Mississauga, Ontario; 2006 September 19 — Atomic Energy of Canada Limited (AECL) today announced that its Annual Report for the year ended March 31, 2006 is available for public distribution. An electronic version of the 2006 Annual Report can be downloaded through AECL’s website at www.aecl.ca.

“AECL enjoyed a very good year in 2005-2006 and we have positioned ourselves to seize opportunities for nuclear power growth in both Canada and globally”, said AECL Senior Vice President and Chief Financial Officer Michael Robins. “Revenue from our Commercial Operations business grew six per cent on the strength of signing major reactor refurbishment contracts. In addition, our CANDU Services business continued its strong performance with 18 per cent growth, a sign that AECL is truly a leading provider of full life cycle support to our customers.”

The Corporation’s revenues from all business segments increased by 14 per cent to $407 million in 2005-2006 from $356 million in 2004-2005 reflecting the successful negotiation of refurbishment and retubing contracts with Bruce Power and New Brunswick Power. The Corporation reported net income on a consolidated basis of $5 million compared to a loss of $1,841 million in the previous year when it booked the decommissioning and waste management liability to recognize adoption of international best practices and new accounting standards.

Highlights

• Revenue from Commercial Operations increased $19 million in 2005-2006, and net income was $47 million.
• Consolidated orders-on-hand at the end of 2005-2006 were $1,278 million (2004-2005: $190 million), reflecting two major refurbishment and retubing contracts awarded during the year.
• AECL invested $60 million in the ACR-1000 program in line with government funding support of $60 million in 2005-2006, consequently enabling the achievement of planned milestones.
• Entered a formal agreement with Babcock & Wilcox Canada, GE Canada, Hitachi Canada, and SNC-Lavalin Nuclear to create Team CANDU. Together, these five world-leading nuclear technology and engineering companies will present a turnkey service and competitive solution for building new nuclear power plants in Ontario.
• The Technology segment maintained a $39 million investment in support of the safety and performance of the CANDU fleet.
• Overall, AECL’s cash position (including cash and cash equivalents, segregated cash and short-term investments) at March 31, 2006 increased to $111 million (compared to $67 million in 2004-2005), mainly due to cash generated from operating activities.
• AECL signed a new agreement with MDS Nordion, relating to the long-term supply of isotopes.

About AECL

Atomic Energy of Canada Limited is a full service nuclear technology company providing services to nuclear utilities around the world. Established in 1952, AECL is the designer and builder of CANDU technology including the CANDU 6, one of the world's top performing reactors.

AECL specializes in a range of advanced nuclear energy products and services that are an important component of clean-air energy programs on four continents. AECL's 4,000 employees provide R&D support, design and engineering, construction management, specialized technology, refurbishment, waste management and decommissioning in support of CANDU reactor products. More information on AECL and CANDU technology can be found at www.aecl.ca.

-30-

CONTACT:

Dale Coffin
Director, Corporate Communications
Direct: 905-403-7457
Media: 905-403-7539
Toll free: 1-866-886-2325
E-Mail: coffind@aecl.ca