Press Release

AZURIX CORP. REGISTERS FOR INITIAL PUBLIC OFFERING OF COMMON STOCK

HOUSTON – Azurix Corp., an Enron company participating in the global water and wastewater business, announced today that it has filed a registration statement with the Securities and Exchange Commission to make an initial public offering (IPO) of common stock. The offering is expected to raise up to $750 million, or $863 million assuming exercise of underwriters’ overallotment options. The total number and price of the shares to be offered will be determined at a later date. Merrill Lynch & Co. will serve as the lead managing underwriter for the proposed offering.

Azurix expects to retain approximately $350 million of the IPO proceeds, before deducting underwriting costs and expenses, for general corporate purposes, including working capital and the expansion of its business through acquisitions. The remaining proceeds will be received by Atlantic Water Trust (AWT), an Enron affiliate in which Enron holds a 50 percent voting interest and institutional investors hold an indirect 50 percent voting interest. AWT will own a majority of Azurix common stock upon completion of the IPO.

Azurix is a global water company that owns, operates and manages water and wastewater assets, provides water and wastewater related services and develops and manages water resources. Azurix maintains headquarters in Houston and London.

Enron is an integrated electricity and natural gas company which owns approximately $30 billion in energy related assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron’s stock is traded under the ticker symbol, "ENE."

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these shares in any state or other jurisdiction, in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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For additional information please contact:

Mark Palmer

(713) 853-4738