Subject: Announcement
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Wed, 12 Apr 2000 07:33:00 -0700 (PDT)

Message from:
Jenny Rub, GPG CIO and Phil Clark, EDS Houston Client Executive

EDS and Enron have announced their realigned relationship.  

Both companies have undergone significant change since the original contract 
signing more than 11 years ago, change which has modified strategies and 
expanded service offerings for both companies. We want to continue our 
mutually beneficial relationship.  EDS has asked for greater opportunity to 
show value propositions using methods other than the staff augmentation, time 
and materials, manner in which a majority of the EDS work is done today.  
(The EDS and Azurix combined efforts are an example of such a proposal.)  
Enron is supportive and has agreed to increase our minimal service level 
spends with EDS in the years 2001 and 2002.

Working closely with EDS, Enron is preparing employment offers to the 
majority of application technology staff supporting GPG,s core business 
systems.   This includes application development and production support 
programmers and analysts, as well as infrastructure staff who support the 
applications, such as the DBAs, application server administrators and 
middleware technicians. IT staff in Houston and Omaha are included.  The EDS 
personnel providing desktop and LAN (file and print support) within GPG will 
remain with EDS.  

Enron believes technology is a strategic focus for future growth. Therefore, 
GPG IT is taking this action to ensure the essential business and technical 
knowledge required to maintain and expand critical systems is performed.

 While the infrastructure remains an important piece of the total GPG IT 
puzzle, the skills and knowledge required to support the infrastructure are 
less business sensitive.  Also, EDS,s ability to keep up with the rapid 
growth of technology is a strength Enron can continue to draw upon.

Our goal is to complete this effort in May 2000.  Both EDS and Enron value 
your skills.  Those of you who receive an offer will have the choice of 
remaining with EDS or becoming an Enron employee.  During the next month, the 
Human Resources departments of EDS and Enron GPG will be working together to 
ensure a smooth transition into our realigned relationship.  Additionally, 
the EDS Solutions Center leadership has been enlisted for those individuals 
considering continuation of their careers with EDS.  Informational meetings 
will be held to answer your questions and address your concerns regarding how 
the process will work, explaining opportunities in EDS, and Enron,s benefits 
and compensation packages.  A list of the dates and times for all of the 
meetings will be sent to you before April 14, 2000.

We will continue to keep you informed as this process continues.  In the 
meantime, while we,re very much aware of the disruption this may cause, we 
ask your patience and focus on the tasks at hand.

Again, thanks for your continued support of the changes we are implementing 
in GPG IT.