BETHESDA, Md. - The Board of Directors of the United States Enrichment Corporation ("USEC") announced today that the initial public offering (the "IPO") of 100,000,000 shares of USEC Inc.'s common stock was priced at $14.25 per share. Total proceeds from the sale of USEC Inc. common stock will be $1.425 billion. All of the shares were offered by the United States Government, which is selling its entire interest in USEC. If the overallotment option granted to the Underwriters to purchase an additional 10,000,000 shares is exercised, such shares will be sold by USEC Inc. In connection with the IPO, USEC will also borrow $550 million in the bank market and pay $500 million to the United States Government, which when added to the proceeds from the common stock offering will result in total USEC privatization proceeds to the Treasury of approximately $1.9 billion. Additionally, the United States Government will retain the approximately $1.2 billion remaining in USEC's revenue account at the Treasury.

The IPO path was selected by the federal USEC Board over the sale of USEC to a private bidder for numerous reasons, including the following: the least amount of financial leveraging and debt; the IPO offered the least overall reductions in workforce; more favorable contract terms; a strong stewardship plan for sales of its uranium inventory; the best plan for the utilization of new technology for lowering future costs of uranium enrichment; and the best assurance of long-range viability of the domestic uranium enrichment business. The USEC Board's decision to privatize USEC through an IPO was approved by the Secretary of the Treasury.

Morgan Stanley Dean Witter is the Lead Manager of the initial public offering, and Merrill Lynch & Co. is the Co-Lead Manager. M.R. Beal & Company, Janney Montgomery Scott, Lehman Brothers Inc., Prudential Securities Inc. and Salomon Smith Barney, Inc. are the Co-Managers. J.P. Morgan Securities Inc. acted as USEC's financial advisor.

Copies of the prospectus may be obtained from Morgan Stanley Dean Witter, 1585 Broadway, New York, New York 10036; telephone (212) 761-4000.

USEC, a global energy company, currently has approximately a 75% share of the North American uranium enrichment market and a 40% share of the world market. Uranium enrichment is a critical step in transforming natural uranium into fuel for nuclear reactors to produce electricity. The company supplies enriched uranium to approximately 60 customers to use in 176 nuclear reactors located in 14 countries throughout the world.

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