Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., February 22, 2000 - Bethlehem Steel Corporation has signed a letter of designation for Armada/Hoffler Development Company to develop a multiplex cinema and retail space in the Bethlehem Works development on the south side of Bethlehem.

Armada/Hoffler of Chesapeake, Va., will secure commitments from an operator for the 10-screen cinema and from up to 50 tenants for 175,000 square feet of retail space. Armada/Hoffler will undertake a feasibility study with the goal of developing the cinema and retail space. As part of that study, Armada/Hoffler will undertake detail design studies, estimate construction and development costs, secure leases with tenants and identify sources of financing.

"These plans to pursue cinema and retail establishments will significantly advance the overall development of Bethlehem Works, provide employment opportunities and further incentives for other developers to locate their projects at this site," said Curtis H. Barnette, chairman and chief executive officer, Bethlehem Steel Corporation.

"We are looking forward to being a part of this exciting development," said Louis A. Haddad, president and chief executive officer, Armada/Hoffler. "It is a great opportunity for our company and one that we feel certain will benefit the entire community."

Upon successful completion of the feasibility study, Armada/Hoffler will purchase from Bethlehem Steel eight acres of land and the six buildings on that acreage. The land is located at Third and Hayes Street, just east of the annex of the former headquarters building. The buildings on that land that are expected to be developed as retail space by Armada/Hoffler are known as central tool, central tool annex and the alloy and tool steel division. The cinema, which will seat 2,500 people, will be new construction and will face the reopened Second Street, which will be renovated this spring by the City of Bethlehem.

Based on the signing of the letter of designation, Armada/Hoffler will complete the feasibility study by September 2000. If the feasibility study is successful and the projects are pursued, construction will begin Spring 2001 with completion of the cinema and retail space by Spring 2002.

Armada/Hoffler is a leading developer that has developed and constructed more than 10 million square feet of commercial real estate with a market value in excess of $1.5 billion.

Bethlehem Works is a mixed-use complex that will contain entertainment, recreation, retail and cultural end uses on 160 acres of land owned by Bethlehem Steel Corporation. A major component of Bethlehem Works is the National Museum of Industrial History, in affiliation with the Smithsonian Institution. A preview center for the museum will open in November 2000.

Enterprise Development Company, Columbia, Md., is the master developer of Bethlehem Works.