BETHESDA, Md. - The Board of Directors of USEC Inc. (NYSE: USU) today approved a share repurchase program of up to 10 million shares of the company’s common stock over the next 24 months.

"USEC is committed to delivering value to its shareholders. The share repurchase program reflects the Board of Director’s confidence in USEC’s future," said William H. Timbers, Jr., USEC President and Chief Executive Officer.

The repurchase will be funded through internal cash flow, augmented by short-term borrowings as needed. The Board action authorizes the company to purchase the shares from time to time on the open market or through privately negotiated transactions.

FY 1999 Earnings Affirmed

The company continues to anticipate fiscal year 1999 earnings to be $120 million, excluding a special income tax benefit and the non-recurring charge being taken for the recently announced AVLIS program suspension. In addition, the company continues to expect that fiscal year 2000 earnings will be similar to fiscal year 1999 levels, with continued strong cash flow. The Board has affirmed its intent to maintain the dividend payment at the indicated level.

Direct Stock Purchase Plan Offered

Beginning in September, shareholders can easily grow their investment in USEC by electing to reinvest dividends. The direct stock purchase plan approved by the Board also provides shareholders a low-cost option for buying additional shares, up to $250,000 annually. Prospective shareholders will be able to buy their initial shares through the program later this year.

Shareholders will receive information by mail on how to enroll in the dividend reinvestment program, which will be administered by the company’s transfer agent, EquiServe.

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 4,500 people. With headquarters in Bethesda, Maryland, the company operates production plants in Kentucky and Ohio.

This news release includes certain forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) that involves risks 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 enrichment market, the availability and cost of electric power, the company’s ability to successfully execute its internal performance plans, the refueling cycles of the company’s customers, and the impact of any government regulation. Additional information regarding the foregoing factors is contained in the company’s public filings with the Securities and Exchange Commission.

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