Azurix

	WESSEX WATER PROVIDES a critical operating platform for Azurix as it competes for new business in the $300 billion global water market.

Azurix is poised to become a major global water company in a $300 billion market that is ripe for third-party investment and the modernization of water and wastewater infrastructure. The company owns, operates and manages water and wastewater assets, offers water and wastewater-related services and manages and develops water resources. Azurix's participation in the full spectrum of these areas will allow it to create enhanced value for shareholders. The particular characteristics of each market, as well as customer needs that vary by region and market, will drive Azurix's approach to developing these business lines and providing creative solutions to water and wastewater needs.

Consistent with Enron's success in the natural gas and electricity businesses, Azurix is leveraging skill sets that have a direct application to owning and operating water and wastewater assets and providing related services to others. These include project development skills, financing and capital procurement skills, operations and management expertise, an extensive knowledge of regulations in various markets around the world and participation in the privatization process worldwide.

Azurix owns, operates and manages three water companies that provide a strong platform for executing its global growth strategy. Wessex Water, which serves more than 1 million water and 2.5 million wastewater customers in southwest England, provides the operational base and technical services for Azurix. Wessex is one of the most efficient operators in its industry. Mendoza, a water concession serving 1.1 million customers in a high growth region of Argentina, is jointly owned by Azurix and Saur, a French water company. In addition, Azurix operates and controls the water concession for Cancun, Mexico. Seventy percent of the revenues from the Cancun concession are derived from large resort hotels, a growing market in this area.

Enron Communications is a leader in the development and delivery of high-quality, high-bandwidth business information and applications. The company is building a long-haul fiber-optic network on strategic routes throughout the U.S. to create the nation's first Pure IP^SM (Internet Protocol) backbone known as the Enron Intelligent Network.

ENRON is building the nation's first Pure Internet Protocol backbone, known as the Enron Intelligent Network.

The Enron Intelligent Network (EIN), which is enabled with intelligent messaging software, enhances the company's existing Pure IP^SM national fiber-optic network to bring to market a reliable, bandwidth-on-demand platform for delivering data, applications and streaming rich media to the desktop. The network is being deployed to create a new model of IP-capable applications that bridge the gap between current low-cost, low-quality Internet services and high-cost, high-quality dedicated circuit networks. Embedded into the intelligent network is a patented core technology -- the Enron InterAgent^TM automated network control system -- to allow customers access to capacity, tiered quality of service, broadcast quality content, purchased entirely on an as-used basis.

With no legacy services or investment, the Enron Intelligent Network was built and designed to meet the current and emerging needs of enterprise customers who -- to stay competitive -- must implement digital strategies not yet available over the current Internet. With its revolutionary architecture, Enron's network is enabling a whole new breed of powerful desktop solutions.

Enron's strategy is based on a unique business model that offers immediate national reach while minimizing capital deployed through strategic technology alliances and channel distribution partners. Enron has formed strategic alliances with industry technology leaders whose industry presence, customer access, market share, and content enable Enron to swiftly and efficiently enter this new, emerging marketplace. Enron's channel strategy immediately extends the company's reach, accelerates market penetration and manages product development and marketing costs.

The first of Enron Communications' ePowered^SM suite of network applications includes the transport and delivery of streaming rich media services. These products enhance the current Internet desktop experience by delivering broadcast quality high bit rate video and data to enterprise consumers. The company is also implementing bandwidth trading activities to bolster its growth performance.