BETHESDA, Md. - USEC Inc. (NYSE: USU) announced today that, having successfully completed its initial phase of research, it will begin funding further research on SILEX technology, an advanced laser-based uranium enrichment process. USEC has the exclusive rights to the commercial use of the SILEX process for uranium enrichment being developed by Silex Systems Limited in Australia.

With the completion of this phase of research, USEC will make a milestone payment of $2.5 million to Silex Systems Limited within 30 days. The balance of the first milestone payment, a further $2.5 million, is expected to be paid later this spring when an Agreement for Cooperation goes into effect and allows transfer of technology between the United States and Australia.

"Although SILEX is still at an early stage of development, the results of the research look promising for an economically attractive future enrichment technology," said William Bennett, USEC’s Vice President of Advanced Technology.

This phase of the SILEX research program measured key physics parameters that characterize the enrichment performance of the process. Confirmation of these parameters is one of the steps required in the next phase to demonstrate whether there is a reasonable potential for separation of commercial quantities of enriched uranium. The next phase will also facilitate the design of a pilot plant and permit more detailed calculations of the economics of the process.

"Given the early stage of SILEX development, we are also moving forward with our evaluation of gas centrifuge as an alternative future technology, as well as continuing to improve the efficiency and longevity of our existing production plants," said Bennett.

USEC Inc. is the world leader in the sale of uranium fuel enrichment services for commercial nuclear power plants. A global energy company, USEC has its headquarters in Bethesda, Maryland, and operates production plants in Kentucky and Ohio.

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