Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., June 25, 2001 � Production trials to supply sheet steel hydroformed tubes to Dana Corporation for sport utility vehicles (SUVs) have begun at BethNova Tube, Jeffersonville, Ind.

The joint venture between Bethlehem Steel Corporation (NYSE:BS) and Novamerican Steel, a leading manufacturer of tubing based in Quebec, Canada, is now in startup operation to produce tubes that will be hydroformed by Dana Corporation in Elizabethtown, Ky., about 60 miles away. The new business, BethNova Tube, LLC, was formed in summer 2000 with a 50/50 capital investment by Bethlehem and Novamerican of $19.5 million that will create 74 new jobs in Indiana. BethNova Tube�s products will be hydroformed at Dana for use as side rails for popular SUVs.

�This new venture represents another action by Bethlehem Steel to advance new technology and develop innovative products and services that will improve the value of steel for our customers,� said Duane R. Dunham, Bethlehem�s chairman, president and chief executive officer. �Steel remains the material of choice for the demanding North American automotive market, and BethNova Tube will further strengthen the position of steel and Bethlehem.

�As the North American demand for SUVs remained strong, Bethlehem looked for a lower-capital entry into the hydroforming market. Finding a partner with experience in steel tubing meant that the entry cost would be lower and the technical expertise superior to anything available solely within Bethlehem,� Mr. Dunham said.

The fast-track construction of BethNova Tube began in September 2000 when ground was broken for a 100,000-square-foot facility. Production trials began in April as part of the pre-approval process leading to full commercial production in August. The line will begin producing at an annualized rate of 60,000 tons and ramp up over the next year or two to 120,000 tons.

The use of hydroformed tubes provides automakers with a lighter-weight material to reduce total vehicular weight for improved fuel efficiency. In addition, the use of hydroformed material results in lower production costs through fewer spot welds. Hydroformed tubes also provide excellent dimensional stability and stiffness that expedites the side rail construction process. BethNova Tube uses hot-rolled steel sheet from Bethlehem�s Sparrows Point, Md., facility, which has completed over the last four years more than $600 million in capital improvements to both the steelmaking and finishing operations. Steel coils are being shipped by CSX Railroad first to Voss Clark located adjacent to BethNova Tube where the steel is pickled and slit.

Once inside BethNova Tube, the material is taken from coils to finished, packaged tubes in less than one hour. The continuous process cuts tubes to length on-line, end finishes and automatically packages the tubes for greater efficiency and cost savings. Diameters range from 75mm to 180mm; wall thickness from 2 mm to 5 mm, and length capabilities from 1 to 6.5 meters. Finished shapes include rounds, ovals, ellipticals, squares and rectangles.

Although hot-rolled sheet from Bethlehem�s Sparrows Point Division is the primary source material, BethNova Tube is also capable of handling a variety of steel types such as cold-rolled, galvanized and galvannealed in regular and high-strength, low-alloy grades. At the end of the line, a sophisticated packaging system uses a magnetic lifting system to form clean, neat bundles while a bar code system automatically labels the bundles for easy identification.

Novamerican is recognized throughout North America for its pioneering efforts in developing a high-pressure tubing process. Bethlehem Steel maintains one of the strongest research and development efforts in the North America and has a full range of capabilities to support development and evaluation of new sheet products for hydroforming applications. #

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