Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., July 19, 2001 - In response to media inquiries concerning Bethlehem Steel's progress on its ongoing efforts to restructure its salaried, non-represented workforce, the following information was provided:

Bethlehem Steel Corporation is focused on successfully managing its business by cutting costs, increasing cash flow and improving its overall financial performance in an increasingly challenging market. In May, Bethlehem Steel notified its employees of the company's strategic decision to implement a 5% targeted reduction of its non-represented salaried workforce, eliminating 140 positions. This reduction built on the nearly 20% reduction the company had implemented since 1999.

Since the May 25 announcement, Bethlehem has completed a thorough review of all of its management processes and has identified additional opportunities to reduce costs and enhance efficiency by streamlining management, increasing spans of control and centralizing business functions.

As a result, Bethlehem is increasing the level of the targeted reductions of its non-represented salaried workforce to nearly 11%, or about 300 positions company-wide by August 31, 2001. This will bring the total reduction to approximately 30% since 1999. This initiative will bring Bethlehem Steel's salaried employment levels to approximately 2,500, down from 2,800 in June 2001 and 3,500 in 1999. The targeted reductions, which will be accomplished through a combination of attrition and layoffs, will take place at all major facilities and the corporate headquarters in Bethlehem, Pa.

Actions are also underway to adjust represented workforce schedules to minimum required staffing levels, consistent with current business conditions. Currently, Bethlehem has about 10,000 represented employees. #

For More Information Contact: Robert W. Bilheimer - (610) 694-3711 Bethlehem Steel Corporation Public Affairs Department

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