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

growth in '98, 18% growth in '99 and 25% growth last year, we believe growth in
'01 and '02 now solidly rests in the 20%+ range.
Broadband is Executing
* * *
Enron has continued to successfully execute its Broadband strategy despite recent
industry turmoil and negative investor psychology in the tech/telecom marketplace.
At 18,000 route miles of fiber ... connecting into third-party networks, ENE's
broadband foundation is now effectively complete. On this base, ENE executed
over 581 transactions in 1Q'01 with about 120 customers and counter-parties, up
from 236 transactions with only 50 customers just last quarter.
Despite speculation of its demise (given recent downsizing and internal redeployment
efforts and the Blockbuster separation), Enron remains very committed to its content
services strategy.... Enron has indicated that pending discussions in advanced
stages could in short order yield twice as many movies than with BBI. As these
new relationships solidify, we believe ENE will achieve its target of signing $1
billion in new contract value in '01, effectively equal to the value originally ascribed
to the 20-year Blockbuster agreement....
322. On 4/18/01, Lehman Brothers issued a report on Enron. It rated Enron a "Strong
Buy," increased Enron's forecasted 01 and 02 EPS to $1.80 and $2.10, and forecasted a 20% five-
year EPS growth rate for Enron. It also stated:
• Enron guided annual street expectations higher while handily beating Q1
consensus estimates. Raising our 01 and 02 estimates to $1.80 and $2.10
respectively. Continue to recommend shares in ENE ....
* * *
• ENE reported results of $0.47 vs. consensus expectations of $0.45. Results
were driven by Wholesale operations .... Retail and Broadband segment
activities are rapidly gaining traction.
• Management raised earnings guidance for 2001 to a range of $1.75-$1.80 ....
• ... [W]e are raising our 2001 and 2002 annual estimates to $1.80 and $2.10
respectively.
323. On 4/19/01, CIBC issued a report on Enron. It rated Enron a "Buy" and increased
Enron's forecasted 01 and 02 EPS to $1.78 and $2.05. It also stated:
- 258 -