Message-ID: <15664343.1075844516630.JavaMail.evans@thyme>
Date: Thu, 22 Jul 1999 10:57:00 -0700 (PDT)
From: corporate.benefits@enron.com
To: enron.worldwide@enron.com
Subject: Enron Corp. Common Stock 2-for-1 Split
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Last week, Enron Corp. announced a 2-for-1 stock split of its common shares=
=20
for shareholders of record on July 23, 1999. This means that each sharehold=
er=20
will receive one additional share for every share owned.  The anticipation =
of=20
the impending stock split has resulted in a number of questions from=20
employees.  The answers to some of the most frequently asked questions=20
concerning the stock split and how it will affect your stock holdings are=
=20
listed below.

What is a stock split?

A stock split is an increase in the number of shares of Company stock witho=
ut=20
a change in shareholders=01, equity or in the aggregate market value at the=
 time=20
of the split.  For example, one share of stock with a value of $80 will be=
=20
converted to two shares of stock with a value of $40 per share.  The Compan=
y=01,
s total number of outstanding shares will double when the 2-for-1 split=20
becomes effective.

What is the effective date of the stock split?

The split will be effective August 13.  On August 16 (the first business da=
y=20
following the split), the opening market price of Enron Corp. common stock=
=20
will be roughly half of the August 13 closing price. =20

How will the stock split affect my stock holdings?

Stock Options

If you have stock options, you will continue to hold options with an=20
equivalent value after the split.  If you have 1,000 options at a grant pri=
ce=20
of $50.00, after the split you will hold 2,000 options at an adjusted grant=
=20
price of $25.00.  The vesting provisions and the option term will not chang=
e.

Savings Plan/ESOP/Phantom Stock/Restricted Stock

If you hold shares of Enron Corp. common stock or phantom stock through a=
=20
Company-sponsored plan (including holdings in the Employee Stock Ownership=
=20
Program (ESOP) and the Savings Plan), the shares in your accounts will=20
double.  For example, if you hold 100 shares in your ESOP account, you will=
=20
hold 200 following the effective date of the split.  And, if you hold share=
s=20
with a value of $2,500 in your Savings Plan account on August 13, the value=
=20
of your investment will remain essentially unchanged when the market opens =
on=20
August 16 (the first business day following the split).  The number of shar=
es=20
reported on your 3rd quarter Savings Plan statement will reflect the stock=
=20
split.
=20
Other Personal Holdings

If you own shares outright and hold the stock certificates, you will receiv=
e=20
new stock certificates.  Our transfer agent, First Chicago Trust Company,=
=20
will mail stock certificates to shareholders of record on or around August=
=20
13.  Your certificate will be mailed to the address on file with our transf=
er=20
agent, which is the address where you received your latest dividend check. =
=20
To correct your address, contact First Chicago Trust Company directly at=20
(800) 519-3111.  If your stock is held in a brokerage account, the shares=
=20
will be sent directly to your broker.  Note that if you sell your shares=20
between July 23 and August 12, the buyer of the stock is entitled to the=20
split shares.

How will the dividend rate apply to the post-split shares?

The current annual dividend rate is $1.00 per common share.  On a post-spli=
t=20
basis, the annual dividend rate will be $0.50 per common share.

If you have any questions concerning how the split will affect your Stock=
=20
Plan holdings, contact Corporate Compensation.  ESOP and Savings Plan=20
questions should be directed to Corporate Benefits, or your human resources=
=20
representative.