Exchange Linking Status Update

All,

In my haste to begin the four day weekend last week, I failed to send the
status update I promised in my earlier note. Below is a slightly tardy but
nonetheless riveting Exchange Linking Status Update.

1. Exchange Linking Software Development - Functional development was
completed on schedule and we are currently performing testing of the Beta
release. Initial testing has gone very well.
A final release is scheduled for January 15th. I will be working with
Victoria Storey from the Operations group in turning over external testing of
the system. A deployment plan has been submitted to
Operations to assist them with the rollout.

2. Exchange Linking GUI - Development is complete and testing is being
conducted.

3. Product Mapping - Product Control Group continues their effort of
coordinating with TrueQuote the products covered under Schedule A of the
contract. Points of contact have been arranged
between Enron (Rob Cass) and TrueQuote (Richard Toubia) to continue the
coordination effort required to support ongoing product mapping.

4. Hardware - All network and server hardware has been received and
installed.

5. Leased Lines - Anchi Z. has been coordinating with each exchange's
network POC and assisting in obtaining T-1 lines to support this project. In
the absence of T-1 lines, both TrueQuote and Houston
Street will be using VPN connectivity to conduct testing. We should be
up and running with TrueQuote by 28 December so that testing can begin.
Houston Street does not anticipate being ready to
test anything until the end of February.

6. Bridging - Downstream system bridging modifications have been made to
accommodate the addition of an external exchange id and an external exchange
deal number.

7. TrueQuote has stated that they will not make the contract date with
regard to some of the functionality of their system. They hope to be able to
fully act as a client exchange but are not prepared to
take on the role of an external exchange (i.e. handle transaction
attempts from Enron.)

8. Houston Street is back in the picture. Their stated contract date is
December 4th + 120 calendar days. This gives them some breathing room. They
have canned Sapient, built their own internal
IT team, purchased messaging software from Web Methods and changed
hosting providers. They will no longer use Genuity out of Boston but Data
Return out of Dallas for their hosting needs.

Please advise if you have any questions or comments.

-David