BETHESDA, Md. - Performance at USEC Inc. (NYSE: USU) during its first six months as an investor-owned company has been impressive and sharply focused on creating shareholder value, President and Chief Executive Officer William H. Timbers told shareholders today.

Speaking at the company’s first Annual Meeting of Shareholders, Timbers outlined the company’s major achievements since its privatization in July 1998:

• Obtaining sales commitments for enrichment services valued at more than $1.2 billion through 2009.
• Restructuring the corporate organization, putting a clear focus on key business areas.
• Refinancing bank debt incurred at privatization at favorable all-in cost.
• Initiating direct operation of its production plants.
• Cutting costs by reducing plant work force and holding down headquarters expenses to about 2.5 percent of sales.

USEC is making progress toward commercializing AVLIS, the company’s proprietary, laser-based uranium enrichment technology, Timbers said. Tests on full-scale equipment at Lawrence Livermore National Laboratory in California continue, and USEC expects to make a decision in 1999 on where the future AVLIS plant will be sited.

The company has taken a leadership role in speaking out about nuclear power issues to foster better understanding, Timbers said.

"Advocating nuclear power is necessary because it has much to offer. Demand for electricity is growing around the world, and nuclear power is the only large-scale energy source that does not pollute the air," he noted. "There is growing scientific and public concern about global warming, and that makes nuclear energy even more attractive."

Timbers told shareholders that their company had been energized by its emergence into the private sector and is building on a strong foundation. USEC has built a market share in the United States of approximately 75 percent and 40 percent in the world market. The company has a $7 billion backlog of sales.

The company’s balance sheet is strong, Timbers said, and an experienced management team with a six-year track record of dependability is leading USEC. "And first on our minds, we will be creators of shareholder value," Timbers concluded.

USEC Inc. is the world leader in production and sale 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.

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