2. Prepared and presented by Phoenix

3. ” “ The company’s success was based on artificially inflated profits, dubious accounting practices, and – some say – fraud.

17. Energy producer fears warm weather. Pays Enron to hedge against the collapse of demand and prices due to warm weather. Electricity company fears cold weather. Pays Enron to hedge against rise in price and demand due to cold weather. Enron, as market maker, profits by taking commission on hedge in both eventualities.

18. SENATE HOUSE OF REPS “ Kenneth Lay himself had strong personal ties to two Republican Presidents” Total donations during 1989-2001 amounted $1,133,981 ($1.1mn)

21. Negative Cash Flows: 1 st three quarters in 1999, 2000 & 2001

25. Reported and revised income, debt and shareholder equity 1997-2000 following special partnership revelations. Enron’s Accounts: The Company announced the restated figures Year Reported Income Revised Income True debt restated by True equity restated by 1997 $105m $77m Up $771m Down $258m 1998 $733m $600m Up $561m Down $391m 1999 $893m $645m Up $685m Down $710m 2000 $979m $880m Up $628m Down $754m

26. In spite of all help, failed to save Enron ” “ I take responsibility for what happened at Enron, both good and bad. But I cannot take responsibility for criminal conduct that I was unaware of. - Kenneth Lay

29. Some 25 further companies have declared Enron exposure totaling an estimated $1bn. Total global investment exposure of at least $4bn J P Morgan: $900m Sumitomo Mitsui Corp: $210m Citigroup: $800m Nikko Cordial: $207m Credit Lyonnais: $250m Principal Financial Group: $171m Bank of Tokyo Mitsubishi: $248m Abbey National: $164m Chubb Corp: $220m National Australia Bank: $104m Canadian Imperial Bank: $215m Duke Energy Corp: $100m

30. ” “ Laid-off and retired 4000 employees from the company lost most of their life savings, which was in company stock.