USEC Enters into Standstill Agreement with Toshiba and B&W

USEC
Inc. (NYSE: USU) announced today that it has entered into a
standstill agreement with its strategic investors Toshiba Corporation
(Toshiba), acting through its U.S. subsidiary Toshiba America Nuclear
Energy Corporation, and Babcock & Wilcox Investment Company (B&W) to
provide a limited additional period of time to obtain a conditional
commitment from the U.S. Department of Energy (DOE) for a $2 billion
loan guarantee to build the American Centrifuge uranium enrichment plant
in Piketon, Ohio. During this limited period, USEC expects to work with
DOE to complete the loan guarantee review process and obtain a decision
from DOE on the conditional commitment by the end of July 2011.

'USEC has been working diligently with DOE over the past several months
to conclude the review process for our loan guarantee application, and
we appreciate the attention they are giving to the matter. We are
working hard toward a successful conclusion, but we have not been able
to conclude the conditional commitment process before June 30, which was
the outside date for the next stage of the Toshiba and B&W investment.
This standstill agreement provides the limited additional time needed
for DOE to complete its review and reach a decision during July,? said
John K. Welch, USEC president and chief executive officer.

Under the Securities Purchase Agreement dated May 25, 2010, Toshiba, B&W
and USEC each had the right to terminate its obligations under the
agreement if the $50 million second phase of the strategic investment by
Toshiba and B&W did not close by June 30, 2011. Obtaining a conditional
commitment for the DOE loan guarantee is the key remaining condition to
closing of the second phase of the Toshiba and B&W investment. Under the
Standstill Agreement, each of USEC, Toshiba and B&W agreed not to
exercise its right to terminate the Securities Purchase Agreement prior
to August 15, 2011. This standstill provides a limited additional period
of time to finalize and enter into the DOE conditional commitment and
then close the second phase of the strategic investment.

Background

USEC applied for a $2 billion loan guarantee from DOE in 2008 to build
the American Centrifuge Plant (ACP) in Piketon, Ohio that will support
approximately 8,000 U.S. jobs during construction. When complete, the
ACP will provide low enriched uranium to fuel nuclear power reactors in
the United States and internationally.

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 to date.

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 the 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 the timing of
any decision and the determination of credit subsidy cost, and our
ability to meet all 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 $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 the
right of Toshiba and B&W to terminate the securities purchase agreement
after the expiration of the standstill agreement if the second closing
has not yet occurred; 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 including its effect on
Japan′s nuclear energy policy 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 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

Investors: Steve
Wingfield (301) 564-3354