What's all this about?Announced by:SILEX SYSTEMS LIMITED...

What's all this about?

Announced by:SILEX SYSTEMS LIMITED (SLX)
Announced on: 20/06/2002 09:30:50
355 words
Status: Market sensitive (Y)
Industry Sub Group: High Technology (228)



--------------------------------------------------------------------------------

SILEX SYSTEMS LIMITED 2002-06-20 ASX-SIGNAL-G

HOMEX - Sydney

+++++++++++++++++++++++++
USEC Inc, the US-based partner in the SILEX uranium enrichment
development program, has confirmed its commitment to continue to
support the program despite press speculation to the contrary.

The announcement made by USEC yesterday regarding the deployment of
US centrifuge technology does not change anything in the SILEX
Technology program being conducted at our Lucas Heights Laboratories
Dr Michael Goldsworthy, Silex CEO, said today. "USEC will continue to
fund 100% of the project costs, with our FY'03 budget finalised just
this week. Our focus remains on proving that SILEX is the superior
technology, thereby allowing USEC to change its priorities as it
moves forward to deploy advanced enrichment technology" he added.

Mr Dan Stout, USEC's Director of Enrichment Technology, said: "We
continue to support the development of the promising SILEX technology
at a pace consistent with its stage of development, and are
optimistic that SILEX can be an important contributor to making USEC
the low cost uranium enricher in the decades to come"

USEC is the world's largest supplier of uranium enrichment services,
with approximately one third of the US$3.5 billion per annum market.
USEC's initial deployment of centrifuge will most likely involve
between 1 and 3.5 million SWU (enrichment units). With current total
annual sales running at between 10 and 12 million SWU, there will
thus be ample opportunity for substantial SILEX deployment, should it
prove cost effective. The possibility of USEC increasing its market
share also exists in this scenario.

Meanwhile, laboratory testing with the 'Direct Measurement' facility
commenced recently, and is expected to continue for the remainder of
the calendar year. Silex remains confident that the results of this
test program will provide positive evidence supporting the efficiency
of the SILEX process, and contribute to USEC's decision for the
second program milestone.

New Website:

For further information on the Company's activities, please visit our
new website at : www.silex.com.au.

Dr Michael Goldsworthy
MANAGING DIRECTOR / CEO

Contacts:
Dr Michael Goldsworthy (02) 9532 1331
Mr Chris Wilks (02) 9855 5555

This announcement is issued in satisfaction of the company's
obligations under ASX Listing Rule 3.10.3.