  We present new results for the matrix elements of the Q_6 and Q_4 penguin
operators, evaluated in a large-Nc approach which incorporates important
O(N_c^2\frac{n_f}{N_c}) unfactorized contributions. Our approach shows analytic
matching between short- and long-distance scale dependences within dimensional
renormalization schemes, such as MS-bar. Numerically, we find that there is a
large positive contribution to the Delta I =1/2 matrix element of Q_6 and hence
to the direct CP-violation parameter epsilon'/epsilon. We also present results
for the Delta I = 1/2 rule in K -> pi pi amplitudes, which incorporate the
related and important ``eye-diagram'' contributions of O(N_c^2\frac{1}{N_c})
from the Q_2 operator (i.e. the penguin-like contraction). The results lead to
an enhancement of the Delta I = 1/2 effective coupling. The origin of the large
unfactorized contributions which we find is discussed in terms of the relevant
scales of the problem.
