Enron Corp. - University of California | Office of The President

helped write the Form 10-K report. The Form 10-K report contained Enron's 98 and 99 annual
financial statements as certified by Andersen and Andersen's "clean opinion" thereon.
222. After Enron reported better-than-expected 4thQ 99 and 99 results and held its most
bullish investor analyst conference ever in late 1/00 in Houston, Enron stock soared higher reaching
$73 per share in late 1/00 and $78 at the end of 3/00. As Enron's stock soared higher, Enron's
insiders dramatically stepped up their insider bailout and accelerated their insider selling. As Enron
stock increased in price due to these very positive statements about Enron's business, Enron's insiders
took advantage of this artificial inflation of Enron's stock by selling off 2.9 million shares of their
stock at as high as $76.44 per share, pocketing $208 million in illegal insider trading proceeds
between 1/20/00 and 3/28/00.
223. On 4/12/00 Enron reported better-than-expected 1stQ 00 results:
Enron Corp. announced today an 18 percent increase in earnings to $0.40 per
diluted shares for the first quarter of 2000. Net income increased 34 percent to $338
million during the quarter....
"Enron's first quarter results confirm the very positive momentum of our
high growth businesses," said Kenneth L. Lay, chairman and CEO of Enron.
"Wholesale volumes increased 43 percent to record levels, demonstrating the
strength of our worldwide energy networks and the tremendous success of
EnronOnline. Also reaching record levels, Enron Energy Services added $3.7
billion in new retail contracts in the quarter, and profitability continues to escalate.
In our newest business, we significantly advanced deployment of our broadband
network and saw strong response to our bandwidth intermediation and content
delivery products."
* * *
The overall strong quarterly results also reflect increased earnings from
Enron's portfolio of energy assets and other investments. In addition, Enron
experienced increases in equity earnings from its energy partnerships and a large
contribution from worldwide energy asset operations.
224. On 4/12/00, Enron held a conference call for analysts and investors to discuss Enron's
1stQ 00 results and its business. On 4/13/00, Enron executives Lay, Skilling, Koenig, Causey and
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