News Release

BETHESDA, Md.--(BUSINESS WIRE)--Oct. 2, 2001--USEC Inc. (NYSE:USU) described to a nuclear fuel industry group today the steps that it is taking to move forward with an advanced uranium enrichment technology.

Speaking before the Nuclear Energy Institute's International Uranium Fuel Seminar 2001, Dennis Spurgeon, USEC executive vice president and chief operating officer, said, "We have a strategic vision for where we are going and the path to get there. We are improving the productivity and efficiency of our existing gaseous diffusion plants in order to establish a solid foundation of financial strength and vitality that will enable us to embark on a program of new technology."

Spurgeon said that after evaluating U.S. centrifuge technology over the past two years, USEC stands ready to go forward with the demonstration of this already proven second-generation technology. Meanwhile, the Company will continue to develop third-generation SILEX laser enrichment technology at a prudent pace. "This strategic view on technology has been a central and consistent position of USEC since its formation," Spurgeon told the industry group.

U.S. centrifuge technology was developed by the U.S. government and demonstrated by the U.S. Department of Energy (DOE) in 1985. But the program was discontinued when it was believed that it would not be needed. For the last year, USEC and UT-Battelle (University of Tennessee-Battelle) have conducted further centrifuge development work at the East Tennessee Technology Park in Oak Ridge under a DOE-approved Cooperative Research and Development Agreement, or CRADA, that was funded exclusively by USEC.

"We made significant progress during this private sector and government partnership," said Spurgeon. "USEC designed a new centrifuge machine, taking advantage of the earlier government development work and commercial advances in construction materials and manufacturing methods."

With new materials and manufacturing processes, USEC expects its centrifuge production costs will be less than competing centrifuges it has evaluated. The Company believes that U.S. centrifuge technology promises high performance and reliability. Deploying this technology would also help assure national security and energy security, and would create jobs.

Spurgeon explained that USEC is working with DOE to extend the CRADA and to obtain the necessary assurances from DOE to enable USEC to move forward with the demonstration program. The Company expects to take a step-wise approach to the ultimate deployment of its advanced technology driven by an appropriate return on investment and strong program economics.

As part of its implementation of this approach, USEC will also maintain an open, watchful posture in terms of the full range of alternative opportunities for new or related technologies that may be available in providing low-cost nuclear fuel. "We are continuing our evaluation of SILEX, a laser-based enrichment technology being developed by USEC and Silex Systems Limited in Australia," said Spurgeon. SILEX is in the early stages of development.

The Paducah gaseous diffusion plant, the only operating uranium enrichment plant in the United States, was built in the early 1950s, extensively refurbished in the 1970s and 1980s, and was recently upgraded. "USEC is committed to pursuing the deployment of an economical enrichment technology in the United States that would ensure that a domestic supply of enriched uranium is available to our customers," said Spurgeon. "USEC intends to take the actions necessary to remain the world's leading enrichment company, positioning itself to be part of the growth of nuclear power -- a vital and environmentally friendly source of electricity for America."

Spurgeon's complete remarks appear in the News section of USEC's website, www.usec.com.

This release contains certain forward-looking information that involves risk and uncertainty, including certain assumptions regarding the future performance of the Company and events outside the Company's control. Future events and actual results may differ materially depending upon a variety of factors, including, without limitation, obtaining necessary agreements with DOE regarding use of the technology and facilities, satisfactory performance of the technology at various stages of demonstration and deployment, approvals from the Company's Board of Directors, the availability of funds, and the actions of regulatory authorities, as well as market demand for the Company's products, pricing trends in the uranium and enrichment markets, implementation of the market-based pricing arrangement and deliveries under the Russian contract, the availability and cost of electric power, and the Company's ability to execute successfully its internal performance plans. Additional information regarding the foregoing factors is contained in the Company's filings with the Securities and Exchange Commission.

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

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