Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., August 22, 2000 -- Bethlehem Steel Corporation and the Cambria Somerset Authority announced today the completion of the stock sale of Bethlehem Steel's subsidiary, The Manufacturers Water Company (TMWC), of Johnstown, Pa., to the Cambria Somerset Authority.

Duane R. Dunham, Bethlehem's chairman, president and chief executive officer, said, "This sale is in our stockholders' interest and is consistent with our plan to redeploy non-strategic assets and to concentrate on our core steel business."

In announcing the sale, Mr. Dunham acknowledged the leadership in the negotiations of Cambria County Commissioner Dr. Fred Soisson and Somerset County Commissioner Brad Cober, and praised the cooperative efforts of the various regional and local organizations that worked in support of the sale agreement, as well as the active roles of U.S. Congressman John P. Murtha, Governor Tom Ridge, State Senator John N. Wozniak and Conservation and Natural Resources Secretary John C. Oliver. "We are pleased to make these unique resources available for the use and enjoyment of the citizens of the greater Cambria Somerset region," said Mr. Dunham.

The Pennsylvania Public Utilities Commission approved the sale of TMWC in July. The Manufacturers Water Company is a public utility, providing water to (more) 14 industrial, commercial, and public customers, including the Greater Johnstown Water Authority and the Windber Authority.

TMWC presently supplies about 30 million gallons of water a day, although it has the capacity to deliver 90 million gallons a day. The five facilities operated by the Water Company include the Quemahoning Dam in Somerset County and the Hinckston Run, Wilmore, and two small intake dams, one in each county. The "Que" Dam, located about 10 miles south of Johnstown, has a storage capacity of 12.4 billion gallons and is capable of supplying 62 million gallons per day to customers.

The "Que" site also includes approximately 3,500 acres, along with Bethco Pines, a recreational area with facilities for boating, fishing, skeet shooting and other recreational activities.

Wilmore Dam has a storage capacity of approximately one billion gallons, with a watershed area of approximately 11 square miles. The site includes an estimated 900 acres of real estate.

The other water reserves owned by TMWC are the Border and South Fork impoundments. The facilities are inactive but are capable of providing a combined 7.5 million gallons of water daily.

In 1999, TMWC sold 11.5 billion gallons of water, resulting in a dollar sales volume of $1.6 million.