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BETHESDA, Md., July 28, 2003 -- The U.S. Department of Energy (DOE) has informed USEC Inc. that funding for the Deposit Removal Program at the Portsmouth, Ohio Plant will not be extended after September 30, 2003.
The loss of this funding from DOE will result in the termination of approximately 116 USEC plant personnel working under a DOE contract effective October 3.
The Deposit Removal Program uses a chemical process to reduce uranium compounds remaining in cells, piping and auxiliary equipment that are no longer operating. The process recovers uranium and supports nuclear security objectives. As contractor to DOE, USEC will complete the first phase of the Deposit Removal Program in September 2003, covering approximately 40 percent of the facility.
USEC believes that continuing the Deposit Removal Program is important to a successful transition to decontamination and decommissioning activities, lowering DOE's long-term total costs and supporting important jobs in Ohio. Therefore, the Company will continue to be available to work with DOE to save this important program.
Because DOE has informed USEC of the discontinuation of funding, it is necessary to notify employees and begin the selection process now in order to provide for an orderly and safe transition during the employee reduction and to comply with collective bargaining agreements.
If funding remains unavailable, then USEC's share of severance costs for terminated employees will be reflected as a charge to net income later this year. This program has a minimal impact on USEC's government contracting income.
Other programs, such as cleaning up contaminated natural uranium, site preparation for the American Centrifuge Demonstration Facility, and the Cold Standby Program are expected to be funded by DOE for the coming fiscal year.
USEC Inc., a global energy company, is a supplier of enriched uranium fuel for commercial nuclear power plants.
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