Message-ID: <9171485.1075852022890.JavaMail.evans@thyme>
Date: Wed, 13 Jun 2001 12:49:00 -0700 (PDT)
From: enron.announcements@enron.com
To: all.worldwide@enron.com
Subject: Organizational changes
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We are pleased to announce the following organizational changes:

Enron Global Assets and Services

In order to increase senior management focus on our international businesse=
s,=20
we are creating a new business unit, Enron Global Assets and Services=20
(EGAS).  EGAS will be led by Kevin Hannon, Chief Executive Officer, and Jim=
=20
Hughes, Chief Operating Officer.  Kevin will report to the Enron Corp. Offi=
ce=20
of the Chairman.  With the exception of the Wessex Water Company (which wil=
l=20
remain in the Enron Transportation Services organization) and Enron India=
=20
(discussed below), EGAS will include all of the assets and activities of th=
e=20
former Enron Global Assets group and the Azurix organization.  EGAS will=20
include Enron=01,s assets and merchant activities in South America.  In ord=
er to=20
ensure continuity in the management of our South American merchant business=
,=20
John Lavorato will remain responsible for those merchant activities.  John=
=20
will report to Kevin Hannon with respect to the South American merchant=20
business, and will continue to report to the Enron Wholesale Services Offic=
e=20
of the Chairman for all other activities in his role as Chief Executive=20
Officer of Enron Americas.

Enron India

Enron=01,s significant interests in India are commanding increased attentio=
n=20
from Enron=01,s senior management.  We are pleased to announce that Rebecca=
=20
McDonald will focus exclusively on Enron=01,s business in India, as Chief=
=20
Executive Officer of Enron India, reporting to the Enron Corp. Office of th=
e=20
Chairman.

Enron Broadband Services

With Kevin=01,s departure from Enron Broadband Services (EBS), we are also=
=20
making a number of changes in the EBS organization.  Jim Fallon will now be=
=20
President and Chief Operating Officer of EBS.  Paul Racicot, Marcello Roman=
o=20
and Fred Cohagan will maintain their EBS risk management activities within=
=20
their respective regions.  Dave Cox will continue as Chief Commercial Offic=
er=20
of EBS and will also join Ken Rice and Jim Fallon in the EBS Office of the=
=20
Chairman.  Finally, Rick Fehl will continue as Vice President of Network=20
Engineering and Chief Network Officer but will now report to the EBS Office=
=20
of the Chairman.


Enron Principal Investments

In order to better develop and manage equity investment opportunities relat=
ed=20
to Enron=01,s core businesses, we are combining the existing investment gro=
ups=20
in ENA, EBS, Enron Investment Partners and the Enron Special Asset Group in=
to=20
a single unit, Enron Principal Investments.  Enron Principal Investments wi=
ll=20
work with all Enron business units to identify, execute, and manage equity=
=20
investments that leverage Enron's unique and proprietary knowledge.  These=
=20
investments may be in the form of venture capital, leveraged buy-outs,=20
traditional private equity and distressed debt positions.  This new busines=
s=20
unit will be headed by Kevin Garland, Managing Director, and will report to=
=20
an investment committee consisting of Dave Delainey, Ken Rice, and Greg=20
Whalley.=20

Enron Corporate Development

In order to improve coordination of Enron=01,s corporate development activi=
ties,=20
we are consolidating these activities under Andy Fastow, Executive Vice=20
President and Chief Financial Officer.  Jeff Donahue, Managing Director of=
=20
Corporate Development for EBS will now head Corporate Development across=20
Enron.  Corporate Development leaders in the business units will have a dua=
l=20
reporting relationship to their business units and to Jeff.

One of Enron=01,s most compelling challenges is the sale of certain assets =
or=20
businesses that are no longer core operations.  Mark Metts, Executive Vice=
=20
President of Enron Corp., will head up a new Special Projects group to=20
specifically focus on the completion of some of these more challenging=20
transactions. =20

Please join us in congratulating all of these individuals on their new=20
responsibilities.