Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., August 17, 2000 - A major national developer of industrial and office parks intends to purchase 215 acres at Bethlehem Steel Corporation's Bethlehem Commerce Center property.

Majestic Realty Co., with headquarters in City of Industry, Calif., has signed a letter of intent with Bethlehem Steel Corporation to purchase the acreage in the North Gate section of the 1,600-acre development tract, which is a portion of the steelmaker's former Bethlehem plant. This land is located in the northeastern section of the plant and is adjacent to the BethIntermodal rail terminal in the plant's former East Lehigh Division.

Majestic plans to purchase the land, erect several large buildings, lease the properties and maintain ownership of the land and newly constructed buildings. Bethlehem Steel said that the sale of this land to Majestic would be another step forward in its strategy of creating productive new uses for its idled asset to benefit the corporation's stockholders and the Bethlehem-area community.

"The public-private partnership that has advanced the Bethlehem Works and Bethlehem Commerce Center projects thus far is attracting nationally recognized developers such as Majestic. Majestic's investment, coupled with the recently announced planned investment by Conectiv Energy Supply, is clear evidence that this site and the Lehigh Valley continue to be an ideal place to do business," said Stephen G. Donches, vice president, public affairs, Bethlehem Steel Corporation.

Founded in 1948, Majestic is routinely ranked as the largest commercial real estate developer in Los Angeles County in terms of commercial square footage that is developed and completed. Currently, Majestic, which is a family-owned business, has more than 38 million square feet of developed and rented floor space in its ownership with a value of over $1.2 billion. It has developed more than 35 major business parks in 13 states that are occupied by tenants from leading Fortune 500 companies.

"We focus on areas across the country that are poised for significant growth in the development of industrial and office buildings. The Bethlehem Commerce Center project gives Majestic an exciting opportunity to be a lead developer in the Commerce Center. The project has tremendous potential for manufacturing, warehousing and distribution and is already served by two Class 1 railroads," said Brook B. Morris, executive vice president, Majestic Realty Co.

"As long-term owners, we insist on developing and maintaining a quality portfolio. We maintain a long-term commitment to quality projects in every community in which we are involved. We are very pleased to become a member of the Bethlehem community and have the opportunity to develop this strategic asset.

Majestic anticipates that it will construct several large buildings that will be designated for warehouse/distribution or light manufacturing purposes. In the meantime, Majestic will promote the availability of the buildings and secure long-term tenants.

Bethlehem Steel is now working with the Commonwealth of Pennsylvania's Department of Environmental Protection to discuss the necessary steps to identify and resolve, if needed, environmental issues.

Both the U.S. Environmental Protection Agency (EPA) and Pennsylvania Department of Environmental Protection (DEP) have called the site "a national model" for brownfields remediation. By pursuing a brownfields and RCRA (Resource Conservation and Recovery Act) remediation plan simultaneously, Bethlehem Works and the Bethlehem Commerce Center will be able to convert a former industrial property into a community asset.

"This acreage had been used for steel finishing and final product inspection and shipping, and, therefore, is void of many of the traditional steel plant residuals," said Bethlehem Steel's Mr. Donches. "However, a complete environmental assessment is appropriate. Because of the enactment of Act 2 legislation in the Commonwealth of Pennsylvania, we plan to participate fully in the same assessment process with the DEP and the EPA that was so successful in readying the Bethlehem Works tract for new opportunities."

Mr. Donches also cited Northampton County executive Glenn Reibman, Northampton County Council president Wayne Grube and Economic Development Committee chairman Greg Zebrowski as examples of leaders whose support of a recently passed bond issue, which includes funding for the infrastructure, will accelerate the Bethlehem Commerce Center development.

Bethlehem Commerce Center is one of the largest rail-served industrial parks in the eastern United States. The 1,600-acre tract is being marketed to attract warehouse, distribution, office and manufacturing end uses. Bethlehem Steel's BethIntermodal began operation in August 1999 to serve rail traffic from Norfolk Southern. In July 2000, Conectiv Energy Supply Inc. announced its intentions to build a 500 megawatt, natural-gas-fired, combined cycle power-generating plant on 30 acres in the Bethlehem Commerce Center.

The entire 1,800-acre tract is being developed in a public/private partnership led by Bethlehem Steel to foster economic development that will increase stockholder value, create jobs and add revenues in the community. In addition to the Bethlehem Commerce Center project, Bethlehem Steel is leading the development of Bethlehem Works, the mixed-use development that retains historic and architecturally significant steelmaking-related buildings that will feature a blend of entertainment, recreation, retail, restaurants and cultural venues. The site will be anchored by the National Museum of Industrial History in association with the Smithsonian Institution. The museum's Preview Center is expected to open in late summer 2001. Other major components, including movies, retail, restaurants, a family fun center and an ice- skating arena, are also expected to open late next summer.

The Enterprise Development Company, under contract to Bethlehem Steel, is the master developer and owner's representative for the two-tract project.