For Immediate Release

BETHLEHEM, Pa., September 20, 2002 - In response to media inquiries concerning Bethlehem's reaction to a statement by the United Steelworkers of America following the conclusion of the Basic Steel Industry Conference, the following statement is attributable to Robert S. Miller Jr., Bethlehem's chairman and chief executive officer:

"For the past year, Bethlehem has been speaking with the United Steelworkers of America concerning the perilous conditions facing the company. We welcome the union's call to launch innovative new bargaining initiatives.

"Although the industry has been seriously injured by unfair trade, Bethlehem has productivity disadvantages compared to certain of our domestic competitors as well. The key players in the domestic steel industry are no longer the old, stand-alone fully integrated firms like Bethlehem. Instead, newer, more nimble firms like Nucor and ISG are setting the standard for modern work practices, compensation packages that reward workers based on the success of their individual business units, outsourcing non-core work, absence of restrictive work rules, and appropriately staffed facilities.

"Bethlehem has accumulated over $5 billion of unfunded retiree obligations that it simply can no longer afford. Among many difficult issues to be discussed between the company and the union is the resolution of how retirees can receive health care at an acceptable cost to Bethlehem. The union leadership, we believe, understands the enormity of this expense and that Bethlehem can not afford to continue to pay for these benefits as currently constituted.

"Bethlehem has been advocating the much-needed consolidation of the industry. Key to consolidation is a labor package that recognizes the realities of the marketplace. For Bethlehem to emerge from bankruptcy protection and be attractive as a potential consolidation partner, an innovative and radically different contract must be achieved with the United Steelworkers of America. We look forward to further discussions with the USWA leadership toward that goal."

Media Contact:
Bette Kovach
610-694-6308
Public Affairs Department
Bethlehem Steel Corporation

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