Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., December 19, 2000 - The BethIntermodal subsidiary of Bethlehem Steel Corporation today received a Governor's Award for Environmental Excellence for transportation efficiencies that have improved air quality.

The annual award was presented this morning in Harrisburg by Governor Tom Ridge in recognition of the increase in rail transportation, and corresponding decrease in truck traffic, as a result of the creation of BethIntermodal's terminal in Bethlehem. The terminal competed in the pollution prevention category for large businesses.

BethIntermodal's terminal is the rail-to-truck freight terminal located on the site of Bethlehem Steel Corporation's former Bethlehem, Pa., plant to service freight carried by Norfolk Southern Railway. The terminal opened in August 1999 and has the potential to create up to 3,000 direct and indirect jobs over the next seven to 10 years, establishing the City of Bethlehem as a major rail hub in the Northeastern United States.

The terminal is part of the redevelopment of Bethlehem Steel's 1,800 acres in Bethlehem for two different uses. BethIntermodal (www.bethintermodal.com) is located in the 1,600-acre Bethlehem Commerce Center (www.bethcommercecenter.com) that features industrial, distribution, transportation and commercial end uses. The remaining 163 acres is being developed as Bethlehem Works (www.bethlehemworks.com), a mixed-use complex for entertainment, recreation and cultural venues.

"Bethlehem Steel's leadership in developing part of a closed, integrated steel mill into an intermodal terminal that improves regional transportation capabilities and reduces air emissions demonstrates that economic growth and sound environmental stewardship can, and do, go hand in hand," said Duane R. Dunham, chairman, president and chief executive officer, Bethlehem Steel Corporation.

The creation of BethIntermodal to facilitate rail-to-truck transport of goods results in fewer trucks on the road for long distances to carry freight. The reduction in truck miles means significantly lower diesel fuel related emissions that, in turn, reduce the creation of pollutants such as carbon monoxide, nitrogen oxide and "greenhouse" gases. The reduction of emissions from diesel fuel has become one of the primary goals of the U.S. Environmental Protection Agency for the next several years. The development of BethIntermodal will result in a reduction of more than 53 million truck miles per year with corresponding decreases in the creation of pollutants.

BethIntermodal is a member company of Bethlehem Steel Corporation's subsidiary railroads that provide transportation-related services to Bethlehem Steel and a diversified customer base. BethIntermodal currently occupies about 60 acres in the Bethlehem Commerce Center and is expandable to 200 acres.