Agreement to include joint work on the development of the

Advanced CANDU Reactor design

OTTAWA, Sept. 9 /CNW/ - Atomic Energy of Canada Limited (AECL) and the China National Nuclear Corporation (CNNC) today signed an Agreement on Nuclear Energy Cooperation at a signing ceremony on Parliament Hill in the presence of Prime Minister Paul Martin and Chinese President Hu.

The Agreement specifies a number of nuclear-related projects on which AECL and CNNC will collaborate. These include joint work on the design of the Advanced CANDU Reactor for China, advanced work on CANDU materials, waste management, CANDU fuel cycles, computerized operations support tools, as well as collaboration in developing advanced technologies including hydrogen production.

"The two AECL-supplied CANDU 6 units at Qinshan Phase III are the best performing nuclear plants in China. This outstanding performance demonstrates AECL's and CNNC's high international standards in nuclear technology capability", said AECL President and CEO, Robert Van Adel. "This Agreement builds on our solid relationship to our mutual advantage and is tangible evidence of our long-standing commitment to CANDU technology."

The Agreement is an important step in furthering Canada's bilateral relations with China. It is the first deliverable from the Memorandum of Understanding on Nuclear Energy Cooperation that was signed in China in January 2005 during the visit of Prime Minister Martin, International Trade Minister Jim Peterson and Industry Minister David L. Emerson.

Mr. Van Adel added, "This agreement confirms China's strong and continued interest in acquiring CANDU nuclear technology. We believe CANDU technology is the best in the world, and we look forward to working closely with our partners at CNNC to make it even better."

AECL has a proven track record in China having successfully delivered two CANDU 6 units under budget and four months ahead of schedule at the Qinshan Phase III site, located 125 kilometres south of Shanghai, in cooperation with Chinese and international partners.

About AECL

AECL is an integrated nuclear technology company providing services to nuclear utilities worldwide. Our 3,200 employees are focused on delivering R&D support, nuclear services, design and engineering, construction management, specialist technology, and waste management and decommissioning in support of CANDU reactor products.

Additional information on AECL and its products can be found at www.aecl.ca.