EnBW Default, Preliminary Analysis by Local Counsel

Enclosed please find attached the analysis provided by P_nder regarding the
underlying issues in the EnBW default which we have discussed in connection
with the letter sent out February 18, 2000.

This memo serves to identify the facts we need to establish more thoroughly,
as well as a preliminary overview of our causes of action and the likelihood
of prevailing.

Over the next two weeks we will be preparing a more detailed analysis.

Regards,
Michael