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

Prior to USEC's privatization in July 1998, USEC identified a need to reduce the work force in order to operate its plants more efficiently and better meet foreign competition. Planned work force reductions for 1998 and 1999 were announced in August 1998 and were coordinated with the Department of Energy (DOE).

The first phase of this reduction was completed in November 1998, and the reduction targets were met totally by 259 volunteers from the two plants combined. The second reduction in force, also a voluntary program, will be completed this summer and will involve approximately 250 employees.

To minimize the impact, DOE will provide enhanced benefits for the affected workers using funds that USEC previously paid to DOE for this purpose.

This reduction in force affects both salaried employees and bargaining unit personnel represented by the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) and the United Plant Guard Workers of America (UPGWA).

USEC Inc. (NYSE: USU) is the world leader in production and sale of uranium fuel enrichment services for commercial nuclear power plants. An investor-owned 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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