American Centrifuge Plant Loan Guarantee Advances to Next Stage

USEC Inc. (NYSE: USU) announced today that it had reached a significant
step in the Company′s application for a $2 billion loan guarantee from
the U.S. Department of Energy (DOE) for the American
Centrifuge Plant. DOE′s Loan Guarantee Program Office has
substantially completed the due diligence and negotiation stage of the
application process and has advanced the American Centrifuge Plant
application to the next phase.

USEC′s application now proceeds with a draft credit package, including
the negotiated term sheet, having been submitted on parallel paths to
DOE′s credit group and to the Office of Management and Budget (OMB) for
review, including determination of an estimated preliminary credit
subsidy cost range. The term sheet, which was negotiated between DOE′s
Loan Guarantee Program Office and USEC, includes specific terms and
conditions USEC must meet to close on a loan guarantee for the advanced
uranium enrichment facility. Following this review and approval by DOE′s
Credit Review Board, the Secretary of Energy would be positioned to
issue a conditional commitment for a loan guarantee. USEC would then
work with DOE to conclude final documentation and satisfy all technical,
financial and other conditions to funding in order to close on financing
and begin drawing funds.

'This is another important step forward for the American Centrifuge
Project that moves us closer to getting a loan guarantee,? said USEC
President and CEO John K. Welch.

'We worked very closely with DOE throughout the process, and I think we
have negotiated terms that will enable us to achieve our goals and
objectives and provide strong assurance of repayment of a loan,? said
Welch. 'Deployment of this innovative American technology will support
thousands of U.S. manufacturing and operations jobs and will contribute
to our energy security and national security at a pivotal time for our
country.?

'More reviews remain before a conditional commitment can be offered, but
we have moved to the next stage of the process and now have a path that
makes obtaining a conditional commitment by the end of the second
quarter possible. We have made it clear to DOE that prompt action is
necessary to keep the project on a path for deployment,? said Welch.
'The establishment of a reasonable range for the credit subsidy cost is
also critical.?

The terms of USEC′s credit facility limits spending on the American
Centrifuge Project absent additional investment of capital. The second
phase of an investment involving an additional $50 million by Toshiba
Corporation (Toshiba) and The Babcock & Wilcox Investment Company (B&W)
is conditioned upon receipt by USEC of a conditional commitment by June
30, 2011. USEC anticipates that it will need to obtain the conditional
commitment and close on the second phase of the Toshiba and B&W
investment during the second quarter of 2011 in order to maintain the
current spending level on the American Centrifuge Project while
complying with its credit facility covenants. If USEC does not close on
the second phase of that investment by June 30, each party has the right
to terminate its obligations under the securities purchase agreement.
USEC will continue to manage the pace of its investment in the American
Centrifuge to maintain adequate liquidity for its business and to ensure
that it remains within the American Centrifuge Plant spending limits in
its credit facility.

USEC is investing in advanced centrifuge technology to provide a
long-term, reliable and secure fuel source for U.S. and international
nuclear power plants. As the only domestic enrichment facility using
U.S. centrifuge technology, the American Centrifuge Plant will also help
to rebuild U.S. nuclear manufacturing capabilities. This multi-year
construction project would create nearly 8,000 U.S. jobs in more than
ten states.

The American Centrifuge Plant will use USEC′s AC100 centrifuge machine,
which has been developed and engineered and will be manufactured in the
United States. The AC100 design is a disciplined evolution of classified
U.S. centrifuge technology originally developed by DOE and successfully
demonstrated during the 1980s. USEC has invested approximately $2
billion in the American Centrifuge Project.

Learn more about the American Centrifuge Project at www.americancentrifuge.com.

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? ? 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
from 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; timing and the outcome of the reviews of
the terms and conditions for a conditional commitment negotiated,
including the determination of a preliminary credit subsidy cost range,
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
and B&W, including our ability to satisfy the significant closing
conditions in the securities purchase agreement governing the
transactions and our ability to close on the second phase of the
transactions prior to the outside date of June 30, 2011, 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; the impact of the recent natural disaster in Japan on the
nuclear industry and on our business, 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 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:

Steven
Wingfield, 301-564-3354