Press Release

ENRON AND SIMON PROPERTY GROUP SIGN $1.5 BILLION–PLUS ENERGY OUTSOURCE AGREEMENT

HOUSTON – Enron Energy Services, a subsidiary of Enron and a leading provider of energy outsourcing services, and Simon Brand Ventures, a strategic business initiative of Simon Property Group, the nation’s largest retail real estate investment trust (REIT), announced today a more than $1.5 billion alliance for total energy management.

Through the ten-year alliance, Enron will supply or manage all of the energy commodity requirements throughout Simon Property Group’s portfolio. Among the agreed services are electricity and natural gas; assistance in the design and implementation of energy infrastructure projects, such as upgrading or replacing heating, ventilation and air conditioning equipment; and maintenance of energy conversion assets and electrical systems including lighting.

The alliance will provide Simon merchants the opportunity to better manage their operating costs and will deliver incremental profit to Simon Property Group. Simon currently expends $150 million annually in overall energy consumption and related energy services.

“As the first national retail REIT to outsource energy management, Simon continues to distinguish itself as the industry leader in providing value to customers and shareholders,” said Lou Pai, chief executive officer of Enron Energy Services. “Enron’s nationwide management of Simon’s energy commodity portfolio will protect the company from commodity price volatility, and our energy outsourcing services will provide further value to Simon’s energy operations.”

“Simon is aligning with the leader in the energy business, Enron, to deliver best-in-class energy management services to our retailers and shoppers, and we are reinforcing our focus on our core business through the aggregation of our assets,” said David Simon, chief executive officer of Simon Property Group. “We expect to achieve significant cost savings and revenue enhancements from the agreement and look forward to pursuing additional alliances that will pair the strengths of two industry leaders in Enron and Simon.”

Simon Property Group, Inc., headquartered in Indianapolis, is a self-administered and self-managed real estate investment trust which, through its subsidiary partnerships, is engaged in the ownership, development, management, leasing, acquisition and expansion of income-producing properties, primarily regional malls and community shopping centers. It currently owns or has an interest in 253 properties containing an aggregate of 177 million square feet of gross leasable area in 36 states and one asset in Europe. Together with its affiliated management company, Simon owns or manages approximately 187 million square feet of gross leasable area in retail and mixed-use properties. Shares of Simon Property Group, Inc. are paired with beneficial interests in shares of stock of SPG Realty Consultants, Inc. Additional Simon Property Group information is available at www.simon.com.

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, and the stock is traded under the ticker symbol, “ENE.”

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For additional information please contact:

Peggy Mahoney

Enron

713-345-7034

Billie Scott

Simon Property Group

317-263-7148

Chuck Kaiser

Edelman Worldwide

312-240-2729