Message-ID: <14169678.1075858606099.JavaMail.evans@thyme> Date: Mon, 11 Jun 2001 14:52:00 -0700 (PDT) From: mark.taylor@enron.com To: ted.bockius@ivita.com Subject: Article Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Mark Taylor X-To: Ted Bockius X-cc: X-bcc: X-Folder: \MTAYLO1 (Non-Privileged)\Taylor, Mark E (Legal)\Sent Items X-Origin: Taylor-M X-FileName: MTAYLO1 (Non-Privileged).pst February/March 2001 Issue Enron Unveils Storage Trades Enron Broadb= and has completed a series of deals in the data storage market, commoditisi= ng this fast-growing area for the first time. It acted as a market maker, p= urchasing storage capacity from StorageNetworks - which was then sold on to= Best Buy, a retailer of electronics products. Crucially, both contracts we= re based on Enron's standard contract and included firm delivery with liqui= dated damages. In the last few years the storage market has moved from bei= ng a self-managed and owned business to one where storage is served up from= a standard metro network. Enron's involvement will be bring flexibility of= contract offering and imbedded optionality, according to Ravi Thuraisingha= m, a senior trader at Enron. "When we sell the product to the customer we r= emain in the market to buy the capacity back should they wish to unwind the= ir position later. That is unprecedented," says Thuraisingham. The storag= e market has historically been more flexible and more committed to firm del= ivery than the bandwidth market, but these trades mark a significant develo= pment. Rather than dated damages the storage market has tended to favour di= scounts on future purchases. "There is a premium in the price for firm deli= very," says Thuraisingham. He says that a number of other market participa= nts are eager to commit to Enron as a market maker. In addition, equipment = vendors are excited by the possibilities of the market. "most storage equip= ment at the moment is supplied to the enterprise market. This development o= pens up the wholesale storage capacity market," says Thuraisingham. =09