USEC and DOE Modify American Centrifuge Milestones Agreement

USEC
Inc. (NYSE: USU) and the U.S. Department of Energy (DOE) have agreed
on a modification to their 2002 agreement that includes milestones
related to the deployment of the American
Centrifuge uranium enrichment technology. In agreeing to these
modifications, DOE recognized the substantial progress that USEC has
made to commercially deploy the American Centrifuge, as well as the
promise of this U.S. technology and the importance of its deployment.

USEC has already satisfied 11 milestones under the agreement. The four
remaining milestones relate to the financing and operation of the
American Centrifuge Plant and have been modified to provide additional
flexibility as USEC makes progress toward obtaining financing for the
American Centrifuge Plant under the DOE Loan Guarantee Program.

This modification to the 2002 agreement extends by one year to November
2011 the milestone for USEC to 'secure firm financing commitments for
the construction of the American Centrifuge Plant with an annual
capacity of approximately 3.5 million SWU per year.? The modification
also updates the other three remaining milestones relating to commercial
operation of the plant as follows: begin commercial operations ? May
2014; annual capacity at 1 million SWU ? August 2015; and annual
capacity at approximately 3.5 million SWU ? September 2017. USEC′s
current schedule for the American Centrifuge project anticipates that it
will need approximately 24 months to begin initial commercial operations
upon receiving financing to complete the plant. USEC also estimates that
it will require about 36 months to complete the plant after initial
commercial operations begin. The modification to the 2002 Agreement
milestones does not change USEC′s current deployment schedule.

'This agreement updates our milestones with DOE, reaffirms DOE′s support
for deploying the technology, and provides added flexibility in meeting
the milestone dates as we get ready to ramp up the project once
financing is arranged,? said Philip G. Sewell, senior vice president of
American Centrifuge and Russian HEU. 'The new financing and operating
milestone dates do not mean that these are our target dates, or that we
have revised our current schedule. Rather, these are simply outside
dates that we need to achieve under the 2002 agreement.?

USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel for commercial nuclear power plants.

Forward-Looking Statements:

This news release contains 'forward-looking statements? within the
meaning of Section 21E of the Securities Exchange Act of 1934 ? that is,
statements related to future events. In this context, forward-looking
statements may address our expected future business and financial
performance, and often contain words such as 'expects,? 'anticipates,?
'intends,? 'plans,? 'believes,? 'will? and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For USEC, particular risks and
uncertainties that could cause our actual future results to differ
materially from those expressed in our forward-looking statements
include, but are not limited to: risks related to the deployment of the
American Centrifuge technology, including risks related to performance,
cost, schedule and financing; our success in obtaining a loan guarantee
for the American Centrifuge Plant, including our ability to address the
technical and financial concerns raised by DOE; our ability to reach
agreement with DOE on acceptable terms of a conditional commitment,
including credit subsidy cost, and our ability to meet any required
conditions to funding; our ability to raise capital beyond the $2
billion of DOE loan guarantee funding for which we have applied,
including our success in obtaining Japanese export credit agency
financing; the impact of the demobilization of the American Centrifuge
project and uncertainty regarding our ability to remobilize the project
and the potential for termination of the project; our ability to meet
the November 2011 financing milestone and other milestones under the
June 2002 DOE-USEC Agreement; restrictions in our revolving credit
facility that may impact our operating and financial flexibility and
spending on the American Centrifuge project; risks related to the
completion of the remaining two phases of the three-phased strategic
investment by Toshiba Corporation ('Toshiba?) and Babcock & Wilcox
Investment Company ('B&W?), including our ability to satisfy the
significant closing conditions in the securities purchase agreement
governing the transactions and the impact of a failure to consummate the
transactions on our business and prospects; changes in U.S. government
priorities and the availability of government funding, including loan
guarantees; the competitive environment for our products and services;
changes in the nuclear energy industry; and other risks and
uncertainties discussed in our filings with the Securities and Exchange
Commission, including our annual report on Form 10-K and quarterly
reports on Form 10-Q, that are available on our website at www.usec.com.
We do not undertake to update our forward-looking statements except as
required by law.

USEC Inc.

Media:

Paul Jacobson, 301-564-3399

or

Investors:

Steve
Wingfield, 301-564-3354