HOUSTON – Enron Corp. (NYSE: ENE) announced today that it had entered into a settlement of a dispute that has been the subject of litigation in Texas regarding Dynegy's exercise of its option to acquire Enron’s Northern Natural Gas pipeline business. Under the settlement agreement, Dynegy will exercise the option and assume control of the pipeline. Also as part of the agreement, Dynegy will dismiss its Texas lawsuit, extend Enron's right to repurchase the pipeline until June 30, 2002, and pay Enron $23 million pursuant to the original terms of the option agreement upon closing, subject to adjustment.

Enron will 1) continue to pursue its separate lawsuit against Dynegy seeking $10 billion in damages arising out of Dynegy’s termination of its merger agreement with Enron, and 2) amend that complaint to add an additional damage claim alleging that Dynegy’s exercise of the Northern Natural Gas Pipeline option was wrongful.

Enron will continue to perform services for Dynegy that are critical to the safe and reliable operation of Northern Natural pursuant to an operating agreement to be executed between the two parties.

Enron Corp. markets electricity and natural gas, delivers energy and other physical commodities, and provides financial and risk management services to customers around the world. Enron's Internet address is www.enron.com.

Forward-looking Statements

This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and that actual results could differ materially as a result of known and unknown risks and uncertainties, including: various regulatory issues, the outcome of the company’s Chapter 11 process, the outcome of the litigation discussed above, general economic conditions, future trends, and other risks, uncertainties and factors disclosed in the Company’s most recent reports on Forms 10-K, 10-Q and 8-K files with the Securities and Exchange Commission.