News Release

BETHESDA, Md.--(BUSINESS WIRE)--Dec. 4, 2002--USEC Inc. (NYSE:USU) announced today that it will site its Lead Cascade centrifuge uranium enrichment test facility at its Portsmouth plant in Piketon, Ohio. Operation of this advanced technology facility will demonstrate USEC enhancements to the U.S. Department of Energy's (DOE) proven centrifuge uranium enrichment technology, which is expected to be the world's most efficient process for enriching uranium for nuclear fuel. At the same time, USEC underscored the continuing importance of its Paducah, Kentucky enrichment facility as a long-term asset for both its business and for the nation.

"Both states provided strong incentive packages, and excellent community support exists in both locations," said USEC President and Chief Executive Officer William H. Timbers. "We thank Kentucky and Ohio for their hard work and support."

"Cost and schedule are the key factors in our decision to site the Lead Cascade at the Portsmouth plant," said Timbers. Siting the Lead Cascade at the Portsmouth facility makes use of existing buildings, which reduces costs and saves time. USEC will make a decision on the siting of the commercial plant in 2004.

"The siting of this uranium enrichment test facility is a significant step for the future of the U.S. nuclear industry," said Ohio Governor Bob Taft. "This will be the first new nuclear facility to begin operations in the United States in over 10 years."

USEC will submit a license application for the Lead Cascade to the U.S. Nuclear Regulatory Commission (NRC) early next year. It is expected to begin operation in 2005 and employ approximately 50 people. The Lead Cascade will be located in the existing Gas Centrifuge Enrichment Plant (GCEP) located at the site of USEC's Portsmouth facility, where hundreds of DOE centrifuge machines operated in the 1980s. These existing buildings have been well maintained and can be directly utilized for the Lead Cascade.

"This decision is thanks to the quality workforce in the region, the united efforts of the Ohio congressional delegation, local leaders and officials in my administration as well as an outstanding display of community support," said Ohio Governor Bob Taft. He added that he contended all along that selecting Piketon allows for USEC to save money and time, allowing for the company to accelerate its deployment schedule, meet customer demand and fulfill a vital national security role for our nation.

"The Piketon plant will be the ideal home for this new technology because of its world class workforce and centrifuge facilities," said Rep. Rob Portman, R-Ohio. "I commend the USEC Board and USEC's CEO, Nick Timbers, for the confidence they have shown in the plant and its people. They will not be disappointed with their decision. This project is important to jobs in Southern Ohio, our state's future and our national energy strategy. I have enjoyed working closely with USEC, Piketon's management and employees, including the PACE union and its president, Dan Minter, Governor Taft, as well as Senators DeWine and Voinovich on securing these new jobs and investment. I look forward to working with them to ensure the success of the Lead Cascade and ultimately full commercial production at Piketon."

"USEC will manufacture the centrifuge machines and equipment in the United States and will fund the construction and operations of the Lead Cascade. We are confident that the successful operation of these state-of-the-art centrifuge machines will facilitate receiving equity and debt financing and/or partnerships for the construction of the commercial plant," said Timbers.

USEC's deployment of U.S. centrifuge technology will help ensure America's energy security and will provide a continued, reliable and competitive fuel source for the world's nuclear reactors.

Timbers also noted that even after the Lead Cascade begins operation at the Portsmouth facility, the Paducah uranium enrichment facility will continue to be the heart of USEC's business as well as a key element in this nation's energy security. "The Paducah, Kentucky plant protects not only our business and our customers, but also is key to the national security objective of maintaining a safety net for any potential interruptions in the nation's nuclear fuel supply," said Timbers. "Our continuing investment in the Paducah plant gives USEC and the United States the capability to increase production well beyond the minimum requirements in our DOE Agreement and substantially above our current levels of production. It is critical that we be able to call upon this excess capacity whenever it is needed."

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.