UBS Warburg completes Enron North American natural gas and power trading transaction

NEW YORK, Feb. 8, 2002 — UBS Warburg announced today that it has completed the transaction under which it has obtained from Enron an exclusive license to the technology to operate North American natural gas and power trading operations.

The new business has been named UBS Warburg Energy and the online site branded will be powered by the energy industry’s e-commerce technology and provide real-time bid and offer prices for North American natural gas and power products. Operation of UBS Warburg Energy and will begin this month.

UBS Warburg also announced that the senior management team that built the Enron energy trading operation into the energy trading market leader has joined the firm in Houston. Greg Whalley, formerly president and chief operating officer of Enron, will be managing director and head of UBS Warburg Energy. He will report to Michael Hutchins, co-head of Credit Fixed Income for UBS Warburg.

“Combining the energy trading platform and more than 600 talented staff with UBS Warburg’s risk management skills and AA+ credit rating will make UBS Warburg Energy a formidable competitor,” said John P. Costas, chief executive officer of UBS Warburg. “We look forward to reestablishing the business by reaching out to clients one by one and to providing them with superior products and service.”

UBS Warburg Energy is now fully integrated within UBS Warburg. UBS Warburg has assumed none of Enron’s past, current or future liabilities or trading positions. Terms of the transaction call for Enron to receive a royalty calculated as a percentage of the income of the business.

UBS Warburg is the investment-banking group of UBS AG, one of the largest financial services firms in the world with 71,000 employees in more than 40 countries. UBS Warburg is a leader in equities, corporate finance, M&A advisory and financing, financial structuring, fixed income issuance and trading, foreign exchange, derivatives and risk management.

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