Press Release

ENRON AND IBM ANNOUNCE LONG-TERM ENERGY PURCHASING AGREEMENT

HOUSTON -- Enron Energy Services, a subsidiary of Enron Corp., announced today a $610 million agreement to provide electricity to IBM over the next ten years.

Through this initial agreement, Enron will supply or procure electricity for a number of IBM facilities across the U.S., mitigate the risks of price volatility, and manage energy information to provide IBM with a consolidated monthly invoice.

"This agreement marks the beginning of a relationship that will allow IBM to use Enron's expertise as a nationwide leader in the energy industry to control the energy costs inherent in all lines of their business," said Lou Pai, CEO of Enron Energy Services.

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM creates, develops and manufactures the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices, and microelectronics. With headquarters in Armonk, New York, IBM has nearly 300,000 employees in more than 160 countries.

Enron is one of the world's leading electricity, natural gas and communications companies. The company, which owns approximately $33 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:

Peggy Mahoney

713-345-7034