TAFT AND USEC ANNOUNCE MORE THAN $1 BILLION INVESTMENT
Location of American Centrifuge Project to Create 500 Jobs in Piketon

FOR IMMEDIATE RELEASE
January 12, 2004

Columbus, OH -- Governor Bob Taft and William H. Timbers, President and CEO of USEC Inc. announced today that the company’s new American Centrifuge Plant will be located at the former Portsmouth Gaseous Diffusion Plant (GDP) in Piketon. The company plans to make a more than $1 billion investment in machinery, equipment and infrastructure, and will create up to 500 full-time jobs.

“Today's announcement by USEC is a tremendous victory for Ohio and brings us to a new day of economic opportunity for Southern Ohio and the Ohio Valley,” Taft said. “This $1 billion investment means 500 good, new jobs with salaries you can raise a family and support a community on, and I congratulate everyone who played a part in making today happen.”

Governor Taft put together a team to develop an aggressive and competitive incentive package to compete with the Commonwealth of Kentucky for this commercial American Centrifuge Plant. The project’s significance and scope resulted in amended legislation that was necessary to make Ohio competitive for the project, and will foster future job creation in the state by expanding portions of Job Creation Tax Credit and Enterprise Zone programs. The project experienced strong local support from the Pike County Commissioners, township trustees and local school districts, and on the federal level by Congressman Rob Portman, Congressman Dave Hobson, Congressman Bob Ney and Senators Mike DeWine and George Voinovich.

The Portsmouth GDP was constructed in the early 1950s to produce bomb grade material for the U.S. military, and was later converted to enrich uranium for the domestic energy industry. The facility ceased operations in June 2001 and has since been running on cold stand by. Last December, USEC selected the Ohio facility for its $50 million American Centrifuge Demonstration Project, creating 50 jobs and positioning the community well for the commercial centrifuge project.

"The American Centrifuge is an investment in the future of U.S. national security and energy security, the nuclear power industry, USEC and the State of Ohio," said Timbers. "We were fortunate to have had the option of two first-class sites and workforces in Piketon and Paducah. The Ohio proposal offered the right mix of economic benefits, existing infrastructure, assurances concerning seismic conditions and schedule advantage for this important new facility. While the Piketon site provides us with the best opportunity to bring the American Centrifuge plant online quickly and efficiently, we will continue to rely on the Paducah plant as a vital production source."

"This is great news for the Piketon plant and the people of Portsmouth, as well as the State of Ohio. The American Centrifuge will make an important contribution to our nation's energy security. With its world-class workforce and facilities, the Piketon plant is the ideal home for this new technology," said Rob Portman.

According to State Development Director Bruce Johnson, the Ohio Department of Development offered USEC $100 million in incentives for the project, including grants, a loan, a bond, and tax credits and exemptions. Some of this assistance is contingent upon approval of various boards and authorities and the State Controlling Board.

USEC will now begin the necessary processes to obtain a license from the Nuclear Regulatory Commission and anticipates the facility will be operational in 2010.