Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., December 19, 2000 - Bethlehem Steel Corporation confirmed today that it has filed amended tax returns claiming a reduction in assessed valuation on certain personal property located at its Burns Harbor Division in Burns Harbor, Porter County Indiana.

Bethlehem filed amended returns with the assessors' offices in Westchester and Portage Townships on December 13, claiming a reduction in assessed personal property valuation of approximately $100 million from a total of about $249 million -- a reduction of approximately 40%. Bethlehem currently pays approximately $20 million in property taxes annually at Burns Harbor. No refund of any taxes paid is being claimed as a result of this action.

"Bethlehem is taking this action on the basis of tax fairness and equity," according to Lonnie A. Arnett, Bethlehem's vice president, accounting and controller. "After a comprehensive review of Bethlehem's personal property tax assessments, we determined that Bethlehem's assessments on personal property at Burns Harbor were significantly higher than that of our competitors in Lake County, Indiana," said Mr. Arnett.

Bethlehem's personal property at the Burns Harbor Division has an assessed tax value of over twice that of the other integrated steel mills in Northwest Indiana. "Indiana's Constitution requires a uniform and equal rate of property assessment and taxation. In this very challenging business environment, Bethlehem simply cannot pay more property tax than is legally required," asserted Arnett.

Today's action is also consistent with Bethlehem's overall policy to support measures in Indiana that repeal or substantially reduce the personal property tax on machinery and equipment, eliminate the personal property tax on inventories, lessen the reliance on property taxes by local governments, and address valuation inequities and deficiencies of the existing Indiana property tax system.