============= Page 1 of 39 ============= Project Summer E0004391564 EXH005-00864 ============= Page 2 of 39 ============= Business Update E0004391565 =XH005-00865 ============= Page 3 of 39 ============= Enron Second Quarter Performance E0004391566 =XH005-00866 ============= Page 4 of 39 ============= ECOO4391567 XH005-00867 0 Natural Gas 0 Marketing and 0 Energy Outsourcing o Bandwidth 0 Expansion Vehicle Transportation Delivery of Energy to Commercial and Management for New Commodity Products Worldwide Industrial Customers and Broadband Industry Penetration Electric Distribution Delivery Services ============= Page 5 of 39 ============= Marketing and Delivery of Energy Products Worldwide E0004391588 =XH005-00868 ============= Page 6 of 39 ============= Wholesale Energy Operations and Services Physical Volumes~~ Financial Settlements Income Before Interesi (BBtuefd) (BBtue)'d) acid Tares 46,730 (Millions) $437 $356 t J +23% ® Power and Other Vas 2Q99 2Q00 ERI Commodity Sales and Services E Assets and Investments EC004391569 XH005-00869 2Q99 2Q00 ============= Page 7 of 39 ============= North America Natural Gas Volumes Second Quarter (Bcf/d) ~' Canada U.S. 23.0 L ECOC14391570 :XH005-00870 1 JJ l 1 JJ6 'I JJy tuuu ============= Page 8 of 39 ============= Enron's Wholesale Gas Network Canada Volumes Counterparties (Bcf/d) 6.6 136 143 4.5 2Q99 2000 2Q99 2Q00 West Texas * Marketing Offices -- Owned and Leased Capacity 4 NYMEX Owned Gas Storage Leased Storage 0 Gas Marketing Activity Central Volumes Counterpartie: (Bcf/d) 4.7 231 203 _ 1.6 I l k 2Q99 2Q00 2Q99 2Q00 East EC004391571 0 XH005-00871 ============= Page 9 of 39 ============= North America Power Volumes Second Quarter (Million MWh) 124 E00043911572 0 4 XH005-00872 1997 1998 1999 2000 ============= Page 10 of 39 ============= Enron's Wholesale Power Network West Volumes (Millions MWh) 46 2Q99 2Q00 Marketing Offices NYMEX Marketing Hub Power Plants In Operation Under Development ® Power Marketing Activity Transmission Grid WSCC Peaking Generation (MW) Contract Term 1<1Yr 1-5Yr  >5Yr 1998 1999 2000 E0004391573 MAPP SPP MAI N iECAR 1, 'L ERCOT NPCC SERC FRCC East Volumes (Millions MWh) 78 2Q99 2000 0 4 > IP XH005-00873 ============= Page 11 of 39 ============= Enron's European Wholesale Network * Offices 0 Energy Exchange LNG Project Under Development Energy Services A Energy Partnerships - Leased Capacity Utility Services Power Plants In operation In construction Under Development Energy Marketing Activi Gas ® Power Coal Note: Volumes Include Natural Gas and Power Amsterd 14 Number of ME= Transactions Continent "18,687 0 Nordic Region U.K. IN Continental Europe Volumes (Bcfeld) 1.8 zw!du Ll.(UU Ntarm E0004391574 :XH005-00874 ============= Page 12 of 39 ============= 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 EnronOnline Daily Transactions E0004391575 :XH005-00875 Nov Dec Jan Feb Mar Apr May June July 1999 1999 2000 2000 2000 2000 2000 2000 2000 ============= Page 13 of 39 ============= Rapidly Increasing Utilization of EnronOnline (Transactions) 25% i Dec 100% Jan 100% 39°I Feb 11 EnronOnline 100% 1.5% Mar 100% 45%\ Apr 100% 52% May Traditional E0004391576 59%0 Jun y1~o EXH005-00876 100% 33% 100% ============= Page 14 of 39 ============= 41.7 Leading Energy Marketers Second Quarter 2000 (TBtue/d) Power Gas 0 E0004391577 EXH005-00877 tnron uuKe ", I a%, , -- - - - - ============= Page 15 of 39 ============= Energy Outsourcing to Commercial and Industrial Customers 0 E0004391578 :XH005-00878 ============= Page 16 of 39 ============= Enron Energy Services Second Quarter Performance (Millions) Contracting (Total Contract Value) $3,800 l i $1,700 E0004391579 =XH005-00879 2Q98 2Q99 2Q00 ============= Page 17 of 39 ============= Mew Total Contract Value -Quarterly (Billions) $0.8 $0.6 $1.7 $1.7 $1.5 $0.9 i ~ II it Q1 Q2 Q3 Q4 1998 $3.8 Q1 Q2 Q3 Q4 Q1 Q2 =XH005-00880 ============= Page 18 of 39 ============= Income Before Interest and Taxes - Quarterly (Millions) $24 =XH005-00881 $(43) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ============= Page 19 of 39 ============= Recent Contracting Activity m QUEBECOR INC Prudential VI Sonoco Inc. r LC. ff .0.0 D $1 Billion, 10-Year Agreement to Service 66 Facilities in 28 States $180 Million, 10-Year Agreement to Service 19 Facilities in 6 States $210 Million, 10-Year Agreement to Service 100 Facilities in 27 States $150 Million, 10-Year Agreement to Service 19 Facilities in 11 States E0004391582 + *0 :XH005-00882 ============= Page 20 of 39 ============= Bandwidth Management and Broadband Delivery Services E0004391583 EXH005-00883 ============= Page 21 of 39 ============= Enron Broadband Services Comprehensive Bandwidth Management 0 Network Control Data Management Services E0004391584 =XH005-00884 Bandwidth @ Servers Broadband Content Marketing & Trading 0 Pooling Points Management & Delivery ============= Page 22 of 39 ============= Enron's Intelligent Network Deployment Update E0004391585 =XH005-00885 Servers 525 Pooling Point Cities 19 15 s Complete In Installation Deployed ============= Page 23 of 39 ============= Enron Broadband in Europe Initial Operating Presence in Major Markets in the U.K., Germany, France and the Netherlands Major Broadband Distribution Partners Signed cerbernet ~ 1,1e Announced, ® Very Successful Worldwide Streaming Deb 1i) www.wimbledon.com Extending Reach Throughout Europe and the Nordics 50 Employees Today; Over 100 Targeted by Year-end 0 Pooling Point POPs and Connectivity ® In Operation  In Progress =XH005-00886 ============= Page 24 of 39 ============= Broadband Distribution Partners 0 E0004391587 EXH005-00887 ============= Page 25 of 39 ============= New Broadband Distribution Partners Entertainment-on-Demand -I Telus Reflex SBC Qwest Verizon SBC Covad Nationwide ® "Last Mile" Broadband Connectivity to Over 80% of the U.S. DSL Market ® Minimum Quality and Speed Guarantees to Ensure TV Quality End-User Customer Service E0004391588 EXH005-00888 ============= Page 26 of 39 ============= Advancement of Enron's BOS (Broadband Operating System) 0 Provides Network Control Across the EIN - Risk Management and Delivery Logistics - Forward Reservation of Bandwidth - Quality of Service Differentiation and Monitoring - Network Information and Management ® WarpSpeed MetaRouter Significantly Enhances Scalability and Dynamic Circuit Provisioning - Instantaneously Maps Bandwidth Requisitions to Best Available Network - At Full Scale, Manages 10,000 Connection Requests Per Minute ® Enron's Application Programming Interface (API) Allows Third Party Applications to Configure and Use Enron's Network - [ncorporated into Sun's Java Community Process - Facilitating 12's 13213 Marketplace e &0 E0004391589 :XH005-00889 ============= Page 27 of 39 ============= Bandwidth Intermediation Vancouver Boise - Portland ~' Salt Lake San Francisco City Las Vegas DS-3 Month Deliveries Id 2000, 5,170 ® Enron's Top Tier Markets Calgary Montreal 0 r New Orleans El Added in 2Q ® Over 50 Transactions Effected YTD with 17 Counterparties ® 60 Counterparties Reviewing Contract Terms ® EnronOnline Offerings Recently Expanded to Over 30 Products in 14 City Pairs 411~0 E0004391590 Toronto ~ Detroit :XH005-00890 ============= Page 28 of 39 ============= Wholesale Bandwidth Intermediation Second Quarter Activity Marketers and Resellers j o Purchases and Sales of Off-Net Protected DS-3 Circuits ° Terms Range Up to 12 Months; Committed 6 Weeks to 6 Months Forward ° Predominantly Fixed Price Contracts e Transacting Between Multiple City Pairs U.S. Carriers e Purchases and Sales of Off-Net Protected Circuits and OC-48 Channels ° Terms Range from 6 Months to 3 Years ® Fixed Price Commitments and Option Structures 0 Transacting Between Multiple City Pairs _Net or, Sore ces> P c v dens 0 Primarily Sales of On-Net OC-48 Channels o Up to Five-Year Terms ® Strong Demand for Fixed Price Commitments 0 City Pairs Track Enron's Network Build-Out International 19 Purchases and Sales of Off-Net Protected Circuits and Channels Includes Address-to-Address Connectivity ° Terms Range up to 10 Years; Committed Up to 3 Years Forward ° Primarily Fixed Price Commitments E0004391591 41pio =XH005-00891 ============= Page 29 of 39 ============= Content Services Second Quarter Activity F caliber Vectr;x .. , 0.4 eva #0 ) U In, IF L microsystems PROTR . ER.car ~ Sti eamsearch ~Ik1! The rffiofeccntri of the Web GALAXY G k L 1 M 1 5t0 SYSTEMS *. v t E0004391592 =XH005-00892 Columbia Tristar ============= Page 30 of 39 ============= Enron and Blockbuster 0 20-Year Exclusive, Worldwide Agreement; Over $1 Billion Potential Contract Value for Enron o Enron Provides End-to-End Connectivity to Deliver Blockbuster's Movie Library via the EIN - Enron Paid for Services Based on Number of Movies Rented - New Broadband Distribution Agreements Enable DSL Delivery to the TV; Additional Partners and Cable Targeted Service Available in Multiple U.S. Markets by Year-end; Rapidly Moving Toward Implementation o Significant Expansion Opportunities Content .Encoding Storage ,Bandwidth Management ,Streaming-Control Enron's Intelligent Network CO -,'A-D`-40 ~E F'LEi Enron's Distribution Partners E0004391593 it 111 ~~z 111 Blockbuster's Customers It EXH005-00893 ============= Page 31 of 39 ============= Expansion Vehicle for New Commodity Industry Penetration E0004391594 =XH005-00894 ============= Page 32 of 39 ============= Current Market Conditions 0 Many Industries Exist That Sell Commodity Products Through Legacy Distribution Channels Channels Often Consist of Complex Sales Forces and Long Term Relationships with Little Price Transparency Enormous Inefficiencies Exist in the Pricing of Commodity Products 2 The Internet Provides a Unique Opportunity to Have Immediate and Inexpensive Access to Customers E0004391595 XH005-00895 ============= Page 33 of 39 ============= Opportunity for Enron 51 Use Proven Enron eCommerce Platforms As Accelerators Leverage Off Enron's Proven Skills in Logistics, Risk Management and Back Office Capabilities Provide High-Margin, Structured Products to Customers Move Quickly and Minimize Effect on Enron's Ballance Sheet E0004391596 0 XH005-00896 ============= Page 34 of 39 ============= Enron Has the Capabilities Required 1:o Capture this Market Opportunity ® Cash Markets ® Forward Markets ® Futures Markets eCommerce Platforms ® Risk Management Process ® Capital E0004391597 * *0 =XH005-00897 ============= Page 35 of 39 ============= Target Markets and Approach a Enron Business Plan Upon Entering New Markets: Upgrade Streamline Process to Do Business the Best, Most Efficient Way Possible Expand Grow Market Share in Current Business Penetrate Rapidly Establish Significant Stakes in New Markets ® Target Markets - Metals - Pulp & Paper - Steel - Chemicals - Credit/Finance - Data Storage - Settlements - Logistics E0004391598 y~o :XH005-00898 ============= Page 36 of 39 ============= Recent Net Works Transactions MG PLC Leading Merchant of Base Metals 0 Significant Customer Overlap with Enron's Existing Energy Customers Metals Market Receptive to Enron-Like Products Garden State Paper 03 U.S. Based Newsprint Manufacturer 0 Complements Existing Pulp and Paper Business Complements Deployment of Enron's eCommerce Business Model (Clickpaper.com) E0004391599 ~~o =XH005-00899 ============= Page 37 of 39 ============= Clickpaper.com -_s __1c_i- l~ V[~~+ll~ir.~~ _.aczZ_ ^c_s ... for a SAURTM FASTER -Ay to trade pulp a'd paper online, Clickpape,Cara F~ ~r w e'c c^~e to CI ck=aper tc^ the most r_^-p2hersne site F:r Ir[ar^et-basec o^ 'p arc cater arse c'io^sCic