The University of California announced this week that it had
reached an $11.5-million settlement with Goldman Sachs & Co. on behalf of
investors who purchased the 7 percent Exchangeable Notes issued by Enron Corp.
The plaintiffs had accused Goldman Sachs of violating Section 11 of the
Securities Act of 1933 for marketing the notes through a false registration
statement.

The notes were exchangeable for Enron Oil and Gas Co. stock.
The settlement covers purchases of the 7 percent Exchangeable Notes from the
date of their issuance until Dec. 2,
2001, when Enron filed for bankruptcy.

The university filed claims against Goldman Sachs in the
U.S. District Court for the Southern District of Texas in 2004. The settlement
has been approved by the UC Board of Regents and is subject to court approval
on Feb. 29.

The UC system has obtained more than $7.2 billion in
settlements for Enron investors to date, including $2.4 billion from Canadian
Imperial Bank of Commerce, $2.2 billion from JPMorgan Chase, $2 billion from
Citigroup, $222.5 million from Lehman Brothers and $69 million from Bank of
America.