Bethlehem Steel Corporation
For Immediate Release

BETHLEHEM, Pa., March 15, 2001 - Bethlehem Steel Corporation has signed a letter of intent for the sale of the five-story East Annex at 715 East Third Street that is part of the corporation's former headquarters building.

The J.A. Loveless Companies, Vienna, Va., plan to modernize and lease the East Annex's 120,000 square feet for office use. The property is part of the Bethlehem Works plan of Bethlehem Steel Corporation to revitalize the city of Bethlehem's South Side by converting 163 acres of former industrial land to new job producing uses.

J.A. Loveless has 20 years of experience in the construction and adaptation of structures to create efficient buildings with state-of-the-art design and features. The firm is a full-service real estate developer and management firm with projects in office, industrial, land development and property management in the Mid-Atlantic region.

"We are pleased to have reached an agreement with a firm with a proven track record of successful development and redevelopment initiatives that create and retain jobs in their communities," said Stephen G. Donches, vice president, public affairs, Bethlehem Steel Corporation, and the executive in charge of developing Bethlehem Works and the adjacent Bethlehem Commerce Center. "J.A. Loveless is well respected in the Washington, D.C., and northern Virginia areas for numerous office conversion projects, and we welcome them to Bethlehem."

"Bethlehem Works is a nationally recognized project that is innovatively reusing existing buildings and former industrial land," said Robert A. Cocker, executive vice president, J.A. Loveless. "Beyond the excitement of being part of such a project, we are confident in our ability to develop the East Annex as one of the premier office buildings in the Lehigh Valley."

After a period of due diligence, J.A. Loveless plans to purchase and renovate the building to offer office space for up to 500 people. Parking will be provided in the immediate vicinity of the annex in lots that will be improved by the Bethlehem Works Owners Association whose membership comprises owners of land and facilities in Bethlehem Works. Closing on the property is expected in the second half of this year.

The office annex is contiguous to Bethlehem Steel Corporation's former 13-story headquarters building that was constructed in several phases beginning in 1906 (basement and four floors) through 1948 (existing lobby and entrance). The annex was constructed in 1952. The two-building complex was used as the steelmaker's corporate headquarters until its current offices at Martin Tower were opened in 1972.

From 1972 until 1994 when it closed, the building, known as the Steel General Office, was used by sales and marketing staff until they were relocated to Bethlehem's business units. Castlebrook Development, formerly Wynco Realty Partners, of Pittsburgh, is the designated developer to convert the former headquarters building into a hotel and conference center.

The first phase of Bethlehem Works is under development with the construction, now under way, of the site's infrastructure by the City of Bethlehem with completion anticipated in the fall. If development continues at the current pace, the City's South Side will have a new face by the summer of next year, with new shopping, dining, recreational and cultural activities.

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