CONCORD, Mass., July 6 /PRNewswire/ -- Starmet Corporation
(Nasdaq: STMT) announced today that its wholly-owned subsidiary, Starmet CMI,
has been awarded a contract from the United States Enrichment Corporation
(USEC), pursuant to which Starmet expects to receive approximately $13 million
for the conversion of depleted uranium hexafluoride (UF6) over a 32 month
period at its Barnwell, South Carolina facility, subject to certain
conditions. The contract contains a follow-on option under which Starmet
would expect to receive up to $26 million, which is exercisable by USEC over
the first 28 months of the contract. Under the contract, USEC also has the
exclusive right, during the first 32 months of the contract, to form a joint
venture company or enter into a similar arrangement with Starmet to
commercially exploit business opportunities involving the deconversion of
depleted uranium hexafluoride to metal and/or oxide or other by-products.
USEC, with FY 1997 revenues of $1.58 billion, is the world leader in the
production and sales of uranium fuel enrichment services for commercial
nuclear power plants in 14 countries, including the United States. With
headquarters in Bethesda, Maryland, USEC manages gaseous diffusion enrichment
plants in Kentucky and Ohio, and is developing an advanced laser-based
enrichment technology at facilities in California. Under a separate contract,
Starmet CMI is providing uranium feedstock to USEC's California facility for
laser-based enrichment.
Starmet CMI, established in 1983 as Carolina Metals, Inc., provides
uranium metal and oxide products and related services to both the commercial
and government markets. It operates fully licensed production facilities
capable of processing uranium and depleted uranium feed materials into
customer specified products. Starmet CMI is the only licensed and operational
facility in North America that is capable of converting natural and depleted
uranium hexafluoride into metal and oxide products.
Starmet Corporation, based in Concord, Massachusetts is a diversified
metallurgical technology company.
Certain statements in this press release, including, without limitation,
the Company's expectations concerning the (i) completion of work, (ii)
exercise of follow-on options and (iii) timing of revenues, under the contract
described above, contain certain forward-looking statements concerning Starmet
Corporation's and its subsidiary's, Starmet CMI, operations, economic
performance and financial condition. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Starmet Corporation to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Factors that could
cause such difference include, but are not limited to, those discussed in
Exhibit 99 to the Company's quarterly report on Form 10-Q for the fiscal
quarter ended March 31, 1998. The words "believe," "expect," "anticipate,"
"intend" and "plan" and similar expressions identify forward-looking
statements, which speak only as of the date the statement was made.
SOURCE Starmet Corporation
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fax, 800-758-5804, ext. 632850
CONTACT:
Frank J. Vumbaco, Vice President, Corporate
Communications of Starmet, 508-369-5410
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