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 7, 1999 -- Bethlehem Steel Corporation announced today that it intends to permanently close the stainless sheet and strip operations of Washington Steel, which has operations in Massillon, Ohio, and Washington, Pa.

Bethlehem said that it was taking this action due to the losses being sustained, which have been particularly affected by the unprecedented levels of unfairly traded foreign steel imports, and Bethlehem's inability to sell the business. These assets were acquired by Bethlehem in May 1998 as part of Bethlehem's purchase of Lukens Inc.

Bethlehem said when it acquired Lukens Inc. that it would exit the stainless sheet and strip operations because they did not fit Bethlehem's core strategy in the carbon and alloy steel business.

Bethlehem said that, since the May 1998 closing with Lukens, it has been attempting to sell the assets of the Washington and Massillon facilities and that it will continue those efforts.

The intended closing will result in the loss of about 340 jobs in Washington and about 200 jobs in Massillon. Employees will be affected as customer orders are completed and operations curtailed during the first quarter.

In accordance with the current labor contracts with the United Steelworkers of America, the union has been notified of the planned cessation of operations by the end of the first quarter. A Worker Adjustment and Retraining Notification (WARN) Act notice has also been issued to comply with federal law requiring advance notification of no less than 60 days in advance of a permanent closing.

Employees will be given a summary of benefits outlining their eligibility for various benefits, including pensions and health care. Meetings for employees and their spouses will be held with Bethlehem's benefits representatives in February. In addition, outplacement services may be offered to employees to assist them in searching for new jobs.

Bethlehem said that it very much regrets the effect this decision may have upon its employees, their families and the community, and it continues to have a deep concern over the continued high levels of injurious and unfairly traded steel imports. The responsibility of Bethlehem to its stockholders, active employees, retirees and their families requires this decision be made to end the significant cash losses and improve the overall financial strength and performance of Bethlehem.