BETHESDA, Md. - USEC Inc. (NYSE: USU) today announced that a USEC subsidiary, United States Enrichment Corporation, will take over direct management and operation of USEC's uranium enrichment facilities in Kentucky and Ohio. The operations and maintenance contract with Lockheed Martin Utility Services, a subsidiary of Lockheed Martin Corporation, will be terminated. The transition is expected to be completed in six months.

The facilities, among the largest production plants in the world, were built by the federal government over forty years ago. Although owned by the federal government, they have always been operated by contractors, such as Union Carbide, Goodyear Atomic, Martin Marietta, and most recently, Lockheed Martin Utility Services. USEC was created by Congress as a federal corporation and in 1993 took over management responsibility for these facilities. On July 28, 1998, USEC was privatized and became a publicly owned corporation.

"The privatization of USEC begins a new era in the management and operation of these uranium enrichment facilities, one in which efficiency, safety and creation of shareholder value take the lead," stated William H. Timbers, President and Chief Executive Officer of USEC Inc. "With this goal, management has determined that direct operation of the production plants will allow us to better align employees' performance with our objectives. We have informed Lockheed Martin of our decision and we will be working with them over the coming months to assure an orderly transition of compensation and benefits as plant employees join the USEC workforce," Timbers added. The uranium enrichment production facilities employ approximately 4,000 people.

"Lockheed Martin has distinguished itself in the operation of these facilities. USEC will now take these facilities into a new era of efficient, safe operation in order to extend our role of global leadership in the production and sales of enrichment services," Timbers concluded.

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, USEC'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.

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