<B>Enron Agrees to Buy Daishowa Forest Products Ltd.</B>

Enron Industrial Markets signed a definitive agreement with Daishowa North America Corp. to purchase Daishowa Forest Products Ltd., a holding company for its Quebec City, Canada newsprint mill and related assets. Financial terms of the transaction were not disclosed.

The announcement follows Enron’s decision to purchase Garden State Paper last July. That mill is located in Garfield, N.J. Combined, the two newsprint operations increase Enron’s position in the groundwood and newsprint market. At the same time both mills are significant consumers of old news and other recovered fiber.

"This strategically located mill complements Enron's existing production at Garden State Paper and gives us additional physical capability, thus expanding the menu of products available to our pulp and paper customers," said Jeff McMahon, chairman and CEO of Enron Industrial Markets.

Enron began offering various financial hedges for the pulp and paper industry in 1997 and today provides physical products and risk management services to both buyers and sellers of pulp, paper and wood products.

The company, headquartered in Houston, has become more aggressive in both the paper and metals industries. The company’s success in hedging the various commodities has allowed the company to create its own web site, www.clickpaper.com dedicated to the paper industry. This sector includes recovered fiber.