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Press Release

ENRON COMMUNICATIONS INC. ANNOUNCES TEN NEW ISP PARTNERS IN “EPOWERED DISTRIBUTION PROGRAM”

FOR IMMEDIATE RELEASE: Tuesday, October 26, 1999

HOUSTON - Enron Communications, Inc., a leader in the delivery of high bandwidth application services like streaming rich media, announced today it has signed ten new “ePowered Distribution” partners, extending broadband access and TV-quality media to an estimated 25 million desktops through an estimated 500 points of presence throughout the country.

New ePowered partners include RCN, FlashNet, GST Telecommunications, PDQ.NET, NetRail, FirstWorld, Orconet, VillageNet, Show Digital, and Cmetric. Existing partners include GTE Internetworking, Verio, Epoch Internet, NorthPoint, Electric Lightwave, InterNAP, EasyStreet, and Telecommute Solutions. The announcement was made in San Jose at ISPCon, a leading trade show dedicated to the Internet provider industry.

“Our relationship with Enron enables PDQ.NET to provide next generation broadband desktop applications for our customers and addresses enterprise demand for mission critical e-business solutions,” said Billy Ladin, CEO, PDQ.NET. “The Enron Intelligent Network is the key here – unlike other distribution methods available today, Enron provides an unparalleled quality of service and scalability.”

The ePowered distribution program offers distributors a shared revenue model, reliable quality of service, the ability to fully integrate Enron Communications’ point of presence servers with those of the ISPs, and comprehensive joint sales, marketing and network integration services. Unlike other distribution programs that rely on the public Internet, Enron Communications connects ISPs directly to the Enron Intelligent Network offering a one-hop platform with high quality of service, low latency, and the scalability that enterprise customers demand. In addition, this service model allows distribution partners to immediately differentiate their service by offering broadband-optimized streaming multimedia content and applications to Web users.

“Our ePowered distribution partners can now offer their customers differentiated services, like ePowered™ Media Cast, which streams video to the desktop at an average bit rate speed of 200 Kbps and has capabilities of delivering streams at 1 Mbps or higher -- up to 50 times faster than what is currently available on the public Internet,” said Joe Hirko, president and CEO of Enron Communications, Inc. “We can offer the speed and quality that others cannot because we have built a pure IP network that provides a broadband overlay to the public Internet that results in higher capacity and better transmission quality.”

The Enron Intelligent Network is based on a distributed server architecture, a pure Internet protocol strategy, Enron’s fiber and satellite distribution, and the embedded software intelligence that sets it apart from other network providers. The Enron Intelligent Network enables a whole new breed of application services, called ePowered™ services, which transport rich media and live, streaming video, faster than using the public Internet. Enron Communications serves major markets nationwide with 12 POPs in Boston, New York, Washington DC, Atlanta, Houston, Dallas, Chicago, San Francisco, Seattle, Portland, San Jose and Los Angeles.

How it Works

Enron Communications integrates its metropolitan area POPs into the ePowered distributor partners’ local POPs, which allows the distributor to offer its streaming video delivered at up to 1 Megabit per second, or around 30 frames per second -- full-screen TV-quality. Enron Communications shares revenues with the distribution partners and offers a higher quality of service on the Enron Intelligent Network, than may be available on the Internet.

About Enron Communications: Enron Communications delivers the Enron Intelligent Network™, a Pure IP™ broadband overlay to the Internet. Enron Communications also provides rich, multimedia ePowered™ application services that enhance online commerce and communications. In early 2000, the Enron Intelligent Network will extend its reach to Europe, Japan, Asia and South America with metropolitan POPs and local ePowered distribution partners. Enron Communications offers ISPs and networks providers a range of bandwidth transport solutions that enable businesses to handle high traffic and high bit rate needs. A wholly owned subsidiary of Enron Corp. (NYSE: ENE), Enron Communications can be found on the web at www.enron.net.

Enron is one of the world’s leading electricity, natural gas and communications companies. The company, which owns approximately $34 billion in energy and communications assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Enron’s Internet address is /corp. The stock is traded under the ticker symbol, “ENE.”

Click here to download this press release in Microsoft Word format.

For additional information please contact:

Claudia Johnson

503-833-4435

claudia_johnson@enron.net








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