Press Release

ENRON REPORTS FIRST QUARTER EARNINGS OF $0.40 PER DILUTED SHARE

HOUSTON -- Enron Corp. announced today an 18 percent increase in earnings to $0.40 per diluted share for the first quarter of 2000. Net income increased 34 percent to $338 million during the quarter. Enron also reported a 72 percent increase in revenues to $13.1 billion for the first quarter. These financial results exclude nonrecurring items in the first quarter of 1999.

"Enron's first quarter results confirm the very positive momentum of our high growth businesses," said Kenneth L. Lay, chairman and CEO of Enron. "Wholesale volumes increased 43 percent to record levels, demonstrating the strength of our worldwide energy networks and the tremendous success of EnronOnline. Also reaching record levels, Enron Energy Services added $3.7 billion in new retail contracts in the quarter, and profitability continues to escalate. In our newest business, we significantly advanced deployment of our broadband network and saw strong response to our bandwidth intermediation and content delivery products."

Enron's businesses are reported as Wholesale Energy Operations and Services, Retail Energy Services, Transportation and Distribution, and Broadband Services.

Wholesale Energy Operations and Services: Enron's wholesale group consists of two primary lines of business: Commodity Sales and Services (marketing energy commodities and services and managing the associated contract portfolios) and Assets and Investments (investing in, developing, constructing and operating energy-related and other assets).

The wholesale group increased income before interest, minority interests and taxes (IBIT) 31 percent in the first quarter to $419 million compared to $320 million in the same period last year.

Physical volumes rose to 41.8 trillion British thermal unit equivalents per day (TBtue/d) in the first quarter from 29.3 TBtue/d in the first quarter of 1999. Physical deliveries of natural gas increased 53 percent to 23.5 TBtue/d compared to the same period last year, while power volumes grew 28 percent to 111 million megawatt hours. Volumes increased in all commodities in every region where Enron operates. The results reflect increasingly strong natural gas and power businesses in North America and Europe and the extremely positive response of wholesale customers around the world to Enron's new eCommerce platform, EnronOnline.

Introduced in late 1999, EnronOnline extends Enron's principal-based wholesale energy business to the Internet and further widens the company's competitive advantage. Over 70,000 transactions have been executed on EnronOnline since inception, representing $27 billion in gross transaction value. During the first quarter, 39 percent of Enron's total wholesale transactions and 27 percent of volumes were executed through this important new platform.

The overall strong quarterly results also reflect increased earnings from Enron's portfolio of energy assets and other investments. In addition, Enron experienced increases in equity earnings from its energy partnerships and a large contribution from worldwide energy asset operations.

Retail Energy Services: Enron Energy Services offers energy outsourcing products to commercial and light industrial customers throughout the U.S. and Europe. The $3.7 billion of new energy contracts achieved in the first quarter is more than double last year's strong quarterly results. The recent quarter is the seventh consecutive quarter of record new contracting activity. Recent contracts include large, long-term energy outsourcing agreements with new customers, including Chase and IBM, and nearly $500 million of new contracts in Europe.

Enron Energy Services reported revenues of $642 million and IBIT of $16 million in the first quarter, compared to $370 million of revenues and a $31 million loss in the first quarter last year.

Transportation and Distribution: This group, which includes Enron's Gas Pipeline Group and Portland General Electric, reported first quarter IBIT of $233 million. The Gas Pipeline Group recently obtained final FERC approval for three major expansion projects that will increase capacity to and expand market presence in Florida, California and the Chicago area. Enron entered into an agreement to sell Portland General Electric in late 1999 and is expected to close this transaction in late 2000.

Broadband Services: Enron is replicating its unique business model and skills to deploy a global network for the delivery of comprehensive bandwidth solutions and high bandwidth applications.

During the first quarter, Enron significantly advanced its network development. New agreements have been signed with over 20 broadband distribution partners, including U.S. West and BellSouth, and with BCE Nexxia in Canada. By the end of the first quarter, Enron Broadband Services had already delivered or committed to deliver 85% of its full year 2000 targeted bandwidth intermediation volumes. Enron Broadband Services is also experiencing rapid growth in originating new agreements to deliver premium broadband content. During the first quarter, service contracts estimated at $31 million were executed and included media, entertainment and financial services customers.

Enron Broadband Services is on track to achieve expected full year financial targets. In the first quarter, breakeven results included planned sales of fiber and marketing of broadband products to new customers.

For the first quarter, Enron reported $0.40 of earnings per diluted share compared to $0.16 in the first quarter of 1999 after nonrecurring items. The results for the first quarter of 1999 included after-tax nonrecurring charges totaling $131 million related to the adoption of new accounting standards.

This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Enron believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include the timing and extent of changes in prices for crude oil, natural gas, electricity and interest rates, the timing and success of Enron's efforts to develop international power, pipeline and other infrastructure projects, political developments in foreign countries, the ability to penetrate new retail natural gas and electricity markets, including the energy outsource market, in the United States and Europe, further development of Enron's broadband services network and customer contracting activity, and conditions of the capital markets and equity markets during the periods covered by the forward looking statements.

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Please see attached tables for additional financial information.

For additional information please contact:

Mark A. Palmer

713-853-4738