News Release

BETHESDA, Md.--(BUSINESS WIRE)--Nov. 26, 2002--USEC Inc. (NYSE:USU) announced today that it will offer a voluntary early retirement program to eligible employees at its Paducah, Kentucky plant.

"Our cost effectiveness studies indicate that we can continue to safely and reliably operate the plant at current production levels with fewer people," said Morris Brown, USEC vice president of operations.

"Over the years, our company has taken many actions to reduce costs and increase our global competitiveness," said Brown. "Some of these actions have been large-scale, such as consolidating enrichment and transfer and shipping operations."

Brown added, "We continue to evaluate a variety of approaches to increase our productivity, operational efficiency and cost effectiveness while maintaining our high standards of safety and reliability. And, as improvements are implemented and technology improves, it is inevitable that work can be accomplished with fewer resources."

This enhanced retirement program will be open to all those employees who are eligible for retirement based on a formula of combined age and years of service. "We have a large number of employees who are eligible for this program, and a number of employees have inquired about the possibility of an early retirement program," said Brown. In addition to company benefits, USEC is working with the U.S. Department of Energy (DOE) to secure for these employees DOE worker transition benefits provided at other locations.

This early retirement program is part of an overall plan to reduce the number of employees at the plant by 200 during 2003. "If a sufficient number of employees do not elect to take the early retirement program, we will offer employees who are not eligible for the program the opportunity to volunteer for USEC's normal layoff package plus potential DOE benefits," said Brown.

"We are pleased to offer these voluntary programs to our employees, and we hope that a sufficient number of employees will take advantage of these programs. However, if our target of 200 is not met, we will follow with an involuntary program," said Brown.

This cost reduction initiative was assumed in USEC's earnings guidance for calendar year 2003 issued on November 21, 2002. As such, there is no change in net income and cash flow guidance for the year. The cost reductions will occur primarily in 2003, with most of the financial benefit seen in the following year.

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