PROVIDING A NUCLEAR FUEL ALTERNATIVE TO UKRAINE
 Michael Kirst, Vice President, Central and Eastern European Fuel
Westinghouse Electric Company
Washington, D.C., Stockholm, Sweden
Published by the U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Wednesday, January 9, 2008

WASHINGTON/STOCKHOLM - Westinghouse is nearing the completion
of an almost decade long effort to provide a nuclear fuel alternative to
Ukraine to assist in the creation of energy diversity and security for the
country.

It is the expectation that a long-term fuel supply contract will be
completed by the first quarter of 2008 between Westinghouse and Ukrainian
nuclear generator Energoatom.

KEY BENEFITS OF WESTINGHOUSE NUCLEAR FUEL SUPPLY

* As there are no other potential fuel providers in the world for
Ukrainian-type reactors, Westinghouse represents the sole option to ensure
security of supply in cases of poor fuel performance of the existing fuel
provider or unimpeded price demands due to having no competitive threat.

* Westinghouse has designed and manufacturing fuel for 8 different reactor
types throughout the world and have successfully entered as a second
supplier in Germany, Spain, Switzerland, France, Taiwan, South Africa and
Belgium.  Westinghouse has full confidence in its ability to also include
Ukraine on this list.

* Westinghouse fuel performance globally has a substantially better history
than any other manufacturer in the absence of fuel failures (leakers).  In
addition, its fuel design allows for the repair of a failed fuel rod to
permit further energy generation - saving Ukraine millions of dollars it has
lost historically with the current fuel in use which has not allowed repair.

* The Westinghouse fuel also is designed to consume less uranium, allowing
Ukraine to lower its overall costs in energy production, maximize its
domestic uranium reserves and lower the quantity and costs associated with
spent fuel compared to the current fuel provider

* Ukraine is intending to follow the same model as France which also
provided a contract to Westinghouse against its indigenous state-owned fuel
producer to create competition which led to overall price decreases and
performance improvements.  Westinghouse just increased its overall fuel
deliveries by 50 percent (18) reactors due to the success of this
competition.

* Westinghouse pledges to work with Ukraine in developing its own domestic
capabilities in fuel production.  Also, Ukraine may benefit through the
potential supply of Westinghouse's global needs as its nuclear plant designs
represent roughly half the world's operating plants and is considered to
have the next standard design for future needs - the AP1000.

ADDITIONAL WESTINGHOUSE INTERESTS IN UKRAINE

Westinghouse has effectively cooperated, with additional assistance from the
US Government, to provide the most advanced nuclear safety systems
available for Ukraine's fleet.

It now wishes to pursue reactor power uprates and capacity increases of the
existing units and to offer its AP1000 reactor design for new generation.
2008 will be the start of these efforts alongside the completion of the fuel
program.