decorated=018 company*, will conti=
nue to=20
be a positive reference for EDS and it=01,s potential customers, including=
=20
discussions of how we have outsourced and then insourced different technolo=
gy=20
functions and continue to maintain a positive relationship.

* Fortune=01,s most innovative company awards, 24th on Fortune=01,s best 10=
0=20
companies list, etc.