MERIDIAN, Idaho, Feb. 20, 2002 — Nuclear Solutions Inc. announced today that it has submitted a “Notice of Intent to Apply” for a technology grant under the U.S. Department of Energy’s (DOE) Nuclear Energy Research Initiative (NERI) solicitation.

Nuclear Solutions, Inc. intends to file a subsequent NERI grant application to study its patented and patent-pending Hypercon™ ADS process for the transmutation of nuclear waste in collaboration with Los Alamos National Laboratory and North Carolina State University, under the Advanced Nuclear Energy Systems Scope of Work element. The title of the application is, Study of Photonuclear-Based Accelerator-Driven Sub-Critical Reactor Systems by Monte Carlo Simulation.

“We are confident that our process can handle radioactive waste efficiently,” said Dr. Paul M. Brown, President and CEO of Nuclear Solutions. “But we still have much to demonstrate to the scientific community, to have this technology accepted as a practical method for generating power. We can achieve this by working with respected research institutions, like Los Alamos and NC State, to help us arrive at the right conclusions about our proposed approach. We anticipate this will be the beginning of a long-term development relationship between Nuclear Solutions, North Carolina State and Los Alamos National Labs. This study will allow us to evaluate system performance such as reaction efficiency, energy balance and other parameters,” Dr. Brown concluded.

DOE’s Office of Nuclear Energy, Science and Technology began the NERI program in 1999. It is intended to facilitate long-term domestic use of nuclear energy by addressing technical and scientific obstacles to the future use of nuclear energy, including waste disposition, economics, and non-proliferation.

Awards for the FY2002 NERI program are expected to be announced by mid-July. Projects may have durations of one to three years and may be carried out by U.S. universities, industry, non-profit and research organizations. DOE has awarded 69 grants since the inception of the NERI program.

Typical grants under the NERI program range from $200,000 to $450,000 annually, although awards may be higher.

In its solicitation for NERI applications, DOE said, “The National Energy Policy forms the core element in the planning for the Department’s nuclear energy research programs addressing, among other areas, the research and development of advanced reactor and fuel cycle concepts and the associated enabling sciences and technologies.”

Dr. Paul M. Brown added that Nuclear Solutions intends to apply for a Cooperative Research and Development Agreement, known as a CRADA, with DOE. He noted that the Bush administration’s National Energy Policy “supports the expansion of nuclear technologies as a major component in the nation’s energy mix and to meet the nation’s future energy requirements.”