ENRON EMPLOYEES’ COMMITTEE TO BE APPOINTED WITHIN TWO WEEKS

HOUSTON - The Ad Hoc Employees Committee of Enron Corp. reacted today to the United States Trustee’s commitment to appoint an official Employee Related Issues Committee in the Enron bankruptcy case within two weeks.

The Ad Hoc Employees Committee, comprised of former Enron workers, represented by David  McClain, of McClain & Siegel, P.C., first requested the appointment of an official employee committee on December 19, 2001, shortly after Enron and its affiliated companies filed for bankruptcy.  In a letter to McClain, Ms. Carolyn S. Schwartz, the US Trustee, stated that she will appoint the formal committee within the next two weeks and schedule its organizational meeting for April 2, 2002.

Richard Rathvon, who leads the Ad Hoc Committee, stated, “Although we were hoping that the official committee would have been set up sooner, the appointment process has proved to be complex and we are pleased that a deadline has been set for the Employee Related Issues Committee to begin its work.”

Mr. McClain added, “We sincerely appreciate the careful deliberations of the US Trustee’s office and the commitment to complete the process by a date certain.  The work of the Employee Related Issues Committee should begin as soon as possible.  Important decisions are being made on a daily basis which affect the rights of Enron’s current and former employees.”

Following her meeting in January with Mr. Rathvon and Mr. McClain, Ms. Schwartz wrote Mr. McClain to confirm that she would appoint an official committee to represent the employees’ interests in the bankruptcy case.  In her earlier letter, dated February 14, Ms. Schwartz acknowledged the uniqueness of the employees’ interests, and the need for separate representation for employees in the bankruptcy case.

At the request of Ms. Schwartz, Mr. McClain has submitted a list of candidates qualified to serve on the official committee, many of whom have been interviewed by the Office of the US Trustee.