News Release

BETHESDA, Md.--(BUSINESS WIRE)--Dec. 23, 2002--USEC Inc. (NYSE:USU) announced today that it has signed the lease with the U.S. Department of Energy (DOE) for use of the K-1600 building in Oak Ridge, Tennessee to advance deployment of its American Centrifuge technology. The signing of this lease and commencement of the building's refurbishment complete the first in a series of milestones outlined in the DOE-USEC Agreement signed in June.

The milestones delineate the schedule for USEC to operate the first new centrifuge uranium enrichment machines in the United States by 2005 and build the world's most advanced enrichment plant later in the decade.

"We expect the American Centrifuge technology to be the most efficient uranium enrichment technology in the world. This will help ensure domestic energy security, support national security and provide a continuous, reliable and competitive fuel source for the world's nuclear power plants," said USEC Executive Vice President and Chief Operating Officer Dennis Spurgeon.

DOE spent more than two decades and $3 billion on centrifuge technology. USEC's American Centrifuge uses this same proven technology, while reducing costs and improving efficiency through the use of state-of-the-art materials, control systems and manufacturing processes.

The K-1600 facility, at the East Tennessee Technology Park, is unique because it houses valuable centrifuge-related equipment and infrastructure. USEC has begun refurbishment activities at the facility, including rebuilding support systems for the centrifuge machine test stands, installing component test systems and improving safety and security systems.

The cost of refurbishing the facility is part of the $150 million that USEC previously announced it would spend to construct its Lead Cascade, the basic building block of a commercial enrichment plant. The Lead Cascade will be sited at USEC's Portsmouth facility in Piketon, Ohio. Preparations will begin in 2004 and operations are scheduled to start in 2005.

The Lead Cascade will consist of up to 240 full-scale centrifuge machines, enriching uranium in a closed cycle. Its purpose is to provide updated cost, schedule and performance data for building a $1 billion to $1.5 billion commercial enrichment plant.

Looking ahead, USEC expects to complete the next two milestones under the DOE-USEC Agreement in the first third of 2003: conclusion of key engineering demonstration work in January and submission of a license application to the U.S. Nuclear Regulatory Commission no later than April.

This news release contains forward-looking information that involves risks and uncertainty, including certain assumptions regarding the future performance of USEC. Actual results and trends may differ materially depending upon a variety of factors, including, without limitation, market demand for USEC's products, pricing trends in the uranium and enrichment markets, deliveries under the Russian Contract, the availability and cost of electric power, implementing agreements with DOE regarding uranium inventory remediation and the use of advanced technology and facilities, satisfactory performance of the centrifuge technology at various stages of demonstration, USEC's ability to successfully execute its internal performance plans, the refueling cycles of USEC's customers, the outcome of litigation, and the impact of any government regulation. Revenue and operating results can fluctuate significantly from quarter to quarter, and in some cases, year to year.

USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.