Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., September 24, 1999 - In response to an inquiry from the media concerning the Indiana State Tax Board's recently announced changes to the state's personal property tax assessment regulations, the following was issued:

As the largest taxpayer and employer in Porter County, Indiana, and through its demonstrated commitment to the community, Bethlehem Steel Corporation contributes significantly to the economic viability and quality of life of the Northwest Indiana Region.

Bethlehem Steel is opposed to the Indiana State Tax Board's recently announced changes to the personal property tax assessment regulations. Under the new regulations, Bethlehem expects to incur a significant tax increase in the planned 2001 tax reassessment.

Bethlehem's total property tax liability consists of about 25% based on real property tax assessments and 75% on personal property tax assessments. The personal property portion consists of business inventory and machinery and equipment. Under the new regulations, the real property portion could decline slightly but the personal property tax liability should increase dramatically because of the slower depreciation rates that the State Board plans to adopt. Both existing machinery and equipment and new investments will be depreciated using the slower rates.

Bethlehem is committed to maintaining the competitiveness of the Burns Harbor Division in the global steel marketplace. Only through continued investment in new plant and equipment and through a continued commitment to the community can that competitive edge be maintained. Anything that undermines Bethlehem's ability to make such investments jeopardizes the long-term competitiveness of the Burns Harbor Division.