Press Release

ENRON AND SUN MICROSYSTEMS, INC. TEAM TO ACCELERATE ADOPTION OF BROADBAND INTERNET SERVICES

HOUSTON AND PALO ALTO - As part of its ongoing effort to deliver high quality, real time provisioning of network bandwidth, Enron Broadband Services, Inc., a wholly owned subsidiary of Enron Corp, today announced an agreement with Sun Microsystems, Inc. intended to accelerate adoption of broadband Internet services. Under the agreements:

Sun will help Enron build out the footprint of its next-generation broadband infrastructure - the Enron Intelligent Network™(EIN™), which is based on fiber, servers, pooling points and Enron’s Broadband Operating System (BOS);

Enron and Sun also intend to collaborate to optimize the EIN for use with the Sun™ platform, which will lead to accelerated deployment of Enron’s BOS;

Enron and Sun will engage in joint marketing efforts to promote EIN services as a way to address the needs of enterprises, software developers and service providers for the delivery of broadband applications at guaranteed service levels.

As part of the buildout of the Enron Intelligent Network, Enron Broadband Services will purchase 18,000 Netra™ carrier-grade and Enterprise™ servers and associated storage and services from Sun to expand the EIN. The Sun systems will be used to aggressively expand the footprint of the EIN to more than 2,000 points of presence worldwide. In addition, Sun will purchase broadband video streaming services from Enron to support worldwide operations.

"Broadband technologies provide the fat pipes needed to make Sun's vision of anyone, anywhere, anytime on any device a reality," said Scott McNealy, CEO, Sun Microsystems. "Enron is a natural partner for us because together we have the technology and expertise to transform the way that next-generation applications are developed and delivered on the Internet."

"This alliance with Sun, along with Enron's initiatives in bandwidth trading and intermediation, will bring fundamental changes to the Internet," said Jeff Skilling, President and COO, Enron. "What this will mean for corporations is a new generation of mission-critical broadband applications that can be delivered to Internet customers in a secure, guaranteed quality-of-service manner. The alliance with Sun is about raising the bar on what enterprises can expect from the Internet and about providing the industry with the tools to meet those expectations."

To nurture and establish these new broadband services, Sun and Enron are also committed to initiating a call for participation to other industry members to work on the development of Java™ technology-based intelligent network APIs through the Java Community Process(sm), which is a documented, audited process that allows anyone in the industry to participate in expert groups for defining new additions to the Java platform.

About the Enron Intelligent Network™

The EIN is based on a distributed server architecture, a pure Internet Protocol strategy, Enron's global fiber and satellite distribution, and the embedded software intelligence, called the Enron Broadband Operating System (BOS), that sets it apart from other network providers. The EIN and Enron’s BOS enable a whole new breed of application services, called ePowered™ Services, which transport rich media and live, streaming video, faster than using the public Internet.

The Enron BOS - which is being developed on Sun's Solaris™ Operating Environment - allows real-time provisioning of bandwidth across multiple networks. It includes intelligent technologies that will provide a variety of features, such as forward reservation of bandwidth, real-time provisioning, dynamic content management and security. In addition, Enron’s BOS will make the Internet programmable because of the built-in interfaces between the BOS and all the major physical elements in the network, such as routers and servers, and software elements, such as caching and reservation software.

About Sun's Netra Product Family

Sun's Netra carrier-grade servers are specifically designed for easy deployment in network environments that require continuous application availability. They have been designed for the rigorous environmental standards for their class (NEBS Level 3 certification and ETSI compliance), which helps ensure continued reliable operation, even under the most severe conditions. A variety of rack-mount options enable the systems to be integrated easily into existing communications equipment. Sun's Netra systems are based on the robust, scalable Solaris Operating Environment and the industry proven SPARC® chip technology to meet customer needs from development to deployment.

About Enron Broadband Services

Enron Broadband Services, formerly Enron Communications, Inc., is a leading provider of high quality, broadband Internet content and applications. The company’s business model combines the power of the Enron Intelligent Network, Enron’s Broadband Operating System (BOS), bandwidth trading and intermediation services, and high-bandwidth applications, to fundamentally improve the experience and functionality of the Internet. Enron introduces its Broadband Operating System (BOS) to allow 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 that increasingly complex applications require. A wholly owned subsidiary of Enron Corp. (NYSE: ENE), Enron Broadband Services can be found on the Web at www.enron.net.

About Enron

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

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision "The Network Is The Computer" has propelled Sun Microsystems, Inc. (NASDAQ: SUNW), to its position as a leading provider of industrial-strength hardware, software and services that power the Internet and allow companies worldwide to ".com" their businesses. With $12.4 billion in annual revenues, Sun can be found in more than 170 countries and on the World Wide Web at http://www.sun.com.

Sun, Sun Microsystems, the Sun logo, Netra, Enterprise, Solaris Java, HotJava and The Network is the Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. SPARC is a trademark or registered trademark of SPARC International, Inc. and is used under license.

Press announcements and other information about Sun Microsystems are available on the Internet via the World Wide Web using a tool such as Netscape Navigator or Sun's HotJava browser. Type http://www.sun.com at the URL prompt.

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

For additional information please contact:

Claudia Johnson

503-886-0666

claudia_johnson@enron.net

Maria Villarino

650-786-3205

maria.villarino@sun.com