For Immediate Release

BETHLEHEM, Pa., November 5, 2002 -- In response to inquiries about the status of negotiations between Bethlehem Steel Corporation and the United Steelworkers of America and consolidation discussions with International Steel Group (ISG), the following statement is attributable to Robert S. Miller, Bethlehem's chairman and chief executive officer:

Since the commencement of Bethlehem's reorganization case on October 15, 2001, Bethlehem's losses have been reduced, and the corporation clearly would have reported net income so far this year if it did not have the legacy expenses related to pension and retiree healthcare obligations. Cash flow from operations is positive, and liquidity, currently at about $260 million, is expected to be adequate to provide time to complete a plan of reorganization.

We continue to believe that Bethlehem can emerge from chapter 11 as a healthy, viable stand-alone company by implementing a competitive labor agreement and by substantially reducing legacy costs for pensions and retiree healthcare. With respect to our legacy costs, we believe the Pension Benefit Guaranty Corporation (PBGC) will terminate Bethlehem's existing pension plan in the next few months and that the recently passed Trade Act of 2002 could provide some assistance for healthcare costs to certain pre-Medicare retirees after the pension plan is terminated.

Bethlehem Steel and the United Steelworkers of America (USWA) entered into negotiations in early October and are making steady progress toward a new, competitive labor agreement that will allow Bethlehem Steel to reorganize as a stand-alone company to serve its customers without interruption.

The parties have reached preliminary agreement on a number of important issues including a significant reduction in the number of job classes. Both the USWA and Bethlehem are fully committed to achieving an agreement while continuing operations.

Bethlehem and the USWA also believe that additional value could be achieved through consolidation. In that regard, Bethlehem has agreed to a 60-day period of exclusivity with International Steel Group (ISG) during which time ISG and Bethlehem will complete mutual due diligence for a possible combination of ISG's and Bethlehem's steel-producing operations. During this period, Bethlehem will continue to pursue its stand-alone plan of reorganization.

Media Contact:
Bette Kovach
610-694-6308

Investor Contact:
Jeff Faloba
610-694-2206

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