Organization Announcement

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/04/2000=
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06:12 PM ---------------------------

=09ENRON=20
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From: Office of the Chairman@ENRON on 02/02/2000 06:18 PM
To: Enron Corporate News/Enron@Gateway, All_Enron_North America,=20
All_Enron_International, EC Employees -- All@Enron Communications, EI Mass=
=20
Mailing List - ALL@Enron_Development, EES_Employees@EES, ECT- Notes=20
Domain-All@ECT
cc: =20
Subject: Organization Announcement

Enron purchases billions of dollars of products through its wholly owned=20
subsidiaries and venture companies worldwide. Historically, the Company ha=
s=20
conducted these purchases in a highly fragmented, decentralized manner=20
allowing each of the operating units the discretion to source their=20
requirements in a manner that optimizes unit performance. Today, however,=
=20
with the implementation of SAP and the profound explosion in=20
internet/intranet-based technologies, we believe the Company should change=
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its direction and focus on aggregating its demand for goods and strategical=
ly=20
sourcing these requirements on a global basis. We believe that there are=
=20
significant cash savings to be extracted by the Company and also commercial=
=20
potential for the formation of a highly profitable, business-to-business=20
e-Commerce venture.

Effective February 1, 2000, Enron will form a new Global Strategic Sourcing=
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unit. This new unit will consolidate the current successful strategic=20
sourcing initiatives underway in the Gas Pipeline Group, Global Asset=20
Operations and Enron Corp. Initially, Global Strategic Sourcing will focus=
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on aggregating Enron=01,s internal, joint venture and business partner dema=
nd=20
for products and services with the objective of creating a future=20
business-to-business e-Commerce venture.

It gives us great pleasure to announce that George Wasaff, Managing Directo=
r,=20
will lead this new global initiative. George will report directly to Mike=
=20
McConnell, Chief Executive Officer for Global Technology.

George has been with Enron for fourteen years and has held many senior=20
executive positions, the most recent of which was Managing Director of ENRO=
N=20
South America's Wholesale Operations. George was also the Interim Chief=20
Executive Officer of Elektro from July 1998 through June 1999 and Chief=20
Executive Officer of Transportadora de Gas del Sur S.A. ("TGS") from June=
=20
1995 through February 1998. George has also held numerous commercial=20
positions including Vice President and Country Manager, Mexico for Enron=20
International and Vice President of Marketing for Transwestern Pipeline=20
Company.

Please join us in supporting this new global initiative and congratulating=
=20
George in his new role with the Company.