Subject: Azurix Buenos Aires Termination - Press Release
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], pr <[email-masked]>, [email-masked], [email-masked]
Cc: [email-masked]
Date: Wed, 5 Sep 2001 13:47:47 -0700 (PDT)

Azurix management would like for Azurix Buenos Aires (ABA) to issue the attached press release in Spanish for distribution in Argentina tomorrow.  The release would be made following a meeting with the governor, if he is not willing to pursue our settlement proposal.  The press release is necessary to explain our reasons for terminating and favorably position us in this controversy.  ABA is operating at a loss (including cash flow) and Azurix management believes that absent a settlement, termination and international arbitration is the only acceptable alternative.

As background, yesterday afternoon the board of ABA voted to terminate the concession contract, unless a settlement is promptly reached with the provincial governor.  The union representative on the board abstained, but information on anticipated termination was leaked to the press and there has been some Argentine coverage today.  DowJones and Bloomberg are aware of this coverage and we are attempting to defer their coverage.  Attached for your information are the Q&As we intend to use in responding to media inquiries.

Keith Miceli is in route to Argentina to assist John Garrison and local Azurix staff.  I will be coordinating here and handling U.S. and international media.  Please let me know if you need more information or have any comments on the release.

John