Message-ID: <508341.1075855477065.JavaMail.evans@thyme> Date: Thu, 26 Oct 2000 16:00:00 -0700 (PDT) From: enron.announcements@enron.com To: all_ena_egm_eim@enron.com Subject: AmeriFlash Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Enron Announcements X-To: All_ENA_EGM_EIM X-cc: X-bcc: X-Folder: \Frank_Ermis_Dec2000\Notes Folders\All documents X-Origin: Ermis-F X-FileName: fermis.nsf NOTE FROM THE EDITORS The AmeriFlash Newsletter would like to keep you informed on global wholesa= le=20 news as well, so we have added business highlights from Enron's original=20 electronic newsletter, GlobalFlash, which was created by Enron Europe. "What's on your Mind?" If you have ideas or suggestions please forward them to Michelle Vitrella o= r=20 Kathie Grabstald.=20 FINAL DAY FOR THE PULSE Today is the final day to provide feedback through the annual employee surv= ey=20 -- The Pulse. As of Thursday morning, 56.5% of the ENA/EGM/EIM employees= =20 have taken part in the survey, which is an improvement from last year's=20 participation rate of 49%. However, we are behind the company average and= =20 most of the other business units. Please take a few minutes today to provi= de=20 much needed and confidential comments regarding Enron and your work=20 environment. The Pulse survey is located on the Enron intranet at=20 survey.enron.com. If you like competition, here is how the ENA/EGM/EIM participation rate=20 stacks up against the other business units: Enron Energy Services 96.88% Enron Wind 89.96% Enron India 89.47% Net Works 77.78% EE&CC 73.88% NEPCO 64.37% Enron South America 63.74% Corporate Staff 63.52% Company Average 61.10% ENA/EGM/EIM 56.50% Enron Broadband 55.89% ETS (formerly GPG) 55.52% Enron Europe 44.36% APACHI 29.66% Log on to survey.enron.com and make your opinions known. =20 BUSINESS HIGHLIGHTS OIL PRODUCTS Congratulations to the US Oil Products Trading Team! On October 4, 2000 th= ey=20 successfully completed a deal with a volume of 2,400,000 barrels with a=20 Notional Value of $80,640,000. This is the highest Notional Value associat= ed=20 with an EOL trade. Kudos again for another great deal. They have done another large=20 crack-spread, this time for 100,000 barrels per month for calendar 2001. Th= is=20 trade notionally values out at over $40 million and is the second largest= =20 transaction conducted to date on EOL. STEEL Steel Trading and Origination teams, headed by Greg Hermans and Tim=20 Battaglia, respectively, have already defined a Hot-Rolled coil financial= =20 product. The contract has been drafted and is currently being discussed wi= th=20 customers. Financial Hot Rolled Steel will be posted on EnronOnline, allowing the stee= l=20 industry to hedge their price exposure for the first time in history. The= =20 access to hedging products will help the steel industry manage technicaliti= es=20 and smooth cash flow. Over time, forward price curves with transparent=20 pricing should allow the steel industry to also benefit from improved acces= s=20 to capital. The next challenge will be to educate the steel industry about financial=20 swaps and derivatives as risk management tools. The $300 billion steel=20 market should provide an excellent growth opportunity for Enron. PRINCIPAL INVESTMENTS FuelCell Energy, Inc. recently announced that it has entered into an allian= ce=20 with ENA. FuelCell Energy and Enron will work together to develop and mark= et=20 FuelCell Energy's Direct FuelCellc (DFCc) products. In connection with the= =20 alliance, Enron has invested $5 million in the common stock of FuelCell=20 Energy. Additionally, FuelCell Energy will issue warrants enabling Enron t= o=20 purchase up to 1.3 million shares of FuelCell Energy common stock. =20 Fuel cell developer Dais-Analytic Corp. also announced an alliance with ENA= . =20 As part of this alliance, Enron has made an equity investment in=20 Dais-Analytic and will support market development, distribution and other= =20 field services for Dais-Analytic's fuel cell, humidity control and related= =20 products. =20 ENA RESEARCH GROUP What does the FX and Sovereign Risk Group within ENA=01,s Research Departme= nt=20 do? We provide forecasts of foreign exchange rates as well as revenue and= =20 cost escalators corporate wide for project valuation. We advise the FX and= =20 interest rate desks on Central Bank policies of the G3. In addition, we=20 provide sovereign risk analysis on countries important to Enron's various= =20 business units upon request, as well as provide services related to the=20 global macroeconomic outlook. Our sovereign risk analysis is used in the= =20 development of the E-ratings in cooperation with the Risk Assessment and=20 Control Group. We have recently developed a presentation on =01&Fundamenta= ls of=20 Non-ferrous Metals=018 as well as one on "Sovereign Risk=018. We also advi= se the=20 fundamental analysis group within Enron Global Markets.=20 What=01,s new from the Country Risk and Foreign Exchange Team? On October 1= 3th,=20 2000, we launched a new product called the Enron =01&International Monitor,= =018 an=20 international economic review that will be published each Friday by the FX= =20 and Sovereign Risk Group. The purpose of this product is to inform the=20 foreign exchange traders as well as management about important internationa= l=20 economic events and their impact on currency and financial markets. Specia= l=20 emphasis is placed on potential central bank policy changes and the impact= =20 these changes have on interest rates and currencies. We also monitor other= =20 key markets, with a special focus on oil, and its impact on consumer,=20 producer and equity prices. The International Monitor can be found on the E= NA=01, s web site, by accessing=20 http//ecthou-webcl1.nt.ect.enron.com/research/ForeignExchange/FXMain.htm. Please email Leann Walton if you would like to receive the International=20 Monitor weekly by email, or if you would like us to email you the first two= =20 issues. Visit our web site at http://home.ect.enron.com/ - Select=20 Departments / Research. You will find also many useful links to other web= =20 sites here relevant to Enron=01,s businesses. NEWS FROM GLOBALFLASH Enron Launches Financial Plastics & Petrochemicals Derivatives on EnronOnli= ne Enron is to start trading a new range of financial swap contracts for the= =20 plastics and petrochemicals industry on www.enrononline.com, the company=01= ,s=20 free, real-time Internet-based trading platform. This is the first time tha= t=20 these derivative products, designed to help clients better manage the price= =20 volatility which characterises the multi-billion dollar industry, have been= =20 made available on the Internet in Europe. Gas Deliveries in Germany Since 1 October 2000, Enron has been the first and only non-incumbent playe= r=20 to be able to serve customers within Germany by delivering gas to three loc= al=20 utilities, those of Heidelberg, T_bingen, and Bensheim. Carsten Haack who= =20 closed the first deal with Heidelberg and was in charge of negotiation of t= he=20 transport did mention that the procedures are still complicated and lengthy= =20 and that the terms and conditions for future agreements will need to be=20 easier, more transparent and standardised. Helge-J_rgen Beil from the=20 Frankfurt office who closed the gas deals with the municipalities of T_bing= en=20 and Bensheim said that these deliveries are encouraging but do not guarante= e=20 the future yet. Another positive aspect is that Enron's continental gas= =20 trading team was able to do the first gas trade within Germany with some of= =20 the gas Heidelberg contracted for but could not take on. Liquid Fuels Group Launches Tanker Freight Forwards Scott Moncrieff, a director in the group, has with his team introduced tank= er=20 freight forward contracts on to EnronOnline, to offer a standardised hedgin= g=20 contract in today's highly volatile tanker market, currently worth in exces= s=20 of US$ 10 billion per annum. And on the Dry-Side...... Pierre Aury, Chris Connelly and their team introduced a similar on-line=20 forward freight swap in June and to date, have traded contracts with a=20 notional value of US$ 8 million, equivalent to 20 million metric tonnes of= =20 combined physical and financial contracts. The routes are from Colombia a= nd=20 South Africa to Rotterdam, which are key routes for coal transport. WELCOME Transferred Into ENA/EIM/EGM ENA =01) Johnny R. Palmer/Staffing Resources, Anna Briggs/Principal Investi= ng,=20 Carol Coats/Human Resources EGM =01) Andrea Hauser/US-GP Products Trading New Hires ENA/EIM/EGM ENA =01) David Jones/East Origination, Marnie Lamb/Merchant Finance, Mathew= -Joy=20 Noveena/Tax, Reynaldo Romero/Gas Assets Oper Mgmt, Mary Symes/West=20 Origination-Portland=20 EGM =01) Brad Lawson/Financial Operations, Sandeep Ramachandran/Weather Tra= ding IN THE NEWS =01&Enron delivered very strong earnings growth again this quarter, further= =20 demonstrating the leading market positions in each of our major businesses,= =018=20 said Kenneth L. Lay, chairman and CEO of Enron. =01&Our wholesale and retai= l=20 energy businesses have achieved record-setting levels of physical deliverie= s,=20 contract originations and profitability. We operate in some of the largest= =20 and fastest growing markets in the world, and we are very optimistic about= =20 the continued strong outlook for our company.=018 --- from Enron's 3rd Qua= rter=20 Earnings Press Release NUGGETS & NOTES =01&I=01,m looking for some high velocity capital.=018 - Brian Redmond,= =20 President/HPL, Managing Director/Assets/Upstream Origination-ENA =01&Can I get this NOW?=018 - Gary Hickerson, Managing Director/Equity Trad= ing-EGM "I like the innovative ways that Enron does things. They take a refreshing= =20 approach to the stagnant steel industry." - Kevin O'Donnell, Director/Steel= =20 Trading CONTEST The cut off date for The Name This Newsletter Contest is Friday, November 3= . =20 Keep the ideas coming! TEASER In your cellar there are three light switches in the OFF position. Each=20 switch controls 1 of 3 light bulbs on the floor above. You may move any of= =20 the switches but you may only go upstairs to inspect the bulbs one time. H= ow=20 can you determine the switch for each bulb with one inspection? Please send= =20 answers to michelle.vitrella@enron.com, the winner will receive AMC Movie= =20 passes.