Enron Principal Investments Developments ,
 Three headed monster, (Dave, Ken and Greg)

For the next 30-45 days, I will be dealing with many integration, logistical 
and new strategy issues.  During that time, I will provide you with a weekly 
update email as to our activities.  Once I have our new strategy mostly 
baked, I will schedule a meeting to get your collective views and feedback.  
I expect that will be at the end of July.  After that, I hope to have regular 
monthly meetings with you

Meanwhile, here is what is happening:

? Personnel - Top priority was to immediately address personnel issues.  My 
target is to reduce the 54 people associated with this effort to an ideal 
structure of 28.  I concluded a week long interview and review process to 
select VP's/Directors/Managers.  The result was the following: 
 New Group
 MD -  Gene Humphrey will remain during a transition period (3 months) and 
will then retire (this was consistent with his own goals).
 VP -  Patrick Hickey (EBS)
   Barbara Paige (EIP)
   Dick Lydecker (Special Assets - his entire group (10) remains in tact)
   Jempy Neyman (Special Assets)
   Andrew Marsden (EBS - London)
 Director  Steven Sheldon (EBS)
   Kevin Kuykendall (EWS)
   John Godbold (EIP)
   John Enerson (Special Assets)
 Manager Kyle Kettler (EWS)
   Michel Nezi Marvin (EBS)
   Mark Gandy (EBS)
   Patrick Johnson (Special Assets)
   Mark Meier (Special Assets)

 Redeployed
 VP -   Jon Thomsen (EBS)
   Michael Miller (EWS)
 Director  Charlie Vetters (EWS)
 Manager Mic Johns (EIP - Washington D.C.)
   Jennifer Adams (EWS)
   Christain Hackett (EBS - London)
   Andreas Kraemer (EWS)
   Fabricio Soares (EIP)

 Next we are evaluating the Analyst/Associates/Admins.  This will be 
completed by June 19.  This will be decreased from 28 people to 15 people.

? Integration - A detailed integration plan is underway (more in the coming 
weeks).  This will begin with a full day offsite on June 20th.  You are 
welcome to attend.

? New Strategy - We are working towards a new strategy and charter.

? Funding sources - Patrick Hickey is working with Shirley Hudler, Michael 
Kopper and others to restructure part of JEDI II, in order to optomize that 
vehicle for our investment needs.  This will hopefully take shape in the next 
30 days.

Thanks,

KG
ken.rice@enron.com, greg.whalley@enron.com, david.delainey@enron.com