For Immediate Release

Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax

BETHLEHEM, Pa., April 1, 1997 -- Bethlehem Steel announced today that it has completed the sale of its 37.57 percent equity interest in the Iron Ore Company of Canada (IOC) to North, Ltd., an Australian diversified resources company. As part of the transaction, National Steel Corporation has also sold its 21.73 percent equity interest in the Iron Ore Company of Canada.

Bethlehem said that the sale of its equity interest will result in cash proceeds of about $145 million and the recording of a pretax gain of about $135 million ($113 million or $1.01 per share, after tax) in the second quarter of this year, and further improvement in its capital structure.

Bethlehem said that it will have a continuing relationship with the Iron Ore Company of Canada and will purchase iron ore from IOC at market prices under a long-term contract. The Iron Ore Company of Canada has iron ore production facilities in Labrador City, Newfoundland, ore shipping facilities in Sept-Iles, Quebec, and produces approximately 15 million tonnes of iron ore annually.

Bethlehem's sale of its interest in the Iron Ore Company of Canada is a continuation of its corporate strategy of concentrating on its core steel businesses and rebuilding its financial strength.

J. P. Morgan & Co. acted as financial advisor to Bethlehem and National in connection with this transaction.