USEC Extends Investment in American Centrifuge Plant through October at Reduced Spending Rate

The USEC Inc. (NYSE:USU) board of directors has voted to continue the
company′s investment in the American Centrifuge Plant for the month of
October, but at a reduced spending rate as the company continues working
with the Department of Energy (DOE) to achieve a conditional loan
guarantee commitment for the project by November 1. The company is
directing suppliers to suspend certain work and notifying workers of
possible future layoffs.

'We have made significant progress on the project and believe the
American Centrifuge is ready for commercial deployment,? said John
Welch, president and CEO. 'While challenges remain, we are working
toward a conditional commitment that will meet DOE′s requirements and
enhance shareholder value while protecting the U.S. taxpayer.?

'Working with our strategic investors, we expect October to be a month
of intense interaction with the DOE so we can continue to deploy this
innovative American technology ? one that is critical to the nuclear
fuel cycle and to our energy and national security,? Welch added.
'Absent a conditional commitment by the end of October, layoffs of
employees and further actions with suppliers are likely to occur.?

USEC′s two strategic investors, Toshiba Corporation and The Babcock &
Wilcox Company (B&W), remain supportive. USEC entered into an amendment
to extend its standstill agreement with both companies through October
31, providing additional time to achieve a conditional commitment and
close the $50 million second phase of their $200 million investment in
USEC.

During the past two months USEC and its strategic investors have
developed a plan to strengthen project execution. The process of
providing additional financial depth to the project continues. USEC
remains actively engaged in an evaluation of its strategic alternatives
as well as various project structures in order to strengthen the
project, protect shareholder value, and address DOE′s concerns.

ACP Progress

In the past two years, USEC has achieved significant progress in the
operation and performance of the American Centrifuge technology,
including the following:

• 
  Operated production-ready centrifuges in a commercial plant
  configuration;
  
• 
  Accumulated total operating run time of more than 800,000 machine
  hours;
  
• 
  Validated uranium enrichment production in excess of our target
  production level of 350 SWU per machine per year;
  
• 
  Launched American Centrifuge Manufacturing, a joint company with B&W
  to manufacture centrifuge machines;
  
• 
  Demonstrated capability to manufacture machine components at a
  sufficient rate to support commercial plant deployment;
  
• 
  Revised its project plan to directly involve B&W and Toshiba expertise
  in managing 90 percent of the 'go-forward? project costs, and
  
• 
  Worked to incorporate lessons learned and modifications derived from
  the operating experience of the lead cascade test program.
  

The Next Month

To prudently manage the company′s resources pending a conditional loan
guarantee commitment, USEC will reduce spending on the project during
October by approximately 30 percent. The company is continuing core
deployment activities, including operation of the lead cascade of AC100
centrifuge machines.

Worker Adjustment and Retraining Notification (WARN) Act notices will be
mailed to all of the approximately 450 USEC American Centrifuge workers
in Ohio, Tennessee and Maryland informing them of potential future
layoffs. USEC is immediately suspending a number of contracts with
suppliers and contractors and advising them that USEC may demobilize the
project in November. As a result of these actions, approximately 800
current direct jobs associated with the American Centrifuge project
could be affected. The American Centrifuge program currently supports
approximately 2,000 jobs involving USEC and contractor employees as well
as indirect jobs in the affected communities.

'We regret the disruption to our employees and suppliers and will
continue working with DOE to reach a satisfactory conclusion in October
that will allow us to avoid layoffs and further disruptions to workers
and suppliers,? said Welch.

If an agreement on a conditional commitment is reached before November
1, layoffs could be avoided and suspended supplier work could be resumed
based on available funds. The American Centrifuge project would create
approximately 8,000 jobs, with nearly half in Ohio.

Solid Core Business

With a 50-year tradition of reliability, our production facilities have
made all customer shipments on time and within specification. USEC
remains committed to meeting its customer′s enrichment needs in the
future. The company has a substantial backlog of contracts for delivery
of enriched uranium to fuel nuclear power plants around the world. The
company has sufficient supply sources to meet all of its customer
obligations.

The company is evaluating the best path forward to realize long term
shareholder value, including in the event the ACP project is
demobilized. USEC′s current enrichment operations are expected to
generate positive cash flow in 2011. The company is pursuing extension
of the economic operations of the enrichment plant in Paducah, Ky. USEC
is the government′s exclusive executive agent for the premier
nonproliferation program known as Megatons to Megawatts ^?.
Earlier this year, USEC and the Russian executive agent, TENEX, signed a
commercial sales contract to continue USEC′s purchases of Russian
enriched uranium through 2022. In addition, USEC provides a variety of
contract services related to nuclear power, including used fuel storage
solutions, through its subsidiary, NAC International.

Investor Conference Call

USEC will host a conference call with shareholders and the financial
community over the Internet at 9:00 a.m. ET today, September 30, to
discuss the matters covered in this press release. The call will be
available to listeners who may log in through the company′s website, www.usec.com.
A link to the call will be located in the Investor Relations section and
a webcast replay will be available through October 17, 2011.

The company also issued a separate news release today on the board of
directors′ decision to adopt a tax benefit preservation plan intended to
preserve the value of certain deferred tax benefits. The company already
has valuable tax assets and the adoption of the plan is not being done
in response to any decision with respect to the American Centrifuge
project. The company currently intends to submit the plan to a
shareholder vote at the company′s next annual meeting. The executives
will address this plan during the conference call.

For additional information on the matters discussed in this press
release and the adoption of the tax benefit preservation plan, please
see the Current Reports on Form 8-K filed today with the SEC and posted
to the investor relations page of the company website.

USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel and nuclear industry related services 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 concerns raised by DOE with respect to the financial and
project execution depth of the project and the timing of any loan
guarantee; our ability to develop and consummate a structuring option
acceptable to DOE or to develop and consummate a strategic alternative
transaction, and the timing thereof; 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
actions we have taken or may take to reduce spending on the American
Centrifuge project, including the potential loss of key suppliers and
employees, and potential impacts to cost and schedule; uncertainty
regarding our ability to remobilize the project and the increased
potential for demobilization or termination of the project, particularly
in light of limitations on our ability to continue to invest in the
project; our ability to meet the November 2011 financing milestone and
other milestones under the June 2002 DOE-USEC Agreement; 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 right of Toshiba and B&W to terminate
the securities purchase agreement if the phase two closing does not
occur prior to the expiration of the standstill agreement on October 31,
2011, and the impact of a failure to consummate the transactions on our
business and prospects; restrictions in our credit facility that may
impact our operating and financial flexibility and spending on the
American Centrifuge project; our ability to actively manage and enhance
our liquidity and working capital and the potential adverse consequences
of any actions taken on the long term value of our ongoing operations;
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, our
ability to obtain a contract to enrich DOE′s depleted uranium and
sufficient market demand for the remaining output; our dependence on
deliveries of LEU from Russia under a commercial agreement (the 'Russian
Contract?) with a Russian government entity known as Techsnabexport
('TENEX?) and on a single production facility; risks related to the
implementing agreements needed for our new supply contract with TENEX to
become effective; limitations on our ability to import the Russian LEU
we buy under the new supply contract into the United States and other
countries; movement and timing of customer orders; changes to, or
termination of, our contracts with the U.S. government; changes in U.S.
government priorities and the availability of government funding,
including loan guarantees; the competitive environment for our products
and services; the impact of the recent natural disaster in Japan on the
nuclear industry and on our business, results of operations and
prospects; uncertainty regarding the continued capitalization of certain
assets related to the American Centrifuge Plant and the impact on our
results of operations; 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 to reflect
events or circumstances that may arise after the date of such statementsexcept as required by law.

USEC ?Inc.

Media: Paul Jacobson, 301-564-3399

Investors:
Steven Wingfield, 301-564-3354