Bethlehem Steel Corporation
For Immediate Release

BURNS HARBOR, Ind., February 2, 2000 -- In response to an inquiry from the media concerning Bethlehem Steel Corporation's position on property tax reform proposals now under consideration by the Indiana General Assembly, the following was issued:

Bethlehem Steel supports the proposal to remove local welfare costs from the general property tax levy.  In discussing Bethlehem's position, Dr. Walter N. Bargeron, president of Bethlehem's Burns Harbor Division, said, "Being located in Porter County, Indiana, which is a county with very moderate welfare costs, the effect of this proposal on Bethlehem's overall property tax liability would be limited.  However, we believe that as a matter of public policy, welfare costs are a statewide concern and should be paid for out of the state's general fund budget and should not be shouldered by the already overburdened Hoosier local property taxpayer."

Bethlehem supports this proposal as part of its overall property tax position to support measures that repeal or modify the personal property tax on machinery and equipment, eliminate the personal property tax on inventories, address valuation inequities and deficiencies of the existing system, and control spending at the local level.  "Bethlehem Steel will work closely with Governor O'Bannon, his administration and legislative leaders to bring meaningful property tax reform to Indiana," said Dr. Bargeron.

Located at Burns Harbor, Bethlehem's Burns Harbor Division and Bethlehem Lukens Plate employ 6,000, have an annual payroll of $314 million, and pay about $20 million in state and local property taxes.

As the largest taxpayer and employer in Porter County 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 is committed to maintaining the competitiveness of Burns Harbor 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 operation.