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., January 28, 1998 --- In response to inquiries concerning a joint announcement made earlier today by Allegheny Teledyne Incorporated and Bethlehem Steel Corporation, the following statement was issued by Bethlehem:

Bethlehem Steel Corporation confirmed that it has signed three agreements with Allegheny Teledyne Incorporated that become effective immediately after Bethlehem closes its previously announced merger with Lukens Inc. First, under an Asset Sale Agreement, Allegheny Teledyne will purchase certain assets that Lukens currently uses in the manufacture of stainless steel products. Second, under a long-term Conversion Agreement, Bethlehem will melt, cast and process certain stainless steel products for Allegheny Teledyne at the Lukens melting facilities in Coatesville, Pa., and the Lukens rolling facilities in Conshohocken, Pa. And, third, under a Hot Band Supply Agreement, Allegheny Teledyne will provide to Bethlehem hot roll bands for further processing on the stainless steel cold rolling facilities that Lukens currently owns and operates.

Curtis H. Barnette, Bethlehem's Chairman and Chief Executive Officer, said, "We are very pleased with the agreements that we have entered into with Allegheny Teledyne inasmuch as they allow each of our companies to concentrate on our respective strengths. Allegheny Teledyne is a recognized leader in the stainless and specialty metals business," Mr. Barnette said.

He continued, "In Bethlehem's case, these agreements are very important to us because they will add value for our stockholders in three ways. First, we will be able to concentrate on our core business interests in carbon and alloy plate, and achieve essentially the same level of operating, administrative and other synergies that we had previously said would be possible with our merger with Lukens. Second, we will now be able to receive value in the near-term from the sale of certain of Lukens' stainless assets that are not part of our core strategy. And, third, these agreements constitute the beginning of a new and important relationship with Allegheny Teledyne that we believe may provide additional opportunities for creating value in the areas of operating practices, process and product technology, and sourcing," Mr. Barnette said.

With respect to Bethlehem's merger with Lukens, Mr. Barnette said, "Our primary interest in merging with Lukens relates to its carbon and alloy plate business. And, as we have previously said, we believe the combination of the strengths of each company will create a more globally competitive and customer focused plate business with the broadest range of carbon and alloy plate products in the industry. We believe this combination will establish the premier carbon and alloy plate business."

Under the terms of the Asset Sale Agreement, Allegheny Teledyne will purchase, for $175 million, the Houston, Pa., electric furnace melt shop and hot rolling facilities, the Massillon, Ohio, wide anneal and pickle line, and the Coatesville, Pa., VOD (vacuum-oxygen-decarburization) refining unit for stainless steel products.

The long-term Conversion Agreement provides that Bethlehem make available up to 15 percent of the time on the Coatesville, Pa., electric furnace melt shop, caster and the Conshohocken, Pa., Steckel Mill for the melting, casting and processing of certain of Allegheny Teledyne's requirements for stainless steel products.

The Hot Band Supply Agreement provides for Bethlehem to purchase, at market prices as defined in the Agreement, up to 150,000 tons per year of stainless hot roll bands produced at Lukens' Houston, Pa., stainless steel melting and related facilities for use at Lukens' Massillon, Ohio, and Washington, Pa., stainless steel cold rolling and related processing facilities until these assets are sold, as previously announced.

This agreement is subject to certain conditions, including the completion of Bethlehem's merger with Lukens Inc. and the receipt of regulatory approvals.