Third Quarter 2001 Investor ReiSna Contacts: ENROll CORP. NYSE Stack Syntol: EWE Common Dividend: $50 Shares Outstanding IDliuted): 759 MIllion Internet Address: www.enron.con Mark E. Koenig. two. Vice President (7133 853-5981 Paula H. RIaker* Managing Director (713) 553-7209 0 0 0 o r ~> '-a to GOVERNMENT EXHIBIT 4541 Definitions Natural Gas Dlii Uruish thermal unit. The mcneil of energy requfred to raise the temperabne of one pound of water one degree FalumAst M~tu One slit. Eu. The standatd emit ci deify.,1 to' natural gas, reprenotlng energy coeut.nt. Mel ipso cesbJc bet A common measure of volume 6' natural gas. Used lntwctuangeably with UMBtu. none Mel' - one MUSh. alter extraction of natural gas IlqtMds. Electricity kwh KIlowatt-how. A standard wait of electric cinuemqsElon corTepOndIng to image of one Ihousuud watts farm hoit A tacatt Ughtbulb humbug to. 10 bows conawnes one kwh. MWII Megawatt-how. One thousand kwh MW Megawatt. One thousand kwh?. owes %'fl (3.760 boon) OW Gigawatt One thousand ia*t, for cite year Common M MM U I C Id Other One Thousand one WHon One Billion One Trillion Equivalent Units Per Day 851 Barrel (Ut oil) MT Uetdc Ton Conversions tUMBles lBbl(cU) 1~ I cubIc meter at gas jUliet i eel * 292.7 kWh * 5.46 MaiBtes of natural gas - 3.785 Uen - .035 McI - 10Db. * vmtu 'V 0 0 C or t.01< i-p C r 0 C 0 U, to ~NERARY -J Final 10/16/2001 Third Quarter Analyst Reviews Houston, New York, Boston and ThIIadelphIa October 16-19, 2001 MEK Pager: 800)901-5209 IRA Pager: 80O)9S74~67 DL Pager: 877/237-7732 Tuesd.y. October 36 9:00 a.m. 3rd Otr. Conference Call Call inNwnbor: 7 19457-2657 Location: Mr. Lay's Conference Room AntMess: Lay, Whuilcy. Finest, Causey, Keen, Koenig and Riebs 3:00 p.m. Analyst Prnentatlon/Boardroorn. SO0 Floor Lay, Whalley. Proven, Casey, Koenig and Riches 6:00 pan. N5733 GulI.tre.am depn for Tcicrboro Pilots: Jim Little and Don Martin Lay, Richer, taboo, David axd Courtney Henold (cell: 7 131503-7832) Dinner & Chene and Fruit Tray NS73J Falcon 900 departs hr Teterboro Pilots: Darvin Mitchell and Sage Ran. Whulicy, Casey and Koenig Dinner & Chess. and Prull Thy 9:31 p.m. AariveTete*oro FBO~ Jet Aviation-Avis TeE 2011462-4000 Tranapofladon Dokoy (718)292.1010)-Conlinned by John Van scheduled forN57)3 Oulfttrrn Sedan scheduled for N573J Falcon 900 Hotel: Four Seasons (all chirps direct billed) 57 B. 57' Sweet 212/)38-5700,758-3711 (fax) Reservation Contact Feud Dun (212)8934806) K. Lay #858470,0. Whalley #858481, K. Casey #858479, Ni. Koenig #858485. P. flicker #338501, B. Leobe #858512 Pilot's Notch Manlot § Olenpointe 201/836.0600 Wednesday. October 17 Note: &y so Ateetin, suite 504 ut front desk. 1:1 31 Morran Investments Anatol Fevein t2l2/62244411+1 1:1 Salomon Smith Eaniavfflhv Nileg (21218t6.2807l Breakfast- Four Seasons Hotel - Meeting Suit, 504 (S~ floor) Breakfast- Four Seasons 5757 Reswsrant - Reservadon lbr 6 Attendees: flailet Koenig and Leboc I :1 - Bane otAnurlcajWlIl Man (212/5834043~ + C. Call 450 1:) -TCW/Sbannon Cabin (2ISfl4AJOIfl + 3 Note: Walk to Bane o.fAmeflca . Pour Seasons Hold - Meeting Suit 504 (5' Floor) 9 West 57', 30' Floor- Between 3 & 6 Aundew Coasrey and Risker Attendees: Loy, If ItoH sy. Koenig and Lab,. OACoxporate\lnvestor Relations emj1ea\200l~3rd Qir 200IAoc LAY 000022522 Final 10/16i2003 * 31:30 a.m.-1:DO 12:00 mc,. - 1:15 n.m. 1:1 - Lunch - Goldman Spehu/David Fleitcher 121219024018b 1,2 - Lunch - KiDS Warburglflon Barone (2121713-3848) Eric Mandslblalt and David Maccanonq Jnx.XuzlIt±.i Four Season Hotel- Meeting Suite 3M ~5b Floor) 1215 Ave of the Amedcn or6' Ave (between 51 & 52) 9~ floor- Attendees: Lay, PA alley and Koenig -wili then he ahomito the 24'floor, Dining RoomS rMigMAan to check-tn n5ecun(y lobby) Attendees: Casey, Ricks and Lehoc 2:00p.m. - 3:00p.m. Thomas Schmitt. Jim Ferguson. Michael Sedpv Fran Catnip. Guru. Daliua. Al Harrimen and Tom Ran. Pour Season, Hotel-Meeting Suite 504 (3' Floor) Attendees: Lay~ flail9, Casey. Koe4 Risker and Lain 3:00 p.m. ENE Midtown Presentation -Four Season, HoteVMetronolitsa Suit. A:30p.m. - 6:00p.m. 57Ev: Sr SauL Conwet: Sun Noocan (2121350.6301) Atlendes: Lay Whailey Cawc~ Koenig. .Rlekn and Lebee Cocktail tad Hon d'nvres - Four Season. Hotel Madison ad Park Rooms (next to Metropolitan Suite) 6:15pm Vadeparu forTertarhoro Meet ire vupona non on it Sweet side. Vat Lay, Whaiiey, Causcy, Koenig. Rieker and Leboc 7:15 p.m. N5733 Gnlfstreamdepn Tetertoro for Boston Passagcs: Lay, Rieker and Leboc NS733 Falcon 900 departs Telextoro for floston Passebgeu: Whailey, Causoy and Koenig 7:58 p.m. Azrlvc Boston FBO: Signatue Flight Support toE: 617(569.5260 Fax: 569-1606 Transportatiow Howl: Pilot's Hotel: Mutton Long Wharf - 617/221-0800 O:lCorporneunvestor RelationsfldnersziuU00I~Srd Qtr ZOOI4oe Carey vs (Accoue #433904, Con(#: 02684045) 611/6234700 Pour Season, Boston 200 Boylsion Boston, MA 02226 Tel: 617538-4400. Razz 6J7I42~7ifl K. Lay#ESSSI,O.Whuijey#93679640,K Causoy#943270S2 M. KoenIg #94795826, P. RAcker #81977433, Leboc *89875904 LAY 000022523 -J S I Final 10/16/2001 Thursday. October ID 7:00a.m. Careyaedandepans4 Seasons (Coat 0: 01694046) Passangen: Lay. Cmsseyandtoenig ~:45 an - 1:1 -john Hancock FInancIal Servlen/Efleem Ford. (62715fl-96291 +6 9.00 am John Detleclo * LW p Cr0. Deny K. Weleb - Sr. MD. Francis Peleon. Sr. MD. Marorat Stanlaton - Sr. N¶D. Eileen M. Ford. - Director and William A. ICInsIev * MD Plazas call Ellen Hopkins (637/572-9604) on arrival and ahewill nuct you In the lobby to avoid your waiting in the Security line 200 Clarendon -John Hancock Tower Attendees: Lox Cousey. Fo.stow and Koenig 9:30a.m. Cucyaedandcputs4s.msons(Conf#: 01684047) Passengers: JThaiIey, Stoker and tahoe 9:15 am. - 10:15 a.m. 1:1 ~Esser1nvhstTerttMQmt/Holland Ward (617/342.31631+5 121 -WelllnutonftomL.avedrsg(6171951-56221+9 Iii High Street, 29 Floor 75 State Strut Boston. MA Attendees: Whaltry. Stoker and Leboc Attendee: Lox Casey and Koenig 10:30 tm.- 1:1 - Putnam Investmant4/RalIIk flalammni t617fl60.lAfll + 10/14 11:30a.m. OnePostOfflc.Square, l?Floor Attendees: Lax Jf'halley. Casey. Koenig. Rieker and Leboe 12:00 p.m. Analyst MeetlnulLunch - Four Seasons Hoe.! 200 Boylaton- Contact Robin EI7/351-2023 Attendees: Lay. fla11ej~ Carey. Koen 1g. SIcker and tahoe 2:00 p.m. In- Fidelity Mananjnent Sc Hnearch/T)onc Nion (6171563-59391 +14 One Federal Bunt, 33 Floor, Baton, MA 02130 Attendees: Lax fla11~ Caraey, Koenig. Sicker and taboo Note: Puida Sigher will go en to other meetings ud return on her own to Houston 3:30 p.m. 1:1 - MFS tnvu.tment Manamnunt Dave Cavanauch (6171 954-5875 4:30p.m. 500 Boylaton, Boston, MA 02116 Astendw: Lay. flaUe~ Causq, Kaej4 Stoker and taboo 5:00 p.m. N5733 Gultutream departs Boston Logan mu Airport for Philadelphia Lay and Koenig 5:00 p.m. NSISJ Falcon 900 departs Boston Logan Intl Airport (or Houston Whalley, Caussy, Kicker and Leboc Dinner 5:47 pa N5733 GuIfutrea,mniw, Philadelphia EDO: Intunabonal Atlantic Aviation Tek, ZIS/492-7060 Transportation: Careyvan (Ancoein±h712135, Cost! t 03684113) 620I59$.2800 OACOwWe\Invcauor AuIatiorus\1dneuricsl2O01~3rd Qfr 20014oc LAY 000022524 Pinal 10/16/2001 HoteL Porn Seasons Ptziladelpbia One Logan Square Phaduiphia, PA 19103 Tel: 21Sd963-1S00 Pux.~ 2IS/963-9506 Coot. N Lay 96141279 and Koaig £9257297 Pilors Hold: Ahpon Minion Tel: 215/492.9000 7:52 p.m. NS7JJ Falcon 900 arrives bran bangai Friday. October19 Transponarion Carey Tab 610/595.2800 (Account #712135, Ccc! #: 01684112) 7:00 am. Careysedan pIck-up and will provide flputation througbout day. 8:00 am. hi - Rhltenhouse/Mark Hackett (610/92143001 +213 Two Kadnor Corporate Cent. Radnor, 4 floo~ PA 19087 10:00 mm. 1:1 - Delaware Invnhneni Advlwra/ Jail flaming St Frauds Morris f215/255-i 4921 One Conmzrce Square. Thiladelphia, PA 19103 12:00 p.m. Analvut Groun Lunch Meeting - Four Begins One Logan Square Contact Elizabeth Knox (215/963-1500) 2:DO p.m. It) -Rover Asset Mannemant/CiIft Stern (2151 568-2126 + 10 3:00 p.m. 1650 Market Steel, One Liberty Place, 31' Floor 3:30 p.m in - ~twx ~rnn rnr~rflrflTeIUtIJ.fZIaT r IOOOMarketSlreet... .aor 5:30p.m. N5133 Gullaiream depn Atlantic Aviation - Philadelphia Lay, Koenig, David and Courtney Herrold(celI: 713/3034852) Dinner 7:27 pa. Arrive Houston hangar S OAcorporateUnveseor ReiationsUtirnmieau0ofl3rd Qtr 2001 .doc thY o0002 2525 10/16/20W Enron Corp. SQ 2001 Enron Building 10116/01 Houston ~, Last Name First Name Company Telephone AlAzrh lilt Pwdntlal Secudties 7131646-5433 Mggs EDen EdggsMsmgemmct&R.mrcbco. 713/651~15S9 Cazpentu Lela AdU,Hanlamo&Cazpatcr 7I3/621-11SS Cong Sharon Eden CapiwManagemezit 713407-1760 Coale Carol Prudential Securitie. 713/646-5433 flietert Jeff Simmons a Couay 713/223-7828 Dwivcdl Vikas PrudendulSecwitiea 723/646-5433 Euteibrook Mask RBCDain Rnwber Weasels 214/9t9-1408 Potlowili Rebecca Howard Well 713/393-4502 Pdterg Ie~ey Priedberg Investment Mgxm. 713/622-2332 Harper Ted Iron Dank Hohertz Doug The Mitchell Group 733 /759-2074 List CarP MeniliLynch 713/759-2592 Konicki itt Woodwaylinsncial 733/683-7070 Lawier Cm CrgditSubmFlrurflostn PdaIo lean Dzuco Inc. 713/2234300 McHewy Adams Inverness Coal, Inc. 713/7854101 Olson John Saz2denMorrlsMundy 713/220-115I Peacock Torn Ddggs Management & Research Co. 713/6514589 Robert Jonathan Howard Well 713/750-6900 Slivenaky flm Inverness Counssl Inc. 713/785-9101 Tanner Mona Fridbcrg Invesunent Mgmt 713/622-2332 22 LAY 000022526 9 0 C 0 o r to> Cr N) -J I. - -a------ S 10/16/2001 Enron Corp. SQ 2001 Four Seasons Hotel - NYC 10/17/01 Last Name First Name Company Telephone Ach Laurence Tnhw Wort ham - 212/759-1755 Adelrnaa hiwence MorganStanley 212fl614368 Albert Craig Tudorkvestnenl/Ospmie Fund 2121602-5012 Albert An Carl H. Pforahcimmr&Co. 212/2234500 Aaanl Dave Citipoup Invcsmierns 212/539402 Dabbar Gaurav CWC World Markets Barth Michael Fulcra Global inert Callan Shannon ThstCowyof the West 213)244-0032 Christensen Bob First Albany 212/273-7127 Cohen Douglas Morgan Stanley 212/761-068 Cohen Richard StznSecwitieg 212/841-3209 Chopin &nj Goldman. Sacts & Co. 212/902-2298 Day Adrian Global Suategic Masgement, Inc. 420/224-2885 Data Paul Value Linelac. 112)907-1724 Diii! Craig A. Craig Dull Capftal 212J501 -3743 ElIinghsus Christopher Wimains Capital Omup 222/373-4234 Fisher Ran Stein Rae Invenust Counsel Ficiacher David Goldman Sushi 212/902-4531 Freeman Charles 3. P. Morgan Scaritia Inc. (US) 212/648-7257 Frelinghuysen Using. Carl H. Pfotrheimer&Co, 212J223-6500 Gabbay eli 212/622-6459 Gardner Chile Gilder, Gapes, Howe & Co 2121830-0627 Garvey Michael Angel; Gordon & Cc. 212/692-2007 Graves Ed Daiwa Securities Co., Ltd. 212/612-6114 Griabert Duane 1.4. Sanford C. Bernstein & Co., LW 212flS6-4206 flatly ThumP. 2121708.9161 Howald Gordon Credit Lyonnais 212/408-5853 Hove AMen DeutschflancAkxBron 212/469-5319 Jackaca Catherine Tamer WorthasA Co~ny, Inc. ZIZflS9*7755 Johnson Rusty 2a~wrMapinent, Li1. 902/218-7900 Jorachas Prank Rocketeiler & Cc. 212/649-5643 LAY C C' 0 0 2 2 5 I I I Last Name First Name Company Telephone Jwkowicz Thu Fiat Albany 212/273-7127 Kaukonen ThU Lord. Abbott & Conymny 201/395-203 Krun~1ys Jonas Lincoln Capital Lath Joel Ask Asset Management Laochua Emily Warner. Stoft. Bear Lancnic Gene IflGPurmanSelaCaplialMmnagement 212/30.5980 Laimer Curt - CrcditSulssePbstflostonCozp. 212/325-4269 Levy Andy Wiper, Stots, Bear Lindmner Jason Carson Group 2121707-0680 Malin Margot Neuberaer&Bennan 212/476-5944 Mmndemlult Eno OoldmanSacbs 2121902-4581 Mcyerboeffer Dale?. MilienniumParweu 2121841-4162 Middlemisa David INC Asset Management 212/309-3433 Miballo Ed Ford Foundation 212/573.5040 Muno Orson Munn. Burnhard and Associatea. Inc. 112/370.7300 Neumann Dan Bane of America Pellechia Ralph Fitch IECA 212/908-0586 Perry John John S. Herold. Inc. 20313594339 Porter Tim Mark AssetMmnagemenaCorponuion 212/372-2300 Pulvirent Stuart Equinox CapItal 212/2074142 Rhvacher Brian Morgan Stinley 212/7614368 Reach Melinda Gilder, Capon. Howe & Co. 212/830-0627 keeder John IfrflAssociatea 212-583-0600 Salles Philip Credit Suisse First Boston Coup. 2121338-4221 Sarat Seti Douglas C. Lane & Ausoclws 212/262-7670 Saul Stacy George Weiss&Associates 212/415-4566 Schmidt Brian SalomonSmithflamney 212/816-2699 Settles Kenneth Neubeqer Hernia Shisko David OaigbuillCapiral 212/508-5743 Smith i~iiT Deutsche Bank lnternadonalLtd. 21214694446 Solsberg Anita Reliance Imumee 212/909-1100 Stark Jonrnhanfl. VHS Waaturg 212)713-2875 Snssberg Sloven Angelo. Gordon & Co., LI'. Vulente bunts Benuardilereld&C 2121371-3068 LAY 000022529 10/16/2001 'I S 1O/16/2001 Last Name First Name Company Telephone Della Voip. Vince The YMCA R*Lirement Fund 646/4Sa-2462 Yuchtich Kathleen W. H. Reavea & Ct, is, 2Ot/332-4596 Washyohyn William D. Thbz W. ETiSWI & Co., Inc. 212/319-5872 Waterman John Ritteribouse Financial Services, Inc 610871.9300 Weubcr Michael INC Furman Belt Asset Management 212/3094345 Weizon Hugh Fitch, Inc. 212/908.0746 Wideinan DiM - Sanford C. Snatch & Co., LW Wolff Yanneilo 72 LAY 000022530 -A 10(16/200! EmrOD Corp. SQ 2001 Luncheon Four Seasons Hotel 10118101 Boston Last Name Fin: Name Company~ Telephone Allen Busy Fleet Investment Advisors 6171341-2213 . AmaM ham CoiigussAssetMngant 6171428.4301 Mnyowiy Steve United States Duel Co. of Boston 6171726-7000 Austin Mamkc The Boston Company Asset Mgmt 6111722-7937 Deal Ocorge BoatonPnlyOffice,LLC,The 800)900-4401 Bowers David Bvervnuliwwnenu 617/210-3422 Bran Jacob Nonhhmer(canMamgcwentCosp. 6l7/695.2100 Coleman Wendy Independence Investment 617/228-1109 Ctac, Miner SeawurdMmnsgcmcntCorp. 617/426-1196 Onus Paul Fiduuiszy Trust Cc. 617/574-3417 Davis Paul DavidL.Babson&Co. 6171761-3813 Eddy charles Fiduciay Twit Cc. 61 VS74-3417 Evans )aspusM. HaitorCapltaiManageinat 617/478-7221 Pasclsrto Cbuistopher MehonPdvateAsxtMmnagemenz 617/248-3233 Gerlich Tense PwedomCapitulManagemen: Corp 6171725-2234 Onibman Richard Higjields Capital Mgmz 617/850.7500 Hemon Audrey ELM Management Company 617/896-4248 Hewin Mike Ccv. of Singapore 7811fl9-5871 Jiosgiand CarhonO. State Bust Sank and Tt Co. muon 617/664-3210 Jacobson John HigbhddsCqimlMgmt 617450.7300 Joun, Jr. Samuel B. Trillium Asset Management Coip. 617/423*GGSS Kbalimn Vfr ZmichScudderlnvennu 617/29*1000 Lemmas David Cambridge last Company 611/441-1327 Madis Kelly LPL Financial Services 800/775-4573 Maloney Mark JobaHancockPunda 617/375-1544 Mayo Pjcbasd Granibas, Mayo, vanOtlarlooLLC 617/346-7W Mikula Osryt Eaton VanceMmgement 617139141S3 Mulligan Nancy K Northeast Inveaeat Management Noons Sonata Am2letonPaaen 6171338.O700 Penny Lucas Loomis, Saylca & Co. 617/346-9787 Phelps Gregory K. JohnHancock Funds 617137S-1676 t Wi 000022531 I .1 10/16/2001 Last Name First Name Company Telephone Satiow Las EabsonUnitedlnycslnientMvuors 781443.1304 Itiposo Luji OmnettWehh&Koderlnc. 61712364fl0 DeRosc Linda Independenco Invaumet LW 617122*4701 Thin John Gmotham.Msyo.vanOiterlooLLC 617/346.7526 Tunic Ezncuon Wellington Mmnagennt 61719514445. Walsh Dash SIatoSuectReuearch 617/357.1335 Washburn NI) . 7811906-3250 Williams, Jr. BenJamin 3. Welch & Forte. 6171523-1635 ZapohH Walter Appleton Paners 617/3380700 39 L WI 000022532 Enron Corp. 3Q 2081 Luncheon Four Seasons Hotel 10)19/01 Philadelphia Last Name First Name Company Telephon. Miter Sand DOE Securities 215/546-2300 Cupenter Darron L. PNC Advisors 215/585-5103 Cecilia Ernest B. Davidson Capital Management 610/1544030 Conrad Sandra Logan Capital Management 215-831-93)1 DeSipie. CPA Joseph First IDVCSUKIC at Advisots Drew Maria Delaware Investmneot Advisers 215/255-8717 Fraser Jack Seamark capital, I.. P. 414/840-1330 Oases Scott Gardner Lewis Asset Mgnit 610I55S4~00 Austin Ohislalne Vim Investment Advisors 215-670-3102 Omsbera lad BlackRock 302/797-2262 (hewn Lasryt DuPoasCaplial Management 302/477-613) Gowen Santa Friess AssocIates 3021657.540B Hammerschznid: John F. Turner Investment Partiers 610/408.3206 floylt TiM LozancapitulManagement 215/851.9490 Jennings Keith BtownsrotehhliarrimanaConwany 215/864-1354 Jones W.Dn,cc Widm*nn. Siff&CO., Inc. 610/520-0500 Joseph Sabu DOE Securities 2151546-2300 Lanyc Steve Delaware lnvnmnw 215/253-8115 Lawrence LinonD. Fore&ontCapitalAdvisora 2151496-4053 Leigh Michael Tucker Anthony Sun 215/357-1155 Mancuso town GlcnmedeTnxstCoinpany 2151419-6 034 Meyers Jim Town Bridge Advisors 610432-5259 Pride Jason TheRirtenhouseTruatCowmny 610/9954715 Rarer Ted RorerMsetMangemenr,LL.C 215/640-3182 Wen Bob Pint Union Secwisies 6101378-3011 Wiudham Bryan Phi Union Secwtics 610/378-308l VanAilen Jim Janney MonigametyScort 2151665 -6514 LAY 00 00 2 2 53 3 10/1612001 26 0 0 0 or N)> Cr 1:1 Blackflook Profile I.' I if 3 p Morgan Securities Inc. Ownership data as or 06130101 Page 1 I Page 2 277 P5* AflflIfl New Yoflr, NY 10172 Tel (212) 483*2323 On December 31. 2000. diMe ManMttaii Corp. and J.P. Morgan & C.. merged to torn. IP. Morgan O.au & Co. 2.P. Morgan Secinluen Inc. Is tue brokerage/e~ulty research divblon of J.P, Morgan ltwe$twnent Management. 2.9. Morgan's larget aubsidlary Is tiorgan Guaranty Tnt Company at flew Voric. Fac (212) 648-5 104 MEY CONTACTS flame AIWtOl Feygin Kyle RUdOn Gil Gabbay lngrw MSIUI INDUSTRY WEIGHTINOS Top 10 Holdings Publishing TeIcom-lntgrm CoEnPiJtei' SftW. Computer Sycs Sick. cimology Electflc Cos ci1&GasIeFng Comm-Speclality Oil&Gas.lrnl Finan-DvSfd Title Security Analyst Vice PrtsIdeotdSeli*SIde ASSOCISIU Analyst Phone (212) 622*8448 (212) 648404S (2fl) 6224459 Security Anaiyst/Sell.Side (212) 648-7493 SIP %Port$Chg Top BUuya (37.1) 8.4 35,4 PubliShing (7.1) 6.8 ~Q,g Computer Syce (1.4) BA '25.3 Plnma.DvsM (4.8) Si 33.7 AZIT-Offc Props (54) 4* 8.7 TScoM-Intgfl (2.0) 4.7 18.7 T~p 5 bUs (46.9) 4.7 15.6 TtIcoEnOIUWd (120.5) , 4.5 11.4 Compgter5ftwr (0.9) 4.3 23.0 Hat Gas DS'*Pt (1.8) 3.7 23.0 tiemtnu Hflcar.Hosp PORTFOLIO CHARACURISnCS Enron Corp SIP 500 I.?. Morgan Securities Inc. HOLDINGS (All Cap) PIE Yield Price/Est Efl 27.7 L4 25.0 1.4 25.3 1.? 5&P % Port $ Chg Total (37.1) 8.4 35.4 (4.8) 5.9 33.7 (1.8) 3.7 23.0 (NA) 3.3 22S (7.1) 6.8 20.9 SIP % Port $ Gig (2.1) 1,5 -26.1 (1,4) 5.1 .25.5 (0.1) 0.1 .16.6 (0.8) 0.9 .17.4 (0.1) 0.0 .12.6 19.2 14.0 24.1 Style Quanta von Turn~ve, * Cf StockS Held ?o4cNo Turnover Equity luaU (5MM) Core Growth Pa, sin Mien 849 157.4 692 Investor Type ftesemrch Finn POSITIONAL HISTORY Date Position Change h Out Currant VIA NA NA PEER OWNERSHIP 06/01 03/01 12/00 Top 10 ($1414) (5MM) (5MM) AU 5.3 8.0 0.1 NRC 0.2 0.0 0.0 0Th 0.0 0.0 IA £6 8.0 1.6 PORT DISTRIBUTION S41~alI Mid 17% 31% Large 47% US S Y' Cr Proj ROE 0ebt/E~uIty P/B Beta 17.3 10.1 79.7 2.8 0.9 14.9 20.5 54.? 4.2 1.0 16.7 15.7 30.9 3.4 1.0 AD3USTflENTS H 'Os TX 03921A142 AGC... Tot. MC.. Km.. 145fl $ Held 17.7 21.2 28.9 25.1. 24.8 22.6 19.8 19.3 18.1 17.0 $Chg %Port 35.3 B.) 31.2 4.5 13,3 4.3 15.9 3.6 22.6 3.6 22.6 3.3 3.2 2.9 15.5 2.8 0.0 2.6 .7.1 2.S P/E MA 20.5 11.4 NA 20.3 HA 10.2 31.1 HA 41.4 Yield NA 1.0 2.6 NA 2.2 NA 0.7 0.2 VIA 0.0 INVESTMENT APPROACH Proj US Growth NA 15.4 Si MA ACt... 11.6 G1921A142 HA 23.2 16.7 NA 16.4 Sells VSTL GPSI.. ccl svGt. Buys $ Held H 52.7 105 31.2 59K... 22.6 $ tug 25.3 31.2 22.1 % Port 8.3 4.3 3.3 Proj EPS PIE Yield Growth NA HA NA 20.3 1.0 15.4 NA VIA HA 24.6 224 3.6 20.3 2.2 11.6 25.1 1L9 3,6 NA MA NA Pro, Efl $ Gig % Poit P/E Yield Growth .27.5 0.0 PtA tEA NA -27.4 0.0 NA NA NA *19.4 0.0 lEA NA NA -17.0 0.0 HA HA NA -14.9 0.0 NA HA NA $ Held 0.0 0,0 ItO 0.0 0.0 C Copyrtght 2000 Thomson FlnanciaVCarson. All rights reserved. kttpit/www.igchann.l.eom http flww .hrchn?page=iosown&fonrnype=4 I &Lnanie-Enron%2OPect/920FR&insdd=IPMRGNOQ LAX' QOOC z2$t: Page 1 of 1 tL 10/1/2001 BlackBook Profile Page 1 ofa Lw Banc of America Securities L.L1C. Ownership data as of 06/30)01 -..g PagelIPaGe2 600 Montgomery Street San Francisco. CA 94111-2777 tel (415) 627-2000 Powidet 1971. In kptcmter 2998, NUIonsBabk Cmpomfloo and fl#nkA,nmnca CrOtItiofl COmPISS Uwir inw~erto form StatIc of A,nulca Coiporation. flstJonspmnc HOntgOMrySJrItUi ni renamed Ban; Cf Ameilti Securities In n.y ±399. me in ice conlldentlal filer. rex 1415) 627-5791 KEY CONTACTS Name Shelby Tucker WIlliam Maze Daniel lull, lames toQuto Title VIce PreStdeflVSMS4de Vice Presldent/SelI*Slde INDUSTRY WEICKTINGS Top 10 HoldIngs HiU,Car-OrgVPh Hld~car-flvsp foods Cmm.Spod.lIty Flnan*Ovstd QIlIGaS-Sycs Hithcat-tvsfd OIlIGaS-lnU Gaming Phone (212) 647-5085 (ala) 5834043 Senior Marimglng DiitCtor/ScB. (212) 3534030 Side Security Aataiyut/Sd'SIte (212) 1634523 SW %Port$ Gig (5.4) 5.2 272.7 (0.9) 6.1 204,6 (iLl) 6.0 44.9 (3.3) 5.0 60.0 (130.2) 4.9 140.9 (Li) 4.6 -79.4 (6.1) 4.1 17.1 (1.1) 4.0 101:0 (0.6) 4.0 68.5 (54.5) 3.9 -26.4 TopS Buys flkftC*r-Drp/Mi Uflwdc Cmm.Spedaflty HRhW-Onfd Iva-Comoncons Top I Salle Soinlwtduton ComMa, Mitt? TcIcum.Celi~frt tmn-bn~ hate em SIP %PorttCho (0,91 6.1 206.6 (3.4) 6.3 172.7 (130,2] 4.9 240.9 (2.1) 4.0 101.0 (3.2) 2.6 84.7 SIP %Port$Chg (0.6) 2.8 .110.4 (0.3) 0.9 48.6 (0.4) 0.3 -87.7 (2.3) 4.6 .79.4 (0.3) 0.7 41.6 style OrlOIltatiOn Turnover S of Stodcs Held P0,00* Turno.er Specialty Pasitte Eqvlty han (8MM) lilvUtor Type AtSflrch Firm POSInONAL HISTORY Date Position Otange Cunent 26,350 0 04/30/01 . 26,380 -2.284 03/31/01 4 28460 -1,194.205 1201/00 2,222,665 1.127,865 09/30/00 .0 -7,087 06/20/00 7,05? 6.687 03/32/00 400 -29.604 22/32/99 30.000 30,000 09/30/99 0 0 PEER OWNIRSNEP 06/01 0~/01 (8MM) (5MM) TopiC en' WMS DY,' 'jaG lila DUIC KMZ KG ABS 1.036 230.1 4,251 % Out 0,00 0.00 0.00 0.18 0.00 0.00 0.00 0.00 0.00 12/00 09/00 (5MM) (SliM) 1.3 1.7 101.7 0.0 3.5 9.3 2.3 1.5 3.0 6.1 4.4 3,4 2.3 0.0 0.0 0,0 2,2 1.7 0.6 0.0 1,3 2.1 0.4 0.3 0.1 1.7 1.5 0.0 0.3 0.5 0.0 0,3 0.3 '.8 0.1 0.1 0 0.0 0.0 4.2 0.7 Total 13.2 24.8 13.3 7.9 PORT DISTRIBUTION PORTFOUO CNARACT2RIS1IcS Enron Corp SIP 500 Smnc of Ane,lca SecuritIes LLC. HOLDINGS (All Cap) $ Meld $CA 252.7 PitA 186.0 0.3 173.0 HOG 167.2 TX 157.2 153.6 SW 146.3 AMY 139.3 StE 133.4 MI. 126.8 $ Chg 45.5 146.5 149.4 0.0 62.1 153.0 *91.0 138.5 0.2 10.1 % Port 1.9 4.4 4.1 3,9 3., 3.6 3.4 3.3 3.1 3.0 P/B Yield Price/eat UPS 27.7 1.4 25.0 1.4 27.4 1.0 P/I 25.3 24.1 31.1 17.5 11.4 NM 24.9 24.6 SI,' 29.4 Yield 0.2 1.4 0.0 0.0 2.6 0.0 0.9 2.0 1.5 0.9 19.2 24.0 26.4 Proj BPS Growth 14.6 16.4 as., 14.1 La 22.8 14.3 12.2 25.1 10.8 Buys PItA Os CX SHY HZ Sells Inc 081.1. SW Sot Thu INVISTHENT APPROACH BPS SYrGrPwj ROE $ Held 184.0 173.0 153.5 139.2 72.4 $ Held 34.7 2.6 146.1 0.0 0.0 $ Chg 186.5 269.4 153.0 131.5 70.9 $ Gig -141.3 41.3 *91,0 -66.4 -60.4 Small 8% Mid Large 18% 74% Debt/Equity P/ft Beta 17.5 10.1 79.7 2.8 0.9 14.9 20.3 54.7 4.2 1.0 18.0 15.5 e. 30.7 3.5 1.1 Proj VS Yield Growth 1.4 28.4 0.0 28.9 0.0 22.6 2.0 12.1 2.5 14.4 Pro) BPS Yield Growth 0.3 17.5 0.0 20.1 0.1 14.3 HA NA 5.1 8.3 % Port 4.4 4.1 3.6 3.3 1.7 % Port 0.5 0.1 3.4 0.0 0.0 P/B 24.1 31.1 NM 24.6 Its P/i 35.0 37.2 24.9 NA 13.7 § Copyright 2000 Thoansoft Finsndal/Carson. All rights reserved. http~ j/www.Ircha nnel.cow hltp:llw.. ./Lrclm?pagc=iosown&fwmtype=41 &lname.Enron%20?etA2OPR&instids.MNTGMROO LAY CO (in t'ir .4., CC-at. ADJUSTHINTS 10/9/2001 BlackBook Profile raw TCW Asset Management Company fflP OwnerShip dat, as ci 06/30/Cl -* Page 1 I Page 2 665 South Elgueros Street LOS Angeles, CA 90017 Ttl 1213) 244-0000 Fax (213) 344.0755 KEY CONrACrS Name SMCflOOfl Calan 1cM Campagnolo Brian BeltJ,et INDUSTRY WEIGHTINGS Top 10 HoldIngs DlOtfthflOlOQy Conicuter SAvir SemlcoMucto's Electronks Ths-Ptop&Cn~tv Intenlet Sra~Ccn,mCoos IV, Radio, Cabi Compute' nrdwr Compoter SvcS Founoet 1971.ThefltmMasuWdiu.Yof The TCW Group, Inc. Affihistes include Thzst Company of tile West, 1'CW F~utd5 Mgmt., Inc. and C*nflefltsi Asset Management Corp. Latin Amuitan investmend we managed out at New York. In july 2001, Societe General. aC4ulred #51% Sta, in the finn, 'Title Managing Otrector SCnC Vice President Managing Dflctor SIP %Poft$Ci,g TopSluye (10.4) 10.1 86,3 CompiftuSftwt (2.2) 9.7 230.7 flaiflhS (5.6) 1.1 Ste O,emlcals (13.6) 5.6 43.1 C*mputar-PMlph (69.9) 3.1 69.2 Top 5 Sells L&7) 4.5 72.5 Dflhcr.PflSw (tO) 4.0 23.7 AeW-Spec App (1.2) 3.9 3'.9 Nit GM Ost~PL (2.9) 33 18.1 Yelcom-ce~WN CIngQme, F~an PORTFOLIO CHARACTERIS'rIVs Phone (III) 2fl.00fl (ii)) 244-0124 (113) 244-0079 S&P % Poet (32) 9.7 (2.0) 0* (2.1) 7.1 (0.2) 0.9 (3.5) 1.5 SIP q~ Port (0.2) 03 (0.8) 0.2 (0.6) 0.6 (0.3) 0.2 (2.8) 2.3 $ Clog 220.7 220.3 132.9 117.5 113.6 $ Oig -192.1 .441 *622 .49.4 .47.9 Style Core Growl), OrIent Otto turnover * oP StockS Held Portfolio Turnover Equity Assets (INN) Active Mod 61$ 48.2 30,395 Investor Typo lnflstmeht AivIsen POSITIoNAl. muon Date 06/30/01 03/31/01 12/31/00 09/3(v0o 04/30/00 03/31/00 12/32/99 Position 3340.000 3,444.044 4.707.121 402,374 358A77 405,035 373.111 266.107 Chahge %Out 215.954 0,49 * 1.263,076 0.44 4,304,248 0,63 44.797 0.05 -46,938 0.05 31,924 0.05 7,004 0.05 -3,762,693 0,05 PEER OWNERSHIP 06/01 03/01 12/00 09/00 Top 10 (1MM) (1MM) (INN) (4MM) SHE 159.1 273.5 33.5 -31.4 MIR 6.6 6.8 14.1 0.0 ASs 3.0 3.5 3.9 5.6 ON 0.0 2.4 0.0 0.0 Total 9.6 12.6 20.2 6.0 Porn OZSTRIBIJTION Small 8% Mid Large 18% 73% Gnrot¶ cow S&P 500 TCW Asset Manhoeinent Company HO WINGS (All Cap) P0k scm. MXIM CELL ONA NSF? QCOM P.,,. $ Held 1,675.7 1,183.3 940.9 SI?.: 767.3 736.2 734.8 724.5 703.6 64Z.6 $ Chg 33.9 127.7 eo.s 76.6 42.8 )0.4 87.3 56.8 ?7.6 *50.7 % Port 5.5 3.9 3.1 2.7 2.5 2.S 2.4 2.4 2.3 LI INVESfl4ENT APPROACH P/S Yield Price/at 59$ UPS 5 Yr Sr Proj ROE 27.7 1.4 19.2 17.5 103 23.0 1.4 24.0 14.9 203 37.4 0.3 38,5 23.7 18.4 PIE 32.3 32.9 36.2 27.2 292.5 12.1 41.4 Ste 257.9 12.2 Yield 0.2 0.0 0.0 0.0 0.0 Proj UPS Growl). 12.2 42.3 27.3 20.1 as.. 0.1 13.6 0.0 16.4 0.0 27.3 0.0 28.9 0~3 19.5 ACJUSTMV4TS $ Held £32.9 1,185.3 '7.7 734.6 193.1 $ Held 0.0 0.0 0.0 0.8 169.1 unP Sill. csx NSF? ccu Sells CDT VIA, ROIAX HER Sill $O~ %POrt 132.9 0.4 127.7 3.9 87.7 02 87.3 2.4 81.9 0.8 SOig %Port '97.9 0.0 '73.1 0.0 41.8 0.0 .71.2 0.0 62.O 0.6 Det.L'E*uIty P/S Beta 70.7 2.8 0,9 54.7 4.2 1.0 51.9 4,0 1.3 Proj EPS Yield Growth P'S 14.3 32.9 30.5 1.5 lii 0.0 42.3 2.1 13.3 41.4 0.0 16.4 NM 0.0 26.3 Pro) EPS y~e4a Growth P/B 22.0 0.0 36.6 NA 0.0 27.3 NM 0.0 NA 13.6 17,5 15.4 1.2 27.7 1.4 TCW manges smail*, mid' and large-cap ,trategles, as well as growth and value. The firm focuses en companies whose stocks are undenalued due to simm macro trends or company-specifIc developments, whIch hive signiflcantly enhanced the outlook for profit gmwth, The Investment process begins with a weekly review and projection of overall economic arid financial market conditions by the Equity Policy Committee. This top-down review Is Intended to evaluzce the environment in which businesses and the financIal markets will be operating, as well as to Idenwy those industries and specific Companies that are being affected both positively and negatively. Statistical valuation benchmarks and ratios ale employed to gauge whether current manteL prices are appropriate In view of the projected rewards and risk. Portfolios generally contain, but are not limited to, between 100450 securIties. Investment Criteria: 1) Balance sheet strength: 2) Proven manhoemmnt team; 3) DomInant market position; 4) New product end matteL lnaovavOn; hupJ/w../irchn?page=iosown&fonntypo~41 &Iname-Enron%2oPcers&instid-TCWSSTOO 30/15 '2001 LAY 000022537 Page 1 o(2 ~k7fl~kt1. -C- .!1. ~""~AL 0 9 BlackBook Profile Page 2o(2 .fl w,I...~qh., ~Whb~b~'~3 -I- *d,umvtg.tIa. 6) HIgh return 041 hsstts and equity; 7) SustalniWe. .bove-.vertga gmwV~ expectatIons. Sell CfIteila: 1~ OecIIne o?15% (mm purchaSe pitt or msrl,t cycle high, OedsIon-Malcing Process: The Internal nnmrft staff @135 qulty analysts, zogether with the five members of the Iaroecap equity team, develop investment ideas through their own field rthtarth. Street h~puts, and other sources, C CopyrIght 2000 Thomson PIrtancIuI/Chrton. All flghts reserved. tattptljnwjrchumi,Liou, LAY 000022538 http://w. ../frcbn?paau=iasowi&fornltypu.41 &lnamrEnron%2Opcers&imtid=TCWSSTOO 10/1512001 It ) BlackBook Profile I. L W Goldman Sachs & Company Ownerib p Oh as or 06(30/01 Page lIPage»= Doe New Votk Plan NeW York, NY 10004 Tel (2)2) 902-WOO P8K (222) 902-1512 KEY CONTACTS Name David PIelter David HiccanOne HOW O~oI Neal Roy INDUSTRY WEIGHflNGS Top 10 HoldIngs mv Barilrjfiroker Klflflr Otis/Pb nat Gas 0W-Pt Entertalnwent complitir Mw, Consunier I'rnan Electric Css 1,,s-MuIcpUne fllthC*t.DvStd Fin sri ~flvSld Founded: 1869. Goldman Laths Isa leading global lnvesm,ent buitt.g and s.cwlUa. finn. providIng AM i$5fl o$l.w.sung. advlsoiy, and financing servIces. Mar more than a century as a private partnership. Goldman Laths beta',,. a publIc company Iri 1999. In the sumrv%et @12001, the finn acquired Epoch Partners. tie Speclaity odentadon Passive Turnover * Cl Stocks Held Podovo Turnover eQuity ~aaeu (SHIfl Investor Type Title Phone Managing OJrector/Sd.Sidc (212) 9024018 Vice P,tsld.nt'SelI'SIde (112) 902-0324 Security AAIIflVSII-Sldg (312) 90l~41S9 WI PrOSldenVSMl-SIds S&P %Porttchg TopSBaaya (2.2) 9.1 -67.2 HltJ,u,'OqtJPh (0.9) 6.3 651.4 RetaIl-Oah, St (4.4) Ii 215.1 IeastgOnsM (2.1) 5.8 *123 computsSftwr (1.2) 5.3 357.7 Hat Gas DW.Pt (5.5) 4.? '47.0 TopS 5Mm (1.8) 4.4 46.3 Mum-Industry (1.42 4.2 19.2 Cgn,putjflirtw (LI) 4.1 .12.7 Personal Cars (1.9) 3.8 1.9 Compttur-tietvfl Ehe~'oolc (212) 902.3472 SIP % Port $ Chg (0.9) 4.3 651.4 (2.0) 2.5 501.8 (2.2) 2.0 398.1 (1.2) 5.3 35 7.? (6,6) 6.0 215.1 58$ % Port $ ~w (0.2) 13 .S27.2 (0.8) 2.7 ~376.1 (1,21 0.9 .488.1 (0.4) 0.5 -443.0 (1.3) 1.5 .141.1 1,284 65.0 20,447 Research fl~i. POSITIONAL HIStORY Date Position Change % Out Current 7,400,000 610,367 0,99 06/fl/OX 6.749,633 US$632 GAO 03/31/01 4,990,981 -915,818 0.65 12/11/00 5,805.799 ~26,106 0.77 09/39/00 5,332,901 .3,848 0.78 04/30/00 5,836,713 229,671 0.78 03/31/00 5.607.082 -2fl.447 0.73 13/31/99 5,g02fl9 1,356,232 0.79 P21K OWNERSHIP 06(01 ($HM) 331.4 82.1 55.' 16,2 Top 10 HE Kl41 Will ABS vco HIR Dug' DVII 0 0,3 TAP 0.0 Total 166.? (5MM) 284,2 62.4 9t9 20.1 12/00 (5MM) 482.7 45.0 77.6 42.0 09/no (5MM) 311.1 27.5 103.2 49.4 4.2 4,5 0.3 0.2 3.5 3.9 6.6 5.6 2.? 3.3 2.5 2.2 2.0 2.3 5.0 3.6 0.0 0.0 226.4 PORT CISTRISUflON Sn,a II 4% 1.6 1.4 0.0 0.5 190.7 195.3 Mid Large 11% 83% PORTFOLIO CHARACTERXSnCS Enron CG. S&P 500 Goldman Laths & Comp*,y HOLDINGS (All Cap) PIE Yield PrlceIBst En 27.7 1.4 23.0 1.4 30,5 0* l9.2 24,0 n.e EPS 5 Yr 6rPm) ROE Debtdequity P/8 Beta 17.8 10,1 79.) 2.8 0.9 14.9 20.5 54.7 4.2 1.0 P.S 22.0 25.7 4.8 1.2 ADIUSTNENTS C MRS GIN AIC VIA B AS? FAt ADP NOT S Meld 1,168.8 871.1 824.3 821.0 724.2 688.9 685.4 666.3 643.0 634.4 $ CIg -4.8 12.0 1.7 La 1.2 2?.? 653.4 32.7 64.6 40.6 % Port 3.7 4.2 40 4.0 3.6 1.4 3.4 3.3 3.2 3.1 INVESTI4ENT APPROACH C CopyrIght 2000 Thomson PlnanelaVCarson. All rights reserved. http://www.ivchaan.l.corn LAY 000022539 http://w.../irchn?page=iosown&ronntype=4 I &nne=Enon%ZOPeor/.20Fft&inslid-GLDMNSOO 10/9/2001 Page 1 of I 1. I P/E 16.6 30.5 43,5 30.4 NA 21.1 21.5 15.2 13.9 41.9 Yield I.' 1.0 0.0 0.2 0.0 1.7 2.2 1.3 0.8 0.5 Proj ePs Growth 14.2 19* 22.5 14.5 27.3 12.4 11.8 14.5 15.3 17,4 Lily. MIX wIlT VIA MS FT 'WY Salle 01 IBM csc~ G El. $ Meld 685.4 sot, 400.0 291.1 486.) S Meld 48.5 40.4 55,3 64.3 47.6 $ CIW 653.4 492.7 295.9 346.9 97.9 $ Chg .81?.? -593., .3957 -260.2 *22 1.5 % PM 1.4 2.1 2.0 1.9 2.4 % Port 0.2 0.1 0.3 0.3 0.3 P/S 31.5 33,3 17.2 4 IA 18.1 PIE 30.8 21.4 2014 29.4 29.1 Y,eld 2.2 0.6 2.9 0.0 0.0 Yield I.' 0.6 0.0 2.1 0.5 Proj EPS Grovvtl, 11.8 14.2 10.6 16.4 16.2 Proj EM Grown, 15.7 13.1 21.4 10.3 13.2 Blackflook Profile UBS Warburg LLC IN Ownership data as oF 06/30/01 - PagelfPag*2 299 Pitt Avenue New Y04C, NY 10171.0034 Tel (312) 821.4000 Pounded, 1832. The firm is a su.bsldlery Of VOl Style AG. A1ter~lt mergerbetuttn USS and 58cm 1998, U¶. l*we*n,ent kM*bg division wee renhmet waiting 011100 Ash. U.C. On M*V 1. 2000, Wrntvrq Owon Read UJI.ngad Its name to 1)85 Witting. Co November 3. 2000, VOl acOIjlrtd Palnewebbe,. Fax (212) 821.2255 KEY CONTACTS Name ftnald Barons Janice YaAAtllo R.ii Esguiwi INDUSTRY WGIG1IflNGS Top 10 Holdings HIv~car.DrgVPh CompiAer Sftv,r MuftJ'lflduSt4 Computer Krdwr Food; OiI&Gas.lnti 8.nlcs-140A5Y Or enhvulninene Sentonguctori i,w BsRiQBtoker Tine Phone Min*gIng OItector/SelI4idC (212) 713-3S48 Vice PrtsldentdSeIl.SIde Director Slit!. Equity S&I' % Port (1.0) 4.5 (1.4) 6.4 (0.9) 6.3 (1.7) 5,7 (3.6) 5.4 (1.0) 4.9 (1.0) 3.3 (1.1) 10 (0.9) 3.0 (0.7) l.a $ Dig Top S Buys 265.5 Foods -1,264.9 HItftw-Ofgs/PI1 .56.4 Bofllnment '344.0 ASIkohdS 803.1 CIectic Cos 426.3 Top 5 5.13* 315.3 Ccm~umr SAw,' 208.3 OMLOus-InU 81.7 fltCom-CSU/Wfl 98.0 COmputer Hntnr iv, tao, Cabi (212) 713-3677 (222) 71343S3 S&P% Port (3.6) 5.4 (1.0) 8.5 (LI) 3.0 (2.7) 1.0 (0.9) 2.3 SlIP % Port (1,4) 4.4 (1.0) 4.9 (0.4) 0.3 (1.7) 5.7 (2.2) 1.5 $ Dig 805.1 268.5 208.3 172.0 110.2 $ Chg -1,244.9 -626,3 492.2 -344.0 .325.6 Specialty one ntaoi, Tumovir * of Stocks Neld rortioflo Turnover E4uity Asses (9MM) Invetor 'Type ft.swch Firm POSITIONAL HISTORY Date Position Chahge Current 0,100,000 435.088 06)30/01 7,464.912 -214,710 03/31/OL 7.879,622 2,690,055 12/31/00 5,189,556 -2,245,308 0*30/00 7,434,874 -20,014 06/30/00 7.454.888 145,545 teEn OWNERSHIP Top 10 ENS OUK ASS 0 0Th ICKI kG NAG TV Total 06/01 (5MM) 276.3 33.3 24,7 21.9 20.3 oval (5MM) 457.8 29.9 23.9 Is., 19.5 12100 (5MM) 431.4 21.1 7.6 12.0 7.6 Pa selve High 1,403 143.1 22,979 % Out I.06 1.02 1.03 0.69 0.99 0.99 09/00 (5MM) 051.5 22.9 22.6 9.9 14.8 £6.4 16.3 6.3 0.3 10.1 Wi 32.2 32.3 4.6 4.5 9.1 7.9 03 0.0 0.0 0.0 0.2 0.4 0.0 0.3 132.1 123.7 97.7 111.1 PORT DISTRIBUUON small *4)4 3% 7% PORTFOUO CHARACTERISTICS P/B Yield Enron Corp 27.7 1.4 SlIt 500 25.0 1.4 UBS Wflui LIt 26.0 1.3 Prlce/Est EPS HOLDINGS (All Cap) old. OAT, MIII GE aSIC Wa line ENS ItOH C $ Held 797.5 771.4 641.2 547.6 537.4 407.8 395.4 276.) 354.2 351.9 $ Cri9 -127.3 756.0 -1.383.1 *98.0 365.0 -199.7 56.6 -10,5 '60.2 78.0 We Port 3.' 2,5 2.9 2.5 2.4 2.9 La 1.7 1.6 1.6 Pie 27.2 28.6 41.4 30.9 NA 18.5 31.0 27.7 14.8 16.6 Yield 0.0 Ii, 0.0 I.E idA 19.2 24.0 fl.2 Proj IPS Groutfl 20.1 HA ±6.4 13.7 NA 2.6 9.0 0.3 17.3 1.4 17.5 SPS S Yr Gr Proj Large 90% ROE DeW/Equity P/B Beta 17.5 10.1 14.9 20.5 ~.Z 21.9 A03 U ST P4 5 N TB Buys OAT., asK VT AOL ORG. sells HEFT 1.1 7.7 B~ 1.4 14.3 LI4C A von WA SHeld $Chq 772.4 75&0 537.4 365.0 317.2 178.6 250.6 170,5 252.6 1323 $ Held 541.2 202.2 1St6 4.3 401.8 INVESTMENT APPROACH $ trig -1,383.1 -642.2 .249.6 -In., % Port 3.5 2.4 1.4 1.1 P/E 20.6 HA 14.1 NM 1.1 27.9 % Port 2.9 0.9 0.7 0.0 1.9 P/e 41.4 16.0 NM HA 18.5 79.7 2.8 OS 34.7 4.2 1.0 32.7 42 1.0 Proj EPS Gro*th NA NA 14.5 HA Yield LI NA 3.4 0.0 0.0 24.8 Proj BPS Yield 0,oMh 0.0 15.4 2.8 8.0 0.0 NA I.) 24.0 2.8 9.0 C Copyright 2000 Thomson Flnandiaycarson. All rights reserved, hltp:Ijwww.i'channel.cow LAY 000022540 ht:p'f/ww farcbn?page=iosown&fonnt~c~4 I &lnnnonEnron%20Pe09/.2OFR&inshidrDLLNRDOO 10/8/2001 Page lot 1 A 0 0 0 0 C' tO < I-" I-. lb Page I of 2 BlackBook Profile Iarg!av.231 Lv Alliance Capital Management LP. Ownerthip data as of 06130101 Page II Pa9e2 1345 Aveflut @1 tj,g A*,eflcas New Yost, NY 10105-0096 Tel (»=12) 969'1000 Fax (212) 969.2118 KEY CONTACTS Name A~¶nZe Thao SUMMC LIJIt paut Mama. INOUSTRY WEIOHW4GS Top 10 HoldIngs NgIV.ind~fly H mica r.Drg S/ P h Thu SmnkJBroker ComI,ute, Shwr 9.nktHosieY Cr mt. loment lv, RadIo, Cab OU&Gs..Iflfl Coasumer Allan RUll.Dept St Sounded: 1962. ALliance Capital M.nggme.fl t.P. Is. s'jbsldszy of MA Finandal, Inc., fos'mefly lb* lwjikflhe Life Aisurmncy Sod ety or u.e Ucited lUte, a subsijaty ci MA*UAP. 'The firm manages the Alliance Funds. Gui October 2,2000, AllIance Cap4UI Cr4 ulrtd Sanford C. Santa. Title vice President Vice President OirettM f ScaM E.~ultY Rewire SIP %PortSCbg Top5Buys (0.7) 3.0 -244.0 CornNt.? MWT (0.8) 3.3 623.6 0lI&GaI*Svcs (0.6) 2.6 2,171.2 0Ii&Gas-In~ (0.6) 2.6 96.9 Ccoip.AarSvu (0.9) 2.4 '114.9 Top S Sells (3.0) 2.0 842.3 tsmpJtAr4detWrk (0.4) 1.9 1,174.4 Vomputer-Pmflplt (2,1) 1.6 128.8 Comm. Iq.flm (3.8) £7. 904.5 Eiecn#w Sent ntnws 1222) 949-1174 (212) 969-2410 (212) 969-1146 SIP % (0.6) {o.6) (0.7) (0.4) (0.9) SEP % (0.7) (0.5) (0.6) (1.3) (0.4) Port $ O'~ 2.6 2,171.2 4.3 1,268.4 0.5 1420.4 1.9 1,174.4 1.1 1,015.6 Port $d~ 0.9 -1,522.5 0.2 .819.0 0.9 -803.3 1.5 .480.0 1.) .444,8 Style OtlmntiuM Cat Grmfl Attfl turnover Mod * Of Stocks timid 2,987 Peace. Turnout, 56.3 Etulty ASMO (5MM) 394,915 Isivesto.- type lr,vesvnert: Mvlscn POSZTIONAL HISTORY Date Position Change % Out Qiwent 40,000.000 14,814.362 5.23 06/30/02 23,185,616 6.409.253 3.36 03/31/01 18,fl6,165 7,974.862 2.50 12/31/00 10,801,402 7,870.591 1.44 09/30/00 2,930,812 433.450 0.29 04/20/00 2.497.362 -231,637 0,33 03/32/00 2,788,399 '1.487,215 0.37 12)31/99 4,274,214 303,948 0.57 0/30/99 3.772.255 229,834 0,50 PEER OWNERSHIP 06/01 03/01 12/00 09/00 Top ±0 (5MM) (5MM) ($104) (snM) ShE 1,236.6 1,090.1 897.9 256.8 AU 1,169.3 1,116.9 1,003.6 937.7 OVid 2,024.9 809.3 614.2 424.0 011K 131.2 209.4 181.5 292.) P~0 49.5 111.6 . 310.3 17.5 MM 37.0 1.4 2.6 0.0 WMU 35.8 45.6 40.3 38.8 0 31.7 42.7 45.1 21.3 14,2 24.9 11.6 13.3 041 Lap NAG Total 3.8 6.2 6.3 0.4 5.2 2t6 1.4 1.7 2,569.9 2,437.1 2,217.0 1,457.1 PORT DISTRIBUTION PORTFOLIO CHARACTERISTICS in roll Cot~ SIP 300 Alliance Capital Management LP. HOLDINGS (All Cap) C Pr, GE AOL MW? 'Ye KU KS! PHA Ala $ Held 9,092.4 7,021.2 5.58 1.0 6,527.0 5.79 2.7 5,758.9 5,051.5 4.6523 4,887.0 4,383.4 $ dig -523.6 415.9 346.9 2,474.4 20.9 85.4 757.1 616.0 739.9 % Port 2.3 1.8 1.7 1.7 1.5 IS 1.3 1.3 1.2 1.1 P/e Yield Price/Eat US P/C 16.6 32.5 30.8 NM 41,4 20.1 20.5 43.3 24.1 30.4 27.7 £4 23.0 1.4 27.5 2.3 Yield 1,4 LI 1,6 0.0 0.0 0.1 1.0 0.0 1.4 0.1 19.2 24,0 Small 1% EPSSYrGrPrO) 1108 26.8 Pm) OS Growth 14.3 20.4 Is., NA 16.4 19.2 Its 23.6 11.4 24.5 17.5 10.1 14.9 20.5 16.5 Iti ACZUSTI4ENTS Buys 85FF LOS O4~K AWE an Sells oco 'tic HOSe cact * Held 5,792.7 1,613.2 2,905.5 3,101.3 1,123.2 $ Held 2,762.6 0.0 513.8 1,441.3 716.1 $ ala 2 .4 74.4 987.0 832.9 tOLl 791.5 .1,426.3 .8u.2 .831.t -394.5 ~563.8 % Port 1,5 0.4 0,8 0.8 0.) % Poet 0.7 0.0 0.1 0.4 0.2 Mid Large 9% 89% OebuEquity P/B Beta 79.7 2.8 09 54.7 4,2 1.0 30,8 3.8 1.2 Proj PS reid Growth 0.0 14.4 1.0 15.4 0.0 16.1 0.0 31.0 0.1 20.5 Proj PS Growth 23.4 NA 23.7 12.9 24.5 PIE 41.4 20.5 NM NH 25.0 P/B 201.0 NA 22.6 15.0 27.9 Yield 0.0 NA 0.0 2.0 0.0 LAY 000022542 10/9/2001 -A BlackBock Profile Page2of2 2 INVESTMENT APPROACH Equity pt'cducts include Large Cap., Urge/Medium Cap,, Research Values, Disdplined Growth, Hudson River Growth, DIsciplined Core, Convertible Serwities, Aggressive Growth, Style Wilts (Passive), Enhanced Index, Global EquIty, internatIonal Equity and Emrlng Markets. The Urge Capltibhatlon Growth Equity strategy begins with the AlIlance I0O, from which companies with supeflor relative fundamental strength, earnings momentum, end attractive wluatlons are chosSA to f&iii the Favortd 25. Focus is on short*tenn relative valuation. Large and Medium Capltaiizaklon grovat funds seek companies with prospective earnings momentum across the capitailzatlon spactmm. Hudson River Growth EquIty Invests in companies with tue potential for strong earnings growth, thong and stable cmpouste management, high ROE, ann aofld balance shut The Aggressive Growth Strategy looks fur dynmits Of change that will acceleute earnings growth above market expectations. It looks for emerging industry leaden, with an emphesi. on small and inI&slze companies. Dlsdpllned Growth uses the security scoring system to evaluate momentum end vaiuations. Research Value Equity seeks stocks with strong management, above*averuge industry positions, excellent balance sheets, and me ability to demonstrate superior earnings growth. The firm looks twin annualized expected total return that is ether greater than 18% or twice the expected S&P SOO rewin. C CopyrIght 2000 Thomson FInancIal/Canon. All rights reserved. httpd/wvcw.Iichannetcom LAY 000022543 htp://ww.Jirchn?pageaiasown&formtyp~41 &InarEmon%ZOPeer%20pR&insUdaAtLNCCoo 10/9/2001 I BlackBook Profile 3ohn Hancock Financial Services, Inc. OwnenI,19 data as of 06/30/01 PageliFagel - 101 HuntingtOn Avenue Boston, MA 02199.7603 Tel (61?) 3751500 Fax (617) 375.1700 flY CONTACTS Name Gregoey Phelps Mart Maloney William Stamen Founded: 1862. 3aM Hancock Snmncis Services, Inc.,i pubulcIy*trSde4 compa.y, La me parent eollWal¶Y Of I flun¶Wt of subsIduailtI. These indude John Hancock Aivisens. John n.j-cock Life Inseance Company, ant Sve,elgn Asset Management. Title vice PresIdent Research OllI0r hccutln Vice Neildes John DeCIttlo Executive Vice Ptesiotftt INDUSTRY WuIGIITINOS Top 10 HoldIngs S&P % Part$ Otg TopS Buys Bartlcs4eglonal (33.8) 8.7 -27.7 Sarda-MsJ Rig Sanks*Maj leo (3.2) 8,7 137.9 Semlconductore 1.w IanleJ&oker (2.3) 3.6 -3.0 TV, Ridlo, CaN Flna,vovufd (2.4) 4.7 .70,2 IMSOWU Bees-Money 0' (1.4) 4.4 -249.0 lflad4rAb.Un# canwutrSftm (0.9) 4.2 -StY TepSSMls eect,milw (1.41 4.0 119.6 Smna~MoneyCw SM,Cos (8.0) 3.0 29.6 Cunputsrsvcs Hultl4ndustiy . (0.5) 3.3 32.8 bwHaogemenc hectic Con (1.4) 3.3 10.8 ~lnpqloumm flnhn.DvVd Phone (517) 375-1675 (62.7) 375.1544 (617) 37543~ (117) 572-5000 SW % Port $ Chg (3.2) 8.7 137.t (0.8) 2.8 124.5 (4.8) 3.2 220.0 (3.4) 4.0 119.6 (0.9) 2.2 67.7 SIP %Port $Chg (1.4) 4.4 -149.0 (0.8) LO -215.6 ~1.7) 0.5 *8S.9 (0.3) 04 -71.5 (2.4) 4.7 70.2 PORTFOLIO CNARACTIRIS1ICS Style Core Value C$SItSUO., Active Turnover Nod * of Stocks Held 956 Porvoto Turnover 53.9 LQOIIYAJSI. (8MM) 18.532 Investor Type IASUISOC4 C..or.anles POSITIONAL HISTORY Date Position Change % Out Current 2,100,000 1.919,232 0.28 041)0/01 . *i00,flB 114,419 0.02 01/31(01 "66.Z.44 24,OZs 0.01 12/31/00 41,423 29.734 0.01 09/WOO 11,687 . -6 0.00 05/30100 11.693 '215,431 0.00 03fl1/00~ 227.125 227425 0.03 12/32/99 0 0 0.00 09/)0/99 9 0 . 0.00 Pill OWNIRSHIP 06/01 03/01 12/00 09/00 Top 10 (5MM) (5MM) (1MM) (5MM) iKE 9.9 3.0 3.4 tO diJK 19.5 22.1 22.4 26.9 0 27.0 24.2 27.3 24.6 ASS 4.1 7.3 10.0 4.9 HER 3.3 0.0 0.5 0.0 DYN 2.0 0.0 2.4 4.2 WHO 0.4 1.3 0.0 0.0 TIP 0.0 0.2 2.6 2.0 PCO 0.0 0.0 0.0 2.3 Total 46.5 56.2 63.4 64.9 PORT DJSTRZIUTION Small Mid Large 16% 22% 62% Cr11-on Corp 5&9 500 John Hancock Financial Services. Inc. HO WINGS (All Cap) $ Held C 371.1 275.0 FY18 234.5 GE 245.4 WFC 240.3 AIG 214.2 TYC 210.6 207.5 FBF 195.9 887 185.0 $ Chg 25.0 50,0 713 .3.3 .5.' ~2.8 4.8 -11,6 -29.0 27.7 % Port 2.0 '.5 1.4 1.3 1.3 1.2 1.1 1.1 1.1 1-fl P/E 16.6 15.9 30.0 30.8 18.3 30.4 20.1 16.0 15.9 16.0 P/E Visit Price/En PS EPS 5 Yr Ge Pvoj ROE 27.7 1.4 19.2 17.5 10.1 25.0 1.4 14.9 20.5 23.7 1.4 16.8 17.1 Yield 1.4 1.6 1.4 1.S 2.3 0,2 0.1 3.1 1,6 2.6 P,.j PS 14.3 14.0 14.3 15.7 12.0 14.1 £9-a 12.2 20.7 11.4 24.0 22.9 ADJUStMENTS $ HeLd 129.0 138.8 234.3 115.0 275.0 $ Held 71.7 37.3 40.2 33 9* Buys ASK A pile Fry' PU PHil S.". lEFT STY MC CD PIW $Chg :%Port 82.3 b.s 73,4 0.7 71.3 1.4 59.4 0.7 10.0 1.5 -100.3 -64.0 -80.3 .47.1 % Port 0.4 0.2 0.2 0.0 0.1 DCbUE4~ulty P/B Beta 79.7 2.8 0.9 54,7 4.2 1.0 25.3 3,6 1.1 P/B NA 16.O 30.0 2.5.1 15.9 P/B 41.4 26.0 13.5 22.1 36.7 Yield 0.0 2.9 1.4 1.3 LI Yield 0.0 0.4 3.6 0.0 0.0 Proj EPS Growth NA 10.3 14.3 24.5 14.0 Proj BPS GrowTh 16.4 14.1 9.9 14.7 18.5 LAY 000022544 bLip /Mw ./hrchn?page-iosown&foamIypot4l &Inamc'Enron%2OPeex%2OFR&instid-JHNlINCOI I 01*2001 Page 1 of 2 BlackBook Profile Page 2 of 2 INVESTMENT APPROACH The firms Investment approach utilizes a combination of top-down and bottom-up analysis. Sector analysis focuses on the general economic envIronment, the outlook for real economic growth In the U.S. and abroad, trends and developments within specifle sectors and the Outiock for flterest rites and the securities markets. Stock selection Is bottom-up. The firm invests In companies across all market-caps (marshy not inlero-cws). Country allocation mid InternatIonal exposure Is contIngent upon the firms top-down, maug analysis ci the world markets. lnvntmtnt Criteria: 1)1.0w P/B relative to the market; 2) Low P/B relative to the market; 3) HIgh earnings growth; 4) Product Innovation; 5) DomInant market Share; 6) Strong team mans cements 7) Mieti capItalIzatIon requirements. Sell Criterlit 1) Decline In fundamentais; 2) Shrnp decline in stock pica. Dedslonlaklng Process: Seventy percent at research Is generated Internally by analysts and porVollo managers. These research efforts are corn pleinented by meetings with company management. Portfolio managers have discretion onr buy and sell decisions. C Copyright 2000 ThomSon Flnanclavcarson. All rights reserved. http: Uwww.irchnr,d.corn LAY 000022545 hltp:/Iww..Jircbxapage=iosown&rormtype=4 1&Iname-Enron%2OPeer%20PR&instid=J1fl'IHflCO I 10/9)2001 a t BlackEock Profile Essex Investment Management Company, L.LC. Ownership date as oP 06/30/01 Page 1 Page 2 223 sigh Street soston. MA 02130-2702 Tel ~617) 142-3200 Vex Oil) 342.3280 KEY CONIACTS Name COIIA Mcflay joseph McN.y lCJtfltqrly MOI%tto ft. Daniel Retkham INDUSTRY WEIGHTINGS Top 10 HoldIng. Contpvter £ftwr rnotecbnology Internet Hllhar~0vgs/Ph Power Prod.kidp CoVVINttr-NtWflk tlllhcat.Ptd/Spp *0Il&GMSytS Svts-CommCo.~t 531 GaS 051,41 Founded: 1976. In Mardi 1998, AfihIlaNt MarIboen Group (A140)J meqid ExIts Investmgflt Man gt.t.ntwfl toe stirs subhidlerlag to I.- lint lnvetmeI%t l4ovnt. tIC. The sutceiW firm Ii 66% OV.Md by MW and 12% owi,d by Eases. The Irma managn W,e law Paflonflant* Fund. Li.,e Mdgd NOd. Title Prin trail O~II,ibSA P$nctpai 'nfl"- Phone (617) 342-3222 (617) 342-3298 (617> 342-2220 (617) 342-3268 SIP % Port) Chg TopS Buys (2.9) lii 228.1 computer 5Mw (6.8) 4.6 18.7 Con,putet-Utwvt (81.4) 5.9 101.2 Internet (0.8) 5.1 -34.5 Comotif Ilitvvr (12.3? 4.5 .71.8 Slntoles (3.4) 4.0 116,9 rapS Sells (2.9) 3.8 10.7 odJ&Gas-ShP (5.4> 3.6 '51,2 Thlc*m-lnlrtd (6.1) 3.0 lAS PQwetPJod.lflCp (21) 2.7 * '11.5 04I&Gwlvcs Bloc £qrip&Ccmp SAP % Poet * Chg (2.9) 13.1 229.3 (2.4) 4.0 116.9 (81.4) 55 103.2 (0.4) 1.5 62.9 (2.1) 1.3 42.1 SIP % Port $ O'g (5.2) 2.6 .156* (0.12 0.5 -119.6 (12.2) 4.5 .71.8 (5.4) 3,6 -11.2 (0.4) 0.1 -28.0 style OuleMauon Thins vet C dStoa Held Aggrn, Cr. Aaive high 366 a POIVOIIOTUfl.5Y5t no.9 Equity AjiS (OHM) 4,616 mnVOSI'TyW Inbefla,tflt Advlsos POSIUONAL HISTORY Cite Position Change % Out cuotot 10.039 0 0.00 06)30/01 10,039 3,049 0.00 01/31/01 6.990 -995,557 0,00 12)31)00 992.547 -453,5)0 0.11 09/30/00 1,446~057 991,721 0.19 06130100 434,332 296,135 0.06 03131/00 158,197 142,295 0.02 12t31/99 15,902 690 0.00 09130/99 25.222 22 0.00 Pitt OWNERSHIP Top 10 En' HIS VMS no Dy" ICMI mix AS Total 06/01 03/01 12/00 (5MM) (5MM) (5MM) 0.5 0.4 823 129.7 174.1 91.5 66,9 98.2 81.1 64.3 131.4 31.4 42,4 44.4 6.8 20,9 32.9 8.9 14.7 14.7 1.4 0,0 0.2 0.0 349.0 495.9 220.8 PORT DISTRIBUTION Smell Mid 11% 31% 09/00 (INN) 126.7 114.6 52.2 49.0 0.3 0.0 1.2 0.0 217.5 Large 58% PORYPOUC CIIARACrERXSTICS E'.ron Corp SIP 500 Essex Investment Mwagenhwtt COOtMnY, LLC. HOLDINGS (AU Cup) tisrr 0Pwv HIR VRTS VMS BOX AMOS Pr! AOL SRW S Held 171.1 159.4 129.7 97.6 96.5 Its 89.8 86.2 82.6 824 $0.0 I?.) 12.0 -39.0 454 '15.0 *8.7 '11.2 3.0 4.l 11.9 % Port 2.4 2.5 1.9 1.5 1.5 1.2 1.3 1.3 1.2 14 42.4 NH 16.? NH NM 22.4 54.1 32.1 NM 72.1 yield 0.0 0.0 0.0 0.t 0.0 1.1 0.0 14 0.0 0.0 P/~ Yield ?dce/Est EPS EPS 5 Yr Gr Proj ROE Debtfllulty P/K Beta 27.7 IA it? 17.5 10.1 79.7 2.8 0.9 25,0 1.4 24.0 14.9 20.5 54.7 4.2 1.0 30.4 0.5 20.2 21,4 14.0 37.1 3.9 1.1 Proj EPS Growth 16.4 46.5 22.4 45.2 41.4 12.1 20.1 20.6 PtA 41.6 ADJUSTMENTS Buys HYSH VRTS 'Nm CENZ WEAN Sells MC AlA Q Vj~0M lilA S Held 70.2 07.6 50.0 21.4 46.8 $ Held 40.1 51.7 2,0 21.6 129.7 $019 %Port PIE 57.2 1.1 95.9 45.1 1.5 NM 34.9 0.9 111,9 31.1 0.5 76.5 27.4 0.7 NM $ ChQ -15.4 '42.0 '42,1 .42.2 '39.0 % Port 0.9 0.8 0.0 0.3 1.9 PIE 7.4 6.2 43.5 Yield 0.0 0.0 0.0 0.0 0,0 Yield 0.4 1.2 0.2 Proj EPS Growth 40.0 45.2 24.3 22.9 51.0 Proj EPS Growth IL, 16.6 28.6 11.4 0.0 13.3 16.2 0.0 22.4 LAY 000022546 htp:/Jww..fxrchzOpage=iosown&fonntypets4 I A mesEnron%2OPeer%2OPR&insddtBSSXWVOO 10/9/2001 PageIota L .1 2.: .~Y. I BlackBook Proflic PagcZof2 INVUflUNT APPROACH Esser tnv.stment 4.nagement uses bottoin'up aruaiysls, however top-down macroeconomIc factors are also considered. Fundamental research, based on Qualitative analysis. is used to Identity companies with a strong market position within their industry, emphasis is placed on high quality companies with Inatusing EPS growth. The finn Invests across a broad range of market-caps. Technical analysis defines entry and exit points. investment Criteria: 1) Strong management; 2) increasIng market share; 3) MinImum 20% Increase In revenues and earnings growth rates. Seli CriterIa: 1) Low ranking within the proprietary model; 2) Slowdown in earnings; 3) Increased competitIon. Decision-MakIng Process: The investment Committee sets the overall policy and must approve changes in the approved list. Porifollo managers have the discretion to invest according to the buy Hat, end they meet regularly with analysts to view the economic outlook, market trends, as weli as industry and sector protpects. Interns research arid rnetlngs with company management drive the investment process, C CopyrIght 2000 Thomson FInanclaVCorton. AU rights reserved, hItp://vawirchnn.I.com LAY 00 002254 http://ww../irchn?paseriosown&rormtypes4l &InsmeaEnron%2Opecy%201R&instid=ESsxwvoo 10/9/2001 BIackBonk Profile Wellington Management Company, LLP Ownership data as of OSjSOjOI Page Page 2 75 State Street Boston, n& 021094809 Tel (617) 931-5000 Pounded: 1928. Wefllngtoo Haaagen~ent Company, UP It me, employee.m.ned panAtral~ offer$rigt ra*'oe of lnnhtmnen Style; for mutuif Arnt tpoilWfl. tn-exempt investors and Individual dents. Investment proIE%slOn.Is MS beatS iii toiton, NA, bdnor, PA and SIaqap&e. Fax (617) 9514230 KEY CONTACTS Name Kilt RMdtSI Title Senior vice President Vice PraulieM INDUSTRY WE)GImNGS Top 10 HoldIng. nithear-0,ps/Pfl 0 ISO as-Inn NuW.lAdgstry mv Btalqflroker HItJlear-Dvsfd Computer Sftrn IleWit CO. Blottchr.oIgoy Computer Hrtw O'ieffiICais EU %Portschg Toplbuya (1.1) 7.1 533,8 HUIU-Indusby (0.8) 4.2 422.0 CoctptAUSAwf 10.6) 4.1 1,304.6 IV, bOb, Call (0.9) 3.9 45 FlriIn.Ovitd (1.01 3.9 270.1 flnhs*Mooay~ (0.6) 3,5 962.0 TopS kill (1.2) 2.9 44.2 alIoss-livi (3.0) 2.9 183.9 Foods (0.8) LI *flE.7 computer Syc (LI) tO 336.4 unawanu ~Kooshld*Noildtwa phone (SI?) 951-3239 (dl?) 911-5409 50 % (0.6) (0.8) (3.9) (0.9) (0.4) 50% (0.8) (0.5) (1.1) (0.5) (0,9) Port $Chg 4,1 1,504.8 3.5 962.0 LB 894,9 ~.8 460.1 1,9 650.5 Port $ Org 4.2 -633.0 0.7 -344.8 1.3 318.S 0.3 -307.2 1.2 .20.2 Style ogle niation Thn,0ct D~! Stocks Held PfloMo Turnover EquIty Assets ($MM) Core Value Active Mod 1,745 48.9 II 6, 4 62 Inveflorlype Investment Advisors POSITIONAL HISTORY Date Cantor 06/30/01 0302101 12/311 00 09/20/00 06/30/00 02/31/00 12/31/99 "non. Position 1,000,000 141,000 419.530 1,498316 2,563, SIt 2.462.026 2.350,386 2.095586 2,518,356 PEER OWNERSHIP 06/01 03/01 Top 10 (4MM) (4MM) 8141 7.9 264 DUK 560.5 857.0 D 51.2 ItS 35.3 50.6 HaG 7.2 14, WItS 2.5 MM! Tip ico Hit MS Total Wiange % Out 839,000 0.13 -325,550 0,02 4,097,066 0.07 -1,366,900 020 201,490 0.38 311,560 0.36 254.660 0.11 -422,500 0.28 .1,339,100 0.34 12/Va (4MM) 124.4 456.1 81.5 48.3 09/00 (5MM) 230.9 504.7 59.8 37.1 0.0 0.0 11.9 24.0 15.3 0.4 0.4 4.6 11.8 0.2 0.2 0.2 0.1 0.0 0.0 7.6 4.9 0.0 3,9 0.0 35.0 657.5 751.5 1.0 0.0 0.0 421.3 PORT DIStRISUflOIt Smali MW 5% 14% 0.0 643.7 Large 78% PORTFOLIO CHARAcTERISflCS lnrG.i Corp SIP 500 WeOlogror, ?danaflinevt Company, LI) HOLDINGS (Alt Cap) C 'HA XOM MSFT AA CE IBM AOl. 2PM AlT S Held 4.1075 3,115.9 3,059.7 2,8)3.1 2,339.0 2.331.S 2,135.3 7,071.2 1,929.7 1,844.5 S Cbg 102.9 274.9 424.2 126.5 -29.1 806.5 144.8 -26.8 521.1 36.7 % Port 2.6 to 2.0 1.8 1.5 1.5 1.4 1.3 1.2 1.2 PIE ItS 24.1 14.8 41.4 21.0 30.; 21.4 UN NA 31.1 P/E Yield Pulce/Est Efl ifS S Yr Or Proj ROE OebvEquity P/B beta 27.7 1.4 25.0 1.4 24.3 1.3 Yield 1.4 1.4 LI 0.0 1.6 floj EM Growth 14.3 16.4 7.7 16.4 15.1 tO 15.1 0.4 13.1 0.0 HA 33 11.5 1.7 12.6 19.2 24.0 24.2 17.5 10.1 14.9 20.5 15.4 185 A03 U SIN EN IS Buys as HOT 'PM rvC Sells MCD 51.8 coca UD, SI' $ Held 2,331.5 £74.0 1,929.7 3,49.7 1,120.5 $ Held 163.2 81.2 277.4 24,2 20.6 sag 806.5 986.4 121.5 424.2 412.3 % Port 1.5 0.4 1.2 2.0 0.7 sQig %Port -378.9 0.1 -369.8 0.1 *338.2 0.2 -315.3 0.0 .321.5 0.0 79.7 2.8 0.9 5.4.7 4.3 1.0 27.!. 3.8 1.1 Proj (PS P/E Yield Growth 30.8 1.6 15.7 926.1 0.9 16.2 HA 3.5 11.5 14.8 1.1 7.7 20.1 0,1 19.2 Proj (PS P/E Yield Growth 'I,, 16.7 8.0 6.5 28.4 0.7 U.S 2.6 9.4 2.6 LI 1.0 13.6 0.8 173 LAY 000022548 http://w.. Jirchn?page=iosown&formtyp.041 &Iname'.Erwon%2OPeer"/e2OFk&Lnstid=WLLNGTQO 10/9/2001 A Page 1 of 2 V BjackBook Profile Page 2 of 2 INVESTMENT APPROAtH Wellington Management Company, LLP's Investment aporoach tails Into three general platforms: traditional portfolio manager, analyst managed, avid Intersection. The phetfornu are supported, and In some cases managed by, the firm's large global Industry resWCti group, Including research .sslstaots. economists, and flders. The research group utITl~es technical, quantitative and s~daIky research analysis. In the traditional portfolio manager pibtfonhl, a portfolio manager or team will use the research resources of Wellington to build a portfolio. The analyst-managed platform involves direct portfolio management by the finns global and regional Industry analysts, within their specific areas of coverage. The Intersection platform uses fundamental research from the analysts, along with stock selection froni proprIetary acuity models. Global industry and regIonal analysts use a combinatIon of valuation and growth measures. Appkd valuation and growth measures may differ by Industry, regIon of the wodd, and Style, though all equity analysts rely on company meetings and extensive fundamental research. The firm manages assets across the market-cap and style spectrum, and for U.S., Europe, Japan, Asia, emerging rorceti, and global and InternatIonal portfolios. Declsion*Maldng Process: Investment decisions are made withIn each portfolio manager team, or by the analyst In the case of analyst managed pcrJollos. Equity portfolios are saNely managed on a bottom-t basis relying heavily on proprIetary fundamental research. Some portfolios may also Incorporate top-dbwn acNe sector and/or country selection as well. C CopyrIght 2000 ThomsOn FlflanclavCarsoft. All rights reserved. http: fjmvw.ischannlsom LAY 000022549 1019/200 I 6 Blacknook Profile Page 1 of 2 ir Putnam Investment Management, Inc. Page Ii Page 2 One Po~ 0111cc Squere Bonn, MA 02110 Tel (617) 760-2000 Tat (617) 760.2275 KEY CONTACTS Nan,. Inc narthua Banjit A*JAITImnI INDUSTRY WIRONTINGS Top 10 HoldIngs HlLhC at' Org.) Ph MtAti.fflCOStfl Compute' S*twr mv *ank/Groktr En La rtain meat 5IKR&rI 01091 Com,utI, 14,0*1 HIthcr*Dvsjd EIecttoflIa OiiIGasdnd Pounded: 1937. Put,arn Ii £ wbsI@Uy Cl Harsh &tQLannan Co., EM. taJw,t *997, SW fin,, began iuwdvlslng Jhptnest pension 6ands on behelfof fl~oooUte Irlsinflcs.Jn Dec. 2000, the flrn teared en aillenci wit?, AomschhId Aunfla Asset Naa.sm*nt fM Ut OIQETIt. ttthtr Intl. porVoilos. Title Senior Vice PnsJd.rn Vice Presld.rht SIP % Port (0.7) 3.0 (0,4) (0.9) (0.6) (0.8) (2.1) (0.6) (0.6) (1.7) (0.4) soig TopSUuys 7.8 Campoter I*dv.r 4.2 -396.2 4.0 '61.6 2.7 76$.' 2.2 '1,011.2 2.0 -1,054.0 2.0 1,174.9 2.0 -StI tO 915.0 2.0 -1,062.1 PORTFOLIO CHARACTERISTICS Enron Corp SIP 300 Putnam Investment Man#gemmot, Inc. Computer-ftevwtt Electronics C.tisumer Pine., RetaIl'IAdg Suop Top S 5.lls OiILGfl.mnb urogecnnoioy frtalt.lament T.korn.LocSl OolnMr.Pmtph Phone (617) 760-1040 (fill) 7604497 S&P% Port sQig (0.6) 2.0 1,114.9 (0.6) 0.7 1,063.7 (1.7) 2.0 916.0 (1,4) 1.1 679.4 (0.6) 0.1 793.5 5&P%Port $Chg (0.4) 2.0 .1,062.1 (22) 2.0 -1,054.0 (0.8) Li -1.013.2 (0.3) 1.1 -711,0 (0.5) 0.2 .670.2 Style Cat Growth OfltntaVv.' AWvt Turnover Mod * of 513cM Held Poctollo rgrnon, E~Wty AleC ($1414) II.VeSIOI TyPe PoSITIONAL flfflORy Date Ojnunt 0*/30)01 03)31/01 0/31)00 09/30/00 06)30/00 03/31/00 la/n/It 09/ 30/99 Position 23,500.000 26.481,742 19A 19 .4 55 17,149,66* 16. 845,220 26,158 .7 08 11,347.292 13.224,687 12,898,158 PEER OWNERSHIP 06/01 03/01 Top 10 ($MMj (5MM) tHE 1,300.3 1,2.51.1 1411 446.6 445.7 0Th 412.9 314.2 013K 294.2 415.8 AS 226.2 215.4 WItS 169.3 306.4 o 142.6 172.0 20.4 27.6 KMI 5.7 13.3 1,769 351 333,431 Rslvestmttt Aivisors Change %Out -2.161,742 112 6,662,283 3.53 2,269,791 2.44 604.441 2,34 706,312 2.25 4,621,416 215 4,877,395 1.61 326,519 1.76 .8,817,581 1.22 12/00 (INN) 1,468.8 167.3 263.6 448,6 19.7 312.1 190.1. 23.6 19.7 09/00 (INN) 1,477.8 24.9 207,0 454.6 28.9 241.5 213.1 108.2 15.1 NRG 1.2 18.8 0.0 0.0 TV 0.0 0.0 0.0 0.0 Total 1,719.4 2,070.2 1,444.7 1,294.2 PORt DISTRIUUIION Small 2% PIE Yield Prica/Est PS SF5 S Y, Or Proj ROE 27.7 1.4 itO 1.4 10.3 1.1. HOLDINGS (All Cap) HIP? C 'Ft XCI.' MaX AOt aid 140 VIA B $ Held 7,060, 7 6,364.0 4,304.0 4,256.9 3.199.4 3,547.2 2,354.7 3,138.1 3,052.9 2,B27.6 $ O~g .205.3 194.8 438.7 -63.6 .374.1 .43.4 '318.7 53.4 493.9 -711.6 % Port 2.1 I.' IA 1.3 1.1 1.l 1.0 0.9 0.9 0.8 PIE 30.8 41.4 U.' 32.5 *4.8 21.5 tin 29.5 12.3 NA Yield 1.6 0.0 '.4 1.1 LI 2.2 0.0 1.4 4.5 0.0 Proj EPS Growth 15.7 16.4 24.3 20.6 '.7 11.8 NA 14.1 9,3 27.3 19.2 24.0 28.8 17.5 10.1 14.9 20.5 17.9 20.4 AO3US1~MENTS Buys KIT csco LOW PcS NW Sal,. VIA B Inc zinc AGC Wit $ Held 770.3 2,554.0 2,156.1 734.0 1,6I6.1 $ Meld 2-sit' 246.5 1,117.0 516,9 487.9 * 019 770.] 744.3 730.4 631.2 634,6 $ Chg -711.6 .329.2 -436,9 '4 74.2 '442.5 % Port 0,2 0.5 0.6 0.2 0,5 % Port 0.8 0.1 0.3 0.2 0.1 Mid Large 12% 84% Oebt/tciuity P/B Beta 79.7 2.6 0.9 54.7 4,2 1.0 25.3 4.3 1.1 Proj PS Growth 14.5 25.4 21.3 41.3 19.5 Proj PS Growth 27.3 23.7 17.5 11.6 12.4 P'S fl-v 282.0 31.9 NH 13.1 PIE idA 22.6 35.0 20.3 13.0 0.0 0,0 0.2 0.0 0.3 Yield 0,0 0,0 0.1 2.2 2.5 LAY 00002255~ lntp:/Iw.. .Iirchn?pagcsiosown&rormtypes4I &lname=Enron%2OPeorVo2OFR&insdd=PTNMCMOO 10/9/2001 I p Pagc2of2 - BlackBook Profile INVESTMENT APPROACH Domestic equity management is approached using three different iryles~ Core Growth, Specialty Growth, and Basic Value. Quantitative screens narrow an Initial uMnne of 5000 stocks to 200, using appropriate measures for each of the three groups. These are ranked into quintlies, based on earningr mommMwTt, financial strength, valuation, and dividend factors. The portfolio manaeers for the different equity groups perfonn fundamental researth on the Stocks that have passed the qtjantitativt screen. The Basic Value approach examines P/B, P/sales and yield, trying to find stocks thit are hsndasvalued but are poised tore turnaround. Typical turnaround situations emphasiflO are changes In management, changes In strategy (cost cuwng, expanding Product line, etc.). or a turn towards postitive ash flow. The Specialty Growth apprsc?~ Is an aggressive approach which seeks stocks with exceptloflul earnings growth potential. The Core Growth approach looks for companies with strong Roe and ROIC, supcnor management, solid balance sheets and excellent products that assure market leadershIp. The firm also Invests in international equities. DaclsionJ4aklftg Process: The firm uses both Internal and external restaith. Research Is conducted from Puu,anrs offices in Boston, London and Tokyo. A list of about 200 approved stocks Is generated at the company level for each type of fund, and individuat portfolio managers may buy only stocks on this list. Each product I'd a lead manager, but almost ait of the equity funds are team* managed. C CopyrIght 2000 Tbemsori Flnanclal/Carson. All rights reserved. http:I/maiw.Inharniei.com LAY 000022551 hstp://w. ../irchzl?page=iosown&formsype-4 1 &lname=Enron%2OPeewczoFR&instid=vrNwcMoo 10/9/2001 p BlackEock ProfiLe In.'. PJdaflty Management & Research Ownership data as of 06/30/01 Page IlPage 2 One Federal isitet loston, MA 02110-1003 Tel (617) 563.7000 KEY CONTACtS Name INDUSTRV WEXGHTNOS ht <41?) 47&4325 Top 10 HoldIngs Muld.lnduttiy Computer Sftwr Hltistsr-Orgs/fl. In.' bealcjhroker OniOn- Intl FinaTh.Ovsfd SemIcontLJctcJI Blotectinolo~y ComoutcrH.*w tmnits-Money or Ednrt C. Johnso4 EU Ownsa cooflhllng IntereSt in the line. Tht firm manages the Fidelity Fund.. Fidelity Tht.rnatloo,l Ltd. (U.K.), Fidelity Znvestnier,t Maoagtment Ltd. (Hong Kong) end Fidelity japan assist with (cr4191 lnvettnte,t. Fidelity Investment Canada LW. lie bwlneu developmtntarnl. Title SU%Port$Chg TopSbuya (0.9) 6,8 .1,757.4 SleW-rb (1.4) 6.2 1,860.5 S.mkonduct*ii (0.6) 5,2 -440.4 Computer Sftwr (1.0) 4.2 321* Comms6~ulpm (0.8) 4,1 499,7 Unterthlnmeht (1.9) 3.9 -2,533,8 Top 55.11. (1.1) 3.6 1,929.1 Ansn.Dvdd (3.4) 3.3 227,7 ofliGas-iva 40.9) 1.9 .149.2 14*-Industry (0,9) 2.9 211.2 OIlISSflIP £.wFrvp&Cjty Phone 5&P%Port ittig (2.2) 2.3 3,403.2 (1.1) 2,6 1,939.1 (1.4) 6.2 1,860.3 (1.3) iS 1,741.0 (1.0) 2,8 2,211.5 5&P%9on ICtig (1.9) 3,9 -2,551.8 (2.8) 1.9 .2,070,2 (0.9) 6,8 -1,757.4 ([.3) 0.4 .812.4 ci~n 0.4 402.7 style CARP Oflentstlofl Turnover Active Hod So? Swdc. Held P00db Turnover Equity Assets ($1414) lArsa type POSITIONAL HISTORY Cake cgwent 06/30/01 03/3 1/01 IVJ 1/00 09/20/00 06/30/00 03/31/00 12/32/99 09/30/99 2,644 41,9 497,917 1.westment Advisors Change % Out -4.49U04 1.80 .930,779 zac '1,405,997 2.23 -821,100 2.54 2,441.750 2.11 -99,862 2.22 3.326,734 2.34 -2,656,739 1.67 -4,230,211. 2.22 Position 12,000,000 16.496,906 17,435.463 1%04 1,682 19,862,782 2Z421.0*2 17,520*64 13,994.110 16,450,849 PEER OWNeRSHIP 06/01 03/01 Top 10 (81*1) (5MM) EN! 810.0 1,011.0 All 707.0 757.8 ICM* 113.1 242.7 DUK 93.1 110,7 0Th 90.0 294.6 TAP 84.6 76,2 WMB 47.3 141.7 o 29.1 It? HIR 27.8 9.6 EO~ PCO Total 12/00 (5MM) 1,582* 1,425.9 420.2 276.1 866.3 40.8 97.6 120.6 21.9 el/Go (5MM) 1,740.5 2,527.3 311.5 191.1 1,626.7 3.1 109.4 81.3 0.0 6.3 7.1 6.7 8.7 3.4 3,7 96.~ 164.6 1,203.5 1,742.3 3,426.6 5,328.2 PORTPOUO CIIARACIERISflCS Cnn tort SI~P 500 Fidelity Management & Anearch P/I Yield Prke/Est US EPS 5 Yr Ge Ptoj ROE 27.7 1,4 23.0 1.4 28.3 1,2 HOLDINGS (All Cap) 8SF? CE C XOH FilM PM MO AOt biTt Ala $ MeLd *070,7 14*20.1 10,476.2 9,102.5 9,474.2 9,468.0 8,183.4 7,175.8 7,107.9 4,366.1 * O.g 2,316.9 .1,311.0 41.4 -902.2 *2.183.2 '49.4 * 179.4 1,143.6 I.035.7 2*4.3 % Port 3.2 3.0 2.1 'S IS 1.9 1.6 1.4 1.4 1.3 41.4 30.8 16.6 14.8 15.9 22.5 12.3 NM 35.0 10.4 Yield 0.0 1.4 1.4 1.1 1.6 1.1 19.2 24.0 27.8 Proj US Growth 1.6.4 13.7 14.3 7.7 £4.8 20.6 17.3 10.1 14.9 20.3 16.9 20.2 ADIUSTF4ENTS Buys 1457? AOL 'Pitt a AMP 4.5 9,3 sell. 0.0 MA CI 0.3 17.5 FIlM 0.2 )4.5 LLY SOP XCII $ Meld 16,070.7 7,175.e 7.1075 3.063,4 3,403.5 S held 24,828.1 9,474.2 3,618.6 Z433.) 9,703.5 $ trig 2,116.9 1,143.8 1,053,7 1,009.8 865.2 S CI'g .1,391.0 -1,133,3 -1,089.7 475.1 -902.2 % Port 2.2 1.4 1.4 0.6 0.7 44 Port 2,0 1.9 0.? 0.1 1.9 Large 84% tebt/Equity P/B Beta 79,7 2.6 0.9 14.7 4.2 1.0 32.0 3.9 1.1 Proj Efl Growth 16.4 NA 12.5 10.3 14.5 Proj US Growth 11.7 145 13.3 12.5 7.' PIE 41.4 Nil 35.0 29.4 27.7 P/E 30.8 13.9 24.7 23.9 14.3 Yield 0.0 0.0 0.3 2.1 1.6 Yield 1.6 1.6 1.4 1.7 1.1 LAY 000022552 http:IIvrw.../irchn?page=iosown&forrntypr4l &lnamel=Enxon%ZOPe&/o2OFR&insdd=PDLTYMVO 10/9/2001 Page 1 of 2 2. .~ a 4 j PORT DISTUSUnaN Smell Hid 316 13% Blatkflook Pxoflle ?ngc2of2 INVESTMENT APPftOACH The Investment process for Fidelity's equity disciplInes Is based on ftindamantal analysis. Analysts ussess a sto*s potential Investment return based on dividend and nrnIn~ outlook. Quantitative screens supplement bottom-up eQuity research. Fidelity ultimately seeks superior projected long-term earnings growth and short-term momentum. The tEem prefers companies that are not followed Closely by Other lI¶VCitOr. Stacks diet appear &itiictlv@ Under ~TO~ Metary valuation discIplInes are purchased. Cue to Its large asset size, the firm often holds large positions. Its active trading patterns often affect price, partlculafly for less liquid lnvestmeots. Sell Criteria: 1) perceived deterioration in tile company or Industry ?undamentals; 2) ReductiOn In earnings or dividend growth forecasts; 3) Price appreciation causes excessive valuation. Oecislon-I4aklng Process: Fidelity's equity division consists of eight groups: Quantitative; Structured Investment; Income Growth; Asset Allocation ?ncome; Inte'viatlonhl; Capital Appreciation; Growth; and SpecIalized Growth. Portfolio managers conduct research specific to their products Investment strategy. The researeh staff supports the managen across dlsclplines. Because the firm places emphasis on visits wIth management, each manager receives a copy of what franspired between a Fidelity manager and a corporate manager. Q copyright 2000 Thomson Flnanclaljcarson. All tights reserved. hltp://wwwJzehasnei.com LAY o00022553 http://ww. ~ 10/9/2001 I I Blackflook Profile Page 1 of 2 * ~ MFS Investment Management* Ownership data as or 06130101 Page II Page 2 C 4 4*'; Fa4it~dC4: 2924. Fonnrly ,lss*clwmefl Financial Services, MFS Invsment Management manages t~e lIFt Family a? Funds and nw,,trous NFl finite. MFS Isp subsidiary of Sw, We Assurnfl C.n,panv of Canada (U.S.) Financial Servkes MOIdmn0S and parent company of MrS Inflhtutional Advisors, Inc., Mrs Intl (Ut) Ltd. and Venus Inn. Hgnt, Inc. Title Phone (617)9144375 (617) 954-5392 Analyst Security Analyst l,fln,SUonlI E~Aty Research (617) 934-7433 Analyst Director of tntemaUanM (617) 954-3760 AesntU, DavId Antor.eIlI INDUSTRY WEIOIiTINOS Top 10 HoldIngs S&P % Port $ OtQ Tops Buys Computer Sltwr (2,2) 9.7 418.3 ulectonlcs HIthcar'OrosIPh ~0.8) 5.4 1,026.9 Con,ms Egulpm Muid-Industty (0.7) 5.0 .575,4 H4Thw-Drgr/Pfl TV, Radio. Cal (6.3) 4.2 473.6 1n~ flnlqfieeIwr Eeecuonla (3.1) 3.6 1,215.2 BIatactinology OlILGes-Syce (5.1) 3.4 -SIB top 5 ISIs ComAt,ttr Eva (2.6) .3.2 .60.2 *irn4ndusny Comm. Equlpm (1.9) 3.1 1,089.2 HIthCIt-OWfd Flnan.Dn?d (1.5) LB -577.0 Lodfrng44otuls 11w BanIcIBroker (0.7) 2.9 620.3 Con'puw-7detwric RetaIl.O,aln St 5SF % ~oft (3.1) 3.6 (1.9) 3.1 10.8) 5.4 (0.7) 2.9 (1.5) 1.1 Sap 'It Port (0.7) 5.0 (0.2) 1.1 (0.2) 0.1 (1.7) 2.0 (0,2) 0.5 $ Chg 1,316,2 1,069.2 1,028.9 620.3 604.1 $ O,Q *875.4 *733.1 -4*9.2 44 2.9 .399.4 5171a Ofle$btstIon rumo~er * of Stocks Held eor*tlo turnover Equity Asia (3MM) Care drove Active High 648 70.0 204,513 Inyuitor Type Investtntflt Advisors POSITIONAL HISTORY Oste Position Change % Out Ctjnnt 4,100,000 282.880 Dlii *10101 5,021. 120 1,841MG 0.78 03/)1(01 3A75,4.~0 224.214 0.53 12/21(00 3.751,246 274.425 0.30 09flW00 3,374,841 . 706.265 0,45 06/10/00 2.590.576 482.870 0.35 0213fl00 2.107.706 -6»=1,524 0.28 12431499 2.729,230 2,327.530 0.36 09/30/99 391,700 120,900 0.05 PEER OWNEMIIIP Tap 18 IN! vyn WHO 0 atm N~G KNI mA KG Total 06/0! (5MM) 285.6 494.9 470.1 235.6 £77.0 118.5 27.0 18.3 1.2 0.0 1,152,4 03/02 (3MM) 531,0 652.8 471.9 391.9 193.1 165.8 2.09.1 62.4 30.8 13.3 2,091.1 PORT OISTRXBUTION 12/00 (3MM) 311.6 975,' 4)4.1 298.4 121,1 111.7 61.1 43.7 09/00 (3MM) 295,9 3,072,4 156.9 400.6 6.2 155,5 0.0 47.4 10.2 0.0 19,4 14.8 2,075.5 1,866.7 PORTPOUO CHARACrtRlSflCs Enron Corp up 100 MrS lnvtsttnent Management HOLDINGS (All Cap) GAct TIC VIAL MSFT IRE C AMP 0E sw-I ILY $ Maid 2.223,9 2,155.7 2,039.4 1,901.0 1,675.5 2,659.6 1,518.0 1,401.2 1,258.4 1,347.9 $ Chg 39.6 -99.0 59.0 497.0 -175.1 228.3 .5.2 .81.7 -121.4 1,258.4 % Port 2.1 2.1 1., 1.5 1.4 1.5 1.4 I.) 1.3 La Yield Pilce/Est US PIE 27.7 1.4 23.0 1.4 28.) 0.B Pt's 27.9 20.1 NA 41.4 15.5 164 27.7 30.8 18.1 it, Yield 0.0 0.1 Ok 0.0 1.) Proj UPS Growth 24.6 19.2 27.3 16.4 14.5 1.4 14.3 1.6 24.5 1.4 15.7 0.0 16.2 1.4 13.3 19.2 24.0 28.1 VS S Yr Or Proj ROE A DI U ST MU Nfl buys lIT GD? 50MW AD! HER Sells HEFT SHY Un WHY 16*4 $ Meld 1.3*7.0 861.3 605.3 852,3 664.1 $ Held 1,902.0 429* 1,059.8 366.3 867.1 $Ch~ 1,258.4 663.0 140.8 427.7 fle.'. $ Chq -897.0 *747.0 1.9 -483.1 -473.4 Small 3% Hid Large 14% 83% Debt/Equity P16 Beta 17.5 10.1 79.) 2.8 OS 14.9 20.5 14.7 41 1.0 19.3 17.4 - 35.7 4.0 1.2 % Port 1.3 0.8 0.4 0.8 0.6 14 Port 1.5 0.4 1.0 0.3 0.8 PIE 26.7 22,0 n.a 32.9 15.4 PIE 41.4 24.6 27.8 33.3 21.4 Yield 1.4 0.0 0.0 0.0 1.2 Yield 0.0 2.0 1.3 0.6 0.6 Proj EPS Growth 13.3 16.6 20.2 24.7 12,6 Proj Efl Growth 16.4 £2.2 14.4 14.3 12.1 LAY 000022554 htsp:/Iw. .Jirc~?pageiosown&fo~typeA I &Iname-Enron%2OPeetA2Ofl&irntid=MSSCNSOO 10/10/2001 £00 floyleton Street Boston, *4A02116-3741 1-el (EIfl 954-3000 F.~ (617) 9S4~659t KEY CONTACTS Name David Cavanaugh claud Cavis Simon Todd I I BlackEcok Profile Page 2 ot2 INVESTMENT APPROACH HPS Iciveiflent t4anagement eniphislits growth stocks, though Its funds encompass a wide range or investment styles. Its process begins with an analysis oV the larger stocks Lii the S&P 500. Appropriate securities are idaatir,ed through fw,damenthl analysis and technical screens of dividend gmiith, cash flow, earnings growth and ROE. Portfolio positions are derived from this stock selection process In combInation with the finns economic overview, Oedslen.Making Process: The Research Cepaitment is a key cont,tutr to the e4ulty Investment PfOCVS of Nfl, providing a balance of intensive security research and broad industry penpectives. Analysts provide purchase and sale recornmenoatlons, regorts on the economy and observations as to the Gttfectlnncss OF the secuilties inukets. They elm rnovlde the framework within which portfolio managers construct their poittollog. Dafly matings allow for an intervhange of current views on investments and portfolio strategy. Portfolio managers are rEsponsIble for dEJect client contact. The Chier Equity Officer reviews aD accounts weekly. At the same time, peer review by portfolio management teams allows managers with simIlar investment parameters to comment on the investment sbbtepy or each portfolio. At least outs yehfly, portfolio managers meet with the Portfolio Re~law Committee where they are required to explain their investment strategy. C copyright 2000 Thomson Finmndal/Carson. Al lights reseNed. http:j/wv~w.lachunnel.com LAY 000022555 bit p:IIw..Jirchn?paze=iosown&ronntype4l &lname-Emon%2OPect/.20FR&instid=MSSCHSOO 10/10/2001 S BlackBook Profile Page t of 2 gin? Rittenhouse PJnanclal Services, mc. y591 Ownership data as of 06/3 0101 .~.,, Page 1 I Page 2 Foun4ed~ 1979. In 1997, Sittenheus. Pln.ncIaI Services. Inc. became en MdepeAflnt iobsiUlmv oljohn Nuvetn. The tm's SubIIdI*fle5 Indude: ffittn.hous Financial Surylces Innstineot A4vIsory an~ Rfttmnaoose Capital Management. StyLe Orteritaton Turnover toss Gto*tk, Sot Stocks Held PorUbila Turnover EgsAty Assets (en H) Fat (SIC) 293.24-44 KEY CONTACTS Name John Wttni,*n George Cannel? Vincent HcNlchoI Donovan Grown INDUSTRY WEWHTINGS Top 10 holdIngs MultJ-tnduStty nlcncae' tsp/Ph Jns.MiM.Ufle Personal Care Computer Sftwr Reuli-O¶aln St Rtbil.DtUQ St PlnmnDvtd RetsIl:aIdg Supp Computer Hrdwr 'Title Managing Direst., Via President Vice President Vice Praltant SIP %PortSChg Top Levy. fl.3) 10.4 235.9 Rgtall-O,alnSt (1.5) 9.3 .72.7 RateS-Drug St (2.1) 3.3 39.8 HulU*Thdwuy (7.2) LI 39.4 Ccnneierflnan (1.2) 3.3 44.0 AetaiI4ldg Su~p (2.0) 5.2 404.7 Top S Sells (10,3) 5.9 145.6 Ivgt-Not*cobS (2.4) 4.5 32.6 Sin~i4tujbg (3.1) 4.5 1CM nWiw-DrgWPh (1.2) 4.1 30.6 S.inlconduflort Telcom- Local PORTFOLIO CHARACTERXSTICS enron Corp S&P 500 Rlttenho,jse FThanCUl Services, Inc HOLDINGS (All CaN) Ga MG CL. PFE FIlM mc HO MSFT ADP WAG * Held 877.5 314.8 8*7.7 795.4 737.2 711.4 465.5 614.0 647.9 S92.8 S Gig 35.2 39.6 39.4 36.7 32.8 101.1 87.1 20.1 28.8 -18.4 % Port S's 3.3 5.3 3.2 4.8 4.7 4.4 4.0 4.0 3., INVESTMENT APPROACH Phone (610) 971-9300 (610) 972.9300 (620) 971-9300 (650) 971~93O0 SIP % Port $ Gig (2.0) 5.2 404.7 (10.3) 5.0 1464 (1.5) 204 135.9 (3.8) 1.1 134.1 (3.3) 4.3 100.8 S&P % Port $ Dig (2.1) 2.9 -293.3 (1.5) 9.6 -73.7 (0.8) 2.7 -27.1 (0.0) 0,0 -1.2 P/E Yield PrIce/En Efl 17.7 IA 25.0 1.4 19.2 24.0 .37.2 38.3 0,7 P/t 30.5 30.4 10.0 32.3 15.9 20.1 40.3 41.4 31.9 41.5 Yield 1.4 0.2 LI El IA 03 *3 0.0 0.0 0.4 Proj 95 Gmwtli IS.? 54,5 12.7 204 14.0 19.2 20.5 14.4 15.3 27.7 Active LOW 68 28.2. 15,248 Investor Type Investment Aflhsors POSITIONAL HISTORY bate Position Change % Out Ojnnt 6,600.000 5,376,379 0.91 04/30/01 1,421,421 1.423,421 0.19 03131/01 0 0 0.00 22/31/00 0 0 0.00 09/30/00 0 0 0.00 06/30/00 0 0 0.00 0341/00 ft 0 0.00 12/32/99 0 0 0.00 09/30/fl 0 0 0.00 PEER OWNERSHIP 06/01 03/01 12100 09/00 Yop 10 (5MM) (5MM) (5MM) (5MM) tILE 69.9 0.0 0.0 0.0 IVISS 0.0 0.0 0.3 0.4 Tag 0.3 0.4 0.0 0.0 PORT DISTRIBUTION Small 0% EPS 5 Yr Gr Proj ROE 17.5 1.0.1 14.9 20.5 17.3 15.2 ADJUSTMENTS Buys 'TOT wHy LvS us lye Sells KO WFC SOP nfl WAG $ Meld 212.9 574.5 165.0 476.? 711.4 S Held 3 17.8 449.1 237.3 397.0 592.8 212.9 191.8 145.0 134,1 101.1 SOig 243.5 -193.3 *131.1 24.4 ~18.4 iS Port 1.4 3.8 1.1 1.1 4" iS Port 2.2 2-9 1.6 2.6 3.9 Mid Large 0% 100% Debt/Equity P/S Beta 79.7 2.8 0.9 34.7 4.2 1.0 36.2 3.5 1.2 Proj VS Yield Growth 0.5 14.6 04 #4.3 04 13.3 1.0 19.8 0.2. 19.2 Proj EPS Yield Growth 1.3 12.7 2.3 12,9 1., 12.5 0.3 21.0 0.4 27,7 P/E 24.2 33.3 £1.0 20.3 20.1 P/E 28.) 15.3 23.9 46.0 41.5 The Inns top-down Investment strategy Is hIghly conservatIve and avoids volatIlty. 'The firm prefers high-yield companles~ but considers dividend yield growth tome ImportAnt Wan current yield (share bwbeeJcs are viewed positively). Th. firm limIts posItions over 4.3% of a com~anrs floe to lOiS of Vie pOI*IIO. ftlmemhouse looks for companies that are consistent, predictable earnings growers. The firm likes compartle. that grow its earnIngs about the same rate In percentage terms every year. regardless of the economIc envIronment. I~nfly, the firm looks for companies growIng consistently In (hi 12' :5% tinge. Consistent earnings performance Is consIdered extremely Important. The firm avoids companies with dusap pointing earnings In recent years unless men are strong witigaung ractors. lnvCStflieflt Criteria: 1) "A' at higher ranking from S & P; 2) CensIswnt earnings growth; LAY 000022556 htrp://ww..Jircbn?paseaiosown&eormtypes.4 I &InamneEnron%ZOPeer%2OPR&insti&RTtNHSOO 10/8/2001 Two bdnor Corporate Canter ftadr.or, PA 14087-45fl 7*1(510) 971.9300 I Blackflook Profile Page 2 of 2 3) Pays a divl4enfl; 4) Minimum $5 billion market CapltAliZStJOfl; 5) 10-year history of operating earnings. Sell Criteria: 1) Unsustainable groMi.; 2) Equities that underper?orn~ the market bY 25% or morn one roUlno 12 month basis; 3) PositIon exceeds 5% of total portfolio. Decision Maldng Process: The firm uses an lnnsbnent SelectIon Committee which makes alt Investment decisions. @ Copyright 2000 Thomson Flnanclal/Carson. All rights reseNed. http:I/www.Itchartnel.com .9 LAY 000022557 http:/Iww.../irchn?pasc=iosown&formtypec4l &I~ame-Enron%20Pccth20FR&Lnstid~RTtNHS00 I 0/8/200! j BlackBook Profile Delaware Investment Advisers Ownersti p data as of 06/30/01 M Page 1 I Page 2 Otte Conflerce Square Phlitdtiphil, PA 191*3-7042 Tel (itS) 255-2323 Fec (223) 253.1218 KEY CONTACTS Home Francis Moms Brian Hannbn 1. Paul Dotes INDUSTRY WEZGNTXNGS Top 10 Holdings PIr,sn -OwEd Banks-Money Or Sanks~MaJ Rej hkotecflnology Computer Sftwr Rests-sIn HIthcar.0rnhF1~ OthLGas.lnU. lAs.flop&CSJty Computer SvcS founded: 1972. The fln.i muolges mutual funds fer Deia*bre Management Company, a s..bsldlmy Of UW Delaware Group, which is vltimately a part ci Lincoln Waboasi Cn. Delaware IMemnatlcnul AdviSers, lid. Is an affiliate, managing global and lntutl.tlOtUl portfolios. 1~ the 1.1 of 200*, the fIrm merged with Vantage Inveaflent Advisors. Title Ph Ccc Vice PresidenVCor. f~ully (215) 253-1492 *. pruCdsct Director of Rtmntthj4ianfltatlv@ S&P %Pors$Chg Top Betays (3.1) 6.2 -6.3 BIflkS'MQflty W (1.2) AA 195.8 Hhlhcmr-flrgsjab (1.3) 3.4 -43.5 IV, 1*010, ClOt (3.7) 3.5 60.0 OIISGas-Svw (0.7) 3.1 .104.2 3ernIcond~,ct#s (5.3) 3.1 -ItS Top S Sells (0.5) 3.0 167.5 HalOas DC-SI. (0.') 2.9 4.0 Consumer Ran (7.6) 2.7 37.6 Cempt.AerSftwr. (2.23 *A -20.8 l4gdlhfliy Iflurifits (215) 253-137* (315) 233-2882 S&P % Port S Chg (1.2) 4.0 191.8 (0.5) 3.0 167.3 (3.2) 2.1 130,8 (2.8) Ii 101.0 (0.4) 1,5 100.2 SI.? % Port $ Chg (0.9) 0.6 .220.5 (0.2) 0.1 -111.2 (0.)) 3.1 -106.2 (2.4) 1.3 -103.5 (5.Sj 3.1 -89.6 Style Ortentailon Yield Active Turnover ear Stacks Held PmVoDo Turnover Eqfly Assets (4MM) High #73 74.3 15,878 IIIVS5WTYM 1,WCSUThCnI Advisors POSItIONAL HISTORY Date Pocidon Change *A OtnI CU,nftt 528,330 0 0.07 04/30)01 526.330 -26,000 0.07 03/31/01 554,330 .48,900 0.07 12/31/00 403.450 -21,000 0.08 fl/3D/CD 424.450 237,500 0.08 06/30/00 386.930 207,511 0.05 03/31/CO 179.439 122,739 0.02 12/31/99 46,700 -2.300 0.01 09/30/It 49,200 .773,008 0.01 PEER OWNERSHIP 06)01 03/01 12/00 09/00 Top 10 (5MM) (5MM) (5MM) (1MM) IN! 26.0 32.2 50.2 54.7 O 104.5 139.0 ±46.8 123.6 CIII 93.7 153.9 255.7 150.2 WiSe 64.1 79.4 21.1 37.9 ABS 31.0 63.1 71.3 49.1 DYN 9.8 13.1 74.6 76.4 SlAG 1.9 0.5 0.3 0.0 KG 1.4 1.3 4.7 37.3 NIt 00 2.8 0.0 0.0 1(141 0.0 Total 326.4 0.1 0.0 0.0 432.5 473,6 5»=3.4 PORT CISTRZBUTION Small 74' ~ORTPOUO CHARACTERISTTcS Mid Large 24% *9% Etron Corp 58.5 500 Ociaware Investment Aivisers HOLDINGS (All Cap) S litlO FIlM 223.3 JP*4 202.6 XL 189.6 X014 185.9 so~ iea.o BAC 166.2 139.3 I8M 258.0 cci. 117.6 149.9 $ cb0 8.4 202.5 24.6 -is-a iai.2 -2.4 -2.5 .7.3 -2.4 21.4 P/I Yield Prlce/ftt BPS 27.7 1.4 23.0 1.4 24.3 1,4 Proj en % Pwt P/I Yield Growth 1.4 15.9 IA 24,0 1.3 NA 2.5 11.5 t2 14.5 2.2 12.5 1.2 14.8 2.1 7.7 1.1 itO 1.7 22.5 1.0 13.3 3.6 9.9 IA 15.6 3.6 10.7 1.0 21.4 0.5 13.1 2.0 20.2 1.3 12.9 0,9 18.3 1.8 11,7 19.2 24,0 23.5 BPS 5 Yr Gr Proj ROE 17.5 10.1 24.4 20.3 13.6 15.4 ADJUSTMENTS Stays 'PH SOP MWD PG DOW Sells 'PG Wa-. 61137 'Ax HI $ Held 202.6 "B.C 114.7 123.2 59.5 5 Held 13.l 6.5 4,3 ".3 37.9 $ CthQ 202.6 141.3 88.6 70.7 62.8 $ dig -100.3 -814 .79.4 -72.1 % Port 1.3 1.1 0.7 0.8 0.4 % Port 0.1 0,0 0.0 0.4 0,2 Debt/Equity P/B BC. 79.7 2.8 0.9 34.7 4.2 1.0 26.7 3.8 2.1 Proj EPS Growth 11.5 12.3 14.4 10.4 9.5 Proj BPS Growth 15.4 9.6 25.8 14.3 14.6 P/C 114 233 11.7 24.2 25.6 PIE 14.1 11.9 NM 32.0 15.5 Yield 3,3 a.? 1.7 2.0 3,5 YIeld 1.7 2.4 0,0 1.1 1.5 LAY 000022558 http:llw.../irchn?page-iosowxi&fonntypea4l &Iname~Enron%20Peer%20FR&instid~DLWRNVO0 30/8/2001 Page 1 of 2 4 Lt"J'.~ I f Page2 of 2 BlackBook Profile £NVESTHINT APPROACH Domestic po~tfOhos Include Defensive/Core Gqufly Cwlth a large-cap vain/yield bias) and Aggressive Equity (with a small- cap growth onergatlon). for the Celensive Equity portfolio (01.4's core strategy), the firm screens roy secunties with a yield above the S&P 300 and in&*et-flps above $750 million. The equity universe Is Separated into ID sectots, S of which are further subdivided. Deaware also reviews company nianagement~ valuation, relative yield, SIlty @1 the dividend, Industry end company prospects, earnings trends and overall lrwcstment risk. Yield criteria inset relative to the market arid spreads are based on environmMtii variables (level of Interest rites and yields, market valuation and economic environment). Investment Criteria: I) Minimum yield of approx. 105% of the market yield. 2) PorroIlo managers reich a consensus on stock. Sell Criteria: I) Decrease in dividend; 2) VIolates minimum yield re4ulrement; 3) DeclIne of 30% from cost. Decision*Maldng Process: Portfolio managers (who serve as sector analysts) form the lswestment Strategy Coiiiinlttn. They Sri responsible for establIshIng yield targets and ensuring each portftlios sector weights are withIn 1% of the tactical sector targets. Research efforts, which are BD% Internal, Include meetings with company management. C CopyrIglQ 2000 Thomson FInancIal/Carson. All rights rosiNed. httpfljwww.irchaanel.cem 4. LAY 000022559 httplfw..fircbn?page=iosown&ronntype=4 I &Iname=Emon%ZOPeer%2OFR&instid"'DLWRNVCO 10(g/2001 BlackBook Profile Page 1 of 2 pusls&r.IY Rorer Asset 14.nagement, L.LC. nfl' Ownership data as of 06/30101 t9 PapeljPage2 -....3/C. 1650 Market Stnet Philadelphia, PA 19103.7301 Tel (215) 168-2126 Fa* (215) 168.2)76 KEY CONTACTS Name Robert Leinld,#fl' Otitord Storms INDUSTRY WIIOBTINOS Top 10 HoIdifigs Retaii.81dg SIJDp enre'tuln.,ent ins- Multi APOSPW Hat Gas 0W-Pt OlI&Gas4nd MltJ,cat4vstd flhtliQr.X0Sp IN-takers Consuitig, Man Founded: 1976. On January 7, 1999, Affiliated MMSQ&1 &9J74A14G) squired m 65% stake In the flint, with the pd*ildnis retaining its remaining 31%. They service both institutional SlId Individual dish is. StYle Otlentition Turnover aMP Active lMqh DOE Stocks fluid Portfolio Turnover Equity Assets (9MM) InvestorType Title PrIndDal/SenIor Security DIrector of ReselIth 169 %Pors$Chg TopSBuys ~S.9) aM 404.9 Ratail-flidgSuw (2.8) 7A 44.2 comMerSva (Li] 7.0 fLU Semlconducton (8.73 6.9 32.8 P1nan~Ovsfd (7.0) 6.4 33.7 mv Bmnhqa,oker (1.2) La 20.5 TopS Sails (1.5) 5.7 68.3 HiUlcar'Pr*Sw (12.4) 4.9 25,0 Tckom-Uttgrtd (12.6~ 4.4 24.1 Cs,p,n l~uipm (4.8) 4.0 22.0 BioteetInology Lelwre lire PORTPOUO CHARACTER1STICS F.nrwi Corp SltP $00 Rote? Asset Mtcaoernent. LLC. HOLDINGS (All Cap) LOW HCA MMC VIA S (RB PEP GD AOL Alt SIR $ 11514 878.7 $33.0 479.7 465.9 437.8 434.3 428.7 404.7 396.9 387.1 $ CIIO 410.9 26.0 24.5 23.5 22.0 21.9 24.7 20.8 73S 20.4 44 Port 8.0 .4.9 4.4 4.2 tO 4.0 3.9 3.7 2.6 3.1 Ph One (215) 640-3181 (215) 5652126 SW 44 port $ dig (5.9) 8.0 404.9 (2.0) 2.4 262.4 tO.?) 2.2 253.3 (LB) 3.6 186,5 (0.8) 3A 128.6 SIP 44 Port $ dig (0.1) 0.1 -177.7 (2.7) 24 '111,0 (0.0) 0.0 -iCOS (0.0) 0.0 .54 (0.0) 0.0 *5.O PIE Yield Mee/Est EPS P/E 31.9 35.3 21.9 27.7 1.4 21.0 1.4 27.6 1.3 Yield 0.2 0,2 2.3 NA 0.0 20.5 1.0 29.8 1.2 15.2 1.4 NM 0.0 53.1 2.2 17.2 2.9 Pm) PS Growth 21.) 14.6 14.C 27.3 19* 12.? 19,2 24.0 26.8 75 69.9 10,956 InielbIltAt Advisors POSIUONM. HISTORY Date cnn 06130101 03131101 12/fl/CO 09/30/00 06/30~00 OJflhIOO 'ant,,, 09/30/99 Position 7,100.000 7,017,002 6.739.257 5,934.935 3,239.277 4,703,377 4,246,491 1,610.859 5,393,92~ PEER OWNERSHIP 06/01 03/01 TOP 10 (5MM) (VIM) ErIE 348.5 291.6 WItS 341.6 423.7 ASS 86.3 0.0 10t81 . 422.1 423.7 PORT DISTRIBUTION Small 0% £PSSYr Ge Pro) aoe 17.5 10.1 14.9 204 13.6 18.3 ADJUSTMENTS Guys LOW 105 mTc ffiN C 11.0 sails NA CDT 10.3 WCOE4 10.4 ThAI 5KW BOtH * Held 876.7 263.3 255.0 375.6 371.9 $ Held 0.3 0.2 0.0 0.0 0.0 $ dig 410.9 26)3 253.5 188.3 128.6 $ CI., .177.8 -125.2 -lots -6.0 .5.1 3~ Port 8.0 2.4 2.2 3.4 3.4 44 Port 0.0 0.0 0.0 Change 44 Out 2.918 0.95 357,825 0.95 804,322 0.90 693.558 019 $36,000 0.70 258,682 &53 -1,264.164 0.58 216,935 0.75 94.216 0.72 12/00 (5MM) 493.3 188.3 0.0 188.3 09/00 (5MM) 439.1 0.0 0.0 0.0 Nd large 1% 99% DebL'Equily P/S Beta 79.7 2.8 0.9 54.7 4.2 1.0 32.5 4.6 1.0 Proj EM Growth 21.3 15.4 175 P-fe 3L9 20.5 35.0 Yield 0.2 1.0 0.3 15.9 1.6 14.0 16.6 1.4 14.3 Proj PS P/E Yield Growth 22.0 0.0 16.6 11.4 0.0 13.3 9,4 0.0 22.3 0.0 12.9 2.6 10.0 0.0 34.3 0.0 17.6 INVESTMENT APPROACH Rarer Asset Management's investment process begins by screening a universe of 1,000 U.5.-based companies with market- caps above $500 million for attractive relative valuation and earnings momentum. me valuation methodology Identifles the equities of companIes riding below histqrle valuatIon noun relative to the market1 as defined by the SIP 500. The earnings momentum model IdentifIes companies expedencing upward estimate revisions from the analytical community 8*14 Positive eaminos surprises, Pundamental analysis is then applied to those companies which pass the Initial sctniiiflg. Analysts conduct company visits, communIcate with management and Industry aslyuts and review financial statements, 'The firm typically holds approx. 30 equity positions at. time. investment Cilteda: 1) AttractIvely valued; 2~ Exoerlencino uow.rd estimate revisions and oosltlve eaminos sumrts*s: LAY 000022560 httpJA'r.v...Iircbxapage-iosown&fonrnype-41 &InamoaEnwn%2OPe&/o20FR&instid'~RRRSST00 10/8/2001 BlackBook Profile Page 2 0(2 3) In the flghtj,hise or business cycle. Sell Criteria: ~? ~ prtct target: 2) Fundamental disappointment; 3) PrIce declines 15% from Its prserflase pflce relative to SliP 500; 4) PositIon exceeds Industry or portfolio weighting (at this point the psitlcn is pared). Oedsloc-Maklng Process: Investment policy and strategy are set by the Investment Policy Committee, which Is composed of the chEer Investment officer and the senior analysts. Po0oIio Managers mainly function as admlnlsfltive arid client service contacts. § Copyflght 200?, Thomson Finandhl/Carson. MilL rights reserved. htt#;d/ww.llcktaamtsom LAY 00002256i htIp:IIvoa.../irchn?pagcciosown&towMypes4I &lnanie=Emon%2OPeer/2OYR&instid-RRRSSTOO 10(8/2001 p V BlaclcBook Profile Advisors PNC Ownership OatS as of 06/30/01 Page II Page2 1600 Market Street phiiDdftiPhIa., PA 19303 TIC (215) 585-5000 Fax (215) 5854696 KEY CONTACTS Name O.rtort CrptS,ttt )oseph jordan Donald Berdint Donald Ames INDUSTRY WEIGHTINGS Top 10 HoldIngs MolU-lndust'y uiltflW.DroS/Ph Dil&Gas-lr'tJ Ill tncar.Ov sfd Safllc*44*J ~~0 RttShI.SptC App Teicorn4OCS! KOuShtd4lQfldU,5 Senwconduaots Computer Sftwr rue C. -...* Formedy MC lank Cn., the bunk laustehed Style PMC Advisors on May 17, 1999. MC ~ Orientation cOnilits of tie fainter MC PrIvet. Sank cOd PNCS InstItutIonal lnvest,nerit Group .g wellas Turnover Willard Lyons, whlcn has raIned its 011711. S Of Stocks HEW BIackftock Pinanclul I4gntL Is an aifihItte. Por~ollo TufYlOflt 54u1w AsSetS (1MM) investS. Type Security AJl4lyt Vice President 0*1 Ionstn~cnt 0MW ASsIStant Vice President ISP %Port$chg Topilsy. (1.6] 11.4 3.6 Banb.MornyCr (1.2) 8.4 43.7 F3lan-Owfd (1.4) 8.0 *fl.3 Hlthcar*Pr~5Dp (1.6) 6.0 36.9 Smnb-P4aj Rag (1.3) 3.4 65.7 S&tCos (11.9) 34 1.4 ToP SSulIt (1.0) 3.3 .37.3 HousNd4lofliuta (2.2) 3.0 *66.4 lnvtatdql.oker (0.8) 2.7 54.3 iv. Ridlo, Cfll (0.6) 2.7~ 20.4 Avto.noblIfl Nhlhcat-Dvtd PORIPOLIC CHARACTERISTICS P/e Yield En,on Cotp 27.7 3.4 569 500 25.0 1.4 PNC Advisors 30.5 1.6 PrIce/En BPS HOLUtNOS (All Cap) XOM VFC MRIC PG SM' PFE IN) 510 t4Sfl $ held 1,081.0 3,352.4 634.7 730.4 637.9 & 13.3 605.3 600.8 478.8 468.4 $ Gig .39.' 13.6 0.3 .9.3 .46.9 -47.1 2.1 I 3.) *6.I 14.7 % Post 8.3 5.1 3.4 3.0 2.6 2.5 2.3 2,4 2.0 3.9 P/E 30.8 14.8 11.9 U.S 24.3 24.6 Its 29.5 30.4 41.4 Yield LI 14 2.7 2.3 2k 2.0 Li 1.4 0.3 0.0 Phone (215) 565-5703 (215) 5851747 (412) 762-0276 (170) 161-6410 SIP % Post $ Chg (0.7) 2.4 212.3 (0.9) 1.8 ItO (1.1) 1.4 83.1 (1.3) 3.6 fl.7 (0.9) 0.4 63.9 SIP 98 PortS Gig (2.2) 3.0 .61.4 (0.6) 2.3 .60.t (1.5) 1.0 .46.1 (0.5) 0.3 -38.3 (1.4) 6.0 *36.t 39.2 24.0 29.4 Proj EPS Growth 15.7 7.7 9.8 ItS 10.4 12.2 20.6 14.1 143 16.4 BPS 5 Yr Or Proj Core Grovith Active 892 a 19.8 24,552 unit & Trusts POSITIONAL HISTORY Date Position Change % Out Qifltnt 340,4U 0 0.05 06130/01 340,454 -13,791 0.05 03/31/01 354,255 -1310 0.05 12/33100 ZSSJulS 55,400 0.05 09/30/00 300,425 .47.169 0.04 01/30/00 347.594 4.738 0.05 03/31/00 342,656 22,504 0.05 12131/99 310,350 50,321 0.04 09/30/99 270,029 16,085 0.04 PEER OWNERSHIP 06(01 03/01 :2/00 09/00 Top 10 (1MM) (1MM) (5MM) (3MM) DI! 16.7 20.6 29.6 26.3 Sf5 90.6 35.5 33.0 72.1 0(1K 45.1 92.4 58.1 28.0 0 42.4 77.5 67.7 28.2 MIt 3.8 0.0 0.0 0.0 WHI 3.3 3.1 3.2 3.0 DYN 0.7 0.8 1.0 0.6 P14 0.8 0.3 Total 163.8 132.8 0.0 0.3 165.8 199.9 PORT DISTRIBUTION Small Mid 2% 7% Large alt' ROE Debtjtqulty P/B Bets 17.5 10.1 14* 20.5 14,3 24.2 ADjUSTMENTS Buys SAC WFC Ut MS wH S.! Ii MWD PG Vz KG SNY $ Held 250,5 226.4 139.3 90.6 90.9 $ 84)0 137.2 637.9 446.9 213.7 613.3 IClig %Pcrt 166.8 1.0 110,5 0.9 64.6 0.5 59.9 0,4 $8.4 0.4 $ 0)2 -43.2 -48.9 '48.9 .4,.' .47.1 % Port 0.6 2.6 I.E 0.9 2.5 P/E 12.5 18.3 20.5 24.6 13.0 we 13.7 24.2 29,5 79.7 LB 0.9 54.7 4.3 1.0 28.5 4.5 1.0 Proj EPS Yield Grrnvlh 3.6 9.9 2.2 12.9 1.0 19.8 0.0 26.? 2.5 12.4 ,i.o1 us Yield Growth 3.7 14.4 2.0 10A 3.1 13.4 28.5 1.5 12.7 34.6 2.0 12.2 LAY o00022 562 http://w.. ./irchn?pagetiosown&formtype=41 &lnan,e=Enron%2OPeer%2OPR&insuid=?NCPNNOO 10/10/2001 Page 1 of2 BlackEock ProfIle PageZof2 INVESTMENT APPROACH PNC's ultimate objective is to build wealth and reduce volatility thraugh diverullkation across a number of different strategieS. While the bank utilizes International Equity, Index Eqtflty, Smali'C.p Value Equity and Value EQuity strategIes. it tends to primarily be a Iarecap investor. InitIally, the potfolio managers strain for stocks with market-caps of $1 builon or more. The investment process places a special emphasis oe company tundamentais and market/Industry position. Because MC isa long-term growth investor, its turnover tends to remain relatively low. Investment Criteria: I) Growth rate Is equal to or greater than that of the economy; 2) GrOwth rate Is egual to or grater inane company4s respective Industry. Sell Criteria: I) Position becomes overweighed; 2) Fundamentals detexiorate; 3) Reaches target price. Decislorl.Malclng process: The Investment committee establishes the investment guidelines. However, regional Ctief investment OlYlcers have authority over local Investments. Fundamental research. which is the founds don of the b.uiWs invesbnent process. is generated by in~house analysts. C Copyright 2000 Thomson Flnanclal/Carno. Alt rights reseNed. hltp;t/wWwiuhacfteI.com LAY 000022563 http://w.Jircbn?page=iosown&formtype=4 1&lname=Enron%20Peer%20PR&instid~PNCENN00 10/10/2001 I S 0 0 0 or (31 C' uUt)ES B Qg~ZZOOOO Enron Corp. - Louo Slide HOUSTON. NEW YORK & BOSTON * Welcome * Introduce: Ken Lay, Chairman and Chief Executive Officer- Enron Corp. Greg Whalley, President and Chief Operating Officer - Enron Corp. Andy Fasiow, Executive Vice President and CPO - Huron Corp. Mark Koenig, Executive Vice President, Investor Relations - Enron Corp. Paula flicker. Managing Director, Investor Relazions - Enron Corp. David Leboc, Dircotor. Investor Relations - Enion Corp. $~Y THIRD OUARTEWSUNIMARY K - * At today's meeting, we will spend most of the ~ These anti * We have also left a good deal online ft,f questions) discuss qur ousmeas and our financial results. * We waned Stron recurd in sh .43 as in line with consensus estimates, and we reaflinned our * During the Third Quarter, related to several arcs. Our Balance Sheet remains s ac non-recurring charges. 0 0 o . Pinally, we implemented an irilti ancial d nvestine is or This expanded disci (,~1 Services, as well other amsof * tional asset activit s w ic are now included as a separate, identifiable segment wttht inmns atron and Distribution business. * (NEW YORK ONLY) We Will also have a shaft reception aher this meeting where we can answer questions on a 1:1 basis, Transportation & Distribution Retail Services Natural Gas Transportation. Electric Distribution and Global Assets Commodity Marketing and Delivery Energy Services for Commercial and industrial Customers OS 01 3,6 On*.2 0 0 a or M U, a' -3 Orranization Chart * The way we think about Enron's business remains unchanged. We are focused on three primary groups of businesses, including Transportation & Distribution. Wholesale Services and Retail Services. * Transportation and Distribution includes our regulated husines~es. Ou~g3~flipzUnj.uuwgk, which operates as our ~ Gas FE nesscaelent, is one of the lorgest. most inoontfre an~~st effective systems in North America. Porttamd General is our electric utility in the Northwest U.S. 8~ginning with the third quarter, our international asseti arid operations, or Global Asset; se~ment, are now included in T&D and managed by the same capable team that are proven, expert asset managers. Previously, the Global Assets operations were included in Wholesale Services. * Wholesale Services is our largest group of businesses. Enron's wholesale business outlook is very stronr Our broad scale and extensive scope enables us to package and reliably deliver energy commodities and Dro3eIda-.. pnce nsk trim ement services at the ilable cost. We are (he preeminent energy merchant i &North We arc well-establisheC Europdr ad we are very succesafuiiy extending into new energy7~i~d * Our Retail Ener~ business provides energy services directly to both lame and ~m2Il end-use Cl)ttflfl1Cr~ in the commercial and light industrial markets. We are the only comprehensive natidnwide provider of energy services in North America and are experiencing great results in Europe.. We have a strong history of contracting success, and we arc penetrating new mmitts with proven, standardized products. C 0 p 0 or t'3 < (p CD Earnings Summary (Millions) 3000 IBIT: Transportation & Distribution Natural Gas Pipelines Portland General Global Assets Wholesale Services Americas Europe and Other Commodity Markets Retail Services Broadband Services Corp. & Other Total IBIT Interest & Other Taxes $176 83 74 19 589 536 $3 27 (20) (106) $ 66~. ~b2 72 41 tfl~ flI~'C~~~ ~je.; as:~ I"~j ~jj .. rt.1j4 'i ~ I...................9292. ............ $87 85 jfft~ 19 754 701 53 71 (80) (59) $772..- 255 125 Non-Recurring Items Reported Net Income -0- $292 ($618) 3001 C C C or U' a' *0 -4 Oto L3rd Uout.r.3 j Eanuinps Summary * Overall. Enron reponed recumn net income (or ike third uartcr 2001 'a iciest 00 million ectin 5% increase a' r. * Tnnspo and Distribujion, which joel ' atnnLGas P lines Forti segments reported a o. Nab, tines and Global Assets remained relatively or the recent quaner. The difference mc ( 2000 was rimaril ~e to er contracts in ,frm~aflrU2Enntc adequate supply (or the sweat canners prices that were i settled rices. The a mourns was mcorpcxated into Portland GenexaPs a S-month sate structure which became effective October I, 2001 and included a 40% sate * Baron's Wholesale Service business includes our Americas andEu a d C - artS se ments and is consislently our stroit co to overall eamin Wholesale Services increased lOuT b 2 54 niiflion or the third uarter of2Wi nil so or or ear. Such inc rease is primarily altribula e toe flUflUi~i&~iiiiinly in oar North A rican and businessa Oar Europe and Other Commodity Markeas * Enron's RtaM Servlcesbun S positive quarterly BIT 57) Ii * ncrwse over a year asto. Profitability continues to - a~w~uiciiy ro this bus mess. -.- -~tz~3 ~; * Boron's Broadband Services segment reponed a loss~ ,niilim,ich substantially exce&A she print ~er 'The increased toss relative so $20 million loss Ia year reflects significaully lower ii~UtiCuWW~ome and lower operating cases. - * Corporate and Other reported an iarr loss Qj~PpillionAn the third quarter of 2001 versus a lob~Sis~ijji for the same period last year. This scgmen represents the unallocated pinion of expenses related to general coqorate Itnetions. C, ________ ________ 0 a or-' Cr -3 *SsT4tMIitflap.SQ 3O~ 1065 ICIS. T..stpsti.*Sat a N...i~l Os. Pip.l~s.s S III S *5 I 2% P..hmd Oswtti 74 11$) I'll -'lit. 014.4 Aus'w. (9 4' - at 1.4S9 7....p.#te5l.. a Sk5vlkt*~. 576 II -55% Wh.k.gS, S..$... A.'tric.. 536 i~I 565 tbnMa O,t.vC.mm.du,M.IhtSl si 5) - ~.*.IWbfl#..kSmn4tt. SIt '5. (.5 lS% *nzEfS.rtIct. 2' 73 44 I*i% bn.4'..d S.q,Irts El., 554 03 Cops 4I,hti _______________ 455) 47 Luff S ~6 5 77) 5 47 4% I.*.vttt £ Osbgr 5 JCI 5 *33 S 44fl 45% Tm... $ '3 S 11$ 3 1) p4-I...-. - E**ertiS S *90 * 355 5 45 35% - - N.frP*.t1fl l*4' I * S ((Alt) EW.rd N.E It.... S Zn S 4638? 3 fUSS .3(1% Transportation & Distribution Natural Gas Transportation, Electric Distribution and Global Assets Wholesale e r vices Coni,nodity Mniketii'tj and Deliveiy Retail Services Lii.tt;y S.' vi... F j5aSvmm&cUO 0 0 0 at-. 'A t-r' Is' -3 I-' 09 01 3rd Oumter-4 Transportation & Distribution - Ornnization Chart Our Transportation & Distribution business, which includes our regulated business and now our international assets and operations, or Global Assets, is mn by Stan Horton, Chairman & CEO. * Stan, a member of the Enron M~nsgon'"t Cn.nndttgs bt.c river 25 years of experience in the natural QaS business and has been instrumental in tixe creation of one of the lar~cst and most cost effective natural gas systems an North Amenca. C C 0 or "3), h)'4 (J1 -3 to a Enron's Transportation & Distribution Businesses Worldwide Asset-Based Operations N Transportation & Distribution Natural Gas Pipelines * Interstate Natural Gas Transportation Portland General * Electric Distribution Global Assets * International Assets G~Oi3t4Cwnr-S 0 0 C o t-' U, -4 U, Laron's Transportation & Distribution Businesses - Worldwide Asset-Based Onerations Our Transportation and Distribution segment is comprised of three separate businesses including_Natural Gas Pipelines, Portland General and Global Assets: - Natural Gas Pipelines - Our regulated interstate natural gas transportation business. - Portland General - Our electric utility serving the upper Northwest. * The acquisition of Portland General provided us with tremendous insight into the power business, allowing us to penetrate quickly into the wholesale power markets. * We recently announced the sale of Portia to Northwest Natural Gas for 4liilion.in addition, the transaction will also reduce General debt from our a ance sheet. - Global Assets - Our business comprised primarily of incenutional enemy assets not Dart of our Wholesale and Retail businesses. 0 0 0 o r 'S. -4 'I' Natural Gas Pipelines Strong Growth Opportunities in All Markets Served C) Steady Earnings Growth C' Predictable Net Cash Contribution to Enron (2' Rate Case Certainty Near Term Expansions in High Growth Markets - Florida Expanding to 2.2 ScUd by 2003 - Transwestern Expanding Capacity to California - Northern Natural Bolstered by Increased Gas-Fired Plant Demand '2' Significant Future Growth Opportunities Serving New Gas-Fired Generation C C, C' C, r r*~ t~) -c c-fl -J (I' I Transports 15% of U.S. Gas Demandj Peak Capacity of 10.8 Bcflday a a - - - n --- --- --- - e Natural Gas Pinelines - Stronr Growth Opoortumities in All Markets Served * Our Natural Gas P. dines se and most cost effective s stems in North America. The combined system trans rts a roximate 15% U.S. as with k ca aci of - Bcf/d. * The outlook for our gas pipelines are excellent: - Natural gas demand in the U.S. continues to grow at a steady pace, driven largely by new gas-fired power generation. ~-- - I he mai6iiT1 of Enro&s capacity is contracted uut&aJong-term contrac itlfno new rate cas uired ~~l3~enigt20DJ. This business continues tog aslent an products e cas flows for Enr6n. * Enron is continuing expansions in high growth markets including: - azotalof2icf/d in Florida: 4' ' ~/ %/t-'Ct - expansions on Transwestern to both serve growing market areas like California and Arizona; and - opportunities on Northern Natural to serve new gas fired generation Background: Cs t. g PipeNice Capacity Rate Mast Net Rate Mast (ScUd) Miles (SBWIon) (Sawlon) - 'V. Owned g ~ Northern Natural Gas 4.3 16.463 1.2 1.2 200% ,.., ..e Northern Border Partners 3.1 1,214 1.4 0.2 12% Transwcslern 1.7 2.487 0.5 0.5 100% Florida Gas 1.7 4.795 1.3 II.? 50% Total I0.K 24359 4.4 .2.5 Florida Gas Major Pipeline Expansions tliiderway Capacity Cost Cnntrnci 1.,.m Expected MI? L!~~jj±9fl¶i (yeaes) iwSeivice 428 5460 120 $80- 100 20 April 2002 21) Mid 2003 New Demand-Driven Expansion Opportunities Over 15,000 MW of New Generation Proposed in Florida Through 2003 Evaluating Supply Connections to Proposed LNG Facilities Expansion Activity C C C or ha> N3C 0? -J -4 4.- we - Phase 01 -. rzm Capacity (l3cfId) 0.3 05 L.... 1 PI,~1so Plnise Phase PI,n~w ii In IV v ---~....... 0.1 [ClEF Phase vi 1987 1991 1995 2001 2002E 2003E --------- nn m m - m m S Third Party Pipo Power Plants - Existing i2~ 2001 -. Phase V 2002 & 2003 Phase V PIMSO ~II 2.2 Tnf;~l Florida Cas ElDansion Activity * Enron is well positioned to serve the increasing need for gas in the Southeast resulting ftom population growth and gas use for power Reneration reouirements * Enron's existing pipeline infrastructure provides an excellent nppnrtimnity to levernoe elticting infrastructure and expand through additions of mainline loops within the ~xistii,g pipeline corridor or additions ofcompression at existing compressor station sites. * Our current exp~ncinn ~ wjiLmcrqse our production capabilip!LbtA~ZZIZUZ) feet per day zo2.2 billion cubic fee r day 1afl003) t Fl 'da, including connections to Background: * florida Gas completed ~?jaaseJV in Mix.2201; adding 198 MMcf/d of~it * Florida Gas received a 2 'V of r&ect in Jut 2001 which will increase fimurans flation service capacity 428 MMcflda The target rn-service daw remains ApriLl. 2002, with the final stage of the - In phas on a as will add 166 miles nf pipeline including mainline loops and laterals in Mississip i,Alabama and Florida. FGT will also install 132 thousand HP of additional compression. o - C g r * Under Phase VI. Florida Gas has also entered into a 20 year firm transportation service a~reemcnts with four ~jjppi~rs..~This project will adaT7Wi~1M~178iycapacity to the pipeline and is expected to be in-service in June 2003. 0 Global Assets Stand-Alone Assets Not Part Asset Mix by Location of Wholesale and Retail Operations C Largest Assets - EIektro~..EIectric Distribution Company (Brazil) - DBbhOI- Power Plant (India) - Culaba - Power Plant (Brazil) Management Foctis - Efficient Asset Operations - Sale of Targeted Assets Minimal Current Income or Cash Impacts of Currency C 0 Fluctuations Cr -j - - m - - -------- ---- - $6.5 Billion of Assets As of June 30, 2001 Clobal Assets * Our Global Assets business incin of a I his segment is focused on nsunng e scient operations of our asset holdin weti as tactlhatin~ouj~4j~pg~jLjon o certain targeted assets. * We have about 34 billion (book value) of assets targeted to be sold - 2 which includes C international assets. e ave an ion value) of internaliona assets tar eted for st-2002 * ft is important to note that Enron has minimal current income or cash fluctuations from chanies in forelon currency values. * Work from slide. ASSET MIX I. SmIIIIns) An .,fJ.#t 35. )OOJ South Ae,Ic.: TOS Trasredes Culaba E(ektro CEO-Rio CEG Gaspart Other Tel loiS AmerIca CaribbeaR: Vengs, Promnips FcoElectriru oat' law £.saflb.a Ad.: 5K-Eaton Other T,t4l Ads India: l)uhhol GAIl. Waist mdi. Other 3..k Value 430.5 145.4 535.0 2,0251 70.2 199.4 I 93.7 41.2 149.6 157.5 145.) 439.6 * MM 297,0 191.1 452.1 870.0 69.9 939., SiLl .0%~ '4% 5% £454 5%: Total Global Atmeti 6,500.9 300% TARGErED ASSET SALES (In SutIliocs) And: Pon~M Oau~ EcoElectics CEO-Rio SIC-Kern Tnansredcs Pmn~gas Vengas Balang~dSubic India E&P OUn wssm Tsru~.d 111.. Elekiro Dabbol Wind Cuinba rut 2002 TarSed Ucee Eat. Sales Value ZOGO 230 250 300 950 200 100 too JOG 300 160 LS ZIOG 1,000 350 500 4,350 Deckrr,und oat ASSET SALE PLAN * Targeted Sales Primarily Comprise SeleeIcA Stand-Alone Assets Nol Pail of Wbolesale or Retail Businesses. * $4 B Book Value or A5stts Expected to be Sold by Year-End 2002. - Portland General - Multiple international Investments * * Additional $4.! B Book Value of Dispositions I argeted Post-2002. Ltekiro - Other International Invest meats * Gains and Losses to be Sepawacly Reported. C C C or en- ts) C C" Co C. Capital Spending * ($ in Millions) LI Cuipilal Sgondin~ -Gans-~ fl C:upltM Sl¶dndiim - N»=t of Proco~ds from Sale 1,305 610 599 2000 200W V 1,007 2000 2001E 670 2000 2001E __________ 2000 2001E 4 Capital Expenditures $ 2,381 $ 1,925 Equity Investments 933 1,150 Proceeds from Sate (494) ___(2,325[ Capital Spending, Net $ 2,82% $ 750 568 307 2000 2001E 436 2000 200W Transportation & Distribution Americas Europe & Other Commodity Markets Retail Services Broadband Services Corp. & Other - i;iclt ides PP&E mid r.~1 thy It ,vestrnents: V xcItzrIr~ fl,is ness Acquis Itinns anti Oilier Invest inq Aclivit los iii ~g'I I --------- - ---- - - -- w C C 0 C, t~ Hi Cr, I., 2000 2001E Capital Soendiant * Em-on is focused on de to in c ital in our hi cat o eat nd res a tilt vesim I our definition of capital spending. Also, because we Ii I we consider proceeds from sales of assets and manage tone capt a ing evels. * The boxed numbe~s show that, for all of Em-on, we expect to mv 1150 mliii * net, in 2001 compared i4ii~tiionin2ooo. * In Transportation mud Distributin ci a * In the Anuericas, our inveshnent f,c~ is based on market-driven opoortunities. including energy-related caufty invesuncnls and financings. Due to our strong ntadcel position, we are actually able to bc~in exlractinu canitat and still increase our overall ~tivit. e * Corporate and Other includes investments in third parties and technologies to advance our maxtei-nuking network. RACKCROUND: (INTERNAL USE ONLTh 0 r . 2000: Significant hem in Americas caDital spending nESI .3 billion includes acquisition or Peakers. Corporate & Other capital spending cr5317 million includes SAP coals of 5147 million and property addia ions ofSb2 million (Enron building and plane). U' * 2001: Americas capital spending vESt billion includes costs related to Sithe; proceeds from sales ofSI.4 billion include HPL and 0' peuker sales. Corporate & Other capital spending of $568 includes 5326 million of Azurix buvback and 576 for Enron I', l3uihiinfl South a * Beginning the second quarter of 2001, we havei conditions. N;,tiiral Gas Trnnsportatioii, Fstzt~ IC Vssrr UHIIEOII and GIoU:I A~suI~s Commodity Marketing and Dlinry (j y Si: rva. lot C;tjfflfettt 4. O9013.d Quarter-ID 0 C 0 0r 0' 0, U, Wholesale Services - Ornanization Chart * Wholesale Services is our largest business and has been the main driver ofgrowth for Enron since its inception a decade ago. We have leading market positions worldwide in the fase growing. derc~ulatina worldwide energy markets. We have consistently increased profitability regardless of commodity market conditions. * We have also extended the Wholesale Services business model to Europe and other wholesale markets with enonuous growth potential. * Through our Wholesale Services activities, we have .A~Aablished a f~chise with a strofle track record of consistent recurring earnings and strong growth opportunities. 0 o r C o t-4 t'3> Cs' 0, 4' Enron's Wholesale Businesses A Wholesale Services Americas * Natural Gas * Power C 0 C or to)' 10'~ ty' Europe & Other Commodity Markets * Europe Natural Gas and Power * Metals * Energy-Related Markets * Industrial Markets 09 Dl 3rd OuaW-l I Enron's Wholesale Businesses - Organization Chart Americas Our Americas business consists rimaril of ye stron onh America erie merch nt In Europe & Other Commodity Markets * We have extended our enemy model intl other retions and t1hcLwmmgdilsg~, We have a large, experienced local workforce of ove 2,000 in London and on the Continen This segment also includes our market-making activities in Metals. * We are also extending our market-making activities u(Other.Commoditv Markets, including both elated and ridustrial Markets. We are replicating our core market-making skills in enormous markets such as C C C' or U, w 0~ Performance Highlights Physical Settlements (Bcfe/d) Income Before Interest and Taxes (Millions) 28% ~~~1~ $754 Diversified Busino so. Dilve Consistent Volume and Profit Growth C9Sl.3rd Cu..1ot-12 -7] 'sag C C 0 at-, $3,. ""4 (p ED -a 3Q00 3Q01 3000 3001 Performance Highliuhts - Physical Settlements and lBfl * These charts depict the combined Wholesale Services nroup including both Americas and Europe and Other Commodity Markets. (We will separateLy identi~' Americas operating results later.) we continue to push deeper into our markets and are driving li4uidity and price transparency. * ~ reflecting increased energy market-making activities across the Americas and Europe. 1iiI6on.ourOdi~tiii~U!Mii~its businesses have been solid contributors to profitability. * You will recall in previous quarters that we demonsiuuted the ye c lation between ph - rveri odity and our nrolimahilHv - I in vnltt Q9% CACIRS~qC 1990 hIHITtI The conclation is real, recognizing dat both Enron's ysacal volumes and 1131? ave a number ot separate busInesses contributing to the overall correlation. Our cxpan&d segment disclosure will make those elements mare visible. The multiple facets of Enron's business enable us to consistently grow both our physical operwions and profitability. PtIv~cALmtT1flWfrS (MMdrJd)-3Q C- Arnics 25233 2US$ 6$4 E,.~jdOJn 3.595 9,333 160~i Told C.. 25343 35$97 1S¶4 Nw. Asskn I7.7fl 31407 77% Essq.euwJCIhn I,MO 11.306 94~ Told Parr 42323 927% ()~*a) & IJqdh 5,154 9,410 E.4% 0 ~, Tat as am En 0 or I'd ) I3ctIdcfty (flwm.sd MWt) M 163,536 289,253 U. Ewq~c and Ot., 9.932 UM,W& 947% 17341(8 3131(39 S 515 $ 53 $ S nm~ BE~r&OtnO3UTU*Nbta ________ wfl-w~. Ma~Iarfrbr ii., I B.qt&cunlHTMnin 55 ~'*2 CA 3Am 2166 15.116 'lag, _______ 19*5 aim urn $ ~I $ 365 S 53$ - tiki '-9 '3 (04) Enron's Leading Market Position (Physical Settlements in BcfeId) 7RAt * Power * Gas 0 0 0 at-' U, 0 21.6 21.1 19.5 194 18.6 -r -I Dynegy Aqidla BP El Paso I'G&E 2001 3Q01 Sntirco: Gas Daily, Power M(Irkq,t~ Week. Company P.epcn I~; Second Quarter 2001 ------- ------- m m a a a 64.7 .....I.... Enron F 17,3 AEP Reliaiit I S~o 1d~ Mintnt Duke 12.9 Enron's Leadiur Market Position -3001 This slide presents Enron's competitive position relative to U.S.-bascd energy merchants. * Enron has siRnificantly di~tanced ftt market share from of her marketers. The volume results continue to demonstrate Enwns more rhan three-fold lead on our nearest group of competitors. * In addition, Enron has aL,ell-diveisifled energy business. .wI anci newer contributing about 45% to volumes, respectively. N5UIlliriiierc5iiitThergy peer has so successttlly penetrated both markets. Similarly, no other peer has so successfially expanded into the Eurone encrrl market. * We have built a tremendous market franchise that has sipniflcant sustainable competitive advantages. We continue to build our bm,~dness with 3Q01 volumes increasing relative to 2Q01. ENote: Not all others have reported 3Q volumes.] NOTE: Physical volumes only: Volumes include Europe to 11W extent publicly reported. 2001 3001 Gas Power Total Ga. Power Total 33.2 61.5 36.0 42.8 78.8 08.2 masALa~~4L3 * .ME Enron's Lead Market position (BefeId) Ni a- e 21.8 Reliant 21.1 MiSfit 19.5 Duke 19.4 Dynegy 18.6 9.8 22.4 Aqulla 17.3 ap 15.0 El Paso 14.2 PG&E 12.9 Scum.: Gas Daily, Power Musters Went Company Ropotts 8.5 11.5 11.8 11.2 10-9 10.3 12.3 9.2 3.9 13.1 0.8 7.7 8.2 7.7 7.0 2.7 5.0 9.0 12.6 0 0 0 or 1%~ U' tO C Financial Settlements Financial Settlements (Bcfeldj 3Q00 319.4 3Q01 o Contracts Seff led with Net Cash Payments Without Physical Deliveries o Comprises Significant Portion of Enron's Longer Term Products * Enron's Lead Role Provides Distinct Competitive Advantages - Valuable Market Insight - Important Tool to Manage Enron's Broad-Based Portfolio 09_01_31400.14 51% 0 0 0 *: t '9). I'1 'p Financial Settlements * One addif ion las setofourbusiness that we have not discussed much in prior quarters relates 4~~cIaF' e nuents in our encrg busines f-Iistorically, the growth in our Financial Settlements has ap roximated our rowut in rn sacrn Settlements. For the third quarter 2001, Financial Settlements increased over 50% (0319.4 Bcfe/ as compared to 212.2 Bcfdd in the prior year. * Th~fjpazzciaLas~pct of our business is important. Our Financial Settlements reflect the QroWiflQ use of price cTThk management )roducts by our customers to manage their price risks. The simplicity of' using EnronOnline to execute twancial swaps is driving much or this growth. In more liquid commodities, such as U. S. natural gas, customers are ancreas~gbukjhiugArkkiutjp,jii~j urchases or sales to Enron's financial products. Enron leads the market in of tong-term financial products. * These products invol net cash setdernen ween Enron and the custome rather than sica delive a the commodity. Our big -ye time mnancia products provide us with pricinga well as another means to optimize and manage the price risk associated with our broad-lrnced ~~ii~ilioo commodity contracts. 0 0 0 o t-' *0> '4. ~-0 FINANCIAL SCTTLEMtN1S (MMcreId~-3Q j~ 3002 20A66 246.02 sri rower 1.373 645 -53% CmJc Oil end Uqtuids - - Aeerie.s IMJS9 247,M7 50% 1q3 .75% Po'er 5,146 5,060 (n.~Jv(?iIundIAquit 41,5% 644122 OP Fs.pe & Other Caindity M.,t*t. 46~935 TUN 53 Yea, Yfr.scS V.isma (tdMd'eId~ 212,174 319397 SW New Contract Execution Transacted Volumes 0' Volumes Originated During (New Contracts in Bcfeld) Current Period for Future Settlement o Record Level Transacted in 3Q01; Driven by Both Gas and Power o Power Comprises Almost 45% of Physical Activity - Up from 200/u in 3Q00 o Financial Product Expansion Driven by Enron's Distinct Ability to Make Term Commitments - Average Term Lengthening; g Delivery Commitments through 2003 'V U, OSOtYd O,arte,.l5 - - - - - - m - m - m - m - - - - 887.7 3Q01 New Contract Execution * Another new metric for investors is one we have monitored internally for a tang time. * Tnnsaeted Volonnesd I. new business general in the current period for sculemeni in a future period. They will settle, or convert to cash, based upon the terms of their respective contracI~. Third quarter 2001 transacted volumes set an all-t.mc company record, totaling 8871 BcfeJd - a 33% increase over the nrior year. * To put the magnitud ' nsactcd volumes into perspective, our third quarter 200! Transactcd Volumes during e quarter. * Our Transacted Volumes that financial roducts are almost citE ur Transacted * The high level of current transactions secures condn~A c~w'pg nhvsical and financial settlements in the future. 0 0 a at- I'-))- 01 '0 r~wctwmMrrnGflmcrl 13dd0-3Q ___________ SW' a~ amt~ Bra nn~~ rkmrM 97.2 4436 6241 -2% 4W CbackOIs,lLJqtid' ______ - - - Aninteu 922 40A 94J 6244 -2% 41 (is&IWw 2flfl 70 437 7.5 11(1% Cnzk(~IawdUquit ItO 893 fl9 103.7 17% Vt' Ese&WwOuundtNtutS Si? MS 57A LIti ir Toast Ibmacict Volwm IIS 539.9 . 15t4 735-3 17% WI Ta I%dal &1t~dd [ZhIZhZIZ~iI ~ 33V EnronOnline Average Daily Transactions 7,000 6,500 __________________________ 6,000 5500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 3 1,000 o 500 or tQ > t.JI< 0 (I. tO Cr Nov 1999 Mar 2000 Jul 2000 May 2001 Oct 2001 Oct2000 Jan2001 09.Ol3td O,manr.'S Since incevtiora a 1,550,000 Transactions II I I EnronOnliuze - Average Daily Transactions EnronOnline has bee an enormous accelerator to our businesses. Customers have rapidly embraced EatonOnline. The wide range o c attracting an increasing number of both existing and ncw customers. Ar pre vera e of 4,000 customers logge on our site each day. EumronOn line ~ Year 2000 1Q01 3!~! J2!~ LTD-Since Launch Transactions 1,550.000 I _____________________________________________ Gross Value$n) 336 $ iSO $ 181 S 860 Products Offered $ 548,000 276,000 325,000 34L000 >1, * EnronOnline han 5 000 transactions a- worth over $2.1 billion notional value daily. New rccords for weekly volumes continued to be set throughout the third quarter. * We offer over 1,800 products online currently. Products include a full range of gas and power products in North America anCburopc end many other products, such as coal, metals, weather protection and bandwidth. a o U C or I',> t..J -~ U, ~0 Transaction Mix Total Enron Transactions 550,000 349,000 57% 43% 3000 38% 62% 3001 Traditional o Longer-Term Structured Transactions o Additional Opportunities for Transition to EnronOnline EnronOnlirie U High Penetration in North America Gas & Power; Growing Acceptance in Europe O Rapid Acceptance in Non-Energy Products o Integrated with Logistics and Back Office for Scale Efficiencies ~1 09_01 _3;d Ous,tef.17 - minmininfl~ - m m - - m C C a or U. 'I, -4 Transaction Mix - EnronOnline * EnronOnline is an important tool to grow our business. However, our businesrt cicdihrouW,-4q~titional channels also continues to ir---r ~~~M~rfurt cased our v -' ~i~rnr "~ CR%t 0 transactions in ~)ie Third Quarter 2001 as compare 349,000 transactions in I Third Quarter 2000 * Our Traditional business activity increased about 5% from a year ago to approximate transactions the third quarter. This area includes our longer-date, custom-packaged transactions, which we do not expect to ('ilty migrate to Enrorionline. In addition, we have additional seas of oppodurnily to capture ezl,cscncics s we move an increasing number of the inure straightl'ornrd products to EnronOnliuc. * Penetration of EnronOnIlue into our c netwcwks continues so increase. We have increased the percenma e of total Enron throughoul the Continent. * The "instant provisioning~ capability of EnronOnline has allowed Enron to bring non-energy products to expand its networK to new marKets cnornious in size. We are seeing rapid acceptance or these product otThflhIpt3T'SiWcustomcrs. * Pinally, EnronOnline provide us with important atmeturul advantages includior salability, enhanced risk control, broadened information access, and increased eff metes our commercial marketers and back-office support fimctions. Th~ combination of tnron a broad scale and Enrot OiiUuiI~annot be economically replicated by others, creating a clear competitive advantage for our wholesale business. o Tnauactlis Mhz 0 o IQS 3Q05 or b,nadbc % tlzadmn fltsae6as %Utatiop Traitioml 199.000 51% 209,000 3KV ~0 EwmOtinc 150.000 43% 341,000 ________ T'n2 Eww Tmtucliom M9,0,O) 300% 550,000 un Enron's Wholesale Businesses America's Leading Energy Company Americas * Natural Gas * Power 0 C C ~~3r4 i.1' to .0 * Europe Na?iwsil Gas and Power * Metals * Energy-Rckitc'.$ Mirk'I ¾ * Industrial Marlwts 09SL3M Ouafln-18 Enron's Wholesale Businesses - America's Loadhaf Enerry Company * Work from Slide. * Our Americas business is led by Job. LavonIo~ President & CEO, and Louise Kitcheu,. COO. John and Louise are both 6rmbcrs of Enron ~s Management Committee. C 0 0 or N)> 0~ 0 0 Anwukas Az~ Finn Teal Join. Lavorulo j~..., 3.... 12 £sdse Kitchen r32 7 II Enron Americas The Most Flexible, Reliable and Valuable Energy Network MarketinLAdIvhtv Gas Power Income Before Interest and Taxes (S in Millions) 701 53$ 3Q00 3001 C Lead. Role in Providing Liquidity for Gas and Power m Broadest, Deepest Market Knowledge and Delivery Capabilities C. Strong Market Share Provides Sustainable Earnings Base fl-I-- 31% 0%013rd Ouanot.1S --------- - m m m a a - S a t] Under DoV*lopm.nt (3100 MW) I 0 C, I) WI-, 0 Enron Americas - Mao bushed I ceding energy network in North America e have an unparalleled network of .ph9~IcalassetsJhat enable us to e iver natura eqs and power anywhere in the U.S. on short notice. We may or we may contract for capacity on third party assets. We use our market making skills to secure the cheanest availahie coninandities, and we usc our extensive network to reliably deliver the commodity. Our extensive scone acces~ to r~ccts. liquidity and large a.r2hle nnmmorAnl ' povides us tremendous competitive advantages. * Because we actively operate in every area of North America. we have e and power supply and demand and related events. We create value wiIIiibAtm~rketinforma~p$adjusting&iT pnccs and products on a real-tame basis. * We are continuing to see relatively high gas and power price volatility. Customers need a reliable provider of increasingly complex energy supply, and we are experiencing a sigrnhcant increase in demand far risk management products and services. * Americas also includes our South America merchant energy business where we are replicating the strengths of our North America energy nciworK m mis emergin2 merchant energy markeL * Americas reportcd lilT $7OEnailHo or the third quarter 2003 a 31 rcP4~~~fS53~I) million for the third quarter 2aJO. 0 0 o 1 or * r I-,Jb< 0~ 0 "3 Americas Business Expansion 0 Physical U Financial OS_01_34d Ousler-20 - - - - - m - -- - - -- ---- m m a C C o r to.< 0' 0 to Americas Business Exoansios Physical Settlements * Physical Settlemcnts were up signific3nhly in our Amen and power volumes increasing 35% on ~flft~fli~~s to 58.2 BcfeI4 North America wet vohnn I Lily dd.J ~ CL; sugmucant growlh in volumes was driven psimari y our North American Power businesses. No.1k America physical gas volumes wcr(~p 6~4jj~e third quarter rmin xctuding this item, gas ohmies increased 14% dunn quarter as compare to prior year. -c Finandal Settlements * Financial Settlements increased 51% on a uuarter-to-ouarter basis t4~47.5 M~Aid The dramatic increase in Financial Settlements is almost entirely driven by our market-making activities in AmericailqiliMllTas and our ability to continually expand into longer-dated offerings Online. * Financial transactions also give us a tremendous insight into the marketplace, which further enhances our ability to manage a broad-based portfolio. Transacted Volumes * Our c~ongactIww activities in Americas con~s4I&iah~anLn~cWions. 0 ransacted Volume rthe third quarter 2001 3x V iso lements durin the i Our strong per omiancein transacted volumes will lmnslai~ into ruture energy physical and financial seltlemects. * EnronOnline has been a key factor in our ability to drive liquidity and price taunsparencv in our key Americas power and gas markets. Our ability to drive and expand volume growth remains unmatched by any other energy merchant. AMCRICAS BUSIrIESS IXPANSION(BcfeId)-SQ 30W J~flj %Chf. On 253 267 6% Power 27.5 31.5 77%' ?b1ded 5fld.M. 419 NJ 35% (1., 263.9 ~46.S 51% Power 0.2 0.7 600% FI.a.cIdSflhle...t. MU 247-5 33% Physical 97.2 94.5 .2% Financial 443.6 624.1 42% tnawfrdflkme. SUB liLt 33% C C C Ct-I "3.-c 0~ 0 Business Highlights East Power Physical Volumes (Million MWh) Settled 168% 3000 3Q01 Transacted 224 264% r 816 3000 3Q01 Number of Transactions n (Per Day) El 3000 3001 Eli OTC U EOL o Making Markets Across the Entire Price Curve - Key Provider of Liquidity - Conducts Majority of Industry's Long4erm Business - Significant Increase in Long-Term Contracting (Over 40% > One Year) 0 Growth Driven by Enron's Core Competitive Advantages o Compares Favorably with Most Merchant's Entire a C 0 or to> C' 0 0~ U.S. Power Operations 09 ft 3rd Otwl&.21 a a - - - m m - - ------ a - a a IQA 72 ~1 East Power - Business Hifhlifhts * Our East Power business is an excellent example of our ability to drive liquidity and volume growth with our market-making skills. * Our Ph sical Settle cats thied almost 00 MWh for the third quarter 200!. a 168% increase ver the prior gy merchant in e Eastern US and arc makano intntrtt 2rrng~ the entire price curve. In faa, our Last Power business compares favorably with, most Energy Merchant's entire U.S. power operations. * Our explosive growth in Transacted Volumes has been largely attributable to the strength of our EnronOnline eCommerce platform. Transacted Volumes increased by 264% to 516 million MW 's for the (bird quarter 2001 as compared to 224 million MWb a Even more illustrative of the strength of ow competitive advantages is the transaction ftc East. During (he third uarter200l.om avers edafl transactionc were more an 631 client r increase of over 150% compared to the prior year. * While it is apparent with this type of growth that Enron has a distinct competitive advantage in the East. we continue to leverage these same core competitive advantages in all of our energy markets. 0 0 0 at- 0~ a _______ EAST POWER (MUSe. MWI) -30 39*i _______ StiffS Vsumn 73 LW OTC 147 296 101% ROt 77 520 575% Trmnsacied VeIsmo 224 534 164% 0TC 373 171 -IV. EOL ___________ 460 505% U .1 Trissacsouw (rr Jq) 249 £31 153% Regional Transmission Organizations Current Proposed # RegionsllSO's 15+ 5 Not all Users on the System Take Non-Discriminatory Access for Access to Transmission Seivice In a Nondiscriminatory All Market Participants Manner Very Little Coordination of System-wide Planning, Outage Operations Service and Planning for Coordination and Congestion Transmission Between Regions Management Inefficiency and Lack of Price Cheapest and Most Effective Customers Transparency Increases Costs Products for More Customers Unnecessarily Lack of Grid Information Hinders Optimal Siting & Development Generation Best Siting Decisions Decisions Facilitated Total Portion of Wholesale 20*I.-25% 100% Market Open 09 0? SM Cuwwfl C, a 0 tO)' tO'4 a' C, Significant Increase in Available Market with Improved RTOs Regional Transmission Organizations * During the third quarter 2Oq1'5~~~~qan focusin ore resources towards improving thc U.S. electric transmission system. * At the heart of this initiative is the FERC's interest in establishing an organized Regional Transmission Organization (RTO) platform. * This slide briefly summarizes the drastic differences between the current state of electric transmission under present RTO/ISO regions and the RTO regions proposed by the FERC. * The FERC's present focus on the formation of 5 Rr~innnl RICO's will npItIIy wj'q~lonfJ~. the tntnl portinn nrihe market open to energy merchants afid generators which have historically been cannoNed by incumbent Electric Utilities. * Work from Slide. C 0 a at-' t', -C 0~ C, w North America Recent Structured Transactions C a 0 a r Ni-C a. C ,fl 09_Cl_3r0 Onner-23 North America - Recent Structured Transactions * Our North American n our key regions ~nd products, but also i e Structured Transactions. * Our broad-based scope of products, customers and markets rvdes us with significant opportunity to package higher margin value-added products for our customers. * Sonic examples of Structured Transactions over the last nine months include: Gas o Long Term Capacity for customers desiring the physical natural ns when-we; o Price Risk Manannaent nrnvlnrts in es,wiuin~ conumndily ,norfrabe turk Mn ice: o tJdIiy Outsourclug arrangements where we manage all aspects of our customer's gas needs: and o Operational OiiIUFrcIng services where we manage the commodity as well as the entire back-office for our customers. Power o We have been extremely successful selling our Pie-Build Power Piant Packanes for IPP's and Generators desiring to o locations. We leverage our strategic generation site bank of ov 0 sites i miittin or re- ittin o ii ci Management services where we manage many aspects of our customer's operations in addition to the retp3 sgnmi~kWr~r ~~sks; o Contractual Access to power in ke re ion reement. (PPA's) where we repackage the o e m o pr ucis or our customers. ur 704) MW Alberta PPA a relat Wind activities in Texas are two hallmark examples. C C, a innovative Structured Commodity transactions custom tailored to our customer's specific Load Requirements. N) Our unmatched market-making cap*hihlics are a significant competitive advantage when onRiflatiflE Structured Transactions. C, __________ Enron's Wholesale Businesses Europe's Most Established Energy Merchant Europe * Natural Gas * Power * Metals a 0 C or I')> 0 I-. '-I - E~u.rt1y-I.Iitd M.ik.-' * mdii :Ars4t1 M~' It. P. O4~tyd O~fl-24 I I Mhn ShWW Presidmnt & CEO Edasi Brown coo Enrom's Wholesale Businesses - Europe's Most Established Energy Merchant * Our Europe segment includes our Natural Gas, Power and Metals activities in the European market. * Our Europe segment is led by led by John Sherrill. President & CEO and Michael Rnnutn, COO. John and Michael are both members of Enron's Management Committee. 0 0 0 o C4 a. 'S $3 I- As Fan Total John Shenilr 48 7 26 II&lwdfl#owu 39 6 20 Enron Europe The Only Major Pan-European Energy Network o Strong Deal Flow; Low Market Volatility Currently o Successful Deployment of Select Assets o Penetrating New Markets by Packaging from Enron's Broad Product Slate o Transacting with Over 300 Wholesale Customers Marketing Activity ffi Gn C) Co.I S Power ~ Metals O&OtSed Ctjariee-25 C 0 0 0t-' NJ> a' I-a LI, - - m - m - m - m m a ----- a a Inrom Europe - Ma~ We entcred the European market early and quickly to establish the leading eneray fr2nchige in P.1mm. We have relatively Cew physical assets in the U.K. and Eurone. Just as in North America, our marks-making activities are a driving fo~ in creating market liquidity and providing price transparency. * We have a number of new opportunities from the recent im leinentation ETA arch 27 2001). The new structure plays to our proven strengths by creatanu a true "hi-lateral" physica power mar e the structure. In addition, we expect the demand For forward pricing and delivery commitments to significantly increase. * As gas and power markets become more liquid and concentrated, Enron is actively pzswiWip±itingin tine fonnation of regional trndinR hubs on the Continent. We are also very well-positioned for increased profit and growth opportunities as the U.K. and Continent gas and power markets continue their convagence. * Enron continues to see strong deal flow in Europe, as reflected in di data' owever, market volatility is relatively low. In addition, penetration of new markets is challenging, SFIWUIi imperfect regulatory framework and ctrrngiIj of the incumbents. In Europe, we expect our most profitable opportunities to come worn our unique ability to package customized products from Enron's broad slate of skills (commodity risk management, asset expertise, cross-commodity and weather products and renewables). 0 0 0 or T'3> C' European Business Expansion C Physical U Financial 09 01 3rd OuAr¶Or-26 -- - m - ---- - m m - ----- C 0 C o r4 r~fl' to-C 0~ (.TT Euronean Business Expansion Physical Settlements Physical Sc omen u si nificanti in our Euro e so ment, with total gas and power volumes increasing wore t an I a quarter-to- uarter basis to 20.6 Bcfc/d. Our continued signi licant growth in physical iolumes was driven our U. usmess w ic the New Tmdrn ~..s~rnenLWEIAXtransformin martet from a financial Co a physical ma effective Marvh 27. Piua~jflSchInnajjs Sottlernen equally important performance metric, decreased ~liyhtIv by 4o/~ m, a quarter-to- to 5.1 Bcfeld. The decrease is attributable to our U.K. power business which has shifted to a physical marketr Ta-ansacted Volumes * Our contracting activities in Europe continue to expand ranidly, with a crease a quarter-oil-quarter basis to 51.2 Bcfe/d reflecting the strength of Enron's market m Our Transacted volumes for die third quarter 200! were a out 2.Ox rcombined h sical and fluancia settlemen s tiring c pen ace agar * our strong performance in transacted volumes will eranslaic into strong growth in future energy physical and financial settlements. 0 0 a' I-. t,. EUROPEAN 3USIflFZSSEX~ANSION (Scr./d)-SQ 1060 SOOt %Cbg. Cm, 3.6 9.3 155% rower 1.1 11.3 927% tby.ICM SeflIe.nts 4.1 OA 133% 0.2 0.1 .50% Power 5.1 5.0 PIt*.tI.ISeEII.U960* Si Sd 4% Physic.? 20.R 43.7 110% Finsnc).I 7.0 7.3 7% Trs...cted Volts.. :7.3 512 34% Enron's Wholesale Businesses Extending to New Markets Ct ~ w r Commodity Markets Energy-Related Markets Coat Weather ING Crude & Products Emissions .1 Mike McconngU Prepidunt & QED .5.Stianknian coo L ~ MoUton President & CEO LSi OSAt3Ed Oain.2? S S Industrial Markets * Forest Products * Steel C, 0 0 o r ~.2> M '7, -J Extendinp to New Markets - Oh-eanization Chart * Enron is expailding our successful wholesale energy model to several laree EnerEv-related and Indutirial commodity markets for new growth opportunities. * Enron has a distinct competitive advantage entering into the Energy-related markets as these markets: - Are a natural extension of the gas and power businesses - Provide Jr opportunity for Enron's to levemue its broad physical network and technological capabilities - Allow Enron to make markets in large and highly liquid commodity markeic gitch a~ Coal, LNG, Crude and Products, and Weather * Emon has also extended its in Marke h historically very traditional sales channels and little price transparency. These mar ets provide significant opportunities to: - Make markets in large and incrncient markets - Allow* ts in the Forest roducts and Steel industry to move away from an environment 0 0 C _______________________________ CL-. C' a, Au Finn Total Mkel%tQuudi 4! 8 19 Jdrslmidmun 34 10 12 ~sdd N~ta 4= Finn Total JdrNkMal.. 40 8 19 tlay3o~~au 41 6 20 Enron 's Energy-Related Markets Coal Physical Volumes (Thosand Tons) 3001 MarIet Opportunity Enron's Approach o Strong, Worldwide Demand for Coal Related to Power Generation o Increased Opportunities for Risk Intermediation o Coal Transport Needs o Broad Physical Access to Supply -Transacting with Over 50 Producers Worldwide o Physical and Financial Risk Management Products I 0 Transport Management - Manage Over 100 Barges per Month in U.S. - Ship Over I Million Tonnes per Month into Europe 0 Ci 3rd Ouans.26 C C a C, r~ p"> C,' I-. ~0 3Q00 Coal - Energy-Related Markets Market * Coal is a $40 billion worldwide mesticall coal is the (bet source for 5O~/~ of electricity generated. * There is an creasin demand to oulsource management of' coal era ors This allows generators to outsource coal mice risk, de avery ras * $ 'poing con mets (logistics), and counterparty credit risk. * There is a tremendous to timize fran lion of Coal globally. - Ova ,of thee utilized In Europe is im ad front countries such as olombia. South AfrL us tali indonesia, and Enron's Approach * Provide broad physical access to supply through marketine seIrhnhntc and r p~Iy~hni~cd investments. - Supply-based investments in tion, therefore increasing liquidity. - Enron has access to cv 0 suppliers of coal woridwi hidi si I I reduces dcli wential mine shut- * downs. s ri as. etc - briton's flexible, low-cost supply angrention approach allows For reliable delivery to cnotnrners at predictable pricing. * Provide physical and financial risk management products. - AD-requirements contracts provide reliable dative to customers and an opportunity I'm Enron to temporarily utilize excess on manageme Enron is optimizing coal delive through product ag2repation, repackaging and y. mon is currently shipping over barges per month domestically. - NMSS ss ~m n (11usd Toss) 8347 9.954 990 15,939 21,532 23YC8 z~ss tsr/I 0 C C) o t-' 1~3 Cr, I'-, C-' Enron's Energy-Related Markets Weather Transacted Value (Sin Millions) 304 3Q00 3Q01 Enron's Hydro-Generator Product Customer's Risks *M,. t o Low SnowiRainfalt o High Alternative Fuel Price Customer Benefits o Single Source for Alternative Fuel Source o Flexible Terms and Pricing o Choices to Settle Physically or Financially 'teAl '1~ 'I Enron's Solution o Physical Call Option - Triggered by Low Snowl Rainfall - Physical Delivery of Natural Gas o Financial Collar - Triggered by Range of Snowl Rainfall - Settled Based on Gas Price Worldwide 09 Cl 3'd O.saii&.fl 0 0 C o r' N) ~ 0" I'~3 Largest Provider of weather Risk Manaowiwnt Services Weather - Eneruv-Related Markets Enron has leveraged its resources, risk manaRement expertise, scale and scope to become the largcst weather market maker in the world. - Weather plays a significant role in Enron's cnre rnrgy bucinc:3cn. - EDrO&S global presence and scope or operations allow the ability to have product offerings covering the entire developed world (N. America, Europe, Asia, Australia). - EnronOnline's success continues to be an important platform for growth. * Hydro-Cenerator Product - This product is a great example of Enron's ability to leverage resources, scale and customer base to become a single source of risk management products for customers. * Work from slide. 325 23 SM ~ 2~ 185 3* 1 0 0 0 o r-4 t'J> -C Cl' K) I.', Enron's Industrial Markets Forest Products Newsprint Facility flub - Existing Hub - Planned LA) Canada East North East Physical SeWemehts CmovnndTcm) 899 101 3000 3001 Financial Settlements CThotsand Tons) 811 r 3000 3001 o Establishing Physical Ensure Reliable Delivery Tmnsacted Volumes (Thovsandtoas) * Financial [)Physlc.I 3,549 3000 3Q01 Presence to o Creating Benchmark Indices and Trading Hubs 3.814 LSeventh Largest Producer of Newsprint In North America o Leveraging Liquidity and Introducing Structured Products OtO L i'd Oan?et-30 - m - -- - ------ - - ---- - Singapore Jr F~Uantlc 1.34* 0 0 0 or ~10 t.3bc 0" 1* Forest Products - Industrial Markets * Enron has also extended its Network business model to industries with very traditional sales channels and little price transparency in marKets. inciuoing torest Products and Steel. * The forest product market has certain attributes which allow for significant risk management opportunities: - Industry has a limited number of base Qrade producis, currently limiting commoditization. - The industry today is a capital intensive industry with iiiii2jncflhiigmrency. - Industry has slow moving incumheritc * Enron has quicki established a h sical resence to ensure reliable delivery thmnob the 2cq.m'~ition of 2 newsprint companies with totalo 725 000 Through these acquisitions, Enron has become the seventh largest producer of newsprint in North America. * Enron has also expanded liquidity at key market hubs through the creation of henchmark indices. Physical volumes have grown 5-fold during the quarter from the same period last year. * Increased liquidity in the physical and financial markets are providing tremendous npr'4tlnities far qinictured transactions. 0 0 0 or. N)> M.C 0~ mb~.9. + Ut nit t.. 394 Z4V S flsw-ial 3~I5S 1.132 U" Natu at G;is Transportation. ike un: I )est,iln,ticn. and Commodity Marketing and Delivery Retail Services Energy Services for Commercial and Industrial Customers MSI3td Otale,-31 C, C C) Ct-. t.3> t-, 1< C' I., gpqsftOUO 'L Retail Enerev - Oreanizstion Chart Dave Delainey, Cbairman & CEO Janet Dietrich, President * Dave Delainey became Chairman and CEO of EES this t February. Seven years ago, Dave joined Enron Canada, where he led the growth of our Canadian whol~iW&i~iii~sAien led all of our North American onginatwn activity and, most recently, ran oUr entire North America wbolesale business. * Janet Dietrich became President of Enron Energy Services during 2001. Janet has been with Enron 9 years and zcd our Norm American East Power Originations group. Prior to that, she was also responsible for developing middle markas procucts an our Wholesale Energy business. 0 0 0 or to-4 a' N, 0' Au ~j Teal Davefldainey 35 7 II JuislNdridu 35 9 13 Enron Energy Services Income Before Interest and Taxes (Millions) 1Q01 -1999---- -2000 SI 00 2001 $171 3001 2001 09 01 3d Ou.tw.32 £111 C, C) a o r 10 0' I- I (550) .3 Income Before Interest and Taxes * Since we began the retail business in 1997. we have transitianed on schedule from planned operating losses in the start-up phase of our business to significant earnings growth. * Third Quarter IBIT increased to $71 million, and we remain on target to achieve $225 million in IBIT for the year. HACKGROEJNt C C C, o t ______________- Rccurring Cl "3 SLUt FARNff4(~ 4k 5S5a) 2~ _ $ 535 S 50! -6V CCE £ 406 S 261 -36V $ 129 $ MS MV OMasa%ofRrvwuc $ 0 $ 0 9W Expe~(incI. Xkjxtcisi~) S (125) S (152) 225' Olin $ 23 S (17) -1745' INKY S 27 S 71 IS NIT (I. SiuIIUo..) I99~ (SR2) 99R ($16) 29*9 ($50) 2000 SIll 26013 $125 ISIT (I. SmIlIIocs) 0100 56 0200 346 0300 327 Q400 $32 QIGI $40 0202 560 QIOI SI. Large Consumer Business o Includes Customers with Annual Energy Spend 410 Million o Bundled Services for Customers with Broad, National Footprints o Served by Enron Sales Force and Dedicated Managers o Well-Established in U.S.; Extending into Europe wAL*MARr U Y1EnhU'S~ City of Chicago V GUINNESS JCPenney * Europe o u.s. 16 Transactions YTD 2000 54 YTD 2001 09 0) 3d Goad ee.fl ----- - - a a - a a - - - - - a a C C 0 or MS t'3.c 0~ NJ (0 Large Consumer Business * Large Consumers of energy are a key market focus ror our Retail Business. * Thesecustomersgeneratlyspend more than $10 million annually on their energy needs and increasingly demand a more proactive approach to managing wear energy costs. * We have made significant progress on this customer class in the U.S. and are extending our market reach to Europe. Our transaclion volume is up significantly over the prior year and reflects air strong penetration in the U.S. and the high growth opportunity in Europe. * We have many other big names in varied industries, Some 11ce7701!wf avttuisitions Inc tided Oft hiss ide * Most recently, we secured services agreements (ith 3. Samsburv Pie, a Ut-based groc&ybhsmqss, and Guinness 1 Confidential: Spec4fics of Walnian deal, especially wills regards to Cal jfornia. BACKGROUND: TCV (h $bItIba.~ 3997 S - 3998 S 3.8 1999 $ 8.5 ~,I6.i TCV (I. ShIEIInfl Q499 S 2.6 QIOO $ 3.7 Q200 S 3.s 0300 S 4.1 Q400 S 4,5 0101 S 3.9 0201 S 7.2 1*I * S~s I U.S. LARCE MARKET DEALS - CLOSED JQ 0 C? C or' t'a .4 C, '-ii C-, 2-Large Retailers 2-Large Mamjactunn 2-Major rood Fnnd,ise Chains largest CommercIal 0711cc Building REST tEquiiy Offace Propenics) SeMen: Commodity Manqement Consun.plion Man8ement jn(onnatMc Services Avg. Deal Teem: 3-3 Vens (Lo.zesi-1* Ve.rfl U ol FadSilts: over 1409 (1.5. TCV: 11.3 BillIon Major Energy Agreements U.K. Energy J Sainsbury Supermarkets o 73(Yeac~neray Management Agreement * Total Contract Value of $450 Million * 12% Energy Reduction Targeted First 2 Yearn * Covers All 490 Supermarkets in U.K. ______________ * First U.K. Contract to Combine Commodity Contract with Demand Side Management J Sainsbury plc U.S. Power Equity Office Properties * Shmear PowerManagement Agreement * Total Contract Value of $219 Million * First Year Projected Savings of $14 Million * Covers Management Services for Over 66 Million Square Feet for 235 Sites o Power Management Commodity Contract With Guaranteed Savings !7~ Equity Office 09_01_3M Coa.1w-34 0 0 0 o r 0' (A, '-S Maler Energy Agreements * This slide proi~idcs an overview of two significant laroe Con~,,mer tsnnrtnnt nin mrntly tigned. (3. Sainsbumy in the U.K. and Enmity Office Properties in the U.S.~ * Work from slide. 4. o p. C 0 o r 0' U, Small Consumer Business o Includes Customers with Annual Energy Spend <$10 Million o Highly Standardized Products (Primarily Energy Commodity) o Served through Multiple Channels; Short Sales Cycle o Significant Success in the U.K.; Rapid Recent Expansion in the U.S. Transactions * U.S. El Europe 48,973 L YTD 2000 95.642 95%] YTD 2001 O9O1..3rd Ouovtr-35 ----mm-rn------ a a a - m C 0 C o r NJ> kJhc to ~1 Snizil Consumer Business * Small Consuniers ~ifenu~y are also another market r~us area for our Retail Business. We refer to this * These customers generally spend less than $10 million annually on their cncr~v nccds and, similarly to our large customers, also desire a more proactive approach to managing their energy costs. * We approach this market with standardized product offerings with multiple available product options{o allow scalability to a wide, deep customer base. * We have made significant progress on this customer class in the Europe and are extending our market reach to' the U.S. Our transartian volume growth is strong, with an increase of over 800A C~r I lip firgt nine months 6fth~\ year reflecting significant penetration in Europe and a steep ramp-up in U.S. transacti5.s as wcll. 0 0 a ct-4 N~C 0' to 4- Enron Broadband Services o Reduced Counterparties Resulting from: - Credit Deterioration - Consolidation a Industry Revenues Remain at Low Levels o Enron's Restructuring Continues - Headcount Reductions Complete - Network Optimization Focus o Exploring Alternatives to Preserve Business Option Value at Reasonable Prices C' (a) U. OtOt3M Ounr.38 Enron Broadband Services * Transaction levels have continued to decline as a result of: - Continued deterioration of crediLwonhiness of counterparties (particularly wholesale carriers and CLEC's). - Reduction in trading activities among marketers/resellers, including other energy merchants. * Data demand continues to increase at low levels (20% - 30% annually), driven by the current economic environment. * We have completed our headcount reductions to reflect near-term opportunities and are continuing to focus on optimizing our network to preserve the OptiOn value of this business. With these and other changes, we decreased operating expenses to $58 million during die gunner as compared to $73 million in the prior cuarter. We will see a further reduction to approximately $50 million per quarter bezinning with the fourth quarter. Trn.eetIn DebIt U!! p4* ~3j ~fl SIt hIt IQIL 2063 mu LTD ircuit~ 1. 3 22 59 223 107 Iii 647 250 1725 (P 2 0 0 0 7 7 IS 41 II SI S,orage 0 0 0 0 4 4 9 IA 2 29 Sqjb(.t.I N 3 22 59 234 318 542 702 265 ¶835 Other' t 0 I 0 2 3 39 57 340 240 - - -------- TeeM 9 3 23 50 216 32? SRI ISO 465 LOIS ?rim*ril *d~cr.~si, BACKGROUND: * Completed headcount reductions by 57% from 916 to 395 employees. * Decline jn Market C .i' Global Crossing 38.855 - 12.656 727 (98%) (94%) Owest 37.645 68.3Sf 39,277 97% 54% AT&T Corp. 126.134 50.3 72 70,624 - (44%) +40% Woe-idcom 144.987 39.032 41,043 - (72%) 45% Akamai 30.305 2.279 455 (98%) (80%) Williams Comm. 13.493 5.447 6)8 (89%) 0 0 0 or "I ~-< 0' U, C-. Enron Management Committee Key Participants in Significant Company Growth Average 51.7 tin Years) Bofeld Age 42 Experience: Volumes tBcfetd): Enron 11 Joined 1996-98 C Crude & Other Business 20 Ray Bowen * Power Ben Glisan * Gas Joined 1988-95 Mark I4aedicke Steve Kean Michael Brown Rick Causey Greg Whalley - Jim Hughes Jim Derrick Jim Fahlon Mike Mcconnell Andy Fastow John Lavorato Louise Kitchen $1 Janet Dietrich Rick Buy Jeff MoMahon Jeff Shankman Dave Delainey John sherrrn Joined Prior to 1988 C Ken Lay Mark Frevert o r Stan Horton Matic Koenig N) 4< 0~~ 'a -J 'a.. 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 09S' 3rd Ouafler.37 --- ------- --- - m a a a - Enron Management Committee * Throughout thu presentation, you have had the opportunity to see the depth and breadth of the Enron franchise. * The Enrom Management Committee reflects the deDib of the talent rzal at Enron and is comnrised of 24 key Senior Executives across the company. * While we have spent considerable time discussing our operating businesses, let nit add that the Management Committee also includes members from key business functions including Legal. Treasury, lnvesto~j~~tioM Finance, Government Affairs and Risk Assessment and Control. * Our Management Committee members have significant industry experience, and they all have been with Enron during our most significant periods of growth over the last five years. 0 C C o t-. N)> N3b< U 0, Conclusion o Continued Strong Operating Performance o Increased Transparency of Financial and Operating Results o Active Management of Non-Core Businesses Enron's Diversified Franchise~ Provides Solid Platform for Sustainable Growth 09 01 ltd Ofll*.38 0 0 0 ott 2%? -~ a., 14 '0 Conclusion a Work from slide. -K 'N. / / A ~a ( CLI~%A~ QAt *1 'S C or N) 1< .6 0 0 C a o t-' a, i-k 09 01 3,d Oueiictfl 0 0 0 or t3"~ 0' p En ran pa &r flU flowfloi,, TX 77251-flU News Release Mark Palmer 713-B53-4738 ENRON REPORTS RECURRING THIRD OVARTER EARNINGS OF 50.43 PER DILUTED SHARE: REPORTS NOtCRECURIUNG CHARGES OF 51.01 BILLION AFTER-TAXI REAFFIRMS RECURRING EARNINGS ESTIMATES OP 51.80 FOR 2001 AND $2.13 FOR 2002: AND EXPANDS FINANCIAL REPORTING FOR IMMEDIATE RELEASE: Tuesday, Oct. 16,2002 HOUSTON - Enron Corp. (NYSE - EWE) announced today recurring earnings per diluted share of £0.43 for the third quarter of2001, compared to S ~4a arago. Total recuning net income increased to $393 million, versus 3292 million a yen ago. "Our 26 percent increase in recurring earnings per diluted share shows the Very strong results of our core wholesale and retail energy businesses and our natural gas pipelines," said Kenneth L. Lay, Enron chairman and CEO. lbe continued excellent yrospects in these businesses and Enran's leading market position make us very conident in our strong earnings outlook." Non'recuning charges totaling $1.01 billion after-tax, or 3(1.11) loss per diluted share, were recognized for the third quarter of 2002. The total net loss forte quarter, including non- recurring items, was 3(618) million, or 3(0.84) per diluted share. "After a thorough review of our businesses, we have decided to Cake these charges to clear away issues tat have clouded the oertunancc and earnings potential of our Core CflCTQY businesses." said Lay. Siren also reaffirmed today it jaw track to continue strong earnings growth and achieve its previously stated targets of recurrina earnints per diluted share of $0.45 for the fourth quarter 2001, SI .80 for 2001 and $2.15 for 2002. Endless possibftities.'TM L A? 000022642 PERFORMANCE SUMMARY Enrori has recently expanded the reporting of its financial results by both providing additional segments and expanding financial and operating information in the attached tables. Enran's business segments are as follows: * Wholesale Services o Americas o Europe and Other Commodity Markets * Retail Services * Transportation and Dhulrlbution o Natural Gas Pipelines o Portland General o Global Assets * Broadband Services * Corporate and Other Wholesale Services: Total income before interest, minority interests and taxes (IBIT) increased 28 percent to S754 million in the third quarter of 2001, compared to $589 million in the third quarter of last year. Total wholesale physical volumes increased 65 percent to 88.2 trillion British themial units equivalent per day (Thwe/d) in the recent quarter. Americas - This segment consists of BroWs gas and power market-maldng operations and merchant energy activities inNorth and South America. inn from this segment grew 31 percent to $101 million in the recent quarter from $536 million a year ago, driven by strong resuhs from the North America natural gas and power businesses. Natural gas volumes increased 6 percent to 26.7 mW/cl, and power volumes increased 77 percent to 290 million megawatt-hours (MWIO. Europe and Ciher Commodity Markets - This segment includes Enron's European gas and power operations and Enron's other commodity businesses, such as metals, coal, crude and liquids, weather, forest products and steel. For the third quarter of 2001, ID!? for the segment remained unchanged at $53 million as compared to last year. Although physical volumes increased for each commodity in the segment, the low level of volatility in the gas and power markets caused profitability to remain fiat. LAY 000022644 Retail 8ervIces~ Enron's Retail Services product offerings Include pricing and delivery of natural gas and power. as well as demand side management services to minimize energy costs for business consumers in North America and Europe. laths third quarter of 2001, Retail Services generated IBIT ofSll million, compared to 527 million a year ago. Retail Services continues to successfizlly penetrate markets wit standard, scalable products to reduce consumers' total energy costs. Briton recently added new business with large consumers. including Wal-Mart, Northrop Gnnnxnan, the City of Chicago, Equity office Properties and Wendy's in the U.S. and Sainabury and GuinnessflrewezyintheU.L To date in 2001, Enron has completed over 50 transactions with large consumers. Lion is also succesiMly extending its retail energy products to small business customers, completing over 95,000 transactions in the first nine months of this year. Transportation and Distribution: The Transportation and Distribution group includes Natural Gas Pipelines, Portland General and Global Assets. Natural Gas Pipelines - This semen? provided 585 million of WIT in the current quarter, up slightly from the same quarter last year. Pipeline expansions are underway in high growth areas and include a 428 million cubic feet per day QvilAcL'd) expansion by Florida Gas Transmission and a 150 ?%Ob4cDd expuision by Transwstem. Portland General. Portland General Electric, an electric utility in the northwestern U.S., reported an WIT loss of 5(17) million compared to lEt? of 574 million in the same quarter a year ago. Portland General entered into power conflets in prior periods to ensure adequate supply for the recent quarter at prices that were significantly higher than actual sealed prices during the third quarter of 2001. Although the rate mechanism in place anticipated and substantially mitigated the effect of the higher purchased power costs, only the amount in excess of a defined baseline was recoverable from ratepayers. Increased power cost recovery was incorporated into Portland General's new fifteen-month rate structure, which became effective October 1,2001 and included an average4operccnt rate increase. Last week, Enron announced a definitive aneement to sell Portland General to Northwest Natural Gas for approximately £1.9 billion and the assumption of approximately 51.1 billion in Portland General debt, The proposed transaction, which is subject to customary regulatory approvals, is expected to close by late 2002. LAY OO032264~ Global Assets - The Global Assets segment includes assets not pan of Enrons wholesale or retail energy operations. Major assets included in this segment are Elelcfrv, an electric utility in Brazil; DabboL a power plant In Thdia 705. a natural gas pipeline in Argentina; Azurix; and the Enron Wind operations. For the third quarter of 2001, IBIT forte segment remained unchanged at SIP million as compared to last year. Broadband Sen1ces~ Enron makes markets for bandwidth, IP and storage products and bundles such products for comprehensive network management services. IBIT losses were $(BO) million in the current quarter compared to a 5(20) million loss in th, third quarter of last year. This quarter's results include signltlcmndy lower invesbnent-related income and lower operating costs. Corporate and Other: Corporate and Other reported an WIT loss of S(59) million for the quarter compared to 5(206) million loss a year ago. Corporate and Other represents the unallocated portion of expenses related to general corporate functions. NON-RECURRING iTEMS Enron's results in the third quarter cr2001 include after-tax non-recurring charges of 51.01 billion, or 5(1.11) Mr diluted share, consisting oi~ 32S7 million related to asset impairments recorded b Corp. I cue impairments primarily reflect Azurix's planned disposition o its oith American and certain South American service-related businesses; SI 80 million associated wit the resnvcruring~5r~andScwicu,kJuding severance costs, loss on the sale of invento and an' reduced value of Enron's content services business; and 3544 million related to losses associated with certain investments, principally Enron's interest in The New Power Company, broadband and technology Investments, and early termination during the third quarter of certain structured finance arrangements with a previously discirn.A "~t-~ LAY 000022646 I OTHER INFORMATION A conference call with Enron management regarding third quarter results will be conducted live today at 10:00 ~m. EDT and may be accessed through the Investor Relations page at www~tnWiLWr1i. Enron is one of the world's leading energy, commodities and service companies. The company makes markets in electilcity and natural gas, delivers energy and other physical commodities. and provides financial and risk management services to customers around the world. The stock is traded under the ticker symbol "ENE." Please see attached tab! as for additional financial Information. Ibis pta. nitast fr..lb4a fomrd.looking .aa'ernnw ..lhh te nuhj of Section 3M oft SecolS Act of 1933 md Section 211 of ta SecurWec EsebsaaeAs%of 1934. The MnwSecw$tiqUliption RdotittMtorIrnpfevidta aur.hutccrot focwd.loanj aw.nwpu triada by bion or on Its bOttlE flu. fowd4oaq put.n,inu an awl hi. c&ut faem,but atcet fryon'; Current apfltion.. arnriaw andprojecdrn. All uwamLa .ont*wd fri S pna.e.s. ..4sich ad&as flaw opndnl pofonnma, .vmu or deveiopnwit, Oat an opecid so oc~rdn Ut flat OncIodiq atinnia flti~nwp w. ask.. oJau.ts.otatsmmfl Pp-urn; ss,a.l opdndn show flaw opaudni multi) inst fom,d.l.oldng attain. AIWLOVSII fr.roo heliova thai Its PFCUIIf*IbMIdODIOSOIQMC S*1UWd0fl5,II - give no inmate tInt Its - wiliWubievud. hq~ostam ban Owl could cause seblil vault. wd~ffanssIai.]iy born those las Use torwd4oohinj sWtffnu h~tt MOLdS suoem hnta~g manE pa ad pent to wtolS8lt CU510PU1 the ability so penenso ,nret.ll mimi an and winicky swan, heludhags mcwouuo,ne inst.,, in die Wted Lute. arid Scope; Iha timing. alat ad ,ntet effects ordcngubtia. ofaugy mAn In Ott LInk- Sn SM Con{pJwisdictfldtVtlOptTtotOfIiflts'SbflSbind sse~m'ork arid cwto#c bind (or inniediatiw, and coast awl..: pdUtkal d.valoprnaw bIorcfri5CflfrmU;ttCt~t0f5ttuI*iory approrab sod udafactlwctojslonwyclotgconditbj aoteflofpanlad Opsasi: sod condiksssaf thaupiwi amitet. vtdquity rsktudwingttpaio&covmcd hytiw (d4sob~nn a LAY oc 00 2 2 6 4 7 BAIRON CORP. Table I - Earnings Summary (Unsudited: In mflflonm, except per share data) Revenues Cost of Sales Operating Expenses Depreciation mnd Amortization Equity In Earnings (Losses) Other, net 'Bit Interest end Related Charges, net Dividends on Preferred Securities Hacifty interests hicome Ta Sx~nse Net Income Ercludlng Non4ecurrtng Items Quarter Ended Se piambe? 30. 2001 - S 47.813 45,713 910 229 (51) 63 $ 773 $ 201 21 33 125 * seas 2009 $ 30,007 28,280 929 258 48 78 666 247 20 35 72 292 $ Nine Months Ended Seotember 30. 2001 2000 $ 139,892 S 60.036 133,735 58.400 3,108 2.705 682 820 (87) 355 269 301 $ 2.361 8 i,ebe 817 604 5? 89 103 109 381 208 1.103 $ SIB Non-recurring Items Relating to: Azurix Broedband Services Investing Activities (a) Cumulative Effect olAccounting Changes Net Income (Lass) Prererved DMdends (b): Second PMISIThS Stock Genes B Preferred Stock Earnings (Loss) an Common Stock f28?) (180) (644) (287) - (180) * (544) * __________ 19 - $ (618)8 292$ ati S gig 4 6 12 13 18 16 40 40 $ (830)5 271$ 150$ - - - Earnings (Lass) Per Share (Ohluled): UPS Exdudltig Non'recunlng Charges Non*racurulng Items Effect of AM-dilution UPS (Diluted) (c) Average Shares Oulatandlng (DIluted) (c) $ 0.43 6 0.34 $ 1.36 $ 1.07 (GIG) * (0.05) - $ (0.84) $ 0.34 $ 0.19 $ 1.07 781 870 810 881 ---- (a) The amount also reflects costs associated 'MUi !nmrga tennination ci certain stnittumd finance arrangements with a previously diadosed enuty. (b) The Second Pretend Stock and the Lutes B Preferred Block are both antl-dflutlve In the third quarter ci 2001 and the nine-months ended Beplember 30.1001. The Second Preferred Stock and the Series B Preferred Stock are both Glttjtlve In the third quarter of 2000 arid the nlne-monfl ended Septemter 2000. Cc) The conversIons of preferred abates and equity inskunients to common shorn for purposes of the diluted earnings per share calculation were mntidlutlve. However, In order to present comparable results, per share amounts (or each earnings component were cabilated after considering conversion. The total average number of shares used to calculate each component of earnings per share was 913 millIon and 892 million for the third quarter and nine months of 2001, reapecUvely. LAV I 4 ENRON CORP. Table 2. BusIness NIghJIght. Wholesale Services (UnauditeG: dolls,, Wi ml Wont) fwnoleaaWSmn4oes Ouader Ended *I.ptember 30, Nina Months Ended September 30, 3 2001 2000 2001 2000 Total Whoismafe SoNic., 'BIT Total Physical Volumes (Bbtueld) (a) S 754$ 86.220 Bus 53,45. 2,160 $ 1,336 77,441 47462 Americas Rove flue, Cost of Sales Operating Expenses Depreciation and Amortization Uqulty In Earnings (Losses) Other, net 18W $ 29,519 S 28.654 142 53 (67) $ 781 21,655 $ 20,087 106 24 21 * 538 85.886 $ 83.130 824 132 (127) S I.afl 41.407 39.812 746 73 232 3 $ 1,071 Physical Volumes (Bbtueld): Gas Power Total 26,869 31,807 58.188 Power (Thousand MWh) 289.851 25253 412~L. 163,558 28.78? 25,642 52.429 23,152 14.287 37,439 700,007 391,459 Europe and Other Commodity Markets Revenuet Cost or Sales Operating EXpOMOG Depreciation arid Amortization Equity In Earnings (Losses) Other. net IDhT $ 16,447$ 18,139 217 22 (6) $ 53 7,168 6.917 194 16 (9) 21 $ 53 $ 48.520 $ 47,601 882 88 10 28 $ 309 15,161 14,475 400 51 3 27 $ 265 Physical Volumes (EbtueM): Gas Power Total 9,338 11.308 20.844 Power (Thousand MWh) 104.008 Physical Volumes: Crude Oil and LIquids (MM SW) Coal (thou sand tons) Weather (notional value 6MM) LNO (Oblue) Metals (thousand tons) Forest Pfoducts (thousand tons) Steal (thousand ions) 157 24.053 304 8AT4 2.362 899 648 3.59 5 1 080 9,932 105 9,042 184 069 101 8.438 7,708 16.236 212,006 434 70,392 779 17.884 8,904 2.094 887 3,192 toss 4.278 29,777 300 28,843 512 2,946 182 (a) This amount Includes Iclaf physical gas, power arid crude oil and liquids for Americas and Europe end Other Comodily Markets. LAY 000022649 I I ENRON CORP. Table 2b * Business HighlIghts.- Transportation and Distribution (Unsufled: doflwa In mUon)) jTrmnaDortallon and DlutflbuIIan Total TransportaUon and DIstribution Ian. Natural Gas pipelines Net Revenues Operating Expenses Depreciation and Amortization Equity In Earnings Other, net Inn. Quarter ended September30. I 2011 Nina Months Ended September 30. 2001 2000 2000 * 87$ 176 - - $ 138$ 75 17 10 28 22 14 * ass 83 a - * 415 $ 884 - - 132 $ 500 74 238 17 51 49 33 $ 295 $ 499 232 50 45 27 $ 289 Total Volumes Transported (DBtu/d) (a) Noithem Neutral Gas Tranawestem Pipeline Fiodda Gas Transmission Northern Border Pipeline Portland General Revanuee Purchased Power and Fuel Operating Expenses Depreciation and Amortization Other, net IBIT $ 9055 823 88 32 1 11 $ (1?)) 74 729 $ 2,503 522 2.029 85 229 59 138 $ 1,587 976 239 182 1 81 $ 108 $ 241 - - Elecutolly Sales (Thousand MWh) Residential Commercial industrial Total Retali Wholesale roral Sales Global Assets Revenues - Cost of Sales Opersung Expenses Depreciation and An,ortlzatlon Equity In Earnings Other, net IBIT $ 4245 352 288 221 107 132 46 50 25 23 9 17 S 191 19 - - $ 1.134 719 352 134 48 35 $ 12 S 1.125 846 370 134 120 29 5 124 (a) Reflects 100% of each entity's Ihmughput volumes. LAY 0 00 0 2 2 6 E,O 2.770 1,823 toav 2.295 3,009 1,748 1*49 2,420 3,139 1.847 1.578 2.362 3,464 1,839 1,801 2,438 I ¶432 1,870 ¶ .207 4,509 4.082 8.671 1,444 1,984 1,249 4,857 5,703 10,360 5,151 5,475 3.548 14,172 5.285 8,805 3.853 14,643 14,693 29,438 ENRON CORP. Table 2c Business Highlights Retail Services, Broadband Services and Corporate and Other (Unaudlied! dollars in ryjillone) QuarterEnded Sectamber 30. Nine Months Etided September 30. 2001 2000 2001 2000 Retail flenics Revenues (a) Cost of Bales Operating Expeoses Deprecimilort and Amortization Eqully In Earnings (Losses) Other, net DIT (a) S 501$ 535$ 281 406 142 115 10 10 (17) CWs (15) 38 27$ 1,751 $ 1,259 1.064 932 474 284 29 28 (45) (38) 52 92 171 $ 79 n - Broadband Services Revenues Cost of S ales Operating Expenses Depreciation and Amortization Equity In Earnings (Losses) Other, net 'Sn. S 45 1625 8 SB 19 (4) B 123 52 (1) 103* 345 59 64 213 249 49 63 (I) 1 5 2 2 2 6 (80) $ ..432L~ -....S..WZL~ (28) Corporate and Other IBIT $ (~9) .flSI 5..42!L $ (141) (a) Beginning In 2001 * risk management activIties associated with Enrods North American retail customer, ale managed by Wholesale Services. Prior to the restatemem. Retail Energy Survlcet reported revenues and recurring BIT were 51,476 million and 530 fttilion. respectively, for the V*d quarter of 2000 and $4,615 million and $103 ngillon, respectively, for the full year 2000. Restated full year 2000 revenues and recurring WiT were $1,760 minion and $111 million. respeclively. LAY 000022651