Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., July 21, 1999 -- Bethlehem Steel Corporation announced today that it has entered into a $60-million, 18-month loan arrangement to finance equipment being supplied by Voest-Alpine Industrieanlagenbau GmbH in connection with the 1.7 million ton per year cold rolling mill complex currently under construction at Bethlehem's Sparrows Point (Md.) Division. RZB Finance, LLC, the New York subsidiary of Raffeisen Zentralbank Oesterreich AG, is acting as arranger and agent for the financing.

Gary L. Millenbruch, Executive Vice President, Chief Financial Officer and Treasurer, of Bethlehem Steel, said: "This short-term loan arrangement provides additional financial resources during a period of relatively high capital expenditures that are focused on enhancing the competitiveness of our businesses and increasing stockholder value."

The cold rolling mill complex, designed to make Sparrows Point a leading supplier of premium cold rolled products, is one of several major capital expenditure projects under way or planned at the Sparrows Point Division over the next few years. These projects include the conversion of a continuous slab casting strand to a wide slab casting strand, the reline of "L" blast furnace and improvements to the basic oxygen furnace. Additionally, several other projects, which involve a joint-venture partner or an outside contractor, are currently under way at the Sparrows Point Division, including a roll grinding facility, a scrap handling facility and a pulverized coal injection facility.

"This major investment strategy, along with other competitiveness initiatives, is part of the Sparrow Point Division's comprehensive plan to achieve and sustain a superior rate of return on its assets," said Mr. Millenbruch.