USEC Reports Solid Results in Fourth Quarter and Full Year 2004

8 million

-- 2005 earnings guidance in range of $25 to $30 million net
income

-- Paducah plant achieves highest level of production cells
online in over 25 years

USEC Inc. During 2004, USEC
spent $64.
James R . This earnings guidance includes our significant
investment in the American Centrifuge.
Revenue from uranium sales increased 33 percent to $224 million in
2004 from $168.
"The work performed by our people to maintain the Paducah plant
helped mitigate higher production costs by improving the plant's
efficiency in 2004," Mellor said.3 million or 8 percent reduction from
2003.4 million received from U.3 $1,027.2 1,445.5 44.7 40.12
Dividends per share $ .1
Other Long-Term Assets
Deferred income taxes 73.3
Inventories 156.1
========= =========
Supplemental Cash Flow Information:
Interest paid $ 35.9 million (or
$.

New AREVA Business Unit to Focus on Advanced Nuclear Plants for North America

pwr irradiated

6 million; year-end cash
balance of $174. Financial results
for 2003 and the quarterly results for 2004 have been restated, and
numbers in this release reflect this restatement , as discussed below. For the quarter, SG+A was $16. Securities
and Exchange Commission on March 11 , 2005, financial statements for
all quarterly, interim or annual periods beginning with the fiscal
year ended June 30, 1999 can no longer be relied upon and are being
restated.8 million (or $.9 million (or $. Actual results and trends
may differ materially depending upon a variety of factors , including,
without limitation, market demand for the products and services of
USEC and its subsidiaries , pricing trends in the uranium and
enrichment markets, deliveries under the Russian Contract, the
availability and cost of electric power, implementation of agreements
with the Department of Energy regarding uranium inventory remediation
and the use of centrifuge technology and facilities, satisfactory
performance of the American Centrifuge technology at various stages of
demonstration, USEC's ability to successfully execute its internal
performance plans, the refueling cycles of USEC's customers , final
determinations of environmental and other costs, the outcome of
litigation and trade actions and the impact of litigation upon
existing restrictions on imports of foreign-produced LEU and uranium ,
USEC's ability to renegotiate or replace revolving credit commitments
by September 2005 and to refinance senior notes by January 2006,
performance under U.S government contracts, and the impact of any
government regulation.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS) (Unaudited )
(millions, except per share data)

Three Months Ended Years Ended
December 31, December 31,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- --- ------
As As
restated(1) restated(1)

Revenue:
Separative work units $ 484 .1 151.1 163.8
========= ========= ========= =========
Net income (loss) per share
- basic and diluted $ .01) $ .2

USEC Inc.2) -
Accounts payable and other liabilities -
increase 37.9)
------ --- ---------
Cash Flows Used in Financing Activities
Dividends paid to stockholders (46.3 3.7
Income taxes paid (refund) 3."
AREVA , through its Framatome ANP subsidiary, has begun a dialogue with
the Nuclear Regulatory Commission to outline its intentions regarding design
certification of the EPR and to be sensitive to the agency 's resource
planning needs.

eliminates recycles

Revenue

For the year ended December 31, 2004, total revenue was $1,417.2
million compared to $1,445.9 million in
2004, virtually unchanged from 2003.S.5) 13.5 -
Other current assets 31.8 70.0 1 ,457.0
Deferred revenue and advances from customers 20.1) (37.7
Payment of termination settlement
obligation under power purchase
agreement (33.4
Other, net 2.0)

(1) USEC has restated the consolidated balance sheet at December 31,
2003, the consolidated statements of income (loss ) for the three
months and year ended December 31, 2003, and the consolidated
statement of cash flows for the year ended December 31, 2003. AREVA Inc.

decontamination bnfl

----USEC Inc. (NYSE:USU) today reported net income for the year ended
December 31, 2004 of $23.2
million or 33 cents per share compared to a net loss of $0. Underfeeding results in incremental uranium available
to USEC to sell at today 's higher prices. SG+A included a charge of
approximately $8 million in 2003 and $2 million in 2004 related to the
early retirement or severance for executive officers.

Please refer to our SEC filings, which can be accessed through the
Company's website www.2 $ 302.2 59.S.4 1,071 .7 73.28 $ .7 119.8
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 31.0)
Accounts receivable - decrease 16.0)
--------- ---------
Net Increase (Decrease) (39.

EPR will be part of a global fleet of standardized
plants, designed and built in North America. In 1991 , he became Manager of Group and
New Projects and managed Framatome product lines supplying engineering
services to nuclear utility customers, including the B+W Owners Group. and
France.

uranium urenco

Revenue for the fourth
quarter was a record $648. As
anticipated, approximately half of USEC's annual SWU deliveries
occurred in the fourth quarter, resulting in 60 percent higher SWU
revenue compared to the same quarter last year. Revenue from NAC during this several week period was
not material to USEC's 2004 results and has been included with revenue
from U. Both of these corrections were a
result of inadvertent errors associated with the interpretation of
complex accounting principles . Sales
of SWU and uranium will again be weighted to the fourth quarter
reflecting the timing of customers' reactor refuelings similar to
2004. The remaining $55 million is expected to be
capitalized .
USEC has applied for a construction and operating license for the
American Centrifuge Plant and is working with the NRC for approval of
the application in late 2006.usec.7 224.1 58.2
Uranium owed to customers and suppliers 44.0
Other Long-Term Liabilities
Deferred revenue and advances from customers 6.8) (5.4)
Deferred revenue, net of deferred costs (12.0 1.1) -
Deposit relating to acquisition of NAC Holding
Inc.

The restatements correct inadvertent
errors in the application of generally accepted accounting
principles dealing with complex and technical accounting issues
relating to the recognition of revenue and a valuation allowance
relating to deferred income taxes.

(2) Other income in the three months and year ended December 31, 2004,
includes income of $4.S.

ionizing eliminates

The acquisition of NAC
International, now a wholly owned subsidiary, was completed during the
fourth quarter.

6 million compared
to $109. The difference between the two
periods was primarily due to decreased SWU sales in 2004 and a $33.S.
The Company is providing net income guidance for 2005 in a range
of $25 to $30 million, or 29 to 35 cents per share.com, for a more complete discussion of
these factors .55
Weighted average number of
shares outstanding
- basic 85.0 82.1
Prepaid pension benefit costs 82.2 59.0
Cash and Cash Equivalents at Beginning of Year 214.com.

cremat safeguards

5 million or 28 cents per share compared to
net income of $9. government contracts totaled $165. The
Company's purchase costs per SWU increased under a market-based
formula with Tenex, the Russian government's executive agent under the
Megatons to Megawatts program, which reflects the impact of higher SWU
market prices since 2001.9 million compared to $25. Accordingly , USEC management believes
that the financial statements included in this earnings release
present fairly in all material respects the financial condition,
results of operations and cash flows for the periods presented.3 $1,110.1 64.2 $ (.33 $ (.0
Accounts receivable - trade 238.4 883.7 million (or $. With 7,100 employees in North America, AREVA is the only
vertically integrated supplier who can provide uranium enrichment, nuclear
fuel, plant services, major plant components, spent fuel solutions and
energy delivery systems.
Ganthner received a Bachelor of Science Degree in Naval Science from the
U.

aecl enriched

5 million net income in 2004 as EPS more than doubles year
over year

-- Gross profit margin rises to 13.S.
USEC 's customers generally place orders under their long-term
contracts tied to reactor refuelings that occur on a 12- to 24-month
cycle.7 percent
compared to 11.3 percent in the previous year.1
million , which represented a $5.
Customs and Border Protection as a reimbursement for a portion of
qualified expenses incurred by USEC following U.S.9 million for the prior year.

Restatements of Financial Results

As detailed by USEC in a Form 8-K filed with the U.
As a result of the restatements , net income in 2004 increased by
$1.
Although this estimate of demonstration costs exceeds USEC 's previous
estimate of $150 million, the Company continues to estimate that it
will cost up to $1.5 399.S.2
--------- --------- --------- ---------
Total cost of sales 558.9 25.1 7.1 82.1
Payables under Russian Contract 89.4 $ 2,129.5
Inventories - net (increase) decrease (17.9
--------- ---------
Cash Flows Used in Investing Activities
Capital expenditures (20.01 per share) in the year ended December 31, 2003, and deferred
tax assets and stockholders' equity were increased by $45. "Ray Ganthner has the background,
expertise and leadership ability to transfer this global momentum to a
revitalized North American market.

radionuclide recycles

Careful management of our
costs, efficient operations and a clear emphasis on our future with
the American Centrifuge technology all demonstrate that management is
focused on the priorities that will deliver shareholder value. While this spending reduces net
income in the near term, we believe that it will increase shareholder
value in the longer term," he said. The lower revenue in 2004 was partially offset by an
improved gross profit margin on SWU sales. After several years of
declining average SWU prices billed to customers, average invoiced
prices showed slight improvement in the second half of 2004. Uranium prices increased 62
percent in 2004."
The gross profit margin for the year improved to 13.
Selling, general and administrative expenses totaled $64. companies can
seek reimbursement under the law for qualifying expenses, such as
research and development costs.2 million to retained earnings at June 30, 2001.
Consistent with the standards of the Public Company Accounting
Oversight Board, USEC management has concluded that the control
deficiencies that resulted in these restatements constitute material
weaknesses in its internal control over financial reporting.
To address these material weaknesses, USEC performed additional
analysis and other post-closing procedures to ensure that the
financial statements are prepared in accordance with generally
accepted accounting principles. The Company has now met the first eight
milestones on or ahead of schedule and is on track to meet the next
milestone of beginning centrifuge manufacturing by June 2005, which
will provide machines for the demonstration facility slated to begin
operations late this year.5
U.6 34.5 47.2 266.1
--------- ---------
Cash and Cash Equivalents at End of Year $ 174.

safeguards westinghouse

6 million on the American Centrifuge demonstration,
including $58. Mellor, USEC chairman and chief executive officer said,
"Our solid operations and strong financial results clearly show that
USEC continues to be on the right track.
The unit production cost increased due to higher costs for electric
power, labor and benefits, and 5 percent lower production volume. Cash
flow from operating activities for the year was $52.5
Provision (credit) for
income taxes 15.5 254.4 487.0) 117., net of cash
acquired (8. AREVA designed and installed 30 percent of the
world's current nuclear generation capacity and provides nuclear fuel to 46
percent of the world market.

decontamination usec

8 million or 12 cents per share in 2003.3 million in 2003. government contracts on the income statement. Therefore, short-term comparisons of USEC's financials are not
necessarily indicative of the Company's longer-term results.

USEC Inc.1 354.7)(2) -
------ --- --------- --------- ---------
Operating income 53.8
========== ==========

USEC Inc.7)
Changes in operating assets and liabilities:
Short-term investments - (increase)
decrease(3) 35.6 109., AREVA's joint subsidiary with
Siemens, Framatome ANP, announces the formation of a new organization to
focus on the future need for commercial nuclear generation in North America.
Ganthner joined Babcock + Wilcox in 1980 and was involved in project
management and engineering projects.

preamplifiers safeguards

8 million of advanced technology costs, which
had the effect of reducing net income by about $28 million or 34 cents
per share .
Revenue from U. The key drivers in
improved profit margin were the higher average uranium price billed to
customers and the lower costs of purchases and production in previous
periods that reduced the cost of sales.02 per share), net income in 2003 was reduced by
$.0 million (or $.4 165.4 44.4
Other (income) expense, net (1.5 $ 9.1
Goodwill 4.7
---------- ----------
Total Current Liabilities 355.7
Payables under Russian Contract -
increase (decrease) (29. AREVA's intent is to complete the pre-application process so
that an application for design certification can be made to the NRC as soon
as possible .framatome-anp.

westinghouse ionizing

For the
quarter ended December 31, 2004, USEC reported net income of $28. USEC's revenue is primarily related to
the sale of the Separative Work Unit (SWU) component of low enriched
uranium (LEU).01 per share), the net loss in the six-month period
ended December 31, 2002, was reduced by $2.1 billion.
Revenue from U. Revenue and operating results can fluctuate
significantly from quarter to quarter, and in some cases, year to
year.7)(2) - (1.8) (3.1375 $ .1375 $ .
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(millions)

December 31,
----------------------
2004 2003
---------- --------- -
As
restated(1)

ASSETS
Current Assets
Cash and cash equivalents $ 174.1
Short-term investments (3) - 35 .5
Property, Plant and Equipment, net 178.2 138.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(millions)

Years Ended
December 31,
---------------------
2004 2003
--------- ---------
As
restated(1)

Cash Flows from Operating Activities
Net income $ 23.03 per share) for acquired
in-process research and development expense relating to the
acquisition of NAC . In the U. The group also
provides interconnect systems to the telecommunications, computer and
automotive markets.

cremat eliminates

Cost of Sales and Expenses

The average unit cost of production and purchases increased by 3
percent during 2004 compared with the corresponding period in 2003.

2
million payment that year to resolve the termination of a power
contract.
USEC expects cash flow from operating activities to improve over
2004. Cash flow from operating activities is expected to be in a range
of $150 to $170 million, and capital expenditures should total
approximately $70 million, including $55 million related to the
American Centrifuge Plant. USEC expects to spend approximately $170
million for centrifuge demonstration costs through December 2006.3
--------- --------- --------- ---------
Cost of sales:
Separative work units
and uranium 517.4)
--------- --------- - -------- ---------
Income (loss) before income
taxes 43.7) $ 23.0 $ 187.1
--------- ---------
Net Cash Provided by (Used in) Operating
Activities 52.2
million at December 31, 2003.7 million or $.
Ganthner was Vice President of Business and Product Development for
Framatome Cogema Fuels beginning in 1997. In this role, he sponsored an
international new product development team to develop the next generation
fuel design, called the Alliance project , for introduction in the U. S. Navy, he was a member of the
Nuclear Propulsion Examining Board, the Engineer Officer on the USS NATHAN
HALE, and a Division Officer on the USS SKIPJACK.

This category lists manufacturing companies in the nuclear industry, as well as sites about the manufacturing components of this industry.

eliminates bnfl

(NYSE:USU):

-- USEC restates prior financial statements

-- $23.02 per
share), and net income in the fiscal year ended June 30, 2002, was
reduced by $1. In January 2005, USEC announced it had met the milestone
under the DOE-USEC Agreement of beginning testing of the American
Centrifuge machines.2 49.7 9.4
Interest (income) (1.7
--------- --------- --------- ---------
Net income (loss ) $ 28.0 185.4 $ 2,129.0
Stockholders' Equity 924 .5
---------- ----------
Total Liabilities and Stockholders' Equity $ 1,999.2
--------- - --------
Net Cash (Used in) Financing Activities (57.
"Today, AREVA is the only global nuclear supplier currently building a
Generation III plant," said Christopher. is headquartered in Bethesda, Md.

bnfl cremat

5 million, compared to $399. USEC's uranium inventory is being supplemented with
uranium available as a result of underfeeding operations at the
Paducah, Kentucky enrichment plant. Under the average inventory cost method,
coupled with USEC's substantial inventory position, an increase or
decrease in costs will have an effect on cost of sales in future
periods.0 million (or $.01 per share). government contracts is expected to be about $175
million. The Company anticipates ending the year
with a cash balance in a range of $200 to $220 million.

This news release contains forward-looking information that
involves risks and uncertainty, including certain assumptions
regarding the future performance of USEC.8
Uranium 119.4 (.3 -
---------- ----------
Total Other Assets 340.8 29.3
Depleted uranium disposition (3.5 )
Deferred income taxes 1. As a
result of the restatements , net income was reduced by $1.

irradiated ionizing

We are providing
net income guidance in a range of $25 to $30 million , or 29 to 35
cents per share.8 million in 2003.9 166.9 194.7
Centrifuge demonstration
costs 22.1 69.5
Interest expense 10.9) (5.55 $ .9 76.9 13.2 50.3) (24. An investment in an auction-rate security with a
stated maturity date in excess of 90 days is no longer reported as
cash and cash equivalents and has been reclassified to short-term
investments at December 31, 2003. "The U. Naval Academy in 1970 and a Masters Degree in Business Administration
from Lynchburg College in 1984.

radionuclide irradiated

Revenue from the sale of SWU in 2004 was $1,027.3 million compared
to $1,110. government issuance
of orders imposing countervailing duties on a European competitor. In
addition, the consolidated financial statements were corrected to
remove a $45. After several years of declines, we expect the average price per
SWU billed to customers to continue the trend begun in the second half
of 2004 and improve modestly in 2005.

American Centrifuge Status Update

USEC is in the process of demonstrating its next-generation
American Centrifuge uranium enrichment technology.1 37.5 320.2) 36.2
Deferred income taxes 26.3
Termination settlement obligation under power
purchase agreement - 33.5
Depleted uranium disposition 26.1
Other liabilities 66.5 $ 9.6) -
Common stock issued 14.1 171.8 $ 214 .2 $ 34.0 million reported in the balance
sheet at December 31, 2003, have been reclassified from cash and
cash equivalents. He will lead a team of experienced
engineers in our major North American locations in the effort to license and
build EPR and Generation IV plants in the U ."
Ganthner's extensive management background in the U.

urenco pwr

In
2003, USEC expensed $44.S.7 million representing acquired in-process
research and development costs related to the acquisition of NAC . Cash flow in 2004 also includes $35 million in short-term
investments from 2003 that matured in 2004. The impact of the
restatements for periods prior to fiscal 2002 is reflected as an
increase of $43. The new NAC
subsidiary should provide approximately $30 million in revenue. USEC expects to
begin operation of the American Centrifuge Demonstration Facility in
Piketon, Ohio in late 2005.5 million SWU by 2010.6
--------- --------- --------- ------- --
Gross profit 90.6 16.8
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 201.5
Postretirement health and life benefit
obligations 145.6 (10.S.

cremat urenco

5 million that was expensed, which had the effect of
reducing net income by about $36 million or 43 cents per share.
Other income in 2004 includes $4. To
offset the economic injury caused by unfair trade, U.5 billion in 2005.
Revenue from SWU is expected to be approximately $1. We anticipate that approximately $55
million related to demonstration activities will be expensed, which
would have the effect of reducing net income by about $34 million or
40 cents per share. As testing and demonstration proceeds, the Company will
regularly reassess allocation between expense and capital of these
American Centrifuge costs during 2005.4 1,417 .8
Selling, general and
administrative 16.8 $ 214.5
Inventories 1,009.1 53.9
---------- ----------
Total Other Liabilities 244.6 (1.2) (24 .9)
Investment in NAC Holding Inc.0) -
--------- ---------
Net Cash (Used in) Investing Activities (34.6 million
(or $. BETHESDA, Md.S.

encapsulation radionuclide

7 million
or 1 cent per share in the same period last year.8 million.2 million valuation allowance relating to deferred income
tax assets established in 1999. Revenue from the sale of uranium
is expected to total approximately $250 million, including
approximately $50 million from sales of uranium generated from
underfeeding or purchased from third party suppliers.5 billion to demonstrate and deploy this advanced
uranium enrichment technology., a global energy company, is the world's leading
supplier of enriched uranium fuel for commercial nuclear power plants.6 1,131.5 150.1 1,281.5 84.3
Long-Term Debt 475 .0 500. (6.2)
Repurchase of senior notes (25.
The New Plants Deployment team, managed by Ray Ganthner, Senior Vice
President , will lead the North American deployment of the EPR, an advanced,
evolutionary, pressurized water reactor design, and support the global
project to develop a Generation IV high temperature gas reactor . He subsequently managed AREVA efforts related to advanced reactor
design projects and represented AREVA in industry groups developing new
reactor designs, including the Electric Power Research Institute 's Advanced
Light Water Reactor Program.S.

cremat aecl

The average price for uranium billed
to customers increased 20 percent during 2004 while volume was 11
percent higher. Underfeeding uses less uranium in
the enrichment process but requires more SWU, which requires more
electric power. "Our internal power efficiency index
that measures how effectively we use electricity stayed at the high
level achieved in 2003, which was the best performance since 1998.
Engineering, assembling and testing of the initial centrifuge
machines continue at USEC's test facilities located in Oak Ridge,
Tennessee. government contracts and audits of allowable
costs billed under U.4 256.6) 12.
Short-term investments of $35.
"AREVA has been preparing for a revival of nuclear generation in North
Amerca for some time, and we now have the focus, technology and resources in
place to play a leading role in nuclear power's bright future," said
Ganthner.
To learn more about AREVA's advanced, evolutionary EPR design, visit the
EPR section of our Website at http://www.

Biographical information :
Ganthner previously served as the company's Senior Vice President of
Nuclear Engineering and was responsible for nuclear power plant systems
engineering and analysis, and engineering programs for operating plants.

urenco reprocessing

7 percent on higher uranium
prices

-- Cash flow from operations of $52."
"Looking ahead to 2005, we will be sharply focused on our
strategic priorities and are encouraged by the commercial nuclear
power industry's strong fundamentals and potential. SWU sales volume in 2004 was 8 percent
lower than in 2003 as deliveries were negatively affected by postponed
refuelings due to the temporary shutdown of a Japanese customer's
reactors for special inspections , and by lower contractual
commitments.5 million in 2003. The
number of production cells online , one measure of equipment
availability, was at its highest level in 25 years.1
million during the same period last year. This reimbursement was partly offset
by an expense of $2.

Cash and Cash Flow

At December 31, 2004, USEC's cash balance was $174.

Outlook for 2005

USEC expects revenue to total approximately $1.S. The average gross margin for all business segments is
expected to be between 12 and 14 percent.S.

USEC Inc. government
contracts and other 45.0
--------- --------- --------- ---------
Total revenue 648.5 1,223.2
---------- - ---------
Total Assets $ 1,999.9 5.3) (45.3) 43 .02 per share) in the three months and by $.4 million ($2.

(3) Certain amounts reported in the consolidated financial statements
have been reclassified to conform with the current presentation .
"AREVA never stopped designing and building nuclear power plants around
the world and has been a leading supplier in North America for over 30 years
through its COGEMA and Framatome ANP subsidiaries ," said Tom Christopher,
CEO of AREVA Inc. commercial
nuclear power industry was preceded by a distinguished U. The licensing and engineering
work will be done primarily in our Charlotte, North Carolina, and Lynchburg,
Virginia, locations. He
was responsible for completion of B+W plants under construction during this
timeframe.

encapsulation mox

The Company's investment in the American Centrifuge , which is
expected to be the world's most efficient uranium enrichment
technology, continues to affect financial results.S. In December 2004, USEC
repurchased $25 million of its senior notes due in 2006. A
material weakness is defined as a control deficiency, or combination
of control deficiencies , that results in more than a remote likelihood
that a material misstatement of the annual or interim financial
statements will not be prevented or detected.0 168.4
U. government
contracts and other 40.5 38.6 (1.5 97.4 444.6 929.0 (35.03 per share
after tax) from reimbursement of qualified expenses paid to USEC
from customs duties collected from a European competitor as a
result of an order against unfairly traded LEU, partly offset by
an expense of $2. Naval career,
where he served as a member of the Nuclear Propulsion Examining Board.S.

More about AREVA
With manufacturing facilities in over 40 countries and a sales network
in over 100, AREVA offers its clients technological solutions for nuclear
energy and electrical transmission and distribution. These businesses engage AREVA's 70,000 employees in the
21st century's greatest challenges: making energy and communication
resources available to all , protecting the planet and acting responsibly
towards future generations.

mox refueling

Business Editors

BETHESDA, Md.4 million for
the same quarter a year ago. The restatements correct timing in revenue recognition in
connection with a limited number of uranium and SWU sales. These
changes are reflected in USEC's annual report on Form 10-K for the
year ended December 31, 2004. This earnings
guidance includes our significant investment in the American
Centrifuge, USEC's future technology .
USEC expects to invest approximately $110 million in the American
Centrifuge technology in 2005 . A higher allocation of the
costs to expense would reduce net income. As NRC licensing progresses and milestones
under the DOE-USEC Agreement are reached, the Company expects to begin
construction of the American Centrifuge Plant in 2007, reaching an
annual production capacity of 3.1 12 .2) (.1 6.7
---------- ----------
Total Current Assets 1,481.7
Prepayment and deposit for depleted uranium 23.5 45.5 13.6) (42.S.