News Release

BETHESDA, Md., Oct 31, 2011 (BUSINESS WIRE) --

USEC Inc. (NYSE:USU) today announced discussions are ongoing between the Company, the U.S. Department of Energy (DOE) and Congress regarding the American Centrifuge project.

The American Centrifuge project seeks to deploy an innovative technology developed by DOE and improved by USEC in recent years. DOE and USEC have been in discussions to work together through a Research, Development and Demonstration (RD&D) program to further reduce technical project execution and financial risks for commercializing the technology. The RD&D program is expected to involve manufacturing and operating additional production-design machines so that key systems can be tested as they would actually operate at the scale necessary for full commercialization. USEC is working together with DOE and Congress on support for the RD&D program.

In a related action, USEC's strategic investors Babcock & Wilcox Investment Company (NYSE:BWC) and Toshiba Corporation have agreed in principle to further extend a standstill agreement related to their investment agreement through January 15, 2012, if USEC and DOE reach agreement on the framework for a RD&D program. As part of their investment in USEC, Toshiba and B&W each have a member on USEC's board of directors.

On September 30, the Company mailed Worker Adjustment and Retraining Notification (WARN) Act notices to all of the approximately 450 USEC American Centrifuge workers in Ohio, Tennessee and Maryland informing them of a potential layoff beginning in the first half of November.

Any decision regarding continued spending or demobilizing the project will be evaluated on a day-to-day basis. However, if an agreement between USEC and DOE is not reached, actions to demobilize the project, including worker layoffs, could take effect.

USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel and nuclear industry related services for commercial nuclear power plants.

Forward-Looking Statements

This news release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainty. 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 deployment of the American Centrifuge technology, including risks related to performance, cost, schedule and financing; the outcome of ongoing discussions with DOE regarding the 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; the impact of any conditions that are placed on the Company or on the American Centrifuge project in connection with or as a condition to any RD&D program or other funding; the effects on the Company of its limited ability to continue to invest in the American Centrifuge project absent the RD&D program or other funding and the potential for demobilization or termination of the project; limitations on the Company's 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; any effect on the remaining two phases of the three-phased investment by Toshiba Corporation and Babcock & Wilcox Investment Company, including the failure to finalize any extension of the standstill agreement if an agreement is not reached between USEC and DOE on a framework for the RD&D program and the potential for termination of the securities purchase agreement governing their investments; and other risks and uncertainties discussed 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 www.usec.com. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of such statementsexcept as required by law.

SOURCE: USEC Inc.

USEC Inc.
Media:
Paul Jacobson, 301-564-3399
or
Investors:
Steven Wingfield, 301-564-3354