Enron Broadband Services made excellent progress executing its business plan in 2000. The build-out of Enron’s 18,000-mile global fiber network is near completion, bandwidth intermediation transaction volume is growing exponentially, and we are testing the first commercially sound premium content-on-demand service. Clearly, the Enron business model is working in the broadband market.

Enron Broadband Services’ goals are to:

• Deploy the most open, efficient global broadband network, the Enron Intelligent Network.
• Be the world’s largest marketer of bandwidth and network services.
• Be the world’s largest provider of premium content delivery services.

We expect to be the first to provide broadband connectivity on a global basis through the Enron Intelligent Network (EIN). The EIN operates as a “network of networks,” providing switching capacity between independent networks for lowcost scalability. We will continue to add pooling points, which physically interconnect third parties’ networks and serve as reference points for bandwidth contracts. We currently operate 25 pooling points: 18 in the United States, and one each in Tokyo, London, Brussels, Amsterdam, Paris, Dusseldorf and Frankfurt. We expect to add at least 10 more in 2001.

EIN’s embedded intelligence, provided by Enron’s proprietary Broadband Operating System (BOS), gives Enron unique, powerful multi-layer network control. The Enron BOS enables the EIN to:

• Dynamically provision bandwidth in real time.
• Control quality and access to the network for Internet Service Providers.
• Control and monitor applications as they stream over the network to ensure quality and avoid congested routes.

The BOS automates the transaction process all the way from the initial request for capacity to provisioning, electronic billing and funds transfer. With the BOS, Enron has created the first scalable, fully integrated transaction processing platform for delivering bandwidth capacity.