Press Release

ENRON WINS MULTI-YEAR BANDWIDTH CONTRACT FROM DATACOM

HOUSTON -- Enron Broadband Services, Inc., a wholly owned subsidiary of Enron Corp. and a leader in the delivery of high-bandwidth application services, announced today a multi-year contract to lease high capacity bandwidth to Datacom's Carrier Services Division, Orbis1, a leading communications service provider throughout the Gulf South Region of the United States.

The high capacity bandwidth, an OC-48 equivalent wavelength (2.488 Gbps), will provide Orbis1 with strategic network expansion at a fraction of the cost and time associated with alternative means of acquiring bandwidth, such as physically constructing and installing fiber or purchasing traditional SONET capacity. Enron offers long-haul bandwidth capacity -- in several dense wave increments and between major city pairs that exist on the company's coast-to-coast network -- in a new product line called Advanced Fiber Transport Solutions (AFTS).

AFTS products leverage best-in-breed Dense Wave Division Multiplexing technology to economically expand the capacity of the existing fiber in Enron's optical network, allowing Enron to offer the product at a cost savings to customers. The benchmark for provisioning AFTS dense wave capacity is 15 business days, in comparison to traditional optical carrier (OC) capacity, which can take months.

"Whether we're leasing bandwidth from our national backbone or trading it between specific pooling point locations on our backbone, Enron is innovating the economics and capabilities to supply bandwidth," said Joe Hirko, CEO of Enron Broadband Services. "The efficiencies and solutions that we deliver through AFTS, bandwidth trading and other programs will benefit Datacom and all companies with a stake in the bandwidth market."

Orbis1 will use the leased capacity to better serve their customers through a new optical fiber corridor from Houston to New Orleans, connecting Points of Presence in Houston; Beaumont, Texas; Lake Charles, La.; Lafayette, La.; Baton Rouge, La.; and New Orleans.

"Enron offers the first step in providing integrated services in a more timely and cost effective manner to our customer base," said Arash Zarei, division manager of Orbis. "Orbis1 is positioning itself to become the primary bandwidth provider for CLECs and other carriers in our target market. Rather than price bandwidth from POP to POP only, Orbis1 will assume the responsibility of coordinating end-to-end connection. Because we include the long haul and local loop in one circuit, for one price, on one bill, Orbis1 is the simple solution to our customers' communication needs."

Enron Broadband Services is a leading provider of high quality, high bandwidth delivery and application services. The company's business model combines the power of the Enron Intelligent Network, Enron's Broadband Operating System, bandwidth trading and intermediation services, and high-bandwidth applications to fundamentally improve the experience and functionality of the Internet. Enron's Broadband Operating System allows application developers to dynamically provision bandwidth on demand for the end-to-end quality of service necessary to deliver broadband content. Enron has also created a market for bandwidth that will allow network providers to scale to meet the demands required by increasingly complex applications. A wholly owned subsidiary of Enron Corp. (NYSE: ENE), Enron Broadband Services can be found on the Web at www.enron.net.

Enron Corp. 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 www.enron.com. The stock is traded under the ticker symbol, "ENE."

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For additional information please contact:

Claudia Johnson

503-886-0666

Claudia_Johnson@enron.com