BETHESDA, Md. - USEC Inc. (NYSE: USU) today announced that it has concluded an agreement with the Tennessee Valley Authority (TVA) for a 10-year electric supply contract for USEC’s Paducah, Kentucky production plant that substantially reduces price risk for the Company in the volatile Midwest power market.

Under terms of the agreement, TVA will provide reliable, competitively priced electricity to the Paducah production facility beginning in September 2000. TVA will expand sales to USEC, a major industrial customer with a desirable electric load profile. Paducah has a large, around-the-clock electric load and is able to significantly reduce power consumption during the summer. This profile is ideal for TVA’s baseload power plants, including five nuclear power reactors. USEC provides TVA’s nuclear facilities with uranium enrichment services.

The agreement calls for TVA to become USEC’s primary electricity provider as other power supply contracts expire or are terminated. The agreement eliminates the Company’s previous exposure to market price volatility during the summer months when high demand for electricity, together with limited regional capacity, causes price spikes. The contract does not require additional regulatory review.

This news release includes certain forward-looking information that involves risks and uncertainty, including certain assumptions regarding the future performance of the Company. Actual results may differ materially, depending on a variety of factors, including the availability and cost of electricity, and the Company’s ability to successfully execute its internal performance plans. Additional information regarding these and other factors is contained in the Company’s periodic filings with the Securities and Exchange Commission.

USEC Inc., a global energy company, is the world’s leading supplier of enriched uranium fuel for commercial nuclear power plants.

###