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  Georgeanne Hodges
12/11/2000 12:03 PM

To: Wes Colwell/HOU/ECT @ ECT
cc:
Subject: Catalytica Write-down

FYI
---------------------- Forwarded by Georgeanne Hodges/HOU/ECT on 12/11/2000 11:59 AM ---------------------------
Michael S Galvan
  12/11/2000 11:43 AM

To: Hope Vargas/HOU/ECT@ ECT
cc: Georgeanne Hodges/HOU/ECT@ ECT
Subject: Catalytica Write-down

fyi


Catalytica memo - sfas125.dc
---------------------- Forwarded by Michael S Galvan/HOU/ECT on 12/1112000 11:42 AM
From: David Maxwell 12/1 1/2000 11:05 AM

To: Sally Beck/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, Andrea V Reed/HOU/ECT@ECT, Brian
Redmond/HOU/ECT@ECT, Jeff Donahue/HOU/ECT@ECT, L'Sheryl Hudson/HOU/ECT@ECT, Gordon
McKillop/NA/Enron@ ENRON
cc: Michael S Galvan/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, David Port/Market
Risk/Corp/Enron @ ENRON
Subject: Catalytica Write-down

  On the 12/11 MPR to be issued on 12/12, we will be taking a $56 million loss on Catalytica Energy
Systems. This asset will begin trading on the open market either Friday, 12/15 or Monday, 12/18 under
the ticker CESIV. The potential trading range of $10 - $20 per share is disclosed in the company's S-1.
This asset is in Raptor I and therefore this write-down will exhaust $56 M of the remaining Raptor I
capacity.

Please call me at x3-6983 with questions.

EXH009-00104

GOVERNMENT
EXHIBIT
  2842
  Crim. No. H-04-25 (S-2)