Officers, Directors and Auditors of Enron Corporation Sued By Stock Purchaser In Class Action Filed By Donovan Searles, LLC

PHILADELPHIA--November 30th, 2001 -- The law firm of Donovan Searles, LLC, announced today that a class action lawsuit was filed in the United States District Court for the Southern District of Texas (Houston Division) against KENNETH L. LAY, JEFFREY K. SKILLING, ANDREW S. FASTOW, and ARTHUR ANDERSEN LLP, on behalf of all persons who purchased ENRON CORPORATION (NYSE: ENE) common stock between March 30, 2000 and October 18, 2001, inclusive (the “Class Period”), Case No. 1-01-CV-____. ENRON is not named as a defendant in the action due to the likelihood that it will file for bankruptcy protection in the near future.

The Complaint alleges that, during the Class Period, the Individual Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by among other things, issuing materially false and misleading statements to the investing public regarding Enron’s financial condition, operations and transactions, including the Company’s shareholder equity. The Complaint alleges that defendants misled investors (1) by reporting assets that were overvalued by more than $1 billion, which caused writedowns, the restatement of the Company’s financial reports and the announcement that previously filed financial reports were unreliable; (2) by concealing facts regarding relationships with a related entity that led to a more than $1 billion reduction of shareholders' equity and a multi-million charge; and (3) by failing to disclose the fact that agreements with other related entities may require the Company to issue large amounts of its shares. The Complaint further alleges that Enron’s auditor, Arthur Andersen LLP, issued materially misleading audit opinions when it was aware of, or recklessly disregarded, facts indicating that Enron’s financial statements did not conform with Generally Accepted Accounting Principles. This misconduct caused the market prices of Enron securities to be artificially inflated during the Class Period. For example, the market price of the Company's common stock has since fallen from a high of $90 per share during the Class Period to a low of 27˘ per share.

Plaintiff is represented by the law firm of Donovan Searles, LLC and others. The members of Donovan Searles, LLC have significant experience in litigating class actions on behalf of investors and shareholders. The firm maintains a website at http://www.donovansearles.com.

If you are a member of the class described above, you may move the court to serve as lead plaintiff within 60 days of October 21, 2001. If you wish to discuss this action, or have any questions concerning your rights, please contact Michael D. Donovan at Donovan Searles, LLC, 1845 Walnut Street, Suite 1100, Philadelphia, PA 19103; phone: 800/619-1677 or 215/732-6067; e-mail: mdonovan@donovansearles.com or by clicking here

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