BETHESDA, Md. - The Board of Directors of USEC Inc. (NYSE: USU) today reduced by half the dividend paid on common shares, declaring a quarterly dividend of 13.75 cents per share on USEC’s common stock. The dividend is payable March 15, 2000 to shareholders of record on February 25, 2000.

Following a review of the Company’s financial outlook that anticipates substantially lower net income for fiscal 2001 and beyond, the Board reduced the dividend, beginning with the March 15 payment. The Board took this action in order to align the payout ratio with the Company’s projected earnings, to provide a highly competitive dividend yield based on current market prices and to fund, together with excess cash, a significant share repurchase program. Based on a market price of $6 per common share, an annualized dividend of $.55 yields 9.2 percent.

In a related action, the Board approved an expansion of the common stock repurchase program that authorizes buying back up to an additional 20 million shares, for a total of 30 million shares, by June 2001.

Under a prior repurchase authorization, during the period between June 10 and December 31, 1999, the Company repurchased 9.6 million shares. USEC had 90.5 million shares outstanding as of December 31, 1999. The expansion of the repurchase plan will be funded through internal cash flow and augmented by short-term borrowings, as needed. Over the term of the full program, the share repurchase will be funded by internal cash flow. The Board action authorizes the Company to purchase the shares from time to time on the open market or through privately negotiated transactions during the next 17 months.

"In light of the anticipated future earnings levels announced today, the Board felt it was prudent to alter the dividend policy at this time," said Chairman James R. Mellor. "The share repurchase program, however, underscores the Board’s confidence in the long-term prospects of our Company.

We consider the purchase of our shares at current market prices to be a good use of our cash resources, while still offering a highly competitive current dividend yield."

USEC Inc. is the world’s leading supplier of enriched uranium fuel 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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