Memo

Steve,

Here is my initial draft of my section of the organizational memo. Jeff I h=
ave copied you so that you know what I am thinking. The bold sections rela=
te to changes which I believe are still outstanding.=20

Kevin
=20
----- Forwarded by Kevin Hannon/Enron Communications on 06/11/01 01:44 PM -=
----

=09Kevin Hannon 06/11/01 01:22 PM =09 To: Steven J Kean/NA/Enron cc: Jef=
f Skilling/Corp/Enron bcc: Subject: Memo=09

In order to provide increased focus and greater efficiency to our internati=
onal activities we have formed a new business unit, Enron Emerging Market
Services (EEMS). This new unit will be headed by Kevin Hannon acting as CE=
O, and Jim Hughes as COO and will report to the Enron Office of the Chairma=
n. The activities of this unit will consist of all those previous pursued =
by the former Enron Global Assets group, with the exception of those relati=
ng to Dahbol Power Corp (DPC) in India. Rebecca McDonald will continue to =
manage Enron's ownership interest in DPC and will now also report directly =
to the Enron Office of the Chairman. In addition, EEMS will also manage al=
l activites formerly residing in Azurix with the exception of Wessex Water =
Company which will continue to report to Stan Horton, CEO Enron Transportat=
ion Services. Lastly, while EEMS will now manage all wholesale activities =
in the Southern Cone, inclusive of Brazil, significant merchant activity ha=
s, and continues to occur in this region. For this reason John Lavorato, C=
EO Enron Americas(does name change to North America?) will continue to over=
see all energy risk management activities in Brazil during this period of t=
ransition. We congratulate Kevin, Jim, and Rebecca on their new assignment=
s.