Commerce Department Finds Eurodif Curtailing Unfair Trade Practices; USEC Says Government Action Returning Fair Trade to U.S. Enrichment Market.

BETHESDA, Md. -- French uranium enrichment firm Eurodif, S.A. has curtailed its unfair pricing of low-enriched uranium (LEU) imports in the U.S. market, according to the final results of a follow-up trade proceeding issued yesterday by the U.S. Department of Commerce. The U.S. uranium enrichment company USEC Inc. (NYSE:USU) said the agency's action is helping restore fair trade in the enrichment market.

The ruling was issued in connection with the department's ongoing administrative reviews of duty orders issued on European LEU imports. Antidumping duties have been in effect against Eurodif since July 2001, when the department made its first dumping finding in the case. The purpose of the just-completed review is to determine the magnitude of dumping during the 19-month period (July 13, 2001-January 31, 2003) since the agency made its first dumping determination. Dumping is selling a good at prices below "fair value"--generally the prices charged in the producer's home country, or its cost of production plus a reasonable profit.

In the ruling, the department calculated a final antidumping duty rate of 5.43 percent on imported LEU produced by Eurodif. This rate reflects the actual margin of dumping that occurred on imports made during the 19-month period of review. It will serve as the new estimated antidumping duty rate on future imports, in place of the existing 19.95 percent estimated rate that has applied since the antidumping duty order was imposed.

The Commerce Department's finding reinforces USEC's position that the duties are working. The evidence shows that Eurodif has sharply reduced dumping in the U.S. market, and the government's investigation has been successful in returning stability to the market.

Earlier this month, the department issued the final results of its administrative reviews of countervailing duty orders imposed on government-subsidized LEU imports from Eurodif and the British-Dutch-German consortium Urenco, Ltd. In those reviews, the department established a final countervailing duty rate for Eurodif of 0.71 percent for 2002. Combining the countervailing duty rate with the final antidumping rate, the new rate at which estimated duties will be collected on imports of Eurodif-produced LEU is 6.14 percent.

USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.