.1 Overview of B&W Medical Isotope Production System Foundation for Nuclear Studies September 27, 2011 Steve Schilthelm Deputy Program Manager

.2 The Babcock & Wilcox Company Government Operations Power Generation Systems High-Consequence Operations & Services Advanced Engineering and Manufacturing Manufactures and services coal, biomass, CNG, concentrated solar power plant equipment, & Nox, Sox, mercury scrubbers Manufactures nuclear components for U.S. Department of Energy Manufactures commercial nuclear components and provides services to commercial nuclear market Manages and operates high-consequence facilities, provides technical services and support to government agencies and private customers B&W Nuclear Operations Group, Inc. B&W Power Generation Group, Inc. B&W Power Generation Group, Inc. B&W Nuclear Energy, Inc. B&W Technical Services Group, Inc.

.3 Covidien Reach Extends Globally and Locally Diverse healthcare products used in all clinical settings Diverse healthcare products used in all clinical settings 20,000+ U.S. employees, 41,000+ worldwide 20,000+ U.S. employees, 41,000+ worldwide Products manufactured in 17 states Products manufactured in 17 states Covidien Tc 99m-based products sold in all 50 states Covidien Tc 99m-based products sold in all 50 states Nuclear Medicine: One of two U.S. suppliers of technetium 99m (Tc 99m) One of two U.S. suppliers of technetium 99m (Tc 99m) Image used by permission of Covidien

.4 B&W MIPS – 99 Mo Production Using Aqueous Homogeneous Reactor  Market studies in Late 1990s  Patented in 1997 (Dr. Russell M. Ball)  2007 MIPS project re-initiated  2009 Agreement with Covidien  2009 Cooperative Agreement with NNSA  Non-proliferation (LEU)  Domestic supply AHR using LEU offers safety, safeguards, simplicity and waste advantages

.5 Over 30 AHRs Built and Operated AHRs are not New Technology CLEVELAND, OH SHEBA Reactor, LANL

.6 AHR - America’s First University Reactor N.C. State’s – R1 ( )

.7 Dissolved Target Waste with 235 U Traditional Technology 235 U Target Fabrication Target Irradiation: Several days Reactor: 10, ,000 kilowatts 99m Tc Generator Facility 99 Mo Processing Facility 99m Tc User Medical Facilities

.8 B&W MIPS Technology 99m Tc User Medical Facilities 99m Tc Generator Facility AHR Reactor 240 kilowatts- 5 days Reactor fuel/target solution returned for subsequent irradiation Initial Fuel Solution Preparation MIPS Facility 99 Mo Processing Cells

.9 Completing R&D Phase of Project  National Laboratories  Argonne  Los Alamos  Armed Forces Radiobiology Research Institute, MD  Purdue University  B&W Labs, VA  INVAP, Argentina

.10 MIPS Project Progress  Conceptual design complete  NRC licensing and waste policy decisions complete  Environmental analysis prepared  Completing R&D activities  Following legislation (HR 3276, S 99)  Entering detailed design and licensing phase of the project

.11 B&W MIPS Summary Mo-99 production using LEU AHR results in:  Increased efficiency  Reduced waste  No proliferation concerns  Safe operation  Stable domestic supply