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., December 29, 1997 — Bethlehem Steel Corporation announced today that it intends to discontinue its Bethlehem Coke Division operations in Bethlehem, Pa., by March 31, 1998, and issued the following statement:

As we end the year 1997, it was determined appropriate to decide this year whether or not Bethlehem should continue the Bethlehem Coke Division. The Board of Directors decided today that Bethlehem intends to discontinue this business by March 31, 1998.

In October 1996, as part of its comprehensive restructuring plan, Bethlehem wrote off the property, plant and equipment of its Bethlehem Coke Division as an “impaired asset” in accordance with generally accepted accounting principles. Since that time, substantial efforts have been made to try to improve the performance of the Division, and we recognize and appreciate the work of our employees. Unfortunately, the Division has continued to incur significant operating losses, and it is believed that the Division cannot return to a satisfactory level of profitability. As we have often said, we will try to improve the performance of any Underperforming Division we may have but, if that is not possible, we will exit those businesses.

We very much regret the effect this decision may have upon our employees, their families and the community. However, the responsibility of Bethlehem to its stockholders, active employees in other Divisions, and retirees and their families requires this decision be made in order to end these significant losses and to help continue the improvement of the overall financial strength and performance of Bethlehem.

The Division has about 800 employees who are eligible for various benefits and the majority are entitled to immediate retirement benefits. Employee benefits, training and outplacement will be provided to affected employees. This responsibility will be under the direction of Dorothy Stephenson, vice president of human resources. It is possible that some employment opportunities at other Bethlehem locations might exist.

Bethlehem said that it will take immediate steps to try to sell the Division over the next several months. At the present time, no parties have expressed an interest in purchasing the Division. These efforts will be the responsibility of and under the direction of Gary L. Millenbruch, executive vice president. Until such time as the Division is sold, or discontinued, operations will be under the supervision of Ronald R. Morello, manager.

In support of economic and community development, Bethlehem will accelerate its efforts through a public-private partnership to help develop Bethlehem's South Side properties through the Bethlehem Works project and related activities. This responsibility will be under the direction of Stephen G. Donches, vice president, public affairs. If successfully implemented, this will create jobs, provide sources of employment, revenue and taxes.