Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., July 27, 2000 � In response to media inquiries concerning the resolution of property tax appeal requested by Bethlehem Steel Corporation for its Martin Tower complex, the following information was provided.

Bethlehem appealed the assessed valuation of the Martin Tower complex for the year 1999. The land and building were valued at $55.9 million. In Lehigh County the assessed value is 50 percent of the market value or about $27.9 million.

The existing assessed value was established 10 years before using an appraisal that reflected real estate market conditions at that time. Older buildings, such as Martin Tower, do not warrant the same tax value as newer, Class A office buildings.

The case was heard by the Lehigh County Court of Common Pleas in October 1999. An independent appraisal undertaken for Bethlehem established market value of $31.5 million. The County's appraisal reflected a market value of $38 million. The decision was rendered on June 27, 2000. The Judge ruled in Bethlehem Steel's favor and has adopted a market value of $31.5 million (assessed value of $15.75 million).

Bethlehem Steel has received a refund from the City of Bethlehem of $263,000 for the years 1999 and 2000. The County refund will be $174,000 for both years. Bethlehem Area School District will refund $312,000 for 1999 and has adjusted its bill for year 2000 by about $335,000 to reflect the Court Order.