For Immediate Release

Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax

BETHLEHEM, Pa., November 20, 1996 -- Bethlehem Steel Corporation has sent a notice to about 108,000 employees and retirees covered by its pension plan that informs them of the plan's funded level (not including the railroad plan).

The notice complies with the requirements of a 1994 federal law that requires participants in certain pension plans that are guaranteed by the Pension Benefit Guaranty Corporation (PBGC) to receive annual reports on the funding status of their plans. A similar notice was sent last year, which was the first year in which the new law was in effect.

Employees and retirees were told in the recent report that "as of January 1, 1996, the date at which we are required to provide you with this information, the pension plan funding ratio was 77 percent, calculated using actuarial procedures and the value of the plan assets as required by law." Last year's report noted that this funding level was 69 percent. Therefore, improvement has been made in the funding ratio.

The report does not take into consideration Bethlehem's financial condition and its intention to fully meet its pension obligation. As of the end of 1995, the plan's assets were in excess of $3.8 billion, which was up from less than $3.2 billion at the end of 1994.

Gary L. Millenbruch, executive vice president and chief financial officer, said: "One of Bethlehem Steel's strategies to become the premier steel company is to rebuild its financial strength. Within that strategy, funding our pension plans is a very high priority. We have always met or exceeded our legal funding requirements, and we have attained a substantial credit balance of more than $600 million. In fact, we contributed $330 million to our pension fund last year and through the first three quarters of 1996 have contributed $155 million. Since 1987, we have contributed in excess of $2.1 billion. We plan to continue to make appropriate contributions to fully fund our pension plans as business conditions permit."