Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., July 25, 2001 - Bethlehem Steel Corporation plans to permanently close its cokemaking operations at Lackawanna, N.Y., affecting about 340 people.

Coke production is expected to cease by the end of September 2001. Shipments and other operational activities in preparation for a permanent closure will continue into the fourth quarter. Officials of the United Steelworkers of America were notified today of Bethlehem's intention to close the Lackawanna Coke Division.

As a result of the closing, Bethlehem will record a $40 million charge in the third quarter of 2001 to account for ongoing benefits for eligible employees. There will be no additional charges for plant and equipment because those assets had been previously written off.

"The global steel market remains extremely competitive, causing steelmakers to aggressively and drastically reduce costs to manage through this difficult time," said Duane R. Dunham, chairman, president and chief executive officer, Bethlehem Steel. "The closing of Lackawanna coke will end a long tradition of cokemaking in this community. We very much regret the impact of this decision on our employees, their families and the community. However, the division is using cash, and we do not foresee a business environment in which the division can make money," Mr. Dunham said.

Currently, the Lackawanna Coke Division operates two coke oven batteries consisting of 152 four-meter ovens that bake bituminous coal to create coke, which is used in blast furnaces to make iron. Annual production is about 700,000 tons. Since the closing of the basic steelmaking operations at Lackawanna in 1983, the coke has been sold to other steel companies.

About 70 percent of Lackawanna Coke Division employees are eligible for early retirement benefits. Employee benefits, training and outplacement will be provided to affected employees. Limited employment opportunities within Bethlehem Steel may be available for employees represented by the United Steelworkers of America.

The property will continue to be analyzed and remediated in accordance with applicable state and federal guidelines to prepare it for redevelopment. The corporation has been working with local, state and federal agencies to facilitate the redevelopment of the entire 1,100-acre tract in a manner consistent with the redevelopment plan for the property announced in 1998.

Bethlehem Steel has had a presence in Western New York since it acquired the Lackawanna Iron and Steel Company in 1922. The corporation will continue to operate the Galvanized Products Division at Lackawanna that employs about 420 people in the finishing of high-quality sheet steels for the automotive industry.

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