For Immediate Release

BETHLEHEM, Pa., September 4, 2002- Bethlehem Steel Corporation has filed a motion in the United States Bankruptcy Court for the Southern District of New York seeking approval of the Agreement for the sale of real property to Majestic Realty Corp. The property to be sold comprises four parcels of land containing 553 acres located in the Bethlehem Commerce Center within Bethlehem Steel's former East Lehigh Division. The property is located principally in the City of Bethlehem with a portion located in Lower Saucon Township.

The base tract consists of approximately 452 acres. Two other parcels, which are encumbered by a lease that expires in 2006, comprise approximately 83 acres. Majestic has an option on one of these parcels, which must be exercised by June 2004. The fourth parcel, which Bethlehem is in the process of acquiring, consists of approximately 19 acres. Depending on the parcels actually acquired, the purchase price could be as high as $19 million.

The completion of the transaction is subject to the satisfaction of a number of conditions including subdivision and development approvals from the City and the Township, approved remediation plans for soils from state and federal agencies and the commencement of construction by the City of Bethlehem of Commerce Center Boulevard, a major access road that will extend from Route 412 to the Majestic property. Proceeds from the economic bond issued by Northampton County will be used to fund the construction of the road.

Also, located on the base parcel are railroad intermodal facilities of BethIntermodal, a wholly owned subsidiary of Bethlehem Steel. If settlement is held with Majestic, these facilities will be removed from the property. In addition to the purchase price, Majestic is obligated to make payment towards the cost of the removal.

Settlement on the base parcel is expected to occur between nine and 18 months after court approval. Settlement on the two parcels encumbered by the lease is expected to occur in 2006 after the lease has expired. If Bethlehem acquires the fourth parcel, settlement is expected to occur at or near the time of settlement on the base parcel.

The court is scheduled to hear the motion on September 12, 2002. The sale of the property will be subject to an auction where other qualified parties will be given the opportunity to bid on the property. If any other bids are received, Bethlehem Steel will have the right to select the highest or best offer. Final approval by the court is expected to occur by mid-October.

Majestic, established in 1948, is a full service, family-owned and operated real estate firm that has developed multi-use business communities and bulk distribution facilities, retail centers, industrial/office parks, hotels, sports arenas and resort facilities. It has a diversified real estate portfolio that exceeds 50 million square feet.

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