FYI.
----- Forwarded by Lara Leibman/Enron Communications on 03/25/01 12:07 PM 
-----

	EBS Marketing & PR
	03/22/01 12:25 PM
		 
		 To: All EBS Employees Worldwide
		 cc: 
		 Subject: EBS Connected




	
	
	Market Close 3/21/01
	55.89     -5.06
	  		Bandwidth Intermediation
			(through 3/16/01)
			
			YTD Transactions     250 Counterparties          30
			 
			LTD Transactions    462  Counterparties          53         
			

                March 22, 2001
   
 EBS SCORES GAMES DEAL
 This week EBS joined Electronics Boutique and Into Networks to announce 
 a long-term agreement to deliver games on demand to Internet users on a 
rental basis.  
 Into will license streaming software technology to Electronics Boutique, the 
leading 
 specialty retailer of video and computer games.  Electronics Boutiques will 
acquire the 
 game content from publishers and market the service to customers. EBS will 
provide 
 strategic, financial and operational services to the deal. This includes 
lending our 
 engineering and network expertise to help integrate the technology necessary 
to 
    support the delivery of games on demand.  Over time, the games service 
could be 
    integrated into EBS' video on demand platform.
    Click here to read more.  





March 14, 2001
Enron to create marketplace for advertising space
By C. Bryson Hull




March 19, 2001
Enron inks game streaming deal with EB 
By John Gaudiosi





March 15, 2001
Analysts still bullish on Enron broadband unit 
By C. Bryson Hull


Other Press:
 
... Warner Home Video president Warren Lieberfarb said there is "no reason 
not to look at" the Enron service more seriously now that Blockbuster is out 
of the equation.  "The reason they didn't get the movies was that there were 
too many participants with their finger in the distribution channel pie 
between the studio content provider and the consumer," Lieberfarb said.  "The 
license fees were unacceptable vis-a-vis other VOD delivery systems."
 -- Daily Variety

Industry Analysts:

... Mary Joy Scafidi, a senior analyst with IDC, says it makes sense for 
Enron to want to have other avenues for securing content because Blockbuster 
most likely had access to a limited number of movie studios for online 
sales.  "Even the cable companies are struggling to get the studios to buy 
into releasing content for these services," Scafidi said.  "Typically the 
studios will only release just so many of their films, even for pay-per-view."
 -- Houston Chronicle and Associated Press Newswire, 3/10/2001

... In the currently tightening economy, we do not expect things to change 
significantly over the near term, but considering Enron's large investments 
in its Intelligent Network and EOD, and the company's very deep pockets, we 
don't expect it to remain lonely for long.
 -- Zona Research

... Experts generally agreed that Enron gets the better end of the broken 
deal.  "Enron will be better positioned to seek many more content providers 
to include in its video-on-demand service offering, ahead of the current 
four-city trial's completion," said analyst Brownlee Thomas of Giga 
Information Group. 
 -- InternetWeek, 3/14/2001     Click here to read more.


Financial Analysts:

"Termination of agreement with Blockbuster is more bark than bite as delivery 
platform technically sound, content-light.  No change in estimates or 
fundamental outlook.  
 -- Lehman Brothers

"We view the termination of the Enron/Blockbuster deal as a mild negative. 
... Enron will most likely be able to shop its technology around and ink 
another $1 billion worth of contracts in 2001.  In addition, the content 
volumes anticipated under the 20-year Blockbuster deal will most likely be 
picked up with another provider, now that Enron can shop around. ... Enron is 
the only player in the market optimizing its network capabilities to deliver 
digital content. ..."
 -- J.P. Morgan Securities

"Though this announcement is clearly a disappointment (and diminishes its $1 
billion Broadband Services Content Services division's year 2000 total 
contracting value: TCV), we have a great deal of confidence in the judgment 
of Enron's senior management (including those leading Broadband Services) and 
of the upside associated with this segment.  All things considered, we 
believe Enron can still achieve its $1 billion 2001 Content Services TCV goal 
over the next nine months.  Our valuation assumptions remain unchanged."
 -- UBS Warburg

"While the separation from such a high profile name is disappointing, we do 
not view this as negative.  In addition to having no impact on our EPS 
estimates, this could in fact actually accelerate Enron's content delivery 
strategy.  Importantly, Enron has proven its technical ability to deliver 
movies on demand.  Now ENE is free to pursue relationships directly with the 
studios and other entertainment conglomerates looking to provide EOD over 
then internet (rather than with a middle-man distributor such as 
Blockbuster)."
 -- Merrill Lynch



EMPLOYEE MEETING ON wEBSource
If you were unable to attend either of the EBS all-employee meetings, the 
March 15 Portland meeting is now 
available for your review.  You can watch the entire discussion, plus the Q&A 
session with Jeff Skilling, Ken 
Rice and Kevin Hannon on Video Cast located on wEBSource.

UPCOMING TRAINING
Broadband Risk Management Advanced Course
Date:  April 3-4, 2001 (2 days)
Time:  8:00 a.m. - 5:00 p.m. (CST)
Location:  Houston, Shepherd Facility
Rooms:  Gulf of Mexico and Padre Island

Registration link >>  
If you have any questions, please contact Rita Ramirez.

We want your ideas and feedback on EBS Connected.