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., May 29, 1998 -- Bethlehem Steel Corporation today completed its acquisition of Lukens Inc., strengthening its position as the leading producer and supplier of steel plate products.

The transaction, valued at about $800 million, was completed earlier today following approval yesterday of the merger by shareholders of Lukens Inc. The equity value of the transaction is about $550 million, with about $335 million in the form of cash and the balance in Bethlehem common stock. Bethlehem also assumed about $250 million in debt.

Curtis H. Barnette, chairman and chief executive officer of Bethlehem Steel, said: "The completion of our acquisition of Lukens joins two of the world's preeminent steel plate producers to form Bethlehem Lukens Plate, a Division of Bethlehem Steel Corporation. We have been preparing for the consolidation of our companies in anticipation of approval of this merger. Therefore, today, the Division begins its operations. We are staffed and equipped to immediately meet our customers' needs and to provide a full range of steel plate products and services."

Bethlehem's chairman added, "Bethlehem continues to believe that this combination will increase its earnings per share after an initial transition period required to integrate the operations of the two companies and to sell the stainless assets. It will also allow us to maximize facility capabilities, achieve efficiencies and better serve our plate customers."

Bethlehem expects that the acquisition of Lukens will increase its annual revenues to about $5 billion and its annual shipments to about 9.5 million tons.

Bethlehem Lukens Plate currently has six plate mills that combined produce about 2.3 million tons annually -- two in Burns Harbor, Ind. - 160" and 110" sheared plate mills; two in Coatesville -140" and 206" sheared mills; a 110" combination Steckel/sheared mill in Conshohocken, Pa., and a 160" sheared mill in Sparrows Point, Md. To maximize efficiencies and productivity, Bethlehem plans to close the Sparrows Point plate mill and the 206" plate mill in Coatesville later this year. With the increased utilization of the remaining four mills, Bethlehem Lukens Plate will have shipments of about 2.3 million tons annually. Bethlehem previously announced that it will record a restructuring charge of about $35 million before taxes in the second quarter of 1998 in connection with the anticipated closing of the Sparrows Point mill.

As previously announced, Bethlehem has entered into an agreement with Allegheny Teledyne Incorporated under which Allegheny will purchase certain assets that Lukens used in the manufacture of stainless steel products. Under separate agreements, Bethlehem will provide Allegheny with conversion services for stainless steel hot bands and coiled plate, and Allegheny will supply hot rolled bands to Bethlehem for further processing on the Lukens stainless steel coil finishing facilities until those facilities are subsequently sold by Bethlehem.

Consistent with Bethlehem's strategy of concentrating on its core steel business and building on its strength in the production of carbon and alloy steel products, Bethlehem said it will continue its efforts to sell the stainless sheet rolling operations at Washington, Pa.; the cold rolling and finishing facility for stainless sheet at Massillon, Ohio, and the Washington Specialty Metals processing and distribution business with headquarters in Buffalo Grove, Ill. "There has been a good level of interest expressed in these businesses, and we hope to complete their sale and implement the Allegheny Teledyne agreements in the near future," Mr. Barnette said.

Bethlehem Lukens Plate, with headquarters in Coatesville, is led by Van R. Reiner as president of the division. Mr. Reiner holds a bachelor of science degree in chemistry from Wittenburg University and a master of science degree from Lehigh University. He has completed executive education programs at Duke University and the University of Pennsylvania's Wharton School. A Bethlehem employee since 1974, Mr. Reiner most recently served as senior manager, operations, at Bethlehem Steel's Burns Harbor, Ind., Division. Mr. Reiner said, "We are excited about the excellent team of employees at Bethlehem Lukens Plate. We all are focused on executing a business plan to deliver to our customers the highest quality plates and service in the industry that will enhance our position as the Premier Plate Producer."

The principal consuming markets for plate products are construction, industrial machinery, farm equipment, transportation, railroad car, pipe and tube, oil and gas pipeline, and shipbuilding industries.

Bethlehem Steel is the nation's second largest integrated steelmaker and primarily manufactures and sells a wide variety of steel mill products.