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Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?

To: Patricia Trinchero who wrote (147)	1/11/2002 8:26:35 PM
From: Karen Lawrence	Read Replies (1) \| Respond to of 5185

Enron Announces Successful Bidder for Wholesale Trading Operation 11 Jan 2002, 2:20pm ET / Enron Announces Successful Bidder for Wholesale Trading Operation HOUSTON, Jan. 11 /PRNewswire/ -- Enron (NYSE:ENE) today announced that it has selected, and its Creditors' Committee has approved, UBS Warburg, the investment banking group of UBS AG, as the successful bidder for Enron's North American wholesale electricity and natural gas trading business. Terms of the proposed transaction, which is subject to Bankruptcy Court approval, call for Enron to retain a residual interest in the income of the business. The parties expect to file executed documents with the bankruptcy court by 8:30 a.m. EST on Monday, Jan. 14, 2002, and to post such documents on www.nysb.uscourts.gov . "With UBS's AA credit rating and Enron's proven industry expertise, we believe this will maximize the value of the trading operation going forward," said Kenneth L. Lay, chairman and chief executive officer of Enron. "This is a key milestone as we build the new Enron and work to establish a platform for restructuring the company and emerging from Chapter 11 bankruptcy protection." Enron's chief financial officer, Jeff McMahon, said, "We evaluated numerous bids and, after a period of intense negotiations, believe we have arrived at a deal that represents the highest and best offer for our creditors, shareholders and employees." McMahon continued, "The value of this business and its potential for success was evidenced in a highly competitive and fair auction process and provides a viable future for the trading operation." Enron markets electricity and natural gas, delivers energy and other physical commodities, and provides financial and risk management services to customers around the world. Enron's Internet address is www.enron.com . The stock is traded under the ticker symbol "ENE". This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and that actual results could differ materially as a result of known and unknown risks and uncertainties, including: various regulatory issues, the outcome of the company's Chapter 11 process, the consummation of the transaction described above, general economic conditions, future trends, and other risks, uncertainties and factors disclosed in the Company's most recent reports on Forms 10-K, 10-Q and 8-K filed with the Security and Exchange Commission. Mark A. Palmer