============= Page 1 of 12 ============= Ken and Linda Lay Balance Sheet Comparison June 30, 2001 -ENE $ 52.9100 $ 49.1000 CPQ $ 15.9900 $ 15.3200 5/31/01 6/30/01 Variance Current Assets 6,811,938 8,387,876 1,575,938 KLL & LPL Investments A/R incr $1,120K; Kinnear A/R incr $225K: stock option exercise proceeds Marketable Investments Corn & Pref Stocks 122,125,910 89,788,181 (32,337,729) 514,095 shares of ENE stock used to pay off LOCs Executive Stock Options 78,241,368 64,368,202 (13,873,166) 52,500 ENE stock opt exec under plan Bonds 649,440 649,440 - _ Mutual Funds 5,586,557 5,525,885 (60,672) Partnerships (Family)* 21,078,350 18,914,951 (2,163,399) Long Term Investments 54,513,450 55,363,346 849,896 Carson Private European Fund. Vanguard II, SAJG Kirby Braeswood, Jester Apts-LA Retirement/Deferred Assets 49,461,390 46,524,051 (2,937,339) Personal Non Earning Assets 3,499,009 3,549,034 50,025 Current Liabilities (61,258,765) (40,228,139) 21,030,626 $24M paydown from sale of ENE to ENE less investments and expenses Long Term Liabilities (78,401,004) (69,283,279) 9,117,725 Decrease in Def. Tax Liability Business Liabilities (334,413) (350,281) (15,868) NET WORTH $201,973,230 $ 183,209,267 (18,763,963) Value based on FMV of partnership assets. No discount for partnership interest is shown. NOTE: Net Worth of $183,209,267 does not reflect 1,523,300 unvested Enron stock options and 151,948 restricted shares of Enron Corp. Based on a FMV of $49.10/share as of 6/30/01, these options are valued at $12,391,121 and the restricted shares are valued at $7,460,647 totaling $19,851,768. The total value less deferred tax liability of 40% would add approximately $11,911,061 to the net worth. LAY-G32 1300 LBF002-00815 GOVERNMENT EXHIBIT 228 Crim. No. H-04-25 (S-2) ============= Page 2 of 12 ============= Ken and Linda Lay Balance Sheet Comparison June 30, 2001 Ken and Linda have guaranteed a mortgage in the amount of $900,000 maturing on January 1, 2014 with an interest rate of 6.88% at Bank of America for their daughter, Robyn Vermeil. This loan is collateralized by property appraised at $965,000 as of December 9, 1998. Ken has guaranteed three secured notes in the amounts of $250,000 and $275,000 maturing on October 23, 2001 and a construction loan in the amount of $1,230,000 maturing on January 17, 2003 for his sister, Sharon Lay. These loans all have an interest rate of 30-Day LIBOR + 1.5% and are collaterized by residential real estate. He has also guaranteed an unsecured note in the amount of $50,000 for Sharon Lay Productions, Inc. which matures 2/21/02. Linda has guaranteed a note secured by a 2000 Toyota Avalon in the amount of $26,949 and a note secured- by a 2001 Toyota in the amount of $19,381. Linda has guaranteed a note in the amount of $130,000 maturing November 28, 2005 with an interest rate of 8.15% for Randy Gray. This loan is secured by residential real estate in Galveston. Ken and Linda have guaranteed an unsecured $5,000,000 line of credit for MILAND Investments, L.L.C. at Bank of America. The line of credit matures on April 5, 2002 with a floating interest rate of 30-Day LIBOR plus 1.25%. The amount currently funded on the line of credit is $3,928,449. The outstanding commitments for various investments total $ 18,324,943. LAY-G32 1301 LBF002-00816 ============= Page 3 of 12 ============= List of Outstanding Commitments As of June 30, 2001 Total Outstanding PERSONAL Commitment Total Invested Commitment Capricorn Investors II LP Capricorn Investors III LP Carson Private European Fund Chase Cap Ptrs Private Eq Fund Corporate Opportunities Funds Environmental Opportunities Fund Environmental Opportunities II Fund Genesis Park LP Lazard Technology Partners II LP Murphree Venture Partners V, LP SRE Properties Partnership No. 1, L.P. Sterling Group Partners I, L.P. Vanguard VII LP Westbridge Ventures, L.P. SUBTOTAL List of Scheduled Commitments: Houston NFL Holdings (Offset by Credit Facility at Bank of Am) TOTAL 500,000 500,000 - 750,000 402,811 347,189 1,625,000 1,300,000 325,000 5,000,000 2,164,364 2,835,636 750,000 375,000 375,000 500,000 475,000 25,000 400,000 168,000 232,000 500,000 144,758 355,242 1,000,000 389,365 610,635 500,000 100,000 400,000 2,500,000 1,673,342 826,658 2,500,000 32,500 2,467,500 3,000,000 900,000 2,100,000 1,000,000 249,917 750,083 $ 20,525,000 $ 8,875,057 $ 11,649,943 11,675,000 5,000,000 6,675,000 $ 32,200,000 $ 13,875,057 $ 18,324,943 LAY-G32 1302 LBF002-00817 ============= Page 4 of 12 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance ASSETS CURRENT ASSETS Cash on Hand: CASH ON HAND/SK 283.32 CASH ON HAND/PSTOKES 1,097.46 CASH ON HAND/MSTURGIS 200.00 CASH ON HAND/LEONA 381.63 CASH ON HAND/PRAKER 219.33 CASH ON HAND/BVLILT 4,767.72 Total Cash on Hand: 6,949.46 Checking Accounts: July 12, 2001 BANK OF AMERICA 0707 106,922.60 BANK OF AMER/LPL PROP 1,388.86 BANK OF AMER/STOKES 7,066.43 CHASE BANK CHECKING 1,578.35 VECTRA BANK 1,057.44 UNITY 109-900 1,168.81 Total Checking Accounts: 119,182.49 Money Market Accounts: WASHINGTON DC ACCT 90,000.00 Total Money Market Accounts: 90,000.00 Brokerage Accounts: CHARLES SCH-CAPROCK/SCH-CR 525.53 GOLDMAN SACHS/GS-61 617.71 PAINE WEBBER MMA/PW-22 628,699.85 PAINE WEBBER CYPRESS/PW-43 12,237.81 PAINE WEBBER HB/PW-65 0.15 PAINE WEBBER EGA/PW- 11 38.30 PAINE WEBBER CAP/PW-46 99,100.83 PAINE WEBBER TCW CE/PW-71 18,902.08 PAINE WEBBER TCW MC/PW-72 39,833.96 Total Brokerage Accounts: 799,956.22 Savings Accounts: ENRON CREDIT UNION/KLL 45.73 Total Savings Accounts: 45.73 Treasury Bills: SAVINGS BONDS 600.00 Total Treasury Bills: 600.00 Short-term Receivables: Page 1 LAY-G32 1303 LBF002-00818 ============= Page 5 of 12 ============= July 12. 2001 -- Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance ACCT RECV-KLL & LPL INVEST 2,523,500.00 ACCT RECV-TDH 500,000.00 ACCT RECV-MKL 150,000.00 ACCT RECV-RENT DEP (#1000) 2,102.08 ACCT RECV-RENT DEP (#811) 1,058.33 ACCT RECV-S. HOBBS 75,000.00 ACCT RECV-D. HOBBS 75,000.00 ACCT RECV-RRH 20,000.00 ACCT RECV-BJONES 103,504.96 ACCT RECV-RV 84,643.00 ACCT RECV-ELV(FL) 580,000.00 ACCT RECV-ELV(TX) 790,242.27 ACCT RECV-G KINNEAR 850,000.00 ACCT RECV-JANE TRAN 25,000.00 ACCT RECV-E MCELROY 1,550.00 ACCT RECV-MISC 4,307.06 ACCT RECV-RANDY GRAY 1,100.00 ACCT RECV-S. ADARO 6,900.00 ACCT RECV-A. PHILLIPS 37,000.00 ACCT RECV-JIM EMERSON 18,000.00 ACCT RECV-P TERRAZAS 14,246.78 ACCT RECV-T. ZILBERFARB 15,000.00 ACCT RECV-HUGUES HEYMAN 4,783.12 ACCT RECV-LEONA ARMSTRONG 800.00 ACCT RECV-J EMERSON 28,615.85 Total Short-term Receivables: 5,912,353.45 Notes Receivable: FAM PTRNS ANNUITY-2/KLL 730,081.17 FAM PTRNS ANNUITY-2/LPL 728,707.10 Total Notes Receivable: 1,458,788.27 TOTAL CURRENT ASSETS 8,387,875.62 Page 2 LAY-G32 1304 LBF002-00819 ============= Page 6 of 12 ============= July 12, 2001 Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance -MARKETABLE INVESTMENTS Enron Corp. 5 55,622,935.00 Common Stock 7,868,702.40 Fayez Sarofim Mgmt.-Com 3,004,734.35 Sanders Morris Mundy-Corn 290,637.10 Cypress Asset Mgmt.-Com. 32 14,173.44 Caprock Capital Advisors 669,600.69 PaineWebber Core Hold. 3,189,964.02 TCW Core Equity 627,801.95 TCW Mid Cap Equity 1,561,017.70 Privately-Held Stock 13,738,613.91 Vested Exec Stock Options: CPQ ESO 4-97 4370SH CPQ ESO 4-98 2,424 SHS CPQ ESO 4-99 2,953 SHS CPQ ESO 4-00 2,666SHS ENEESO 12-95 61,132 SHS ENE ESO 12-96 118,620 SHS ENE ESO 1-97 113,090 SHS ENE ESO 1-97.1,275,000 SHS ENE ESO 1-98 127,184 SHS ENE ESO 12-98 442,988 SHS ENE ESO 12-99 650,000SHS ENE ESO 1-00 384,617 SHS Total Vested Exec Stock Options: 31,901.00 2,133.12 10,246.91 853.12 1,836,405.28 3,266,794.80 3,03 6,466.50 34,947,750.00 3,693,423.36 9,112,263.16 7,741,500.00 688,464.43 64,36 8,201.68 Corporate Bond- Convertibl: LAKEWOOD SPORT CONV/SMH-JT 52,250.00 LAKEWOOD SPORT-1/SMH-JT 52,250.00 LAKEWOOD SPRT CONV2/SMH-JT 30,041.00 EARTHCARE CO DEB/SMH-JT 100,000.00 EARTHCARE CO 1534SH/SMH-JT 1,534.00 EARTHCARE CO 2531SH/SMH-JT 2,531.00 EARTHCARE CO 2594SH/SMH-JT 2,594.00 EARTHCARE CO 2688SH/SMH-JT 2,688.00 EARTHCARE CO 2756SH/SMH-JT 2,756.00 EARTHCARE CO ISHISMH-JT 1.00 EARTHCARE CO 2794SII/SMH-JT 2,794.00 EARTHCARE CO 1SH-2/SMH-JT 1.00 FLASHFIND CORPORATION 250,000.00 FLASHFIND CORP NOTE 3/01 75,000.00 FLASHFIND CORP NOTE 5/01 75,000.00 Total Corporate Bond-Convertibl: 649,440.00 Page 3 LAY-G32 1305 LBF002-00820 ============= Page 7 of 12 ============= July 12. 2001 Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance Mutual Funds: GS 1999 EXCH FND/GS-61 5,525,884.62 Total Mutual Funds: 5,525,884.62 Partnerships-other. KLL & LPL INVESTMENT PTRNS 17,854,182.00 KLL & LPL FAMILY PTRNS 1,060,769.00 Total Partnerships-other. 18,914,951.00 TOTAL MARKETABLE INVESTMENTS 179,246,657.86 LONG-TERM INVESTMENTS Residence: REAL ESTATE/HUNTINGDON 10,128,137.50 Total Residence: 10,128,137.50 Real Estate Other Homes: REAL ESTATE/ASPEN1 2,879,611.52 REAL ESTATEIASPEN2 5,647,481.97 REAL ESTATEIASPEN3 6,257,394.11 PIRATES' COVE LOTS 299,742.66 REAL ESTATES-3431 627,311.42 REAL ESTATE/B-3429 748,227.06 REAL ESTATE/B-3433 868,524.64 REAL ESTATE/REBA 492,639.61 REAL ESTATE/ASPEN4 1,752,685.14 REAL ESTATE/WESTGATE 284,873.38 REAL ESTATE/2514 AVALON 288,433.94 Total Real Estate Other Homes: 20,146,925.45 Real Estate Active Rental: REAL ESTATE/1741SR 147,309.00 REAL ESTATE/1852MAR 104,044.97 REAL ESTATE/1856MAR 173,048.67 REAL ESTATE/1918SR 243,875.17 REAL ESTATE/KINGS 190,000.00 REAL ESTATE/VIKING 60,000.00 REAL ESTATE/MEXICO MO 240,026.00 REAL ESTATE/2403AVALON 944,179.00 Total Real Estate Active Rental: 2,102,482.81 Real Estate Passive: BLENHEIM APARTS, LTD. 175,412.00 CREEKSTONE SOUTH RICE PTRS 266,115.00 CREEKSTONE WALNUT LP 748,409.00 DYMAXION APARTMENTS, LTD 21,943.00 Page 4 LAY-G32 1306 LBF002-00821 ============= Page 8 of 12 ============= July 12. 2001 Kenneth L. & Linda P. Lav - BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance HAINES APARTMENTS, LTD. 100,000.00 JESTER APTS PARTNERS,LTD 552,654.00 J.T.FAM,SR. INVEST., LTD. 490,020.00 LAKE CHARLES APTS., LTD. 176,023.00 MILAND INVESTMENTS LLC 1 ,03 8,45 5.08 NOLANA, LTD. 186,000.00 RESACA DE LAS PALMAS 240,000.00 SAJG KIRBY BRAESWOOD 180,000.00 SRE PROPERTIES PTR NO. 1 1,673,342.33 TRAILSIDE APTS, LTD. 486,208.00 W.E. TRADE INVESTMENTS LTD 239,443.00 W.A.REHAUSENLOT INV LTD 102,788.00 Total Real Estate Passive: 6,676,812.41 Farming Interests: I 1ACRES ILLINOIS 4,500.00 Total Farming Interests: 4,500.00 Other Investments: BROADWING, LLC 114,331.00 CAPRICORN INVESTORS II LP 510,441.00 CAPRICORN INVESTORS III 378,855.00 CARSON PRIV CAP EUROPE LP 1,254,212.00 CHASE CAP PTRS PRV FUND 2,256,903.24 CORPORATE OPPT FUND/SMH-JT 339,000.00 CHAMPION L.L.C/SMH-JT 96,812.00 ENVIR OPP 500,000SH/SMH-JT 235,500.00 ENVIRON OPP FUND II/SMH-JT 74,800.00 GENESIS PARKLP 144,758.00 HOUSTON NFL HOLDINGS 2.5% 5,000,000.00 SMH INDX LLC/SMH-JT 10,928.60 LAZARD TECH PTRS II LP 392,833.00 LOMBARDI LLC/SMH-JT 40,832.50 MURPHREE VENTURE PTRS LP 90,610.00 MV PTRNS-CYBER DIALOGUE 346,478.00 MV PARTNERS 250,000.00 SANDERS OPPORT FUND/SMH-JT 925,250.94 STERLING GROUP I LP 32,500.00 TACONIC CAPITAL PTRS LP 2,712,956.00 TCW WESTBRIDGE VENTURES 242,549.00 VANGUARD VII LP 853,938.00 Total Other Investments: 16,304,488.28 TOTAL LONG-TERM INVESTMENTS 55,363,346.45 RETIREMENT/DEFERRED ASSETS Page 5 LAY-G32 1307 _BF002-00822 ============= Page 9 of 12 ============= July 12. 2001 Kenneth L. &- Linda P. Lay BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance IRA: PAINE WEBBER-IRA/KLL-PW 41,726.63 Total IRA: 41,726.63 IRA/Spouse: PAINE WEBBER-IRA/LP L-PW 41,757.90 Total IRA/Spouse: 41,757.90 Retirement Plan: ENRON-RETIREMENT 4,220,212.93 ENRON SAVINGS RO/PW401K 4,007,394.70 ENRON SAV RO MMA/PW401 K 74,413.79 KEOGH MMA/PW-18 2,317.46 KEOGH MUNDER TECH/PW-18 170,882.31 ENRON SAVINGS 401(K) 910,951.81 ENRON ESOP 5,957.79 FED GROWTH CO 401(K)/K.LL 20,536.26 FID OTC 401(K)/KLL 11,572.09 FID OVERSEAS 401(K/KLL 21,457.06 FID MAGELLAN 401(K)/KLL 57,634.60 MANULIFE ANN KLL/PW-R 3,153,489.62 MANULIFE ANN LPL/PW-R 2,749,800.47 Total Retirement Plan: 15,406,620.89 Deferred Compensat'n Plan: HNG PLAN-85 ENRON DEFERRED COMP-85 ENRON DEFERRED COMP-94 ENRON PHANTOM STOCK DEF ELI LILLY DEFERRED COMP TCW DEFERRED COMP Total Deferred Compensat'n Plan: 83,604.00 3,737,057.12 1,299,214.00 24,562,078.60 -;Z`1,4~a }I'S ~SDS /4,46 uni~i 1,325,628.30 26,363.51 31,033,945.53 TOTAL RETIREMENT/DEFERRED ASSETS 46,524,050.95 PERSONAL/NON-EARNING ASSET Automobile(s): 90 JEEP WRANGLER 5,700.00 92 4WD JEEP CHEROKEE 7,400.00 93 MERCEDES 600SL 40,000.00 95 LT SUBURBAN CHEVY 13,000.00 96 RANGE ROVER 30,000.00 99 MERCEDES ML430 39,000.00 97 SUBURBAN CHEVY 15,000.00 00 MERCEDES ML55 73,348.19 00 MERCEDES G500 LWB 149,176.18 Page 6 LAY-G32 1308 .BF002-00823 ============= Page 10 of 12 ============= Kenneth L. & Linda P. Lav _ BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance 00 YELLOW JEEP WRANGLER 20,400.00 00 SILVER JEEP WRANGLER 20,400.00 00 RED JEEP WRANGLER 20,400.00 01 GMC DENALI 48,272.40 01 GRAND CHEROKEE 37,801.28 Total Automobile(s): 519,898.05 Home Furnishings: HOME FURNISHINGS/HUNT HOME FURNISHINGS/ASPENI HOME FURNISHINGS/B-3431 HOME FURNISHINGS/B-3429 HOME FURNISHINGS/B-3433 HOME FURNISHINGS/ASPEN2 HOME FURNISHINGS/ASPEN3 HOME FURNISH/2514AVALON Total Home Furnishings: Other Vehicles & Equip: BW 21' OUTRAGE BOAT DUFFY 18'-I DUFFY 18'-II HURRICANE 19' SPIRIT CANOE SUPER SPORT BOAT 1997 Total Other Vehicles & Equip: TOTAL PERSONAL/NON-EARNING ASSET TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Notes Payable: CHASE BANK LOC COMPASS BANK LOC ENRON CORP. LOAN BANK OF AMER $40M NON PAINE WEBB ER-LO C/PW-42 ACCT PAYABLE (ST)-ENRON Total Notes Payable: Security Deposits: SEC DEPOSIT/Z-1918SR SEC DEPOSIT/Z-1856MAR SEC DEPOSIT/Z-MCDUF Page 7 2,135,123.62 138,984.11 187,463.63 80,833.15 103,872.74 236,641.69 553.86 1,53 6.28 2,885,009.08 49,327.00 - sl f~ 19,098.00 0 19,098.00 - 22,695.14, s/99 July 12, 2001 406.43'l1/43 33,502.74- 3/9? 144,127.31 3,549,034.44 293,070,965.32 7,042,000.00 3,489,871.12 4,000,000.00 9,854,391.70 10,858,510.87 651,177.82 35,895,951.51 850.20 125.00 400.00 LAY-G32 1309 LBF002-00824 ============= Page 11 of 12 ============= July 12, 2001 Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: June 30, 2001 Balance Total Security Deposits: 1,375.20 Margin Acct Liability: PAINS WEBBER MARGIN/PW-44 1,656,245.00 PAINE WEBBER MARGIN/PW-33 2,674,567.27 Total Margin Acct Liability: 4,330,812.27 TOTAL CURRENT LIABILITIES 40,228,138.98 LONG-TERM LIABILITIES Home Mortgage: BANK OF A MER/HUNTINGD ON 4,345,477.76 BANK OF AMER/HUNT #2 LIEN 488,018.92 BANK OF AMER/HUNT #3 LIEN 489,222.13 Total Home Mortgage: 5,322.718.81 Other Real Estate Mtge: BANK OF AMER/ASPEN1 1,498,536.82 CITICORP MORTGAGE/B-3431 185,894.34 BANK OF AMER/B-3429 237,434.81 BANK OF AMER/B-3433 522,675.62 BANK OF AMER/REBA 317,279.18 BANK OF AMER/2514 AVALON 225,000.00 BANK OF AM/ASPEN2 4,257,610.39 BANK OF AM/ASPEN3 5,491,430.50 BANK OF AMER/ASPEN4 1,200,000.00 BANK OF AMER/2403 AVALON 83 8,761.26 Total Other Real Estate Mtge: 14,774,622.92 Investment Liabilities: BANK OF AMER/GALV LOTS 91,400.89 BANK OF AMER/WESTGATE LOT 191,250.00 BK OF AM/CREDIT FACILITY 5,000,000.00 Total Investment Liabilities: 5,282,650.89 Deferred Tax Liabilities: DEF TAX LIAB-STK OPT ONLY 43,903,286.00 Total Deferred Tax Liabilities: 43,903,286.00 TOTAL LONG-TERM LIABILITIES 69,283,278.62 BUSINESS LIABILITIES Employer Taxes/Bus: MEDIC WITHHELD-EE (TX) 65,111.05 SOC SEC WITHHELD-EE (TX) 12,795.75 MEDIC WITHHELD-LPL EE(TX) 8,531.48 SOC SEC WITHHELD-LPL (EE) 1,704.96 Page 8' LAY-G32 1310 LBF002-00825 ============= Page 12 of 12 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: June 30, 2001 FIT WITHHELD-EE (TX) FIT WITHHELD-LPL EE(TX) SIT WITHHELD-EE (HH-CO) Total Employer Taxes/Bus: Accrued FICA Tax/B usiness: MEDIC PAYABLE-ER (TX) SOC SEC PAYABLE-ER (TX) MEDIC PAYABLE-LPL ER(TX) SOC SEC PAYABLE-LPL ER(TX) Total Accrued FICA Tax/Business: TOTAL BUSINESS LIABILITIES TOTAL LIABILITIES NET WORTH TOTAL NET WORTH TOTAL LIABILITIES AND NET WORTH Page 9 Balance 155,938.22 17,528.00 51-8.00 262,137.46 65,111.05 12,795.75 8,531.48 1,704.96 88,143.24 350,280.70 109,861,698.30 183,209,267.02 293.070,965.32 July 12, 2001 LAY-G32 1311 =002-00826