BETHESDA, Md. - The U.S. Department of Commerce (DOC) announced yesterday evening that it will investigate the dumping into the United States of enriched uranium imports from Europe. Earlier this month, USEC Inc. (NYSE: USU) asked the federal government to conduct an investigation and to restore fair competition.

In petitions filed December 7 with the DOC and the U.S. International Trade Commission (ITC), USEC charged that its European competitors, Eurodif S.A., through its U.S. sales agent Cogema, and Urenco, Ltd., are selling enriched uranium into the U.S. market below their cost of production and benefiting from unfair government subsidies in their home markets. This activity has materially injured the domestic enrichment industry, USEC said in its filings.

USEC believes that sales of enriched uranium in the U.S. market must conform with trade law requirements of fair pricing in order to maintain long-term domestic enrichment capacity and to promote healthy competition and a strong nuclear fuel cycle. Sustaining a domestic enrichment capability to help ensure U.S. national security and energy security reflects the policy of the Congress and past and present Administrations.

With the commencement of its investigation, the DOC will begin to determine if dumping and/or unfair government subsidization has taken place. In tandem, the ITC is investigating claims of material injury resulting from the unfairly traded imports.

By January 22, the ITC will make a preliminary decision on USEC’s allegations of injury. Final determinations by the two agencies are expected toward the end of 2001. For further details on the case, see USEC’s December 6 press release.

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

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