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                                                         Enron
[ENRON LOGO]                                             P.O.Box 1188
                                                         Houston, TX 77251-1188

                                                         News Release



                                                         Karen Denne
                                                         (713) 853-9757

ENRON CORP. ANNOUNCES PLANS TO ISSUE CONVERTIBLE DEBT
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FOR IMMEDIATE RELEASE: Monday, Jan. 29, 2001

         HOUSTON -- Enron Corp. (NYSE: ENE) announced today that it plans to
raise gross proceeds of approximately $1.5 billion through an offering of
20-year, zero coupon convertible senior debt securities. The securities will be
convertible into Enron common stock at a premium, to be determined. Enron, at
its sole discretion, will have the option to settle the proposed instruments in
cash or stock.

         Most of the proceeds are expected to be used to refinance existing
debt. Some of the proceeds may be used to repurchase common stock in
conjunction with this offering.

        The notes being issued and the shares of common stock into which they
would be convertible have not been registered under the Securities Act of 1933
and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.

         Enron is one of the world's leading electricity, natural gas and
communications companies. The company, with revenues of $101 billion in 2000,
markets electricity and natural gas, delivers physical commodities and
financial and risk management services to customers around the world, and has
developed an intelligent network platform to facilitate online business.
Fortune magazine has named Enron "America's Most Innovative Company" for five
consecutive years, the top company for "Quality of Management" and the second
best company for"Employee Talent." Enron's Internet address is www.enron.com.
The stock is traded under the ticker symbol "ENE."

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         This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Enron believes that its expectations
are based on reasonable assumptions, it can give no assurance that its goals
will be achieved. Important factors that could cause actual results to differ
materially from those in the forward looking statements herein include success
in marketing natural gas and power to wholesale customers; the ability to
penetrate new retail natural gas and electricity markets, including the energy
outsource market, in the United States and Europe; development of Enron's
broadband network and customer demand for intermediation and content services;
and conditions of the capital markets and equity markets during the periods
covered by the forward looking statements.


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