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Saskatoon, Saskatchewan, Canada, June 12, 2002
Cameco Corporation reports a settlement has been reached regarding a pension lawsuit involving members of the Eldorado/Cameco Pension Plan and would like to confirm the following background and facts:
- Members of the pension plan, the majority of whom were
employed by the federal Crown corporation Eldorado Nuclear
Limited prior to the merger in October 1988 which created
Cameco, filed the lawsuit in 1993.
- The lawsuit (Boate et al versus Canada Eldor Inc. et al)
was based on issues related to the conversion of the pension
plan from a defined benefit plan to a defined contribution
plan effective January 1988 and the use of the surplus.
The overwhelming majority of the surplus was used to improve
members' pension benefits. In addition, the lawsuit raised
issues regarding historical contribution holidays taken
under the plan and the deductibility of certain expenses
from the plan. At the time, Eldorado obtained regulatory
approval from the Office of the Superintendent of Financial
Institutions.
- The lawsuit, claiming in excess of $60 million, has been
settled for $18 million, less legal and administrative costs,
resulting in a total gross settlement of $16.5 million to
eligible members of the plan.
- Of the $18 million settlement, Eldorado (now Canada Eldor
Inc., agent of the federal government) will assume responsibility
for $16.2 million and Cameco will assume responsibility
for $1.8 million.
- The lawsuit has been settled with no admission of liability and Cameco believes the plan was administered properly at all times.
Cameco will provide whatever assistance it can to ensure the timely distribution of funds and the smooth administration of the settlement.
Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium supplier. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. Cameco's shares trade on the Toronto and New York stock exchanges.
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| For further information, please contact: |
|
Bob Lillie Manager, Investor Relations Cameco Corporation Phone:(306) 956-6639 Fax:(306) 956-6318 |