<xsl:variable name="pincode"
    select="$addresses/employees/employee[$id =
    @id]/@pincode"/>
    	    <employee pincode="{$pincode}">


You don't want to do that as it will make pincode="" if there is no
attribute in the source, just do

	  <employee>	
  <xsl:copy-of select="$addresses/employees/employee[$id = @id]/@pincode"/>

as this will do nothing if there is no attribute  and copy it if
there is.

David


-- 
http://www.dcarlisle.demon.co.uk/matthew

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