BETHESDA, Md. - The Board of Directors of USEC Inc. (NYSE: USU) today declared the Company’s first regular quarterly dividend payment of $.275 per share, payable December 15, 1998 to shareholders of record November 25. An annualized dividend of $1.10 per common share was indicated in the Initial Public Offering Prospectus dated July 22, 1998.

William H. Timbers, President and Chief Executive Officer of USEC, said the dividend declaration is another important step for USEC in its new identity as a publicly traded company with thousands of shareholders. "USEC’s strong cash flow and margins, combined with the Company’s commanding market share, moderate debt, cost-reduction opportunities, substantial backlog of orders and contracts with utility customers around the world, enables us to share our financial success with our shareholders," Timbers said.

"Based on a closing price of $14.50 for USEC shares on November 9, our initial quarterly dividend indicates an annual yield of 7.6 percent," Timbers said.

During 1999, USEC anticipates dividend payment dates of March 15, June 15, September 15 and December 15.

USEC Inc. 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, the Company’s operations involve approximately 5,000 people. With headquarters in Bethesda, Maryland, the Company manages production plants in Kentucky and Ohio, and is developing an advanced laser enrichment technology in California.

This news release includes certain forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risk and uncertainty, including certain assumptions regarding the future performance of the Company. Actual results and trends may differ materially depending upon a variety of factors, including, without limitation, market demand for the Company's services, pricing trends in the SWU market, the Company's ability to successfully execute its internal performance plans, the cyclical nature of the Company's business and the impact of any government regulation. Further, customer commitments under their contracts with the Company are based on customers' estimates of their future SWU requirements. Additional information regarding the foregoing factors is contained in the Company's Registration Statement on Form S-1, as previously filed with the Securities and Exchange Commission.

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