Re: Advertising Campaign - NASCAR ,
 Dear Kelly:

I appreciate your comments regarding Enron's advertising focus.  First, Enr=
on=20
become involved  with Enron Field for two reasons:  to keep the Astros in=
=20
Houston and to gain energy and facilities management business for Enron=20
Energy Services.  Acquiring the naming rights to the stadium came much late=
r=20
in our negotiations with the Astros.  In addition, while sports events like=
=20
NASCAR are exciting to watch and get a fair amount of media play,  we're=20
targeting a more specific audience with our advertising dollars.
 =20
Increasingly, Enron=01,s integrated products and services require the appro=
val=20
of an organization=01,s highest ranking officers, people who carry a =01&CX=
O=018=20
title, such as chief executive officer, chief financial officer, chief=20
information officer or chief technology officer. These individuals may not=
=20
recognize Enron=01,s name and abilities as readily as energy-centric execut=
ives.

We also want to reach the elected and appointed officials who set policy an=
d=20
regulations affecting Enron businesses worldwide. The "Ask Why" advertising=
=20
campaign launched in February this year was designed with these groups in=
=20
mind as well as to put the Enron name and image on everyone=01,s radar scre=
en.=20
Enron commercials continue to appear on business channels such as CNBC and=
=20
CNNfn, as well as the History Channel, ESPN and network news programs. Some=
=20
are running in Europe as well.

While we won't rule out entirely the possibility of directing some of our=
=20
future advertising dollars toward sports events, for now, we believe we are=
=20
spending our ad budget where it will have the greatest positive impact on o=
ur=20
business.

Thanks for your suggestion.  Keep them coming.

Ken






Kelly Merritt@ENRON_DEVELOPMENT
10/03/2000 04:20 PM
To: Kenneth Lay@ENRON
cc: =20
Subject: Advertising Campaign - NASCAR

Mr. Lay,

I wasn't able to get my question to you at the all employee meeting. It was=
=20
this:

The Enron sponsored Houston mini-cart Grand Prix entry placed second and=20
received free air time of "Enron" on the news. With NASCAR being as popular=
=20
as it is today, itself a multi-billion dollar industry, why hasn't Enron=20
sponsored a racing team to compete against the other Fortune 500 sponsors?=
=20
Enron is supporting stadiums, but why not a competition based on fuel,=20
energy, and the most powerful being the victor?

Now with cigarettes and alcohol banned from advertising, companies such as=
=20
AOL, Compaq, Southern Company, and Infoseek are on the tracks. Each race=20
would provide more airtime of the Enron logo and further placement of "The=
=20
New Power Company" in the retail consumer/viewer's venue. It would also giv=
e=20
me someone to "root" for.

Kelly Merritt
Asset Mgr. - CALME/ENA
kelly.merritt@enron.com