USEC Signs Multi-Year Contract with Russia′s TENEX for Low Enriched Uranium Supply

USEC Inc. (NYSE: USU) has signed a multi-year contract with Russia′s
Techsnabexport (TENEX) for the 10-year supply of low enriched uranium
(LEU) beginning in 2013 that will build on USEC′s long-term relationship
with TENEX. USEC  and TENEX began working together in 1993 under the
Megatons to Megawatts^TM program. The new contract will
provide USEC with continued access to Russian enriched uranium, which
currently constitutes about one-half of USEC′s supply source.

USEC and TENEX signed the contract today in Washington, D.C. Under the
terms of the contract, the supply of LEU to USEC will begin in 2013 and
ramp up until it reaches a level in 2015 that is approximately one-half
the level currently supplied by TENEX to USEC under the Megatons to
Megawatts program with the mutual option to increase the quantities up
to the same level as that program. Unlike the Megatons to Megawatts
program, the quantities supplied under the new contract will come from
Russia′s commercial enrichment activities rather than from downblending
of excess Russian weapons material.

'After safety, one of USEC′s top priorities is to meet our customers′
long-term needs for enriched uranium, and our decision to enter into
this contract with TENEX is further evidence of our commitment and
ability to meet those needs,? said John K. Welch, president and CEO of
USEC.

'We believe this new contract will further strengthen our important
relationship with TENEX. Over the past two decades this relationship has
supported our efforts to provide long-term reliable supplies of enriched
uranium to our customers while maintaining a strong domestic production
capacity based on U.S. technology,? Welch said.

'USEC remains fully committed to deploying our American Centrifuge
technology in our new plant in Ohio and extending the operations of our
Paducah Gaseous Diffusion Plant in Kentucky. This contract complements
those ongoing activities as we maintain our market position during this
important transition period.?

USEC will deliver the enriched uranium supplied under this contract to
USEC′s customers under its portfolio of contracts. Under the
quantitative limitations on imports of Russian enriched uranium in the
United States through 2020, USEC will deliver a portion of the enriched
uranium to U.S. utilities with most of the enriched uranium to be
delivered to USEC′s customers outside of the United States in both
existing and emerging markets.

The new contract assures USEC continued access to an important part of
its existing supply mix, which complements USEC′s ongoing efforts to
deploy the American Centrifuge Plant in Piketon, Ohio, using advanced
U.S. centrifuge technology. With this contract in place, USEC will
continue to be one of the world′s leading suppliers of enriched uranium,
while transitioning to new domestic production from the American
Centrifuge Plant.

This new contract does not affect USEC′s domestic production of enriched
uranium or its highest priority objective to deploy the American
Centrifuge technology. USEC′s plant in Paducah, Ky., remains USEC′s key
supply source today. USEC continues to make progress in obtaining a $2
billion loan guarantee from the U.S. Department of Energy and additional
financing to support the deployment of the American Centrifuge Plant.
However, by supplementing its domestic capacity with continued access to
Russian LEU, USEC can assure customers that its supply mix will remain
sufficiently robust to meet their needs throughout the transition to the
American Centrifuge Plant.

Deliveries under the contract are expected to continue through 2022.
USEC will purchase the separative work units (SWU) contained in the LEU
and deliver natural uranium to TENEX for the LEU′s uranium component.
The pricing terms for SWU under the contract are proprietary but are
based on a mix of market-related price points and other factors.

The effectiveness of the new contract between TENEX and USEC is subject
to approval of the Russian State Corporation for Atomic Energy (ROSATOM)
and completion of administrative arrangements between the U.S. and
Russian governments under the agreement for cooperation in nuclear
energy between the United States and the Russian Federation (the Russia
123 Agreement) which, among other things,  provides the framework for the
return to Russia of natural uranium delivered by USEC to  TENEX. USEC
anticipates that these implementing arrangements will be completed in
2011.

Following approval of the new supply contract by ROSATOM, USEC and TENEX
expect to conduct a feasibility study to explore the possible deployment
of an enrichment plant in the United States employing Russian centrifuge
technology. As part of the feasibility study, ROSATOM, USEC and TENEX
will review international agreements, government approvals, licensing,
financing, market demand and commercial arrangements. Any decision to
proceed with such a project would depend on the results of the
feasibility study and would be subject to further agreement between the
parties and their respective governments. In any event, such a project
would not be deployed until after completion of the American Centrifuge
project. This initiative is part of USEC′s strategic approach in serving
its customers in the uranium enrichment market.

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

The Megatons to Megawatts Program is a unique, commercially financed
government-industry partnership in which bomb-grade uranium from
dismantled Russian nuclear warheads is being recycled into LEU used to
produce fuel for American nuclear power plants. USEC, as executive agent
for the U.S. government, and TENEX, acting for the Russian government,
implement this 20-year, $8 billion program at no cost to taxpayers. This
program is on track to complete the downblending of the equivalent of
20,000 nuclear warheads into commercial nuclear fuel by the program′s
conclusion at the end of 2013.

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 effectiveness of
USEC′s new supply contract with TENEX, including the receipt of approval
of ROSATOM and completion of administrative agreements between the U.S.
and Russian governments under the cooperation agreement that are
required for the new contract to take effect; uncertainty regarding the
results of any feasibility study conducted regarding the possible
deployment of an enrichment plant in the United States employing Russian
centrifuge technology; 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 from
the U.S. Department of Energy ('DOE?) for the American Centrifuge Plant,
including our ability to address the technical and financial concerns
raised by DOE and the timing of any loan guarantee; 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 obtain additional financing beyond
the $2 billion of DOE loan guarantee funding for which we have applied,
including our success in obtaining Japanese export credit agency
financing of up to $1 billion; 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
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 and Babcock & Wilcox Investment
Company, 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; uncertainty regarding the cost of
electric power used at our gaseous diffusion plant; the economics of
extended Paducah plant operations, including our ability to negotiate an
acceptable power arrangement and our ability to obtain a contract to
enrich DOE′s depleted uranium; our dependence on deliveries of LEU from
Russia under the Russian Contract and on a single production facility;
pricing trends and demand in the uranium and enrichment markets and
their impact on our profitability; changes in U.S. government priorities
and the availability of government funding, including loan guarantees;
the impact of government regulation by DOE and the U.S. Nuclear
Regulatory Commission; the competitive environment for our products and
services; changes in the nuclear energy industry; the impact of the
recent natural disaster in Japan on the nuclear industry and our
revenues and results of operations and prospects; 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, which 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