Press Release

FOR IMMEDIATE RELEASE: Monday, October 13, 1997

HOUSTON -- Mikhail Gorbachev, former president of the Soviet Union, will visit Houston Thursday, October 16, to accept the prestigious Enron Prize for Distinguished Public Service from the James A. Baker III Institute for Public Policy of Rice University. On hand during the ceremony will be former U.S. secretaries of state Henry Kissinger, Warren Christopher, Cyrus Vance and James A. Baker, III.

The Enron Prize is awarded to men and women who, through their personal and political courage, have made historic contributions to public service in both the domestic and foreign policy fields. Created in 1995 through an endowment from the Enron Corp., Gorbachev is the second recipient of the Enron Prize. The first recipient was General Colin Powell, former chairman of the Joint Chiefs of Staff.

Gorbachev, winner of the Nobel Peace Prize in 1990, served as president of the U.S.S.R. from 1990 to 1991, introducing his famous "glasnost" policies which helped put an end to the Cold War and eventually led to the establishment of democracy in Eastern Europe. Since 1992, Gorbachev has been president of the International Foundation for Socio-Economic and Political Studies (The Gorbachev Foundation) and president of Green Cross International.

The Enron prize will be awarded by Baker, who serves as honorary chairman for the Baker Institute for Public Policy, and Kenneth L. Lay, chairman and CEO of Enron. Also attending the ceremony will be Gorbachev's daughter, Irina Virganskaya.

"President Gorbachev is one of a handful of people alive today who literally changed the world," Lay said. "We are pleased to be able to honor him for his accomplishments and his continued commitment to world peace."

"Mikhail Gorbachev, as President of the Soviet Union, demonstrated incredible personal and political courage in undertaking Perestroika, glasnost and new thinking, and transformed the Soviet Union and East-West relations as a result. He left his mark on history," said James A. Baker, III. "We are honored to bestow the Baker Institute's Enron Prize this year to a truly great leader who had a major impact on world events."

The award ceremony culminates two days of activities celebrating the dedication ceremonies of Baker Hall and the third annual conference of Rice's Baker Institute. The conference features the panel of former secretaries of state who will discuss "The Foreign Policy Priorities of the United States on the Eve of the 21st Century."

Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $19 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non- regulated marketer of electricity in North America; is a leading participant in liberalized energy markets in the United Kingdom and the Nordic Countries; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; is one of the largest independent developers and producers of electricity in the world; and is a major supplier of solar and wind renewable energy worldwide. Enron's internet address is www.enron.com and its common stock is traded under the ticker symbol, "ENE."

For additional information please contact:

Patrick Stupek

713-853-6359