Mississauga, 2006 March 27 — Provides Ontario with a “powerhouse of expertise and experience” to build new nuclear plants

Five of the world’s leading nuclear technology and engineering companies have signed a four-year agreement to work together as Team CANDU to present a turn-key service and competitive solution for building new nuclear power plants in Ontario. Members of Team CANDU consist of Atomic Energy of Canada Limited (AECL), Babcock & Wilcox Canada (B&W), General Electric Canada (GEC), Hitachi Canada Ltd. (HCL) and SNC – Lavalin Nuclear Inc. (SLN).

A report released by the Ontario Power Authority in December, 2005 states that two-thirds of Ontario’s base-load generation will need replacement in the next 15 years. Team CANDU is strategically aligned to provide Ontario with a clean, safe, economical and reliable base-load option. Each member of the team has the technical strengths, core expertise and proven track record of delivering a world-class product on time and on budget.

Team CANDU will deliver a business model for Ontario that they have successfully deployed in other markets around the world over the past decade. Each of the partners takes on its share of project risk to deliver new CANDU power plants on a turn-key, fixed price basis. In this case, the traditional project risk is transferred from the owner/utility to the project team members. Based on its record of project delivery, the Team ensures delivery on time, on budget.

“AECL is teaming up with other leaders in the global nuclear industry to create a “power-house” of expertise and experience to address the pressing need for new nuclear plants in Ontario on a very competitive basis,” stated AECL’s President and Chief Executive Officer Robert Van Adel. “CANDU technology is a proven world-class performer and Team CANDU is fully equipped to bring new CANDU plants to market in Ontario and is well positioned to respond to any opportunity in a competitive global marketplace.”

Rich Reimels, President, Babcock & Wilcox Canada said: “Over the last 40 years, Babcock & Wilcox Canada has become a world-leading supplier of steam generators and critical use heat exchangers for the nuclear utility market. We have provided more than 260 steam generators to the nuclear plants around the world, including every nuclear power plant in Canada. Working together as part of Team CANDU, with the solid support of industry leaders, we can deliver even more value to end customers.”

Peter Mason, Vice President & General Manager, GE Canada Nuclear products added: “GE Canada is pleased to bring to Team CANDU 50 years of experience in the CANDU nuclear industry together with the products and resources of the global GE company.”

Howard Shearer, Hitachi Canada’s President and Chief Executive Officer stated: “Hitachi brings to the Team considerable financial strength as well as our experience and understanding of all of the technologies that are required to deliver best in class plants. In addition to that, we have a manufacturing base serving the energy sector already established in Canada and we are looking for opportunities to grow and expand in Ontario.”

Patrick Lamarre, President, SNC-Lavalin Nuclear Inc. said: “We know the Ontario market well, and we bring recognized international expertise and experience to our new Team effort. As a Team, we are confident we can continue to supply competitive nuclear power projects which will benefit the people of Ontario – as well as Canadians elsewhere in the country.”

CANDU technology is clean, safe, economical and reliable, made-in-Canada and the best choice for Ontario in terms of safety, proven performance and project delivery. CANDU 6 is one of the top performing nuclear products in the world today and when combined with the ACR-1000 they are the most beneficial and most competitive options for new base load power in Ontario.

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Contact:

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