Rick:

As I am sure you have read by now, Jeff Skilling has chosen to leave Enron. Jeff is resigning for personal reasons and his decision is voluntary. I regret his decision, but I accept and understand it. I have worked closely with Jeff for more than 15 years, including 11 here at Enron, and have had few, if any, professional relationships that I value more. I am pleased to say that he has agreed to enter into a consulting arrangement with the company to advise me and the Board of Directors.

I want to assure you that Jeff's departure will in no way affect the relationship that Enron has with Microsoft and more specifically MSN. I have been briefed on the MSNIA project, by my team, and they assure me that we are on track to meet your Broadband Internet Access roll-out plans in early October. I look forward to getting more personally involved with Microsoft to help insure that our ongoing relationship and partnership continues to mature and flourish.

I will contact you in the near future to discuss with you this transition. In the meantime, if you have any questions or concerns please do not hesitate to contact my office.

Ken