Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., December 22, 1999 -- Bethlehem Steel Corporation has completed the sale of its Washington Steel Division facility in Washington, Pa., to Allegheny Ludlum Corporation. The sale price was $20.5 million.

The Washington, Pa., plant includes stainless steel processing operations such as pickling and annealing, cold rolling, polishing, cutting and slitting. Allegheny Ludlum purchased the Houston, Pa., plant, which produces slabs and hot bands, from Bethlehem Steel in November 1998.

The sale of this facility nearly completes Bethlehem's divestiture, by sale, of all of the stainless steel assets that were acquired when Bethlehem merged with Lukens Inc. in May 1998. Bethlehem said at that time that it would continue to focus on its core carbon and alloy steel businesses, and would attempt to sell the stainless businesses. One remaining stainless asset, the Massillon, Ohio, facility, is under a purchase and sale agreement to Massillon Stainless Inc. with closing expected early in the first quarter of 2000.

Bethlehem credited the assistance of U.S. Rep. Frank Mascara, State Senator J. Barry Stout, State Rep. Leo J. Trich Jr. and Steve Kohler of Governor Tom Ridge's Action Team for their help in facilitating the sale.