FYI

CATALYTICA, KAWASAKI, AND ENRON ANNOUNCE GAS TURBINES WITH XONON(tm) FOR
DISTRIBUTED POWER PROJECT

Mountain View, CA (May 17, 2000) - Catalytica Combustion Systems,
Inc., a subsidiary of Catalytica, Inc. (NASDAQ - CTAL), Kawasaki Motors
Corp., U.S.A., an affiliate of Kawasaki Heavy Industries, Ltd., and Enron
Energy Services, Inc., a subsidiary of Enron Corp. (NYSE - ENE), announced
today their intent to furnish three Kawasaki M1A-13X gas turbines for a
distributed generation power project to be installed in the Northeastern
United States. The engines will be equipped with Catalytica's Xonon Cool
Combustion technology-the only system that enables gas turbines to achieve
ultra-low emissions without the use of burdensome exhaust gas cleanup
systems. The project is expected to enter service in late 2001.
Kawasaki's commercial introduction of Xonon-equipped engines marks a
milestone in Kawasaki's program to expand the presence of its family of
small gas turbines in the North American market. Mr. Hiro Matsumura,
general manager of the Kawasaki Motors Corp., U.S.A. Gas Turbine Division
stated, "We are pleased and excited that Enron has chosen us as a partner
for this distributed generation project. We believe that the combination of
this proven, reliable and cost-effective engine with the unparalleled
advantage of Xonon's ultra-low NOx performance will permit users to take
advantage of the economies of on-site generation with virtually no
environmental impact."
Catalytica Combustion Systems' President and CEO, Dennis Orwig, said,
"Xonon's ultra-low emissions will facilitate the siting of new power
generation units in urban and suburban areas. This should reduce both the
need for new power transmission lines and the environmental impact of our
power supplies." He continued, "We are proud to be working with these two
leading organizations to bring the benefits of clean, reliable energy to the
high growth distributed generation market."
Tom White, vice chairman of Enron Energy Services, commented, "Xonon is a
key element of Enron Energy Services' distributed generation solution to
supplying clean energy to meet the increasing energy demands of the growing
US economy. Further, Kawasaki's products can effectively meet the
challenging requirements of this emerging market and we expect that
additional opportunities to use the M1A-13X will be forthcoming."
Catalytica's Xonon Cool Combustion technology is a patented pollution
prevention system that avoids the formation of nitrogen oxide (NOx), a
primary contributor to smog, by reducing localized combustion temperatures
while achieving equivalent combustion efficiency and performance. Xonon has
demonstrated NOx emissions of well under 2.5 parts per million (ppm) and it
also dramatically reduces emissions of carbon monoxide and unburned
hydrocarbons. Xonon is the only combustion system demonstrated to meet
California Air Resources Board and South Coast Air Quality Management
District emissions guidelines for new gas turbines without the use of an
exhaust cleanup system.
Kawasaki Motors Corp., U.S.A. Gas Turbine Division (www.kawasaki.com.),
located in Grand Rapids, Michigan, provides a full line of gas turbine
packaging, parts, overhaul and field maintenance support, and customer
service. Its affiliate corporation, Kawasaki Heavy Industries, Ltd.,
recognized as one of the world leaders in the gas turbine industry,
established this division in early 1999 to provide better customer service
to its North American clients.
Enron Energy Services is a subsidiary of Enron Corp., one of the world's
leading electricity, natural gas and communications companies. Enron owns
approximately $33 billion in energy and communications assets, produces
electricity and natural gas, develops, constructs and operates energy
facilities worldwide, delivers physical commodities and financial and risk
management services to customers around the world and is developing a
nationwide internet-based communications network. Enron's internet address
is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
Catalytica, Inc. (www.catalytica-inc.com) finds new pathways to improve
processes-reducing time, waste and costs. It operates through three
subsidiaries: Catalytica Combustion Systems, Catalytica Pharmaceuticals, and
Catalytica Advanced Technologies. Catalytica Combustion Systems' unique
Xonon Cool Combustion technology enables gas turbines to produce essentially
pollution-free power. Catalytica Pharmaceuticals applies innovative and
patented catalytic technologies and other chemical processes to improve the
steps for manufacturing pharmaceuticals and finds better and more efficient
ways to produce products in commercial scale quantities. Catalytica
Advanced Technologies serves as the incubator for new catalytic technologies
for industrial applications.

This news release contains forward-looking statements regarding
incorporation of Catalytica's Xonon combustion system into the Kawasaki
M1A-13X turbine, the supply M1A-13X gas turbines by Kawasaki to Enron, the
ability of Enron to place Xonon-equipped M1A-13X turbines at project sites,
the demand for distributed power projects, and the competitive position of
the M1A-13X, Xonon, Kawasaki and its affiliates, Enron and its affiliates,
Catalytica, and Catalytica Combustion Systems. Actual results could differ
and such differences could be material. These statements involve risks and
uncertainties, including without limitation, the fact that there may be
unanticipated technical, commercial, or other factors related to the
incorporation of Xonon into the M1A-13X turbines or the arrangements between
Kawasaki and Enron for the supply of M1A-13X gas turbines, that marketing,
project development, and installation timelines and regulatory review
outcomes are uncertain, and that opportunities may differ from those stated.
Enron and Catalytica undertake no obligation to update publicly any
forward-looking statements to reflect new information, events, or
circumstances after the date of this release. Investors are encouraged to
review SEC filings for factors that could affect Enron's future performance
and Catalytica's SEC Form 10-K filing for the year ending December 31, 1999,
filed with the Securities and Exchange Commission for additional factors
that could affect Catalytica's future performance.

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Editors' Note: Xonon and Cool Combustion are trademarks of Catalytica.