Introduction to Enron Communications & ePowered TM Media Cast

1. Introduction to Enron Communications&ePoweredTM Media Cast Enron Communications, Inc. Enron Communications

2. Agenda-General Session Intro to Enron Communications The Enron Intelligent Network ePowered Application Services ePowered Media Cast Questions and Answers

3. Enron Communications ePowered Application Services

4. Enron Corporation • Rated by Forbes Magazine as “Most Innovative Company” in America 4 years in a row • $31 Billion in Revenues • Worldwide leader in deregulating industries • Experienced in physical commodities, risk management and financial services • Enron Communications is a wholly owned subsidiary

5. Enron Communications’world class team

6. Enron Communications, Inc. New World Network Application Services Provider • Enriching the internet experience. • Building an application delivery platform that leverages our national pure IP fiber backbone. • Delivering value to internet users with a unique business model. • Joint development • Collaborative distribution • Success-based revenue sharing

7. Enron Communications value proposition • Provider of optimized high bandwidth application services • Reliable and deterministic QoS • Success based revenue model • Scaleable to meet growing needs • Rapid development and deployment of ePowered application services

8. Agenda-General Session Intro to Enron Communications The Enron Intelligent Network ePowered Application Services ePowered Media Cast Questions and Answers

9. Distributed Servers Pure IPSM Fiber Optic Network InterAgentâ Enron Intelligent Network Infrastructure behind ePowered Application Services

10. Pure IPSM Fiber Optic Network Distributed Servers InterAgentâ Middleware Higher speed Lower cost Higher reliability Greater scalability Maximizes network and application services availability Places application services “one hop” from the end user Lower latency Optimizes applications for a distributed network architecture (WAN) Application metering Enron Intelligent Network delivers value Feature Benefit

11. Enron Intelligent Network Build-1999 Portland San Jose Houston Dallas New York Chicago Los Angeles Washington DC Boston Atlanta Seattle Denver Seattle Portland Boise City Chicago New York Salt Lake City Washington Las Vegas Los Angeles Phoenix Dallas San Antonio Houston • 20,000 miles of national connectivity built or • under construction • National network fully lit

12. Enron Intelligent Network - 2000 Minneapolis Kansas City Phoenix Miami Salt Lake City Philadelphia New Orleans Tampa Albany Las Vegas Seattle Portland Minneapolis Boise City Albany Syracuse Boston Cleveland Chicago Cheyenne Salt Lake City New York Indianapolis Kansas City Denver Philadelphia St. Louis Washington San Francisco Las Vegas Charlotte Los Angeles Atlanta Phoenix Dallas Lubbock Charleston Jackson Tucson Austin Houston Jacksonville San Antonio New Orleans Orlando Tampa Miami

13. ePowered Application Services delivery model Content Provider End User ISP Enron Intelligent Network Internet

14. Metering & Revenue Sharing Streams served are measured at edge servers. MB of content delivered to actual end-users is the basis for all billing to upstream content providers. $ $ $ $ $ $ $ $ $ $ $ Application Service Provider Advertiser/ Promoter ECI End-User ISP

15. Agenda-General Session Intro to Enron Communications The Enron Intelligent Network ePowered Application Services ePowered Media Cast Questions and Answers

16. ECI product development plan Q1’99 Q2’99 Q3’99 Q1’00 Q4’99 ePowered Applications ePowered Media Cast ePowered Applications ePowered Media Transport

17. Deliver incremental revenue Drive demand for higher-speed access services Create differentiated product offerings Provide the enterprise with next generation internet applications ePowered Application Services deliver value to distribution partners

18. Agenda-General Session Intro to Enron Communications The Enron Intelligent Network ePowered Application Services ePowered Media Cast Questions and Answers

19. Current Product Introduction ePowered Media Cast

20. Current streaming video offerings “Broadcast.com talks a good game about video on demand. But for now, quality video over the Web is but a pipe dream” Forbes, March 18, 1999

21. What is ePowered Media Cast? ePowered Media Cast allows YOU to deliver high bit rate rich streaming multimedia transparently to your subscribers’ desktop

22. Supports Live, on-demand and scheduled events Narrow, targeted audiences Large, simultaneous audiences Unicast and multicast stream delivery Delivers Usage sensitive billing, distribution & revenue sharing Ad based, subscription or pay-per-view models Bit rates from 20 kbps to 1 Mbps and beyond ePowered Media Cast

23. Internet 2 3 1 2 3 Distribution to regional co-located G2 servers Replication to major G2 servers throughout EIN 1 Video source encoded Live or demand program Sent into major EIN PoP Content Distribution EBN Content Locator ISP PoP Customer Site Content Provider ISP edge router End Station EIN Customer Access Router www Server Colocated G2 Server Stream Encoder

24. Content Delivery 3 Content locator returns URL for nearest G2 server Internet Link to content has URL of content locator 2 Browser launches RealPlayer 4 1 End user visits Content Provider Web site RealPlayer requests content URL on local server 5 6 Media stream is sent from server to RealPlayer EBN Content Locator Customer Site ISP PoP Content Provider ISP edge router End Station Customer Access Router www Server Colocated G2 Server EIN Stream Encoder

25. Real Broadcast Network • Leading streaming multimedia portal • Defacto standard for streaming multimedia technology • Owns 85% of mediaplayer market

26. ePowered Media Cast user experience

27. ePowered Media Cast Customer Is a leading edge consumer of real time information, and relies upon this information to make important business decisions. Financial Industry Narrowcast Customer Launch Focus Financial industry users are leading edge consumers of continuous real-time information They rely upon this information throughout the day to make important business decisions This target is an early adopter of productivity technologies 68% of this target works for large companies (I.E. over 1,000 employees) 88% have PCs at work 74% use the internet at home- 88% use it at work 96% say quality is the key to their purchasing decisions

28. ePowered Media Cast timeline • Showcase available 4/15 • Provides proof of concept and customer feedback • Live service available Q2

29. CIENA manufactures fiber optic network solutions for telecommunications carriers. Strategic Alliances • Technology • Industry Presence • Customer Access • Market Reach • Content Source RealNetworks - National leader of multimedia software technology for IP networks. CISCO SYSTEMS is the worldwide leader in networking solutions for the internet. SUN is the leading provider of network computing systems includingworkstations, servers, and thin clients.

30. Industry comments Enron is the first carrier in the United States to put an entire network in place for data. "Many people have said they are going to do this, but Enron is really doing it. They're putting their network where their mouth is.” 11/98, Telephony