ENRON EMPLOYEE COMMITTEE HOLDS ORGANIZATIONAL MEETING, SELECTS COUNSEL AND LEADERSHIP

Houston: The Employee-Related Issues Committee held its organizational meeting in New York on April 2 and selected co-chairs and counsel. It also began gathering information and identifying issues important to current and former employees in Enron's bankruptcy case. The Employee Committee was appointed on March 29, 2002, by the United States Trustee in the Enron bankruptcy case to address issues concerning employees.

The Employee Committee elected Richard Rathvon and Michael Moran as co-chairs. Mr. Rathvon was one of the 4,500 employees terminated by Enron immediately after its bankruptcy filing. Mr. Moran retired from Enron prior to the bankruptcy and previously served on the Official Creditors' Committee. Mr. Moran has resigned from the Creditors' Committee in order to devote his attention to the employee issues.

The members of the Employee Committee represent a cross section of claims including deferred compensation, severance for terminated employees, commissions, 401K for retirees and pension benefits. In addition to the co-chairs, the other members include Jess Hyatt, a present employee of a non-debtor Enron related entity, Diana Peters, a severed employee, and State Street Bank and Trust Company in its capacity as proposed special fiduciary for certain Enron plans.

The Employee Committee also selected McClain and Siegel, P.C., a Texas-based bankruptcy firm, and Kronish, Lieb, Weiner and Hellman, LLP, based in New York, as co-counsel for the Employee Committee. The Employee Committee believes it will be beneficial to have counsel in Texas, where the majority of the employees are located, as well as New York, where the bankruptcy case is pending.

"Our first meeting was extremely productive. It gave us the opportunity to meet one another as we work together to protect and advance issues on behalf of all Enron employees," said Mr. Rathvon. "We know we will be able to work well together for this common goal," added Mr. Moran. The Employee Committee met for approximately six hours on Tuesday and five hours on Wednesday.

"The bankruptcy case was filed on December 2nd. Since then, many issues important to employees have already arisen in the case," said Mr. McClain. "The members of this committee are single?minded in their desire to work on behalf of all Enron employees."

The Employee Committee's first order of business will be to survey the current issues in the bankruptcy case to determine their impact on employees and to gather information about the claims employees have against Enron in the bankruptcy case. The committee has already begun identifying issues which should be raised on behalf of employees in the case. It immediately began work on a notice program to provide employees with timely, accurate information on the status of the bankruptcy case and the claims of employees. "We are pleased with the diversity of opinions represented. The Employee Committee will have varied opinions on proposed actions to be taken in this bankruptcy case. Whatever position this Committee takes will be after thoughtful consideration of all issues and in furtherance of its fiduciary duties to employees," said Jim Beldner of Kronish Lieb.