SASKATOON, SASKATCHEWAN -- (MARKET WIRE) -- 07/05/07 -- Cameco Corporation (TSX: CCO) (NYSE: CCJ) announced today that about 120 unionized employees at Zircatec Precision Industries, a Cameco company, have accepted a contract settlement offer.

The workers, represented by the United Steelworkers Local 14193, voted in favour of a new two-year contract that includes wage increases of 4% in each of the two years.

"We are pleased with the successful conclusion of our first contract negotiations with the newest members of the Cameco family," said president and CEO Jerry Grandey. "This agreement provides a stable foundation for Zircatec's continued progress."

Negotiations began prior to the expiration of the previous three-year contract on June 1, 2007.

Zircatec's primary business is manufacturing nuclear fuel bundles and components for sale to companies that generate electricity from Candu reactors. It operates a tubing plant in Cobourg, Ontario and a fuel assembly plant in Port Hope, Ontario.

Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium producer. 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.

Statements contained in this news release, which are not historical facts, are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: the impact of the sales volume of fuel fabrication services, uranium, conversion services, electricity generated and gold; volatility and sensitivity to market prices for uranium, conversion services, electricity in Ontario and gold; competition; the impact of change in foreign currency exchange rates and interest rates; imprecision in decommissioning, reclamation, reserve and tax estimates; environmental and safety risks including increased regulatory burdens and long-term waste disposal; unexpected geological or hydrological conditions; adverse mining conditions; political risks arising from operating in certain developing countries; terrorism; sabotage; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including tax and trade laws and policies; demand for nuclear power; replacement of production; failure to obtain or maintain necessary permits and approvals from government authorities; legislative and regulatory initiatives regarding deregulation, regulation or restructuring of the electric utility industry in Ontario; Ontario electricity rate regulations; natural phenomena including inclement weather conditions, fire, flood, underground floods, earthquakes, pit wall failure and cave-ins; ability to maintain and further improve positive labour relations; strikes or lockouts; operating performance, disruption in the operation of, and life of the company's and customers' facilities; decrease in electrical production due to planned outages extending beyond their scheduled periods or unplanned outages; success of planned development projects; and other development and operating risks.

Although Cameco believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this report. Cameco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts:
Cameco Corporation
Inquiries - Saskatoon
Lyle Krahn
(306) 956-6316

Inquiries - Port Hope
Bob Kelly
(905) 885-1129 (ext. 4018)
Website: www.cameco.com