-- 2007 was year of accomplishments for moving American
Centrifuge project forward
-- Progress continues as initial AC100 centrifuge design
finalized
-- Shareholders elect directors, approve amendments
BETHESDA, Md.--(BUSINESS WIRE)--April 24, 2008--John K. Welch, USEC president and chief executive officer, told shareholders attending the USEC Inc. (NYSE:USU) annual meeting today that confidence in the performance and reliability of the American Centrifuge continues to grow as the integrated testing program delivers consistent results.
USEC is constructing the American Centrifuge Plant in Piketon, Ohio, and has been successfully demonstrating this cutting-edge uranium enrichment technology through an integrated testing program referred to as the Lead Cascade since August 2007.
"Our confidence in the performance and reliability of the machines has increased as the demonstration of the technology through the Lead Cascade testing program has continued over these past eight months. At the end of March, we finalized the initial design for the AC100 machine," Welch said.
The strategic suppliers that USEC is working with on the project are preparing their manufacturing infrastructure and will be prepared to build 40 to 50 AC100 machines later this year. A cascade of these AC100 centrifuges is expected to be operational in spring 2009 and will undergo integrated testing.
"Being a catalyst for the rebuilding of this manufacturing base in the United States has been a remarkable experience," Welch said. "While there has been an upfront cost to this rebuilding process, we believe that over time this manufacturing base will give USEC a competitive advantage over other uranium enrichers. Future expansions of the American Centrifuge Plant will not be encumbered with these startup and demonstration costs. We expect to drive down costs as we move along the learning curve, and this should dramatically reduce the future capital cost of our centrifuge machine."
Welch said, "The ACP is our platform for growth as we continue to be a reliable and competitive source of nuclear fuel for a growing fleet of nuclear power reactors. We believe this position in the nuclear fuel cycle will deliver outstanding value for our investors."
During the meeting shareholders of USEC voted to elect all 10 incumbent directors to a one-year term, approved an amendment to the Company charter regarding foreign ownership of common stock, approved an increase in shares available for an employee stock purchase plan and ratified the appointment of the Company's independent auditors.
To read a copy of Welch's complete remarks to shareholders, please go to Speeches in the Newsroom section of the Company's website, www.usec.com.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel 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: the success of the demonstration and deployment of our American Centrifuge technology including our ability to meet our performance targets and schedule for the American Centrifuge Plant; the cost of the American Centrifuge Plant and our ability to secure required external financial support; changes in existing restrictions on imports of Russian enriched uranium; 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; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K/A 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 except as required by law.
CONTACT: USEC Inc.
Investors:
Steven Wingfield, 301-564-3354
or
Media:
Elizabeth Stuckle, 301-564-3399
SOURCE: USEC Inc.