USA, California, Pebble Beach

The first meeting of shareholders of Toshiba-Westinghouse Electric took place with participation of JSC NAC Kazatomprom. Management report on current year’s activities of Toshiba-Westinghouse Electric was presented during the meeting and production plans for the future were considered. Kazatomprom was officially introduced as a new shareholder of this Company.

According to President Moukhtar Dzhakishev, who took part in the meeting, an agreement was reached that the fuel for the reactors of Toshiba-Westinghouse Electric will be supplied by Kazatomprom for the new markets. These agreements will allow Kazatomprom to receive a license for the final type of product in nuclear fuel cycle – fuel assembly, and also open access to the new sales markets.

Construction of fuel assembly production at Ulba Metallurgical Plant (UMP) will be completed in 2011-2012. The technical partner of Kazatomprom in organization or production of fuel assemblies is Toshiba-Westinghouse Electric. These assemblies will be supplied to the newly emerging markets.

It is expected that by 2030 there will be additional 455 reactors in the world including 300 reactors built by Toshiba-Westinghouse Electric. This way, said Mr. Dzhakishev, “We expect that 30% of the world market of fuel will belong to Kazatomprom, i.e. each third reactor in the world will work on our fuel”.

Implementation of these plans will allow Kazatomprom to become a vertically integrated company possessing all the links of nuclear fuel cycle, and supply to the world market not the natural uranium but the final products with maximum added value – fuel assemblies for Nuclear Power Plants (NPP).

“I.e., we earn not only with dividends of Toshiba-Westinghouse Electric but we also plan to earn money on the type of services that we can offer to the clients and what before was done by others” – stressed Moukhtar Dzhakishev.

To remind, in October of this year Kazatomprom finalized the deal on purchase from Toshiba Corporation of 10% shares in Westinghouse Electric Company. Payment on the deal, which amounted to $540 million, was made due to own funds of Kazatomprom. Toshiba still preserves the control over nuclear business of Westinghouse by owning 67% shares in holding companies in USA and Great Britain. The rest of shares belong to The Shaw Group Inc., largest American engineering company (20%), and IHI Corporation, the leading Japanese producer of equipment (3%).

Remark

• Kazatomprom is the national operator of Kazakhstan on export of uranium and other materials of dual purpose. 100% of Company’s shares belong to the Government represented by the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan. “Kazatomprom” represents a holding managing six main activities: geological exploration, uranium production, metallurgy, energy, scientific support, personnel training and social provision. About 23000 people work in the Company today. “Kazatomprom” is among the leading uranium producers in the world. For more detailed information please visit our website www.kazatomprom.kz
• Westinghouse Electric – company number 1 in the world on number of maintained reactors. About 50% of all NPP in the world are built according to technologies of Westinghouse. Westinghouse technology is used in USA, Japan, China, Great Britain, Switzerland, Belgium, Brazil, Spain, South Korea, Sweden, India, Slovenia, SAR. As of today the Company employs over 8 500 people throughout the world. Westinghouse is the only company in the world that can manufacture fuel for any type of reactors. The Company has three main directions of business: nuclear fuel, nuclear services and nuclear power plants. For more detailed information please visit www.westinghousenuclear.com