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  x_ Paula Rieker
  xx' 07/24/2000 02:56 PM

EXH067-00129

To: Mark Koenig/Corp/Enron@ENRON
cc:

Subject: Fiber

Clarification: A clarification on 2Q fiber sales and the reference this morning that $50 MM of EBS
revenues were related to fiber sales. THis is what I hae learned this morning:

All of the revenues ($152 MM) and gross margin ($87 MM) was related to fiber sales. These #'s included
fiber sold to LJM, generating revenues of $90 MM and gross margin of $54 MM. $22 MM of the total
revenues relates to fiber that was intended to be sold, was not sold, but Acctg. had already finalized the
revenue number and late Friday apparently decided not to restate the revenues. I believe the offset was
placed in higher op. expenses. Tod is pulling a schedule together that should be more clear than what we
have from acctg.

GOVERNMENT
EXHIBIT
  4284
  Crim. No. H-04-25 (S-2)