Announcement

Message from:
Jenny Rub, GPG CIO and Phil Clark, EDS Houston Client Executive

EDS and Enron have announced their realigned relationship. =20

Both companies have undergone significant change since the original contrac=
t=20
signing more than 11 years ago, change which has modified strategies and=20
expanded service offerings for both companies. We want to continue our=20
mutually beneficial relationship. EDS has asked for greater opportunity to=
=20
show value propositions using methods other than the staff augmentation, ti=
me=20
and materials, manner in which a majority of the EDS work is done today. =
=20
(The EDS and Azurix combined efforts are an example of such a proposal.) =
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Enron is supportive and has agreed to increase our minimal service level=20
spends with EDS in the years 2001 and 2002.

Working closely with EDS, Enron is preparing employment offers to the=20
majority of application technology staff supporting GPG=01,s core business=
=20
systems. This includes application development and production support=20
programmers and analysts, as well as infrastructure staff who support the=
=20
applications, such as the DBAs, application server administrators and=20
middleware technicians. IT staff in Houston and Omaha are included. The ED=
S=20
personnel providing desktop and LAN (file and print support) within GPG wil=
l=20
remain with EDS. =20

Enron believes technology is a strategic focus for future growth. Therefore=
,=20
GPG IT is taking this action to ensure the essential business and technical=
=20
knowledge required to maintain and expand critical systems is performed.

While the infrastructure remains an important piece of the total GPG IT=20
puzzle, the skills and knowledge required to support the infrastructure are=
=20
less business sensitive. Also, EDS=01,s ability to keep up with the rapid=
=20
growth of technology is a strength Enron can continue to draw upon.

Our goal is to complete this effort in May 2000. Both EDS and Enron value=
=20
your skills. Those of you who receive an offer will have the choice of=20
remaining with EDS or becoming an Enron employee. During the next month, t=
he=20
Human Resources departments of EDS and Enron GPG will be working together t=
o=20
ensure a smooth transition into our realigned relationship. Additionally,=
=20
the EDS Solutions Center leadership has been enlisted for those individuals=
=20
considering continuation of their careers with EDS. Informational meetings=
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will be held to answer your questions and address your concerns regarding h=
ow=20
the process will work, explaining opportunities in EDS, and Enron=01,s bene=
fits=20
and compensation packages. A list of the dates and times for all of the=20
meetings will be sent to you before April 14, 2000.

We will continue to keep you informed as this process continues. In the=20
meantime, while we=01,re very much aware of the disruption this may cause, =
we=20
ask your patience and focus on the tasks at hand.

Again, thanks for your continued support of the changes we are implementing=
=20
in GPG IT.