seriously? you're still suggesting it violates physical laws, and yes, I can DERIVE E=mc^2 right here and now if you want, explain every single step of the way, and tell you why what you're saying is not right. The mass-energy equivalency equation says that this bit of matter CONTAINS this amount of energy. It does not just create energy out of thin air. The matter contains it, and that energy is released in the form of light or heat via a nuclear reaction. Ever heard of the strong and weak nuclear force? Or how about bond energies? Where do you think the energy released from a nuclear reaction comes from?
Nuclear power does not use matter/anti-matter annihilation to release energy, it's the decay due to the introduction of a neutron into the core of an otherwise stable nucleus. That introduction of neutron(s) causes instability in the nucleus, causing it to break apart, releasing energy.
Energy is NOT created, it is simply turned from one form into another.
Wikipedia:
"The total amount of mass-energy in a closed system remains constant because energy cannot be created or destroyed and, in all of its forms, trapped energy has mass. According to the theory of relativity, mass and energy as commonly understood are two names for the same thing, and neither one appears without the other."
I could also go on and tell you that E=mc^2 is an oversimplified version of the mass-energy equivalence equation, and tell you why relativistic mass-energy equivalence is more important in most cases, where the mass is the rest-mass, and it's multiplied by a relativistic factor of Gamma, which is:
γ=(sqrt(1-(v^2/c^2)))^-1
now, any more? please don't pull that smug "Maybe you have heard of e=mc^2?" shit on me.