Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., November 12, 1999 -- Bethlehem Steel Corporation has signed a purchase and sale agreement with Allegheny Ludlum Corporation for the sale of Bethlehem's Washington Steel Division operations in Washington, Pa.

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

When completed, this transaction will help Bethlehem to complete its strategy of divesting, by sale, all of the stainless steel assets that were acquired with the purchase of 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. Bethlehem continues to work toward completing the sale of its Massillon, Ohio, facility, which was part of the Washington Steel Division.

"Bethlehem is pleased to reach this agreement with a leader in the manufacture and distribution of stainless steel products," said Curtis H. Barnette, chairman and chief executive officer, Bethlehem Steel. "We have already entered into a long-term business association with Allegheny Teledyne that involves our Coatesville and Conshohocken, Pa., facilities of Bethlehem Lukens Plate."

The Bethlehem chairman also 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.

The sale is expected to be completed in the fourth quarter, and operations, which ceased earlier this year, are expected to resume after the sale is finalized.