Enron Reinstates Savings Plan Match

We have good news for participants of the Enron Corp. Savings Plan. Last Friday, the creditors' committee and our board of directors approved our proposal to reinstate the company match. We can enact the match in the normal course of business without bankruptcy court approval.

Beginning July 1, 2002, Enron will again match employee pre-tax contributions to the Plan. The match will be credited to active participants' eligible contributions on their first paycheck in July.

In addition, from July 1 through December 31, 2002, Enron will double the rate of the company match that was in effect prior to the suspension, with a maximum match on employee pretax contributions of 6 percent of base salary. In January 2003, the rate of the company match will return to the level in effect prior to the suspension.

Beyond reinstating the match, Enron is also instituting the following enhancements to the Savings Plan:
? The company match will follow participants' investment elections. In other words, the company match will be allocated to the same funds in which the participant has elected to invest.
? Currently, participants are able to contribute one to 15 percent of their base salaries to the Savings Plan. After July 1, participants will be able to increase their contribution up to a maximum of 50 percent of their base salary. The 2002 federal limit for pre-tax contributions to the Savings Plan is $11,000.
? Participants who are age 50 or older in 2002 will be able to contribute up to $12,000 of pre-tax income to the Savings Plan in 2002. This additional $1,000 is not eligible for company-matched contributions.

Active Enron employees who are not currently participating in the Enron Corp. Savings Plan have until 3:00 p.m. CST on Thursday, June 27, 2002 to enroll in the Plan for their first July payroll contribution to be matched. The same deadline applies to active participants in the Plan who may wish to increase their Savings Plan contribution rate in time for the first July payroll. (For now, participants can only increase their contribution rate to the current maximum of 15 percent of base salary. After July 1, participants will be able to increase their contribution rate to the new maximum of 50 percent.)

To enroll in the Savings Plan or make a change to your current contributions, please log on to <http://resources.hewitt.com/enron<;, or call the Benefit Service Center at 1-800-332-7979, option 3.