Enron ends exclusive agreement with Blockbuster

---------------------- Forwarded by Robin Rodrigue/HOU/ECT on 03/12/2001
10:36 AM ---------------------------

Enron North America Corp.

From: Ken Rice and Kevin Hannon @ ENRON 03/09/2001
10:10 PM

Sent by: Enron Announcements@ENRON
To: All Enron Worldwide employees
cc:
Subject: Enron ends exclusive agreement with Blockbuster

As you are aware, Enron signed an agreement with Blockbuster Inc. last summer
to launch an entertainment on-demand service. We announced today that we are
discontinuing our exclusive relationship with Blockbuster in order to expand
the offering by developing direct relationships with content providers and
distribution partners.

We have made tremendous progress toward our goal of becoming the leading
provider of entertainment on-demand over a digital platform. We rolled out
the trial service in Seattle, Portland, Salt Lake City and New York in
December, and today subscribers are buying movies on-demand using the service
we created.

However, the exclusive relationship with Blockbuster has not yielded the
quantity and quality of movies needed to drive demand for this exciting, new
on-demand service. Now that we have proven the concept, we want to take our
service to the next level by adding content and subscribers on an accelerated
basis. We feel that this can be best achieved by pursuing entertainment
on-demand independently.

We intend to initiate discussions with various content providers for
delivering their content over the Enron platform. We remain very positive
about the potential of this business for EBS and Enron and will keep you
apprised of our progress.