USEC Provides American Centrifuge Update

* USEC working to address DOE concerns prior to updating loan guarantee
application
* AC100 centrifuges for Lead Cascade testing program being reassembled; 10
machines are spinning, cascade startup expected in early 2010

* Continued effort to improve financial strength with focus on strategic
alternatives

BETHESDA, Md.--(Business Wire)--
USEC Inc. (NYSE:USU) today provided an update on its effort to address technical
and financial concerns that have been raised by the Department of Energy (DOE)
during its review of USEC`s application to the Loan Guarantee Program.

"Although we were disappointed with DOE`s decision in August to delay final
review of our application, we still believe that our investment in the American
Centrifuge technology and plant is a path to long-term value for our
shareholders. We are sharply focused on resolving the concerns DOE has raised,"
said John K. Welch, USEC president and chief executive officer.

"Following our review of machine assembly quality assurance procedures, we have
reassembled about a dozen AC100 centrifuges and incorporated updated components.
We have 10 of these machines installed and spinning at the America Centrifuge
Plant and expect to have about two dozen machines reassembled by the end of this
month. We anticipate operating these commercial, production-ready AC100 machines
in our Lead Cascade test program in early 2010," Welch said.

"DOE officials have told us they want to see the project succeed for a number of
policy reasons. The independent engineer`s report on our project prepared for
DOE provides us with guidelines for technical and financial improvements that
need to be made. We have met with DOE officials and will be presenting a plan to
meet all of their technical and reliability concerns. These concerns will be
addressed before we update our application to the Loan Guarantee Program," he
said.

"A substantial portion of our recent effort has been to focus on ways to
mitigate cost risk for the project and the company`s ability to manage that
risk, which includes our strategic alternatives," Welch said. "It is our plan to
present a revised and improved financial structure as part of our updated
submission to DOE."

We have retained a financial advisor to explore strategic alternatives for the
Company. We are considering all options, including a possible sale of the
Company or other business combination transaction. There can be no assurance
regarding the timing of or whether the Board of Directors will elect to pursue
any of the strategic alternatives it may consider, or that any such
alternatives, if pursued, will be consummated.

On August 4, 2009, DOE and USEC announced an agreement to delay a final review
of our loan guarantee application for the ACP until at least early 2010. As a
result, USEC began to demobilize the American Centrifuge project in order to
preserve liquidity as we evaluate the strategic options for the future of the
project. In parallel, we are continuing American Centrifuge demonstration
activities, evaluating how best to configure the project on a go-forward basis,
and seeking to reduce technical and financial risk for the project.

Since August, over 1,300 project jobs have been lost as a result of
demobilization, including approximately 120 jobs at USEC and the remainder from
direct jobs at our suppliers. Several thousand indirect jobs have also been
affected. Job losses have occurred in eight states, with Ohio and Tennessee
having the largest job losses.

Construction work on the plant infrastructure and finalizing the
balance-of-plant design ceased in August. The plant design work is approximately
80 percent complete and would resume following a decision to remobilize the
project. Because we have delayed high-volume machine manufacturing, work at all
of our strategic suppliers has been sharply reduced.

USEC continues its Lead Cascade testing program in Piketon, Ohio. The prototype
centrifuges operating there for more than two years have accumulated
approximately 275,000 machine hours. Data from this testing program has provided
valuable assembly, operating and maintenance information, as well as operations
experience for the American Centrifuge staff. The prototype machines continue to
operate. During the quarter ended September 30, 2009, we determined that at
least some of our production centrifuge machines, which we call the AC100
design, that were being prepared for Lead Cascade testing were not assembled in
full compliance with the specified drawings and procedures. We disassembled
these machines and have begun reassembling the machines with improved components
that were incorporated in the design finalized earlier this year. These enhanced
machines are production-ready and would be deployed in the commercial plant. We
subsequently enhanced procedures to ensure compliance with our quality assurance
program for centrifuge components manufacturing and assembly. Ten of these
machines are operating individually and we expect to restart Lead Cascade
testing of approximately two dozen AC100 machines in early 2010.

USEC`s spending plan going forward for the project is still being developed. In
the first nine months of 2009, our spend rate on the project was approximately
$45 million per month. We expect to substantially reduce that spending level. We
do not expect to see the full impact of these reductions from project
demobilization until the fourth quarter and beyond. As noted in our revised 2009
outlook, advanced technology expense in 2009 is expected to be in a range of
$115 to $120 million, as advanced technology expense declines in the fourth
quarter, reflecting the demobilization of building the American Centrifuge Plant
and ongoing centrifuge lead cascade and related demonstration activities. We
expect to set a spending level for the project for the next several months that
will vary depending on available funds. DOE previously committed to provide $45
million to USEC over 18 months (with $30 million of that in Federal government
fiscal year 2010) to support ongoing American Centrifuge technology
demonstration activities. However, Congress did not provide the $30 million in
funding for this activity in the recently completed Federal government fiscal
2010 energy and water appropriations conference report, and DOE in an October
15, 2009, press release stated that it does not see a path to providing the $30
million in funding at this time. USEC plans to work with DOE and Congress on
alternative approaches for obtaining this funding, but the availability and
timing of this funding are uncertain and consequently this impacts the amount we
have available to spend on the project.

As we seek the most cost-effective deployment plan, we are evaluating the scope
and scale of the plant, the deployment of machines over a longer time period,
alternate financing structures, and the cost and feasibility of remobilizing at
a later date. Based on the results of this evaluation of our strategic options
for the future of the project, or in the event of a further delay, or a decrease
in the likelihood of obtaining DOE loan guarantee funding, or for other reasons,
we may reduce spending and staffing on the project even further or might be
forced to take other actions, including terminating the project. Our efforts to
continue deployment of the ACP remain subject to the uncertainty of our ability
to obtain a DOE loan guarantee as well as the other risks related to the
deployment of the ACP described in our Annual Report on Form 10-K and subsequent
quarterly reports on Form 10-Q. Areva, a company majority owned by the French
government, also applied to the Loan Guarantee Program for a plant it has
proposed to build in Idaho. Areva`s application is also being considered by DOE,
which could affect our likelihood of obtaining a loan guarantee.

In addition to ACP spending through year end, we are working with suppliers to
reduce any incremental exposure for additional payments. That total exposure is
currently estimated to be between $65 and $75 million at December 31, 2009. That
amount includes anticipated payments for materials to be delivered, as well as
contract termination exposure. The termination exposure is a function of timing,
project schedule and any modifications to work scope. This estimate could be
affected by ongoing discussions with suppliers.

Our near-term goals for the American Centrifuge project continue to include the
following:

* Successful start up of the AC100 Lead Cascade testing program in early 2010
using the upgraded production machines to improve DOE`s confidence in the
machines` reliability through consistent operation.
* Manufacture a limited number of machines and maintain the manufacturing
infrastructure so we can expand the number of machines in the Lead Cascade
testing program and support potential remobilization.

* Continue development efforts to further improve reliability of the AC100,
increase the machine`s productivity as measured by SWU output and lower its
capital cost per SWU through value engineering.
* Reduce perceived project risk and take other steps to improve our financial
structure.
* Negotiate contracts with suppliers that can provide greater certainty of cost
and schedule and develop a revised project plan.
* Continue working with customers to enter into additional long-term contracts
to build on the $3.4 billion in committed sales for the output from the ACP.

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" - that is, statements
related to future events. In this context, forward-looking statements may
address our expected future business and financial performance, and often
contain words such as "expects," "anticipates," "intends," "plans," "believes,"
"will" and other words of similar meaning. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain. 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; our success in obtaining a loan guarantee for the American
Centrifuge Plant, including our ability to address the technical and financial
concerns raised by DOE; our ability to renew our revolving credit facility on
reasonable terms; the impact of the demobilization of the American Centrifuge
project and uncertainty regarding our ability to remobilize the project and the
potential for termination of the project; the outcome of discussions with DOE
regarding milestones under the June 2002 DOE-USEC Agreement related to the
deployment of the American Centrifuge technology; uncertainty regarding the cost
of electric power used at our gaseous diffusion plant; our dependence on
deliveries under the Russian Contract and on a single production facility; our
inability under most existing long-term contracts to directly pass on to
customers increases in our costs; the decrease or elimination of duties charged
on imports of foreign-produced low enriched uranium; delays in U.S. government
actions needed for us to collect money from antidumping duties deposited by
importers of French low enriched uranium on past imports of French low enriched
uranium in connection with trade measures imposed on such imports; pricing
trends and demand in the uranium and enrichment markets and their impact on our
profitability; changes to, or termination of, or limitations on our ability to
compete for, our existing or other potential contracts with the U.S. government
and changes in U.S. government priorities and the availability of government
funding, including loan guarantees; the impact of government regulation; the
outcome of legal proceedings and other contingencies (including lawsuits and
government investigations or audits); the competitive environment for our
products and services; changes in the nuclear energy industry; the impact of
volatile financial market conditions on our pension assets and credit and
insurance facilities; 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. Revenue and operating results can
fluctuate significantly from quarter to quarter, and in some cases, year to
year. We do not undertake to update our forward-looking statements except as
required by law.

USEC
Investors:
Steven Wingfield, 301-564-3354
or
Media:
Elizabeth Stuckle, 301-564-3399

Copyright Business Wire 2009