USEC Inc. (NYSE: USU) today announced that Robert Warther has been named deputy program manager for the American Centrifuge research, development and demonstration (RD&D) program. The board of managers of American Centrifuge Demonstration, LLC, a subsidiary responsible for running the RD&D program, approved Warther’s selection at its initial meeting on August 3. Warther will report to Paul Sullivan, who is serving as the program manager for the RD&D program.
In addition to providing advice and counsel to the program manager, the deputy will also chair the Integrated Product Team. The team will serve as a platform to address issues and potential issues by monitoring the program’s budget, technical progress and production.Program Background The objective of the RD&D program is to demonstrate the American Centrifuge technology through the construction and operation of a cascade of 120 commercial centrifuge machines and to sustain the domestic U.S. centrifuge technical and industrial base to ensure the capability exists to meet future national security needs. This includes activities to reduce the risks and improve the future prospects of deployment of the American Centrifuge technology. USEC intends to meet this objective through the construction and operation of one complete demonstration cascade of 120 commercial centrifuge machines and supporting infrastructure. USEC will also demonstrate redundancy of the primary cascade support systems that will be used in a production plant and will complete integrated testing of those systems. The RD&D cascade would be incorporated in the full commercial plant in Piketon, Ohio, which is planned to operate 96 identical cascades. The RD&D program will support more than 1,000 direct jobs in Ohio, Tennessee and several other states. USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel and nuclear industry related services for commercial nuclear power plants. Forward-Looking Statements This news release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 – that is, statements related to future events. In this context, forward-looking statements may address our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “will” and other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For USEC, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include, but are not limited to: risks related to the ongoing transition of our business, including uncertainty regarding the transition of the Paducah gaseous diffusion plant and uncertainty regarding continued funding for the American Centrifuge project and the impact of decisions we may make in the near term on our business and prospects; uncertainty regarding the timing, amount and availability of additional funding for the research, development and demonstration (“RD&D”) program and the dependency of government funding on Congressional appropriations; restrictions in our credit facility on our spending on the American Centrifuge project and the potential for us to demobilize the project; limitations on our ability to provide any required cost sharing under the RD&D program; the ultimate success of efforts to obtain a loan guarantee from the U.S. Department of Energy (“DOE”) and other financing for the American Centrifuge project, including the ability through the RD&D program or otherwise to address the concerns raised by DOE with respect to the financial and project execution depth of the project, and the timing and terms thereof; potential changes in our anticipated ownership of or role in the American Centrifuge project; the impact of actions we have taken or may take to reduce spending on the American Centrifuge project, including the potential loss of key suppliers and employees, and impacts to cost and schedule; the impact of delays in the American Centrifuge project and uncertainty regarding our ability to remobilize the project; the potential for DOE to seek to exercise its remedies under the June 2002 DOE-USEC agreement; risks related to the completion of the remaining two phases of the three-phased strategic investment by Toshiba Corporation (“Toshiba”) and Babcock & Wilcox Investment Company (“B&W”), including the potential for immediate termination of the securities purchase agreement governing their investments; changes in U.S. government priorities and the availability of government funding, including loan guarantees; uncertainty regarding the continued capitalization of certain assets related to the American Centrifuge Plant and the impact of a potential impairment of these assets on our results of operations; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q, which are available on our website at www.usec.com. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release except as required by law. Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50372302&lang=en