For Immediate Release

The planned workforce reduction will affect the corporate headquarters in Bethlehem, Pa., and all operating locations. Including the previously announced reduction of 300 positions, which began in June 2001 and was accomplished by August 31, 2001, the current initiative will reduce Bethlehem's salaried non-represented workforce by approximately 25 percent from its June 2001 baseline. Bethlehem Steel's total salaried non-represented employment will be approximately 2,100 on January 31, 2002, down from 2,800 in June 2001 and 3,500 in January 1999 -- a 40 percent reduction over the entire period.

These planned reductions, along with recent restructuring actions already taken, will be deemed a partial shutdown of Bethlehem's salaried non-represented workforce, effective January 31, 2002. As a result of the shutdown designation, affected employees, if eligible, will be entitled to immediate 70/80 pensions or Rule-of-65 pensions in 90 days after the date of shutdown.

Benefit information, including personal shutdown pension estimates, and outplacement services will be provided to all laid off employees.

Discussions continue with the United Steelworkers of America about necessary improvements in the productivity of our represented workforce and reductions in active and retiree benefit costs.

Bethlehem filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on October 15, 2001. A reduction in total employment and benefit costs, including a new labor agreement with the USWA, will be a critical part of any Plan of Reorganization that the company must develop and have approved by the court in order to emerge from Chapter 11 bankruptcy proceedings.

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