BETHESDA, Md.--(BUSINESS WIRE)--Feb. 13, 2001--USEC Inc. (NYSE:USU) announced today that in continuation of its ongoing company-wide cost reduction efforts, the Company is taking action to reduce its headquarters costs by 20 percent. The Company has targeted a reduction of $10 million in headquarters costs for fiscal 2002. These savings are reflected in the Company's preliminary earnings estimate of approximately $40 million for fiscal 2002.
The Company expects to achieve the cost savings primarily through a significant reduction in use of consultants, an employee workforce reduction of 40-50 positions at headquarters and consolidation of office space.
"While it is imperative that USEC continues to focus on reducing costs, we regret the impact it will have on employees," said William H. Timbers, President and Chief Executive Officer of USEC. "These initiatives, including a 25 percent reduction in headquarters positions, are a continuation of our ongoing company-wide cost reduction efforts. They will further align our headquarters operations with the rest of the organization when we move to a consolidated plant operation this June."
USEC previously announced that it is ceasing enrichment operations at the Portsmouth, Ohio gaseous diffusion plant in June 2001, and consolidating enrichment operations at its Paducah, Kentucky plant.
USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.
| CONTACT: | USEC Inc. |
| Charles Yulish, 301/564-3391 | |
| or | |
| Ron Seeholzer, 301/564-3225 | |