Enron Press Release

Press Release ENRON EXPLAINS BASIC FACTS ABOUT ITS 401K SAVINGS PLAN FOR IMMEDIATE RELEASE: Friday, December 14, 2001 HOUSTON – Enron Corp. (NYSE: ENE) today explained basic facts about its 401K savings plan. This explanation is being provided to correct numerous inaccurate news reports and statements from plaintiffs’ attorneys over the past several days. * When companies change the administrator of a 401K program, a temporary shutdown, typically lasting several weeks, is required to allow employee account information to be accurately and completely transferred to the new administrator. * In February of 2001, in order to improve its 401K plan, Enron requested proposals from third-party benefits firms to take over administration of its plan. * After selecting a new 401K administrator, Enron notified all affected employees in a mailing to their homes on October 4, stating that a transition period would begin on October 29. Between the first notification and the first day of the transition period, the company sent several reminders to employees over the internal e-mail system. * The transition period during which employees were unable to change investments in their 401K accounts lasted just 10 total trading days, beginning on October 29 and ending on November 12, 2001. The transition applied to all plan participants, including senior executives. * From October 29, the first day of the temporary shutdown, through November 13, the first day participants could transfer funds, the Enron share price went from $13.81 to $9.98, a drop of $3.83. On five of those trading days, Enron’s share price closed below $9.98. * Outside of the brief transition period, Enron employees have always been able to transfer their own contributions in the 401K, at any time. They have 20 investment options to choose from, Enron stock being one of them. * Until recently, the company provided a 50% match on employees' 401K contributions of up to six percent of the their base pay. The match comes from Enron holdings. As is the case with most company matching programs, the match was provided in company stock. * As is also the case in many company 401K programs, until recently, stock holdings from the company match could not be transferred into other investment options until the employee reached age 50. Enron 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. The stock is traded under the ticker symbol “ENE.” ### Click here to download this press release in Adobe Acrobat 4.0 format. Click here to download Adobe Acrobat 4.0. For additional information please contact: Mark A. Palmer (713) 853-4738 Elsewhere in Press Releases: Enron Corp 2002

I don't know, but I suspect that if I were an Enron employee who had been loyally purchasing Enron stock on a monthly basis, I would be very disappointed to now learn that the top officers and managers of my company had, on the basis of information known to them and not shared with me, been selling while I was buying. I am not sure how satisfied I would now be by explanations that the top brass sent letters to my home and e-mails to me about a prospective administrative change in my retirement account. I think I would instead be looking for evidence that the top brass was advising me of the facts that led them to conclude that the company was going down the toilet and that the stock was heading for the basement.

My 401K went from $125,000 down to $63000 in the past yr. At all times I could have redirected my allocation. Should I sue my employer because I chose to keep invested in a go go stock?

Personal responsibility is at issue here. It is not the company's or the administrator of the 401K who should keep an eye on your allocation. Greed took over here folks, Enron was highflying and no one sold because they thought they would get rich. The same is true of most of the dot com stock holders who lost their shirts.

That being said it does not indemnify Enron and A. Anderson from cooking the books. This is the issue. Not who invested in them, who they donated to, etc. etc. Criminal activity within the company may have taken place and that is the ONLY story.

On January 1, 2001 Enron stock was approximately $83 per share. On October 1, 2001 Enron stock was $29 a share. On October 29, 2001 Enron stock was $13.81. These poor babies who say they lost $700,000 in the Enron bankruptcy really sat on their hands for 10 months and watched most of it disappear well before the end of October. Now they think the press and the government should bail them out!

This is part of the well known greed/remorse cycle of investing in up and down markets. First you make lots of money (euphoria). Then the market turns downward, but you think you will make it all back (greed). Then the market hits bottom and you feel so bad you sell out everything (remorse). The remorse lasts so long that you miss the next market upturn. Finally, out of panic, you buy in at the top of the next market cycle only too loose on the coming downturn.

I feel for the people who have lost large amounts of money. I have been there too! However, I looked only to blame myself for NOT exercising my free will to diversify and take some winnings off the table. These people need to look in the mirror.

Ouch! reformatting ..

Press Release ENRON EXPLAINS BASIC FACTS ABOUT ITS 401K SAVINGS PLAN FOR IMMEDIATE RELEASE: Friday, December 14, 2001 HOUSTON – Enron Corp. (NYSE: ENE) today explained basic facts about its 401K savings plan. This explanation is being provided to correct numerous inaccurate news reports and statements from plaintiffs’ attorneys over the past several days.
When companies change the administrator of a 401K program, a temporary shutdown, typically lasting several weeks, is required to allow employee account information to be accurately and completely transferred to the new administrator.
In February of 2001, in order to improve its 401K plan, Enron requested proposals from third-party benefits firms to take over administration of its plan.
After selecting a new 401K administrator, Enron notified all affected employees in a mailing to their homes on October 4, stating that a transition period would begin on October 29. Between the first notification and the first day of the transition period, the company sent several reminders to employees over the internal e-mail system.
The transition period during which employees were unable to change investments in their 401K accounts lasted just 10 total trading days, beginning on October 29 and ending on November 12, 2001. The transition applied to all plan participants, including senior executives.
From October 29, the first day of the temporary shutdown, through November 13, the first day participants could transfer funds, the Enron share price went from $13.81 to $9.98, a drop of $3.83. On five of those trading days, Enron’s share price closed below $9.98.
Outside of the brief transition period, Enron employees have always been able to transfer their own contributions in the 401K, at any time. They have 20 investment options to choose from, Enron stock being one of them.
Until recently, the company provided a 50% match on employees' 401K contributions of up to six percent of the their base pay. The match comes from Enron holdings. As is the case with most company matching programs, the match was provided in company stock.
As is also the case in many company 401K programs, until recently, stock holdings from the company match could not be transferred into other investment options until the employee reached age 50. Enron 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. The stock is traded under the ticker symbol “ENE.” ### Click here to download this press release in Adobe Acrobat 4.0 format. Click here to download Adobe Acrobat 4.0. For additional information please contact: Mark A. Palmer (713) 853-4738 Elsewhere in Press Releases: Enron Corp 2002

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