For Immediate Release

BETHLEHEM, Pa., March 12, 2002 - Bethlehem Steel Corporation has signed a letter of exclusive negotiation with the Delaware Valley Real Estate Investment Fund (DVREIF) for the possible purchase of the remainder of the Bethlehem Works development.

"Bethlehem Steel has taken a leadership role in moving the project to the point of actual construction. Now is an appropriate time to move the project to a new owner who can advance the public/private partnership and see that Bethlehem Works comes to fruition," said Robert S. Miller Jr., Bethlehem's chairman and chief executive officer.

DVREIF is a limited partnership created for eligible retirement plans to invest in real estate located within the greater Delaware Valley. It has successfully invested in a wide variety of commercial, retail, institutional and hospitality venues, thereby increasing the value of the projects and its invested funds. The fund invests for labor unions and uses union labor for construction projects.

DVREIF is negotiating with Bethlehem Steel to purchase about 120 acres, which accounts for all available land and buildings in Bethlehem Works on the city's South Side. Land and buildings that are already sold include the parcels for Tech Center III, the hockey arena and the preview center for the National Musuem of Industrial History. In addition, land and buildings have been reserved for the National Museum of Industrial History, such as the No. 2 machine shop and the blast furnaces.

"The greater Delaware Valley location and the national prominence of Bethlehem Works make this project a good fit for the management resources and partnership base of DVREIF," said John M. Lawlor, managing director of the fund. "We expect to continue with the development program initiated by Bethlehem Steel and advanced by Enterprise Real Estate Services."

Enterprise Real Estate Services was retained by Bethlehem Steel in late 1996 as the master developer of the site, and "our work to date will allow us to plan for a smooth transition of ownership," said Robert F. Barron, president and chief executive officer of Enterprise. "DVREIF possesses strong developer relationships that have grown from previous financing activities with other projects. The collective expertise from DVREIF's partnerships will help Bethlehem Works proceed more quickly."

The due diligence process is expected to be completed in early summer.

Return to News Releases