BETHESDA, Md. - The United States Enrichment Corporation, a subsidiary of USEC Inc. (NYSE: USU), announced that it has reached agreement on a new union contract with the Paducah, KY plant’s Paper, Allied-Industrial, Chemical and Energy Workers International Union, Local 5-550.

“This agreement is a success for all of us. We will continue to work closely with the PACE union to continue to maintain our high safety and reliability records and work together towards greater plant efficiencies,” said USEC’s Vice President of Operations Morris Brown.

“We’re pleased to have this contract issue resolved,” said Donna Steele, President, PACE Local 5-550. “The negotiations were lengthy and involved a number of compromises. But with this vote, our members have shown that they are ready to move forward.”

The contract covers an 18-month period retroactive to July 31, 2001 and ending January 31, 2003. Earlier negotiations begun in August were extended to November by agreement between USEC and the union.

A tentative agreement with PACE was reached Tuesday, November 20 and was ratified by a majority union vote late last night.

The PACE union represents 675 employees of the total 1507 Paducah plant employees.

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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