EPR: Constellation Energy and AREVA join forces to introduce new and unique business model for the future of American Nuclear Power

Press Release

September 15, 2005

Newly formed venture introduces unprecedented platform for nuclear power industry.

September 15, 2005

Constellation Energy (NYSE:CEG) and AREVA Inc., today announced the formation of UniStar Nuclear, a joint enterprise that provides the business framework through which the first fleet of advanced nuclear power plants in America in nearly three decades could be developed and deployed.

The UniStar Nuclear model brings together in one complete package, the world leader of nuclear industry and a deeply-experienced nuclear fleet licensee, operator and owner. Specifically, UniStar Nuclear will offer the business framework which will enable the development of joint ventures with Constellation Energy, other energy companies and interested parties. Those joint ventures, in turn, would license, construct, own and operate nuclear power plants as part of a standardized fleet.

UniStar Nuclear will market a standard advanced design called the U.S. Evolutionary Power Reactor (U.S. EPR). This 1,600-megawatt model is based on AREVA's advanced nuclear power plant, which is now being built in Finland and will also be built in France. It already is providing a strong foundation for the U.S. EPR with real experience in constructing an advanced nuclear power plant. The design incorporates more than 40 years of nuclear power plant operating experience. This ongoing plant construction experience provides a strong foundation for deploying the U.S. EPR. The company has previously announced its plans for obtaining design certification for the U.S. EPR as a standard plant from the U.S. Nuclear Regulatory Commission.

The first fleet of four or more U.S. EPRs that could be developed and deployed under the UniStar approach would efficiently deliver a cost-effective and emissions-free power. Energy companies, investors and consumers will benefit from their high-quality design and the operating efficiencies inherent in this fleet of standard plants.

AREVA, as prime contractor, will provide the nuclear reactor and all support systems, instrumentation and control system and initial load of nuclear fuel.

As currently envisioned, Constellation Energy would operate the proposed fleet of nuclear power plants and expects to hold the plant operating licenses. The company also intends to form joint ventures for each nuclear power plant. However, prior to identifying specific projects and committing to ordering new nuclear power plants, Constellation Energy's financial commitment will be limited to the formation of the business platform and business development activities.

AREVA and Constellation Energy also announced that Bechtel Power Corporation will support the project with its expertise as an architect-engineer and constructor.

“The foresight and actions taken by the Bush Administration and Congress with the passage of the Energy Policy Act, have paved the way for today's announcement, “ said Michael J. Wallace, Executive vice president of Constellation Energy, President of Constellation Generation Group and co-chief executive office of UniStar Nuclear. By supporting nuclear power at a critical time, President Bush and Congress have helped secure America's energy future. The combination of Constellation Energy, AREVA and Bechtel is the right team at the right time with the right technology.”

“The decision taken by the US Administration and Congress shows, yet again, that nuclear is necessary to secure a competitive and environmental-friendly energy supply”, said Anne LAUVERGEON, Chairman of the Executive Board of AREVA.

She added that: “Constellation Energy's choice of this technology underlines the strength of the partnerships created with AREVA in the U.S. and confirms the leading position of the U.S. EPR, both technologically and economically. This joint enterprise will give us a very concrete, ambitious basis upon which to build the U.S. EPR in the United States.”

More about...

UniStar Nuclear is headquartered in Annapolis, Md.

Constellation Energy, a FORTUNE 200 company with 2005 revenues of $17.1 billion, is the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of more than 100 generating units located throughout the United States, totaling approximately 12,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.

As the leading U.S. nuclear supplier and a key player in the electricity transmission and distribution sector, AREVA's 8,000 American employees are commited to serve the nation and pave the way for the future of the electricity market. The company's commitment to America is reflected in its initial investment of $200 million in the U.S. EPR. With 40 locations across the nation and more than $2 billion in revenues in 2004, AREVA combines homegrown leadership, access to worldwide expertise and a proven track record of performance through its U.S. subsidiary UniStar. In the U.S. and in over 100 countries around the world, AREVA is engaged in the 21st century's greatest challenges: making energy available to all, protecting the planet and acting responsibly towards future generations. AREVA Inc. is headquartered in Bethesda, Maryland.

Contacts

Jarret Adams
Phone: +1 (306) 343-4637
Email: jarret.adams@areva.com



Véronique Larlham
Phone: +1 (306) 343-4503
Email: veronique.larlham@areva.com