Draft

Confidential

Draft

To: All of Wholesale
From: Office of the Chairman
Subject: Organizational announcement

We are pleased to announce the following changes within EGM.

Financial Trading=20
The Convertible Bond Arbitrage desk will be moving from EnronCredit.com to=
=20
the Equity desk under Gary Hickerson, and will be managed by Mike Bradley. =
=20

Billy Lemmons has joined Gary Hickerson's group from EIM. He is responsibl=
e=20
for examining and developing Enron=01,s agriculture business. He is explor=
ing=20
the agriculture value chain and outlining our risk management and originati=
on=20
opportunities.

Transportation and Shipping
Dan Reck will be transitioning out of the coal group and will be exploring=
=20
our rail and trucking initiatives. These markets together represent=20
approximately $105 billion notionally, and we believe there are many=20
synergies between our energy, coal, and freight trading businesses. =20

Enron is currently trading dry-freight (through EOL) and is a leading marke=
t=20
maker in this new product. This business is growing very quickly. We have=
=20
asked Pierre Aury (and Scott Montcrief to co lead) our worldwide vessel=20
trading businesses. Scott will be responsible for all liquids vessel=20
businesses and Pierre will manage all dry vessel businesses. The LNG vesse=
l=20
business currently managed by Wayne Perry will remain in the LNG group, but=
=20
will also (report or coordinate with) into Pierre.
Weather
Our worldwide weather operations will continue to report to Mark Tawney in=
=20
Houston. This business is also rapidly expanding which includes trading=20
weather products in 10 countries and 40 states in the US. Mark will have a=
ll=20
V@R allocation responsibility between Sydney, Tokyo, Oslo, and Houston. I=
n=20
addition we will be forming a weather-marketing desk in London. =20

Crude and Products
Janelle Scheuer will be joining the Global Products from Enron America's Ea=
st=20
power origination group, and (will be) developing a mid-market business=20
specifically for our liquids businesses. She will be reporting to John=20
Nowlan. =20

Bill White will be coming over from EBS and has responsibility for all U.S.=
=20
financial crude trading. Don Schroeder will continue to have oversight and=
=20
lead our physical crude business. (Mario De La Ossa has joined EGM from=20
Equiva and will manage our product options book)

Doug Leach will be expanding his fuel management role and focussing on xxxx=
. =20
He will report directly to John Nowlan.
Finance and Structuring
Andrew Makk has joined the finance team from the Middle East area. Most=20
recently he has been working on the Gaza project.

Jim Lewis has also joined this team. His last assignment was leading the=20
structuring group for Calme.

Both Andrew and Jim report to Larry Lawyer.
=20

(M&A)

(Mark Waddlinton has joined EGM and will be managing this activity and=20
coordinating with all Enron Corp. M&A business)

Please join us in congratulating everyone in their new roles.

File; organization anon. dtd Dec 00 - EGM