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Financial Forecast Assumptions
Enron Corporation (ENE)
(Dollars and Shares in Millions, Except Per Share Amounts)

 Actual Forecast
  12 Months  
12/31/98  		 12 Months  
12/31/99  		 12 Months  
12/31/00  		 6 Months  
06/30/01  		   12 Months  
12/31/01  		 12 Months  
12/31/02  		 12 Months  
12/31/03  		 12 Months  
12/31/04  		 12 Months  
12/31/05  
 
Year-to-Year Change in Net Sales NA   28.3%   151.3%   NA    
 
Gross Margin % 12.3%   9.6%   5.1%   3.2%    
 
Operating Expenses as % of Net Sales 7.9%   7.6%   3.2%   2.0%    
 
Other Income (Expense) * $50   $851   $298   $283    
 
Interest Rate on Borrowings * NA   NA   NA   NA    
 
Interest Rate on Subordinated Debt * NA   NA   NA   NA    
 
Income Tax Rate 19.9%   10.4%   30.7%   23.6%    
 
Cash * $111   $288   $1,374   $847    
 
Number of Days Sales in Accounts Receivable 33.8   32.3   44.4   22.9    
 
Number of Days Cost of Goods Sold in Inventory 6.8   6.0   3.6   1.7    
 
Other Current Assets $2,415   $2,821   $15,784   $11,983    
 
Intangibles * $1,949   $2,799   $3,638   $3,527    
 
Investments $4,433   $5,036   $5,294   $5,934    
 
Other Assets $6,378   $7,610   $14,447   $16,866    
 
Current Maturities * $0   $0   $0   $0    
 
Number of Days Cost of Goods Sold in Accounts Payable 31.7   21.7   37.3   18.2    
 
Number of Days Operating Expenses in Accrued Expenses 179.5   206.7   249.7   173.5    
 
Taxes Payable * $0   $0   $0   $0    
 
Other Current Obligations * $2,511   $1,836   $10,495   $7,470    
 
Other Current Liabilities * $0   $44   $4,277   $1,820    
 
Term Loan * $7,357   $7,151   $8,550   $9,355    
 
Subordinated Debt * $0   $0   $0   $0    
 
Other Long Term Obligations * $3,144   $3,430   $3,318   $3,298    
 
Other Liabilities * $5,694   $6,471   $13,759   $14,686    
 
Common Stock * $5,117   $6,637   $8,348   $9,416    
 
Preferred Stock * $132   $1,130   $1,124   $1,116    
 
Other Equity * $(232)   $(846)   $(1,196)   $(1,758)    
 
Treasury Stock * $(195)   $(49)   $(32)   $(861)    
 
Capital Expenditures (Net) NA   $(1,880)   $1,547   $(1,172)    
 
Dividends as % of Net Earnings * 58.9%   52.3%   53.4%   30.9%    
 
Depreciation (Net) NA   $(1,904)   $485   $(170)    
 
Estimated Borrowing Base as a % of Accounts Receivable 80.0%   80.0%   80.0%   80.0%    
 
Estimated Borrowing Base as a % of Inventory 35.0%   35.0%   35.0%   35.0%    
 
Estimated Borrowing Base as a % of
      Property, Plant and Equipment (Net)		 50.0%   50.0%   50.0%   50.0%    
 
Common Shares Outstanding (Fully Diluted) 695   769   814   882    

* Changes to these assumptions will change your Multi-year forecast but will not change the intrinsic valuation model default assumptions.