Interfert

Our next step is to file a pleading with the Versailles Court of Appeals,
which puts our spin on the Court-appointed expert's report.

The deadline for filing our pleading is next Friday, although we need to
file it as early next week as possible, given that this is our third
extension of time.

I have reviewed Bernard Mettatal's draft, had him make changes, and think we
hit the right points.

In short, Interfert knew the Court was going to limit its recovery to
commissions on deals it actively participated in with EGLE, Interfert had its
shot at producing information to support this position to the
Court-appointed expert, but Interfert failed to do so.

Our brief prays for recovery for all of the preliminary award made to
Interfert of 810,000 FF, and our attorneys' fees.

A key issue is what the Court meant when it required that Interfert be
actively involved in the deal. The trial judge wasn't very specific. We say
it means Interfert had to bring a real deal to us, not just introduce us to
a purchaser at lunch.

Importantly, I just learned that a new judge will hear this case. We don't
know who it will be yet; the judges in France move around quite a bit. I've
got my fingers crossed that Enron will get a better shake this time around.

Given that this matter will not be set for hearing until March 2002, we may
get a ruling on our appeal from the French Supreme Court before then.

Let me know what else you need from me so I can authorize Mettatal to file
our pleading.

Thanks.

Britt