Carpenter Pursues Sale of 50-Acre Waterfront Property in Connecticut to Developer.

READING, Pa.--(BUSINESS WIRE)--March 9, 1999--

-- Fights in Federal Court to prevent City of Bridgeport's

condemnation of site in Connecticut

-- Claims land not needed for relocation of Steel Point

businesses: alternative sites available

-- Proposed $100 million retail/entertainment center to create

2,800 jobs

-- Private sector project to cost taxpayers nothing, generate

major tax revenue for City

Having commenced a legal battle in Federal Court to prevent the City of Bridgeport's seizure of its Bridgeport Harbor property, Carpenter Technology Corp. (NYSE:CRS) is vigorously promoting the sale of its land to Philips International Realty Corp., a New York Stock Exchange-listed developer. An environmentally appropriate 550,000 square-foot retail and entertainment center is planned and financing is already in place.

On March 5, in preparation for the public Environmental Impact Hearing on the project set for March 16, Carpenter submitted to the Connecticut Department of Economic and Community Development (DECD) comments on the "Draft Environmental Impact Evaluation for the Harbour Place/Steel Point Redevelopment" (DEIE).

The DEIE was issued by the DECD and the Bridgeport Port Authority in January. Carpenter is challenging the substance and accuracy of the DEIE, as well as flaws in the processes that produced the document, which were contrary to requirements specified in the Connecticut Environmental Policy Act and its regulations.

Typical of the inaccuracies that presented a false and negative view of Carpenter and its plans for the property was the claim that a benefit of the redevelopment plan would be remediation of contamination of the Carpenter site.

This claim was without merit, as Carpenter completed a comprehensive, voluntary remediation of the site, recognized as such by the Connecticut Department of Environmental Protection (DEP). DEP has issued a letter stating that the property currently poses no threat to human health or the environment.

The DEIE also failed to inform the public and decision-makers that viable alternative relocation sites exist for all the enterprises on Steel Point, Carpenter said.

Further, the DEIE failed to inform the public of an alternative, private development for the Carpenter property, which would cost taxpayers nothing yet offer more attractive uses than the heavy industrial operations envisaged by the DEIE, as well as bringing thousands of new jobs and new revenues to the area.

"The Philips project is real, the money is there and no government help is requested," said John R. Welty, vice president, general counsel and secretary of Carpenter. Philips has designed its project to allow public access to the waterfront, which has long been a goal of the City's waterfront development efforts, Welty said.

In addition, Philips has made a commitment to hire local residents and support East End economic development initiatives.

"There is no need to condemn this property to relocate Steel Point businesses there, as viable alternative sites appear to exist for all of them. This development will create 600 construction jobs and 2,200 full-time jobs.

"It will revitalize a portion of the waterfront, which will be a great boon for Bridgeport, and particularly for the East End community. Our effort to bring this major private sector development to Bridgeport has the enthusiastic support of many East End community members. We want all the people of Bridgeport to know these facts," Welty said.

"The East End community is excited about the proposal Philips has put on the table, particularly since they don't need state or federal funding as opposed to other proposals that have been put on the table," said Ted Meekins, director, East End Community Council. "We want something real rather than pie-in-the-sky ideas."

"One day the entire Bridgeport waterfront will be revitalized," Welty said. "To that end, the Philips project will serve as a catalyst, possibly providing the critical mass needed to spur major financing of further development," he concluded.

Carpenter, headquartered in Reading, Pa., manufactures and distributes stainless steel, titanium and other specialty alloys and various engineered products. The company bought and operated the steel mill on Seaview Avenue from 1957 to 1988, when it consolidated operations into its Reading, Pa. mill and closed the Bridgeport facility.

Since then, Carpenter spent more than $7.5 million on site preparation and remediation, and reached agreement to sell the property four times, but various roadblocks prevented these sales. Carpenter also has paid about $3.3 million in real estate taxes since it closed the Bridgeport plant.