USEC Provides Update on American Centrifuge Project

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.

USEC Inc.

Media:

Paul Jacobson, 301-564-3399

or

Investors:

Steven
Wingfield, 301-564-3354