Bethlehem Steel Corporation
For Immediate Release

SPARROWS POINT, Md. - A more than $60-million pulverized coal injection (PCI) facility built, owned and operated by a subsidiary of DTE Energy Services has begun operation at Bethlehem Steel's Sparrows Point Division near Baltimore, Md.

"Pulverized coal injection is further reducing the cost of making molten iron in what is already one of the most productive blast furnaces in the world," said Duane R. Dunham, Bethlehem's chairman, president and chief executive officer. "This coal injection facility, coupled with a more than $100-million reline and modernization of 'L' blast furnace last summer, will further enhance the competitiveness of this already first class operation."

Blast furnaces typically consume coke and various auxiliary fuels, such as oil and natural gas, in the production of molten iron, which is refined into steel. The PCI process, in which coal is finely ground and then injected into the blast furnace, eliminates the injection of highly variable-priced natural gas and oil. The new process also reduces the dependence on premium-priced coke and provides great flexibility for the utilization of many different types of coal.

The 12-year agreement with Bethlehem Steel strengthens DTE Energy Services' reputation and position in the steel industry as a pre-eminent owner and operator of energy-related projects and services, said Barry Markowitz, president of DTE Energy Services. DTE Energy Services also acquired a Bethlehem coke battery at its Burns Harbor, Ind., division in 1998, and now has several projects and investments serving the steel industry.

"Operation of this new facility marks the second major DTE Energy Services' project serving Bethlehem Steel and the growth of our win-win partnership," Mr. Markowitz said.

The pulverized coal supply agreement was signed in December 1998 while engineering design was underway. Construction was completed in seventeen months. The project was equity financed by DTE Energy Services. The PCI facility is expected to pulverize and deliver about 2,000 tons of coal per day, all provided by the DTE Energy Services' subsidiary.

DTE Energy Services is an Ann Arbor-based provider of energy services that invests in, builds and operates energy projects for large industrial and institutional customers. DTE Energy Services is a subsidiary of DTE Energy Co., a diversified energy company involved in the development and management of energy-related businesses and services nationwide. DTE Energy's principal operating subsidiary is Detroit Edison, an electric utility serving more than 2 million customers in southeastern Michigan.

Located on the Chesapeake Bay, Bethlehem's Sparrows Point Division has 4,200 employees and a raw steel production capability of 4 million tons annually. The division produces hot-rolled, cold-rolled, hot-dipped galvanized and Galvalume sheet, and tin mill products for the construction and container industries, and steel service centers. Over the past two years, Bethlehem invested more than $500-million in modernization projects at Sparrows Point.