June 6, 2007

Enron Creditors Recovery Corp. announced today that it reached an agreement with UBS AG (“UBS”) to settle the equity transactions adversary proceeding that Enron filed against UBS in the Enron bankruptcy case.  According to the terms of the agreement, UBS will pay Enron $115 million in cash and withdraw with prejudice its approximately $5 million claim against the Estate.

Commenting on the settlement, John J. Ray III, Enron’s Board Chairman, said, “We are pleased with this settlement, the third we have reached in Enron’s equity transactions litigation.  We look forward to successfully resolving the sole remaining equity transaction case, which remains pending against Bear, Stearns.”

Enron’s complaint against UBS includes claims asserting preferences, fraudulent transfers and/or conveyances, and recovery of payments pursuant to other applicable federal and state law.

The UBS settlement remains subject to the approval of the United States Bankruptcy Court for the Southern District of New York.

Enron is represented in this matter by Venable LLP and Togut, Segal & Segal LLP.

Enron’s Internet address is www.enron.com.