Re: MEC

Steve,

I spoke with David ealier today. He is planning a meeting with Jim Tour to
due diligence the technology.

I would like to put together a team to drive MEC's strategy, including a
consolidation in Houston. We would trade this commitment for warrants in the
company and a right to participate in future fundings. Effectively, our team
could help drive the strategy for the company and due diligence a possible
investment at the same time.

Thanks,
mark

Steven J Kean@EES
07/26/2000 05:11 PM
To: Mark Lay/HOU/ECT@ECT
cc: Rex Shelby/Enron Communications@Enron Communications@ECT, Mike
McConnell@ECT, Vince J Kaminski/HOU/ECT@ECT, Philippe A Bibi/HOU/ECT@ECT,
Kenneth Lay/Corp/Enron@ENRON@ECT, Fabricio Soares/HOU/ECT@ECT
Subject: Re: MEC

I think it would be useful to verify their view that they are really only 2-3
years from commercial production. Ideally, we could get that confirmation
from someone familiar with the technology but without any financial interest
in its success. Their technology pitch sounded good, but I don't know enough
to recognize the potential shortcomings. I want to feel comfortable that you
all feel this is real, then I would be happy to have me and my team spend
some time with them.

To: Rex Shelby/Enron Communications@Enron Communications, Steven J
Kean/HOU/EES@EES, Mike McConnell, Vince J Kaminski/HOU/ECT@ECT, Philippe A
Bibi/HOU/ECT@ECT
cc: Kenneth Lay/Corp/Enron@ENRON, Fabricio Soares/HOU/ECT@ECT
Subject: MEC

Thank you for participating in yesterday's meeting. We spoke with Harvey and
Jim after the meeting and they took to speed to market comments to heart.
There is an opportunity for Enron to participate with MEC in the early
development of their company, but it seems the one thing they want is the one
thing we also want, people. I would appreciate your thoughts and comments on
the possiblity of creating a small team that could work directly with MEC as
part of a potential investment and strategic relationship. Given our
resource constraints, this would most likely be part of the organization that
sees the greatest strategic impact from MEC's development.

Mark
x37408