USEC Reports Financial Results for the Fourth Quarter and Full Year 2011

USEC Inc. (NYSE:USU) today reported a net loss for the year ended
December 31, 2011 of $540.7 million or $4.48 per basic and diluted
share, primarily reflecting the impact of write-offs associated with the
American Centrifuge project, tax-related valuation allowances and lower
profit margin. This compares to a net income of $7.5 million or 5 cents
per diluted share (7 cents per basic share) for 2010.

The tax-related valuation allowance and charge for the previously
capitalized centrifuge machines were taken in the fourth quarter ended
December 31, 2011. USEC reported a net loss of $496.0 million or $4.09
per basic and diluted share in the fourth quarter of 2011 compared to
net income of $9.0 million or 5 cents per diluted share (8 cents per
basic share) for the same quarter of 2010. The charge and the valuation
allowance did not affect the company′s cash flow from operations.

The significant loss for 2011 reflects the confluence of several
factors. Expense for advanced technology, primarily related to the
American Centrifuge project, totaled $273.2 million, including $127.1
million of previously capitalized work in progress related to earlier
centrifuge machines that were determined to no longer be compatible with
the commercial plant design. In the second quarter of 2011, USEC also
expensed $9.6 million of previously capitalized construction work in
progress costs for machines that were damaged during lead cascade
operations. Beginning in the fourth quarter of 2011, all American
Centrifuge related project costs incurred have been expensed, including
interest expense that previously would have been capitalized. Advanced
technology expense in the fourth quarter was $187.0 million.

The Company also recorded a full valuation allowance for the net
deferred tax assets of $369.1 million due to cumulative losses incurred
in recent years and due to the substantial uncertainty of generating
future taxable income that would lead to realization of the net deferred
tax assets. Gross profit declined $74.2 million in 2011 compared to
2010, reflecting lower sales volume and higher costs for separative work
units (SWU) and uranium sold and the effect of pension plan and
postretirement benefit plan curtailment charges related to the
conclusion of contract services work at the former Portsmouth Gaseous
Diffusion Plant (GDP).

'Throughout 2011, USEC worked diligently to overcome a number of
significant challenges facing the Company,? said John K. Welch, USEC
president and chief executive officer. 'Despite the lack of a
conditional commitment for a loan guarantee, DOE′s proposal to share
costs in a two-year research, development and demonstration program
reflects the importance the U.S. government places on having a source of
domestic uranium enrichment.?

Welch said, 'This year will present additional challenges as we continue
operating under significant competitive and cost pressures, and we make
important decisions regarding the future of the Paducah plant.
Nonetheless, we expect to sell more than 10 million SWU in 2012. These
sales will come from our substantial inventory, from Paducah commercial
production through at least midyear, and from our supply contract with
Russia.

'Notwithstanding these challenges, we are focused on using our strengths
as we transition our business and operations. We have a decades-long
reputation with our customers around the world for delivering their
nuclear fuel requirements in-spec and on time. We have a proven record
of obtaining increased efficiency from our enrichment operations and
working with our regulators to achieve a strong track record of
compliance,? Welch said.

'Looking ahead, we have a highly efficient commercial centrifuge machine
that has the potential to substantially reduce our power requirements
and is an opportunity to position us as a low-cost producer in the long
term. We are focused on a path to remain a leading supplier of
enrichment to our customers and a contributor to U.S. national
security,? he said.

Revenue

Revenue for the fourth quarter was $462.4 million, a decrease of 31
percent compared to the same quarter of 2010. Revenue from the sale of
SWU for the quarter was $394.2 million compared to $519.6 million in the
same period of the prior year. Revenue from the sale of uranium was
$28.7 million, a decrease of $42.9 million from the same quarter last
year. Revenue from our contract services segment was $39.5 million
compared to $75.2 million in the fourth quarter last year.

For the full year, revenue was $1.67 billion, a decrease of $363.6
million from 2010. SWU volume declined 15 percent year over year
reflecting the variability in timing of utility customer orders. The
average SWU prices billed to customers increased 3 percent compared to
2010, reflecting the general trend of higher prices under contracts
signed in recent years. The volume of uranium sold declined 53 percent
and the average price billed to customers increased 20 percent. Revenue
from the contract services segment was $209.1 million, a 25 percent
decrease year over year due primarily to the completion of clean-up
activities at the former Portsmouth GDP in September 2011.

In a number of sales transactions, USEC transfers title and collects
cash from customers but does not recognize the revenue until low
enriched uranium is physically delivered. At December 31, 2011, deferred
revenue totaled $181.5 million, compared to $176.1 million at December
31, 2010. The gross profit associated with deferred revenue as of
December 31, 2011, was $6.0 million.

A majority of reactors served by USEC are refueled on a 12-to-24-month
cycle, and this can lead to significant quarterly and annual swings in
SWU sales volume that reflects the mix of refueling cycles. Therefore,
short-term comparisons of USEC′s financial results are not necessarily
indicative of longer-term results.

Cost of Sales, Gross Profit Margin, Expenses and Other Income

Cost of sales for 2011 for SWU and uranium was $1.39 billion, a decrease
of $232.1 million compared to 2010. The 14 percent change is a result of
the decline in SWU and uranium sold, partially offset by higher unit
costs. Cost of sales for SWU and uranium reflects monthly moving average
inventory costs based on production and purchase costs. Cost of sales
per SWU in 2011 was negatively impacted by higher purchase costs under
the Russian Contract, higher per SWU production costs and the
carry-forward effect of high costs in prior periods.

Production costs declined $57.1 million or 7 percent in 2011 compared to
2010. This was primarily a result of a 10 percent reduction in overall
production volume partially offset by a 4 percent increase in unit
production costs. USEC purchased 11 percent fewer megawatt hours with
the average cost per megawatt hour increasing 3 percent, reflecting
higher fuel cost adjustments by the Tennessee Valley Authority (TVA) as
well as the fixed, annual increase in the TVA contract price. The higher
costs under the TVA contract were partially offset by supplemental power
purchases in the summer months at lower market-based prices than the
prior year. Purchase costs for the SWU component of LEU under the
Russian Contract increased $20.5 million in 2011 compared to 2010 due to
a 3 percent increase in the purchase cost per SWU. Purchase prices paid
under the Russian Contract are set by a pricing formula that includes
market-based price points.

In the contract services segment, cost of sales was $196.5 million in
2011, a decrease of $57.3 million or 23 percent. The net decrease was
due primarily to the substantial completion of contract work at the
former Portsmouth plant at September 30, 2011.

The gross profit for 2011 was $84.2 million, a decrease of $74.2 million
or 47 percent over the previous year. The gross profit margin for the
year was 5.0 percent compared to 7.8 percent in 2010. The lower gross
profit margin primarily reflects lower margins in the LEU segment. In
addition, the profitability of the contract services segment declined
$11.5 million, primarily due to additional cold shutdown services
performed at the Portsmouth site and contract fee recognition on certain
contracts in 2010 as well as $5.1 million in pension plan and
postretirement benefit plan curtailment charges in 2011. Gross profit
from NAC was $8.8 million in 2011, an increase of $3.3 million year over
year.

Advanced technology expenses, primarily related to the demonstration of
the American Centrifuge technology, were $273.2 million for the full
year of 2011, an increase of $163.0 million compared to 2010. As
previously disclosed, USEC expensed $136.7 million of capitalized
work-in-progress cost related to damaged centrifuge machines as well as
earlier machines that were determined to no longer be compatible with
the commercial plant design. In addition, $9.9 million was expensed in
the fourth quarter of 2011 for previously capitalized amounts related to
prepayments made to a supplier for the American Centrifuge Plant (ACP).
The Company′s contract with this supplier could not be extended and this
amount represents the remaining balance for prepayments for materials
that USEC will not purchase under the contract.

Beginning with the start of the fourth quarter of 2011, all ACP-related
project costs incurred have been expensed, including interest expense
that previously would have been capitalized. Spending at the reduced
levels relates primarily to development and maintenance activities
rather than capital asset creation. USEC also expects to expense costs
under the research, development and demonstration (RD&D) program as
incurred. Capitalization of expenditures related to ACP has ceased until
commercial plant deployment resumes.

Advanced technology costs include expenses in 2011 of $1.6 million
compared to $2.4 million in 2010 by NAC to develop and expand its
MAGNASTOR ^? technology and its transportation
counterpart, MAGNATRAN.

Selling, general and administrative expenses in 2011 were $62.1 million,
an increase of $3.2 million compared to 2010. The higher expense
reflects an increase of $1.8 million in consulting costs and an increase
of $0.3 million in director compensation related to two additional
directors in 2011.

In January 2011, USEC executed an exchange with a noteholder whereby the
Company received convertible notes with a principal amount of $45
million in exchange for 6,952,500 shares of common stock, and cash for
accrued but unpaid interest on the convertible notes. In connection with
this exchange, a gain on debt extinguishment of $3.1 million was
recognized in the first quarter of 2011.

During 2010, USEC worked under a cooperative agreement entered into with
DOE to provide for pro-rata cost sharing support for continued funding
of American Centrifuge activities with a total cost of $90 million. In
2010, USEC made qualifying American Centrifuge expenditures of $88.8
million, and DOE′s pro-rata share of 50 percent, or $44.4 million, was
recognized as other income in 2010. The program was completed in January
2011 when USEC made the remaining expenditures and recognized the income
in the first quarter of 2011.

Future tax consequences of temporary differences between carrying
amounts for financial reporting purposes and USEC′s estimate of the tax
bases of its assets and liabilities result in deferred tax assets and
liabilities. In 2011, the net increase of $369.1 million in the
valuation allowance reduced the net deferred tax assets to their
realizable value as of the end of the year. A full valuation allowance
against net deferred taxes was recorded in 2011 due to cumulative losses
incurred in recent years and due to substantial uncertainty to generate
future taxable income that would lead to realization of the net deferred
tax assets. The ultimate realization of the net deferred tax assets is
dependent upon generating sufficient taxable income in future years when
deferred tax assets are recoverable or are expected to reverse.

Cash Flow

At December 31, 2011, USEC had a cash balance of $37.6 million compared
to $151.0 million at December 31, 2010. Cash flow from operations in
2011 was $56.3 million compared to cash flow from operations of $22.5
million in the previous year. Positive cash flow resulted from the
decline in accounts receivable of $146.6 million. Net inventories
increased $75.2 million representing higher unit costs. Capital
expenditures, primarily related to construction of the ACP, totaled
$152.8 million during 2011 compared to $162.2 million in 2010. As noted
above, USEC ceased capitalizing spending on the ACP as of September 30,
2011.

On March 13, 2012, USEC extended its credit facility with a group of
lenders. JPMorgan Chase Bank serves as administrative and collateral
agent for the facility that expires on May 31, 2013. The amended
facility of up to $235.0 million includes a revolving credit facility of
up to $150 million (including up to $75 million in letters of credit)
and a term loan of $85 million. This replaces the credit facility that
included a term loan of $85 million that expires May 31, 2012.
Additional details regarding the credit facility can be found in the
Form 8-K Current Report filed March 13, 2012.

Transition of Contract Services Segment

Historically, the majority of revenues from the contract services
segment resulted from work performed under contract with DOE to maintain
and prepare the former Portsmouth GDP for decontamination and
decommissioning (D&D). On September 30, 2011, contracts for maintaining
the Portsmouth facilities and performing services for DOE expired, and
USEC completed the transition of facilities to a new DOE contractor
responsible for the D&D of the Portsmouth site. Consequently, USEC
ceased providing government contract services at Portsmouth on September
30, 2011. The Company will continue to provide limited services to DOE
and its contractors at the Paducah site and at the Portsmouth site
related to facilities we continue to lease for the ACP. Revenue from the
contract services segment, however, will decrease compared to prior
periods and will be comprised primarily of revenue generated by NAC.

NAC provides nuclear energy services and technologies, specializing in
design, fabrication and implementation of spent nuclear fuel
technologies, including the high capacity MAGNASTOR system. NAC also
provides consulting services and nuclear materials transportation.

2012 Outlook

USEC will make a number of decisions during 2012 regarding its business
that will significantly affect financial results for the year, and
future years. For example, the decision regarding when to cease
enrichment at the Paducah plant will affect cost of production and
ultimately cost of sales. We are also working with DOE and Congress
regarding funding for the RD&D program. USEC has entered into an
agreement with DOE that enables us to spend up to $44 million under the
RD&D program, which is expected to fund program activities through March
31, 2012. As a consequence, the amount of advanced technology expense
beyond the first quarter is uncertain. Given this uncertainty in two
significant areas of business, USEC is providing limited guidance for
2012 at this time.

Regardless of the decision on continued operation of Paducah, USEC has
significant sales of SWU in our backlog for delivery in 2012. Revenue
from the sale of SWU is expected to be in a range of $1.45 and $1.50
billion, or roughly $100 to $150 million more than 2011. Uranium revenue
will be dependent on the level of Paducah production in 2012 because
uranium available for sale is a function of underfeeding the enrichment
process. We anticipate buying 5.5 million SWU from Russia under the
Megatons to Megawatts program during 2012. Under the pricing formula,
the price paid to Russia will increase 2 percent compared to deliveries
in 2011.

In prior years, contract work at the former Portsmouth GDP for DOE
represented approximately three-quarters of revenue for the contract
services segment. USEC′s contract services work at Portsmouth was
largely completed in September 2011 and revenue for that segment is
expected to decline significantly in 2012. Contract services segment
revenue will also be affected by any decision regarding continued
production at Paducah, and our subsidiary NAC will represent a growing
percentage of revenue for the segment.

The Company expects to make a decision regarding operation of the
Paducah plant by May 2012, although WARN Act notices to affected
employees could be sent out well before that date. USEC is engaged in a
multi-faceted review regarding the facility that involves customers, DOE
and power supplier TVA. USEC has significant inventory of LEU and
expects to continue to purchase LEU from Russia. However, based on our
current view of the market, USEC does not see sufficient demand to
support production of low enriched uranium for utility customers after
our power contract with TVA expires. A decision to cease commercial
enrichment would affect financial results for 2012. For example,
expensing certain assets at Paducah, such as previously capitalized
leasehold improvements, machinery and equipment located there could be
accelerated. USEC could also incur significant costs related to
severance costs and curtailment charges related to our postretirement
benefit plans. Such costs would likely result in a significant net loss
for the year. Alternatively, in lieu of a decision to cease full Paducah
commercial operations, the company could pursue reduced operations or
take actions to reduce fixed costs at the plant that could have negative
consequences on results of operations and financial condition.

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 ongoing transition
of our business, including uncertainty regarding the continued operation
of the Paducah gaseous diffusion plant beyond May 2012 and uncertainty
regarding continued funding for the American Centrifuge project and the
impact of decisions we may make in the near term on our business and
prospects; the impact of the March 2011 earthquake and tsunami in Japan
on the nuclear industry and on our business, results of operations and
prospects; the impact of excess supply in the market and the lack of
uncommitted demand for low enriched uranium over the next 2-4 years; the
potential impacts of a decision to cease enrichment operations at
Paducah; the outcome of ongoing discussions with the U.S. Department of
Energy ('DOE?) regarding the research, development and demonstration
('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 and the potential for
us to make a decision at any time to further reduce spending and
demobilize the project based on the timing and likelihood of an
agreement with DOE and any government funding; the impact of any
conditions that are placed on us or on the American Centrifuge project
in connection with or as a condition to the RD&D program or other
funding, including a restructuring of our role and investment in the
project; limitations on our 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; 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 impacts to cost and schedule; the impact of delays in the American
Centrifuge project and uncertainty regarding our ability to remobilize
the project; the potential for DOE to seek to exercise its remedies
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 uncertainty regarding the potential participation of
Toshiba and B&W in any potential project structure that may be required
under the RD&D program, and the potential for immediate termination of
the securities purchase agreement governing their investments; certain
restrictions that may be placed on our business as a result of the
transactions with Toshiba and B&W our ability to achieve the benefits of
any strategic relationships with Toshiba and B&W our ability to extend,
renew or replace our credit facility that matures on May 31, 2013 and
the impact of a failure to timely renew on our ability to continue as a
going concern; 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; 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 and the potential for us to cease commercial enrichment of
uranium in the event of a decision to shut down Paducah enrichment
operations; limitations on our ability to import the Russian LEU we buy
under the new supply agreement into the United States and other
countries; our inability under many existing long-term contracts to
directly pass on to customers increases in our costs; the decrease or
elimination of duties charged on imports of foreign-produced low
enriched uranium; pricing trends and demand in the uranium and
enrichment markets and their impact on our profitability; movement and
timing of customer orders; changes to, or termination of, our contracts
with the U.S. government; risks related to delays in payment for our
contract services work performed for DOE; changes in U.S. government
priorities and the availability of government funding, including loan
guarantees; our subsidiary NAC may not perform as expected; the impact
of government regulation by DOE and the U.S. Nuclear Regulatory
Commission; the outcome of legal proceedings and other contingencies
(including lawsuits and government investigations or audits); the
competitive environment for our products and services; changes in the
nuclear energy industry; the impact of volatile financial market
conditions on our business, liquidity, prospects, pension assets and
credit and insurance facilities; risks related to the underfunding of
our defined benefit pension plans and the impact of the potential
requirement to accelerate the funding of these obligations on our
liquidity; uncertainty regarding the continued capitalization of certain
assets related to the American Centrifuge Plant and the impact of a
potential impairment of these assets on our results of operations; the
impact of potential changes in the ownership of our stock on our ability
to realize the value of our deferred tax benefits; the timing of
recognition of previously deferred revenue; and other risks and
uncertainties 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.
Revenue and operating results can fluctuate significantly from quarter
to quarter, and in some cases, year to year. 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