USEC Updates Outlook for 2012 Financial Metrics

USEC Inc. (NYSE:USU) is providing an updated view of financial
projections for 2012 following a recently signed agreement to extend
Paducah Gaseous Diffusion Plant operations through May 31, 2013.

In May, USEC entered into a multi-party arrangement with Energy
Northwest, the Bonneville Power Administration, the Tennessee Valley
Authority and the U.S. Department of Energy (DOE) to extend uranium
enrichment operations at the Paducah, Ky. plant.

The Company has also entered into an agreement with DOE regarding a
two-year, $350 million cooperative research, development and
demonstration (RD&D) program for the American Centrifuge technology.
USEC is evaluating the accounting treatment for the transfer of certain
assets to DOE in connection with the RD&D program and the government′s
cost-sharing contributions for the RD&D program. Therefore, this update
does not include the effects of the RD&D program and does not include
earnings guidance.

Under the Paducah agreement, Energy Northwest is required to provide
USEC with approximately 9,000 metric tons of high-assay depleted uranium
and 600 metric tons of natural uranium. USEC will enrich the depleted
uranium tails to make about 480 metric tons of low enriched uranium. The
program, combined with other USEC commercial obligations, will require
approximately 5 million separative work units (SWU), a standard measure
of uranium enrichment that represents the effort that is required to
increase the concentration of the U-235 isotope in the uranium. The
work, which began in early June, will take about 12 months. The overall
tails disposal liability of the U.S. government will be reduced as a
result of the agreement and subsequent processing.

USEC′s prior guidance for 2012 did not assume Paducah operations beyond
May 31, 2012, and included an expectation that 2012 SWU deliveries would
be roughly equivalent to 2011 deliveries. Under the new contract, USEC
expects to increase SWU deliveries in 2012 by approximately 30 percent
compared to last year and roughly equal to the volume of SWU sold in
2009. Revenue from the sale of SWU is expected to be approximately $1.8
billion, an increase of $300 million to $400 million over prior
guidance. We anticipate the average price per SWU billed to customers
will increase 5 percent over 2011. The average price billed to customers
for sales of SWU increased 3 percent in each of 2011 and 2010,
reflecting the particular contracts under which SWU were sold during the
periods, as well as the general trend of higher prices under contracts
signed in recent years. Uranium revenue in 2012 is expected to be as
much as $50 million, subject to timing of sales, which is $80 million
less than in 2011.

Under the Megatons to Megawatts program, USEC anticipates buying 5.5
million SWU from Russia during 2012. Under the contract′s pricing
formula, the price we pay Russia will increase 2 percent compared to
deliveries in 2011.

Guidance for the contract services segment is unchanged. Contract
services work for DOE at the former Portsmouth Gaseous Diffusion Plant
was completed in September 2011, and revenue for the segment is expected
to decline significantly in 2012. In prior years, contract work at
Portsmouth represented approximately three-quarters of revenue for the
contract services segment. USEC subsidiary NAC International will
represent a majority of revenue for the segment going forward and we
expect annual revenue for contract services in 2012 of approximately $85
million.

Therefore, total revenue is expected to be approximately $1.9 billion.
Based on our view of revenue and expense, we expect to earn a gross
profit margin in the range of 6 to 7 percent.

USEC has undertaken a review to align our organization with our evolving
business environment and the expected reduction in the size of our
workforce over time. The recent agreements regarding Paducah operations
and the RD&D program will extend the time period for additional
workforce reductions. As a result of initial workforce reductions
already taken, USEC expects to take a charge of $1.1 million for
one-time employee termination benefits and related cash expenditures
when we report second quarter 2012 results. We expect to take additional
actions during 2012 that could result in additional charges. We
currently expect our selling, general and administrative (SG&A) expense
to be approximately $58 million in 2012, a $4 million reduction from
2011, as our financial results begin to reflect the benefit of
reductions in corporate expenses.

The Company expects to provide an update on advanced technology
spending, all of which is currently being expensed, when it reports
second quarter results.

In previous years, USEC has provided guidance for cash flow from
operations. Because the accounting treatment for the RD&D program is
still being evaluated, the Company is not providing cash flow guidance
at this time. We do, however, expect to end the second quarter with a
cash balance of more than $200 million compared to $72.3 million at
March 31, 2012. In June, $44 million of cash was returned to USEC that
had been cash collateral supporting financial assurance for the
disposition of a quantity of depleted uranium that was transferred to
DOE in exchange for DOE acquiring U.S.-origin low enriched uranium from
USEC. This was pursuant to a uranium sales agreement signed in March
2012.

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 Section 21E of the Securities Exchange Act of 1934 ? 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 ongoing transition
of our business, including uncertainty regarding the transition of the
Paducah gaseous diffusion plant and uncertainty regarding continued
funding for the American Centrifuge project and the impact of decisions
we may make in the near term on our business and prospects; our
dependency on the multi-party arrangement with Energy Northwest, the
Bonneville Power Administration, the Tennessee Valley Authority and the
U.S. Department of Energy ('DOE?) to support continued enrichment
operations at the Paducah gaseous diffusion plant; risks related to
Energy Northwest obtaining the financing needed to complete the
multi-party arrangement and the potential for termination of the
agreement if such financing is not secured on terms acceptable to Energy
Northwest; risks related to the performance of each of the parties under
the multi-party arrangement, including the obligations of DOE to timely
deliver depleted uranium to Energy Northwest; the impact of the March
2011 earthquake and tsunami in Japan on the nuclear industry and on our
business, results of operations and prospects; the impact of excess
supply in the market and the lack of uncommitted demand for low enriched
uranium over the next two to four years; the potential impacts of a
decision to cease enrichment operations at Paducah; our ability to
satisfy the conditions to additional funding under the cooperative
agreement with DOE, including our ability to implement the governance
structure required under the RD&D program; uncertainty regarding the
timing, amount and availability of additional funding for the RD&D
program and the dependency of government funding on Congressional
appropriations; restrictions in our credit facility on our spending on
the American Centrifuge project and the potential for us to demobilize
the project; the impact of any conditions that are placed on us or on
the American Centrifuge project in connection with or as a condition to
the RD&D program or other funding, including a restructuring of our role
and investment in the project; limitations on our 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; the impact of actions we have taken or may take to reduce
spending on the American Centrifuge project, including the potential
loss of key suppliers and employees, and impacts to cost and schedule;
the impact of delays in the American Centrifuge project and uncertainty
regarding our ability to remobilize the project; the potential for DOE
to seek to exercise its remedies under the June 2002 DOE-USEC agreement;
risks related to the completion of the remaining two phases of the
three-phased strategic investment by Toshiba ?Corporation ('Toshiba?)
and ?Babcock & Wilcox Investment Company ('B&W?), including uncertainty
regarding the potential participation of Toshiba and B&W in the
governance structure required under the RD&D program, and the potential
for immediate termination of the securities purchase agreement governing
their investments; changes in U.S. government priorities and the
availability of government funding, including loan guarantees;
uncertainty regarding the continued capitalization of certain assets
related to the American Centrifuge Plant and the impact of a potential
impairment of these assets on our results of operations; uncertainty
regarding the financial impact of the agreements with DOE on our results
of operations; our ability to extend, renew or replace our credit
facility that matures on May 31, 2013 and the impact of a failure to
timely renew on our ability to continue as a going concern; restrictions
in our credit facility that may impact our operating and financial
flexibility and spending on the American Centrifuge project; our ability
to actively manage and enhance our liquidity and working capital and the
potential adverse consequences of any actions taken on the long term
value of our ongoing operations; our dependence on deliveries of LEU
from Russia under a commercial agreement (the 'Russian Contract?) with a
Russian government entity known as Techsnabexport ('TENEX?) and on a
single production facility and the potential for us to cease commercial
enrichment of uranium in the event of a decision to shut down Paducah
enrichment operations; limitations on our ability to import the Russian
LEU we buy under the new supply agreement into the United States and
other countries; our inability under many 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; pricing trends and demand in the uranium and
enrichment markets and their impact on our profitability; movement and
timing of customer orders; changes to, or termination of, our contracts
with the U.S. government, risks related to delays in payment for our
contract services work performed for DOE; our subsidiary NAC may not
perform as expected; the impact of government regulation by DOE and the
U.S. Nuclear Regulatory Commission; 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 business, liquidity, prospects, pension assets
and credit and insurance facilities; risks related to the underfunding
of our defined benefit pension plans and the impact of the potential
requirement to accelerate the funding of these obligations on our
liquidity; the impact of a potential de-listing of our common stock on
the NYSE if we are unable to maintain the minimum share price and other
listing requirements; the impact of potential changes in the ownership
of our stock on our ability to realize the value of our deferred tax
benefits; the timing of recognition of previously deferred revenue; 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 except as
required by law.

USEC

Investors: Steven Wingfield, 301-564-3354

Media:
Paul Jacobson, 301-564-3399