Mississauga, 2006 May 25 — Atomic Energy of Canada Limited (AECL) today announced that it has signed a Memorandum of Understanding (MOU) with Nucleoeléctrica Argentina S.A. (NASA) and Comisión Nacional de Energía Atómica (CNEA) for an expanded scope of nuclear co-operation.

It is anticipated that the MOU will lead to increased trade and commercial business for the Canadian nuclear industry in South America. Argentina’s nuclear power program is centred on heavy water reactors, including Embalse, which is an AECL CANDU 6 reactor that began operating in 1984, and has a lifetime capacity factor of 85 per cent.

In addition, Argentina has significant heavy water reactor infrastructure including R&D facilities, heavy water production, fuel manufacture, and supply of certain plant components.

In commenting on the MOU, Minister of Natural Resources Gary Lunn stated that AECL and the Canadian nuclear industry have an excellent reputation in Argentina and throughout South America.

"The CANDU 6 power reactor is a leading global performer in generating safe, reliable and economic electricity. I am proud to note that AECL and Team CANDU have a proven record of on-time, on-budget project delivery," he said. "As a leader in clean-air nuclear power, Canada looks to deepen its nuclear energy co-operation with Argentina in the areas of fuel, waste management, reactor refurbishment and advanced reactor technology."

The MOU specifies a number of nuclear-related projects on which AECL, NASA and CNEA will collaborate. These include developing a program of refurbishment of the very successful Embalse CANDU 6 power reactor and collaboration to advance the development in Argentina of nuclear energy generation and supporting facilities, including dry spent fuel storage, CANDU fuel cycle design and heavy water supply.

Furthermore, AECL, NASA and CNEA will jointly develop a feasibility study to build a new CANDU reactor in Argentina with the intent of recommending to the Argentinean government the construction of the fourth nuclear power plant.

AECL’s President and Chief Executive Officer Robert Van Adel said, “AECL’s agreement with Argentina sets out the framework for a program of substantially enhanced nuclear co-operation with resulting commercial opportunities. This is a very positive development for AECL and the Canadian nuclear industry.”

AECL’s CANDU 6 (700 megawatt class) reactors are operated in five countries on four continents by six different utility customers and have outstanding performance track records. Three of the CANDU 6 units rank in the world’s top 10 reactors by lifetime performance. Evolving from the successful CANDU 6, AECL has also developed the new Advanced CANDU Reactor – ACR-1000^®, an innovative next generation technology.

About AECL

Atomic Energy of Canada Limited is 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 and the new ACR-1000.

AECL’s 4,000 employees deliver cutting edge nuclear services, R&D support, design and engineering, construction management, specialized technology, waste management and decommissioning in support of CANDU reactor products. We work in partnership with our clients to provide clean, safe, reliable and affordable energy solutions. More information on AECL and CANDU technology can be found at www.aecl.ca.

Contact:

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