BENEFITS TO ENRON SUMMARY

 Deal Name: Raptor 1,1A~2,2A,4     Dollar Amount: $97.1 million
 Date Completed: 4~1 8100
 Description of Transaction: Investments in structured finance vehicles used to hedge
 mark-to-market volatility of Enron's public and private investments

 Enron Business Unit Benefited: Enron Corp.

 Did the deal result in a direct or indirect benefit to Enron: Direct and Indirect

 Primary Benefit: Protection of earnings on volatile assets

 Funds Flow Direct:                Funds Flow Indirect:

 Earnings Direct: $74.9 million    Earnings Indirect: $443 million

 Fees Saved: $2-3 million on each deal (investment bank fees avoided)

 Other equity investors bidding on the transaction:
 1. None
 2.
 3.
 * indicate whether our purchase was on the same terms as the other equity purchasers.

 Did the deal close with LJM? yes

 If not, why?

 *indicate whether the reason was driven by Enron or LJM

 Other benefits to Enron:
 * Accomodation on derivative approval
 * Confidentiality
 * Structuring capabilities


 Compiled by: Chris Loehr


							      ASF CW_000726





   RAPTOR - today

Liquidation
Todav*

Derivative
Canacity

    Raptor I
    Raptor II
    Raptor III
    Raptor IV


     * Value remaining after LIM's receipt of the $30 million. Credit capacity and Liquidation To day are the
     same value. The assumption is that you could liquidate today fo r full screen price of the EN E stock.


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-1,

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0
0
0

$(144)
$ 208
$(260)
$ 160

so
$0
so
$750





				 Give Aways / Take Aways
      1.   Early Settlement on the three vehicles
      Enron: received the ability to enter into hedges when desired, receipt of $17 million for the remaining options value,
	   reinvestment of $7.1 million
      LJM   received anticipated payment early equating to an increased IRR which was traded for the reinvestment in
	   Raptor I and IL, guaranteed the $41 million payment
      2.   Hanover costless collar

      Enron: received the desired benefit at no cost, turned down proposal by LJM which would have incurred a premium
	   paid

      3.   45 day merger
      Enron: protection from impairment at year end
      4.   ENE costless collars

      Enron: received downside protection on the ENE shares to buffer credit capacity of the vehicles

      LJM: received downside protection on the ENE shares, lost value unde r the collar floor due to maximum number of
	   share limits under 0019

      5.   Only swaps written and settlement

      Enron: receives the benefit of a perfect hedge at no cost
      LJM: Notes P1K to extrememly high balances
C,,
~11
o     6.   Swaps written primarily on private assets and public assets at h ighs

      Enron: protection from asset writedowns and decreases in value
0
      LJM: decreasing likelihood of back end return