BETHESDA, Md.--(BUSINESS WIRE)--Oct. 2, 2007--USEC Inc. (NYSE:USU) has received a number of inquiries regarding recent reports that the U.S. Department of Energy (DOE) declined a proposal under which EnergySolutions would acquire USEC and thereafter assume responsibility for the decontamination and decommissioning (D&D) of the Portsmouth, Ohio, and Paducah, Ky., uranium enrichment plants. While USEC did assist EnergySolutions in making a proposal to DOE in October 2006, USEC did not enter into any agreements with EnergySolutions. The proposal has not been actively pursued by USEC for months, well in advance of DOE's decision in August not to pursue the matter.
USEC continues to be focused on the successful deployment of the American Centrifuge technology in order to provide a long-term, reliable domestic supply of enriched uranium. In late August, we successfully commenced operating American Centrifuge machines in a cascade configuration. These initial tests demonstrated the capability of the American Centrifuge technology to produce low enriched uranium at commercial product assay levels usable by our customers.
USEC also recently raised aggregate net proceeds of approximately $775 million in its public offerings of common stock and convertible senior notes, which will be used to fund the development, demonstration, and deployment of its American Centrifuge project as well as for general operating expenses and working capital requirements.
Under our current schedule, and anticipating further progress on the American Centrifuge project, we expect that we will seek to raise additional capital in the second half of 2008. We also continue to pursue other potential financing options for the project, including U.S. government loan guarantees under authorized guarantee programs. We believe the American Centrifuge Plant is well suited for DOE's loan guarantee program based on their criteria of energy efficiency and advanced nuclear technology. Such a loan guarantee would help to reduce investors' perceived risk in this first-of-a kind project.
We are encouraged about the prospects for the nuclear power industry and the important role that we will play in fueling that future.
This statement 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: the success of the demonstration and deployment of our American Centrifuge technology including our ability to meet our performance targets, target cost estimate and schedule for the American Centrifuge Plant and our ability to secure required external financial support; changes in existing restrictions on imports of Russian enriched uranium, including the imposition of duties on imports of enriched uranium under the Russian Contract; pricing trends in the uranium and enrichment markets and their impact on our profitability; changes to, or termination of, our contracts with the U.S. government and changes in U.S. government priorities and the availability of government funding, including loan guarantees; the competitive environment for our products and services; changes in the nuclear energy industry; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including the prospectus supplements dated September 24, 2007. We do not undertake to update our forward-looking statements except as required by law.
USEC Inc., a global energy company, is a leading supplier of enriched uranium to commercial nuclear power plants.
CONTACT: USEC Inc.
Elizabeth Stuckle, 301-564-3399
SOURCE: USEC Inc.