BETHESDA, Md. - To increase efficiencies in its uranium enrichment business, USEC Inc. is initiating a voluntary reduction in force program for employees at the Paducah, Kentucky, and Portsmouth, Ohio, gaseous diffusion plants.

Prior to USEC's privatization in July 1998, USEC identified excess positions that could be eliminated over a two-year period. These workforce reductions were designed to operate the gaseous diffusion plants more efficiently and to meet foreign competition.

The first phase of this reduction will be complete by early November and will eliminate approximately 125 positions at each plant. If targets are not achieved by the voluntary program, involuntary reductions will be announced. Approximately 250 additional reductions under a similar plan will occur in the summer of 1999.

USEC's primary operating contractor is Lockheed Martin Utility Services (LMUS) which employs approximately 3300 people in uranium enrichment activities at the two plants.

To minimize impact on affected workers, in addition to normal severance benefits provided by LMUS, the Department of Energy (DOE) will provide enhanced benefits for those workers and community support.

This reduction-in-force affects both salaried employees and bargaining unit personnel represented by the Oil, Chemical, and Atomic Workers (OCAW). No member of the United Plant Guard Workers of America (UPGWA) is affected.

USEC Inc. (NYSE: USU) is the world leader in production and sales of uranium fuel enrichment services for commercial nuclear power plants. A global energy company with customers in 14 countries, USEC's operations involve approximately 5,000 people. Headquartered in Bethesda, Md., the company manages production plants in Kentucky and Ohio, and is developing an advanced laser enrichment technology in California.

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