For Immediate Release

BETHLEHEM, Pa., December 20, 2001 - Bethlehem Steel Corporation and Lehigh Valley Industrial Park, Inc. (LVIP) have signed an agreement that gives LVIP the exclusive right to negotiate the purchase of a 300-acre tract of land that is part of the Bethlehem Commerce Center.

Stephen G. Donches, Bethlehem's vice president of public affairs, said, "We have been in discussions with LVIP for more than a year to determine the appropriate timing and the appropriate location for LVIP to become part of the Bethlehem Commerce Center. We are delighted that we have reached an agreement that gives LVIP time to thoroughly assess the property and to decide on a development plan that is consistent with our desire to help strengthen our financial situation as well as to help revitalize the South Side of Bethlehem."

Jeffrey P. Feather, president of LVIP's board of directors, expressed enthusiasm for the great potential that exists at the site, "The Bethlehem Commerce Center is a natural location for LVIP to make its next investment. Bethlehem Steel was an integral part of the founding of LVIP 42 years ago, and together we share a common interest in strengthening our relationship while continuing to build a bright future for the City of Bethlehem. To be a part of creating a new gateway to the city would be a significant achievement for LVIP, and we will do all we can to see this idea become a reality."

The site planned for development was the Bethlehem Plant's "Saucon Division", located along both sides of East Fourth Street from Shimersville Road to the Fourth Street Bridge. Operations that were conducted there included the steelmaking facilities, the world-famous rolling mills and shipping yards, fabricating shops and forging operations. Presently located within the area is Lehigh Heavy Forge, which purchased the forging operations from Bethlehem in September 1997.

During the six-month exclusivity period, the parties will seek to reach agreement on terms and conditions of a purchase and sale agreement covering the property under consideration. LVIP will conduct due diligence and will begin preliminary work on a master plan for development of the property. Because Bethlehem is currently operating in bankruptcy, this project will be subject to bankruptcy court review.

For LVIP, it would be its first major venture into a brownfield project. Converting the former steel mill into a premier development along a planned Route 412 boulevard entrance to the city, west from the I-78 Interchange, would broaden LVIP's portfolio of properties. Bethlehem said that it would work with LVIP, the Environmental Protection Agency (EPA) and the Pennsylvania Department of Environmental Protection (DEP) to determine the best approach to assessment and remediation, if any, of the property. "EPA and DEP have called the Bethlehem Works and Bethlehem Commerce Center project a 'national model' for brownfield development. This is further proof of the value of environmental partnerships," said Mr. Donches. "We look forward to working with all parties, including the City of Bethlehem, Northampton County and the Commonwealth of Pennsylvania, for the success of this project."

Work is already underway to clear the site for development and will continue while LVIP studies the property. Mr. Feather added, "This is an exciting time for all of us at LVIP. It will be a challenging undertaking; one that I know will be met with enthusiasm and creativity by our board and staff."

The Bethlehem Commerce Center is a 1,600-acre development of Bethlehem Steel Corporation which, combined with its Bethlehem Works project, is the largest private brownfield under redevelopment in the United States according to EPA. The South Side properties are expected to bring over $1.5 billion of investment to the community, create up to 10,000 new jobs and generate $80 million of tax revenues annually when fully developed. Enterprise Development Company of Columbia, Md., is the master developer and owner's representative of the two projects for Bethlehem Steel Corporation.

Return to News Releases