USEC Provides Update on Discussions with DOE Regarding American Centrifuge Project

USEC Inc. (NYSE: USU) today announced that the company and the U.S.
Department of Energy (DOE) are engaged in advanced but ongoing
discussions regarding the future of the American Centrifuge project, an
innovative technology approach to domestic uranium enrichment that can
both meet commercial needs and provide potential national security
benefits.

USEC and DOE remain committed to moving forward on commercializing this
innovative technology and have been in discussions to work jointly in a
Research, Development and Demonstration (RD&D) program to reduce the
technology and financial risk of commercialization of the American
Centrifuge technology. The RD&D program is expected to involve
manufacturing and operating additional production-design machines so
that key systems can be tested as they would actually operate at the
scale necessary for full commercialization.

Contemplated in the discussions is a cost-sharing agreement for the RD&D
program. The cost share would consist of an 80%-20% federal-private
split during an initial technical verification phase and a 20%-80% split
for the balance of the RD&D program. The federal government′s total
contribution would be capped at $300 million.

'We are pleased with the significant progress made in our discussions
with DOE,? said John Welch, president and CEO of USEC. 'DOE, USEC and
our partners remain supportive of a path to commercializing the American
Centrifuge and believe additional work demonstrating this innovative
technology would be beneficial to the project.

'This preserves a path for USEC and our shareholders to obtain value
from the investment they have made in the American Centrifuge project,?
concluded Welch.

USEC is working with its strategic investors to determine how best to
structure ongoing investment in the project and move forward with this
RD&D program and future commercialization. Should an agreement on the
RD&D program and funding be reached, further demobilization of the
American Centrifuge project would be avoided.

While no final decision on USEC′s loan guarantee application has been
made at this time, USEC and DOE′s discussions are focused on this RD&D
program to reduce technical and financial risks associated with the
project. USEC′s loan guarantee application will remain pending during
implementation of this agreement, however, there can be no assurances
that these discussions will result in an agreement or funding for the
American Centrifuge project.

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 (within the
meaning of the Private Securities Litigation Reform Act of 1995) that
involve risks and uncertainty. 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; the outcome of ongoing discussions with
DOE regarding the RD&D program, including uncertainty regarding the
timing, amount ?and availability of funding for such RD&D program and the
dependency of government funding on Congressional appropriations; ?the
impact of any conditions that are placed on the Company or on the
American Centrifuge project in connection with or as a condition to any
RD&D program or other funding; ?the effects on the Company of its ?limited
ability to continue to invest in the American Centrifuge project absent
the RD&D program or other funding and the potential for demobilization
or termination of the project; limitations on the Company′s ability to
provide any required cost sharing under the RD&D program; the ultimate
success of efforts to obtain a DOE loan guarantee for the American
Centrifuge project, including the ability through the RD&D program or
otherwise to address the concerns raised by DOE with respect to the
financial and project execution depth of the project, and the timing and
terms thereof; ?any effect on the remaining two phases of the
three-phased investment by Toshiba Corporation and Babcock & Wilcox
Investment Company; 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

or

Investors:

Steven
Wingfield, 301-564-3354