the Buzz, Friday, November 16, 2001 (Additions)

hey- my deals made into the weekly buzz edition- see second paragraph below
---------------------- Forwarded by Kay Quigley/HOU/EES on 11/21/2001 09:56 AM ---------------------------

From: The Buzz on 11/16/2001 06:26 PM
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Subject: the Buzz, Friday, November 16, 2001 (Additions)

the Buzz Friday, November 16, 2001

In the Buzz this week:

EES Keeps the Fire Burning

EES Q4 Deals: EES is pounding the pavement, making calls and (of course) making deals. The Third Party Sales Group continues to dominate the small business market in Texas, New York and Massachusetts, currently signing over 2000 new deals each week. Texas, which is known for doing everything in a big way, accounts for about 60 percent of the new deals signed. With success in the three markets already achieved, the Third Party Sales Group has moved into new territory, the Illinois market. The Third Party Sales Group, which was established less than five months ago, has already signed up more than 24,000 customers.

The Mid Market group is also bringing new customers into the fold. In these first few weeks of Q4, the Mid Market group has added Boston Market and Holiday Inn in New York, Moody Gardens and American National Insurance Company in Galveston, the Jewish Community Center Houston, Gulf Coast Retailers Association, El Fenix Restaurants in Dallas and Maxim.

The commercial, manufacturing/industrial and regional commodity groups are continuing to offer EES' products and services to large business consumers and have successfully brought in several large deals over the past few weeks. New customers include Sonoco, Wendy's, Unilever and Sara Lee with gas contracts and Ball Corp, Oil Tanking and Sysco with power contracts in Texas.

Customer Information and Support: Prior to and following Enron's merger with Dynegy, customers have expressed many questions about EES and where we stand on our contracts. A letter along with a Q&A about EES' position was distributed to customers on November 14 outlining our continued commitment to our contracts and our ongoing efforts to provide excellent customer support. Click here to read the letter and Q&A sheet.

Inquiries and Customer Satisfaction Support: For the past four months, the EES Business Center has successfully been serving as EES's primary contact and has been instrumental in delivering superb customer care. Please continue to route any general inquiry call that you receive to the center at 800-337-7827. Additionally, if you receive media inquiries, please refer calls to the appropriate contacts outlined below. This information is also available on the Resources Shelf that is accessible from the EES homepage.

General business inquiries:
EES Business Center 800.337.7827 EESBusinessCenter@enron.com

Media/Press inquiries:
Laura Schwartz 713.853.4535 Laura.Schwartz@enron.com
Laurie Shults 713.345.1753 Laurie.Nickel@enron.com

Lead$ Referral Program's Weekly Winner: Congratulations to Robert Foster, this week's winner of the $250 cash prize in the Lead$ Referral Program! Robert, Manager, Transaction Support, joins recent past winners Joe Bucio and Bill Walding, in the winner's circle for the weekly prize drawing. In the first three weeks of the program, a total of $750 has been awarded. Winning is easy! To be entered in the drawing, all you need to do is flip through your Rolodex and submit the names of companies and contacts that EES origination can call on! Submit your leads online at the Lead$ Referral Program. A $250 prize will be awarded each week from now until January 31, 2002. At the end of the program, all persons who submitted leads will be automatically entered in a grand prize drawing for $10,000! You could be the next big winner. Click here to begin turning your Rolodex into cash!

Deal Structuring Brown Bag: The November 14 Brown Bag presentation with Deb Merril, Director, Deal Management, is now available on Video Central. Deb provided an overview of the "life of a deal" and explained how Deal Structuring, which acts as the "gatekeeper between Origination, Desks and Operations," participates in the successful completion of a deal. Click here to view the presentation or download slides.

Attention Outlook Users!!: Many Outlook users are unable to access the links in the Buzz and other email notices sent from Lotus Notes. To correct this problem, follow these steps:
1. Go to the Outlook inbox
2. Click "Tools" on the top task bar
3. Click "Options"
4. Click "Security" tab
5. Click "Attachment Security" button
6. Change security from "high" to "none"
The email links should now work properly. If you are having difficulty, call the help desk at extension x39797 and representatives can walk you through the change.

The Dynegy/Enron Merger
Dynegy and Enron Merger: On November 9, Dynegy and Enron announced an agreement for a merger between the two companies which is expected to confirm the value of Enron's core business, rebuild customer, counter party and investor confidence and strengthen Enron's liquidity. Of the potential options considered outside of a merger, few could provide "the earnings potential and immediate synergies" that a combination with Dynegy could provide according to Greg Whalley, Enron president and chief operating officer.

The new organization will focus on core businesses including wholesale energy markets and commercial and industrial energy users. Enron will continue to act as an independent company until the merger, which is expected to close at the end of Q3 2002, is complete. Click here to view the press release outlining the merger details and the merger Q&A.

Enron Investor Update Conference Call: Enron held an investor conference call early Thursday morning to provide investors with an up to date overview of the company's current situation. During the call, Ken Lay, chairman and chief executive officer of Enron, reviewed occurrences which led to the current loss in investor confidence and decline in liquidity such as bad investments, "perceived" conflicts of interest in related-party transactions, lack of transparency and errors in financial statements. "We fully understand and regret the combination of events that have resulted in loss of investor confidence," said Lay, and we "are fully committed to fixing the problems."

In an effort to restore operational and financial momentum, Enron will be split into Core and Non-Core businesses and Businesses Under Review.
? The core businesses which were performing at all time highs prior to the events that lead to the merger with Dynegy provide "significant earnings and cash flow opportunities with unique competitive advantages," according to Greg Whalley, president and chief operating officer. Core businesses include the natural gas pipeline business, and the gas and power, retail and coal busniesses in North America and Europe.
? Non-core businesses such as broadband and Azurix will be divested and the earnings will be used to repay debt and reinvest in core businesses.
? Businesses Under Review are potential future markets outside of power and gas wholesale businesses.

The conference call is separated into five sections: Introduction, Business Overview, Business Segment Update, Financial Review and Outlook and Q&A session for easy access to needed information. Click here to listen to the conference call.

Dynegy and Enron Investor Conference Call: In Monday morning's conference call, Dynegy and Enron executives reviewed the merger details and fielded questions from investors. Chuck Watson, Dynegy chairman and chief executive officer, reiterated the strength of Enron's core business units and the high level of integrity of the people working in the trenches. Watson and Ken Lay also spoke of the advantages that Enron's business units would bring to the new organization with Watson making specific note of EES. "EES is three to five years ahead of Dynegy's retail unit" and is an "earnings contributor and growth engine that will continue in the combined company" according to Watson. The conference call replay will be available until 5:00 p.m. EST, Monday, November 26. Click here to listen to the conference call.

Conference Call Slide Show: If you don't have time to listen to the conference, the slideshow presentation is also available. Click here to view the presentation.

Enron Elects New Treasurer: Raymond M. Bowen, Jr., the former chief operating officer of Enron Industrial Markets, has been elected as the new executive vice president - finance and treasurer. "Ray has extremely good credibility with the investment community," according to Ken Lay and is "well respected and trusted by banks and other financial institutions."

EES Customer Corner
Starwood Makes the Grade: EES customer, Starwood Hotels & Resorts Worldwide, Inc. earned the distinction of having over 30 of its top hotels and resorts included in Conde Nast Traveler's 2001 Readers' Choice Awards List. The November 2001 edition of Conde Nast Traveler includes the magazine's 14th Annual Readers' Choice Awards that features the Top 100 "Best in the World" list which rates the best in hotels, resorts, cities, islands, cruise lines, airlines and car rentals. Nine Starwood properties earned the distinction of making the Top 100 "Best in the World" hotel list, while 24 additional Starwood properties were included in other top regional hotel and resort lists.

University of California Irvine Receives Energy Grant: The University of California, Irvine, an EES customer, has received a $3 million grant from the California Energy Commission for research designed to promote more widespread use of alternative fuels and power generation.

The Buzz will return on November 29
Have a happy and safe Thanksgiving