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BETHLEHEM STEEL ANNOUNCES SALE OF PREFERRED STOCK

 BETHLEHEM, Pa., March 4 /PRNewswire/ -- Bethlehem Steel Corporation (NYSE: BS) announced today the sale in a private placement of 5 million shares of $3.50 Cumulative Convertible Preferred Stock at a price of $50 per share.
 The sale was arranged by Salomon Brothers Inc. and J.P. Morgan Securities Inc.
 In making the announcement, Curtis H. Barnette, Bethlehem's chairman and chief executive officer, said, "Bethlehem expects to use one-half of the net proceeds of about $242 million from the sale as a contribution to the Bethlehem Pension Trust and the balance for capital expenditures related primarily to previously announced modernization projects for two Business Units.
 "Using proceeds to fund the pension trust will improve Bethlehem's overall financial condition, reduce its unfunded pension obligation and will reduce its annual pension expense by improving pension fund earnings. It will also provide additional financial flexibility regarding future funding requirements.
 "Part of the remaining proceeds will be used to help fund Bethlehem's recently approved modernization program to establish its Pennsylvania Steel Technologies, Inc., subsidiary as the low-cost North American producer of high-quality railroad rails and specialty blooms. The proceeds could also be available to assist with the conditionally approved modernization program for our Structural Products Division that will establish it as a low-cost, high-quality supplier of structural products. This program is contingent upon finalizing a satisfactory business plan, including a new, separate and competitive labor contract, and establishing world-class technology.
 "Other investment opportunities may be certain small high-return projects."
 Cumulative annual dividends on the Preferred Stock are $3.50 per share. At any time after April 13, 1993, each share of Preferred Stock is convertible into 2.392 shares of Bethlehem's Common Stock (representing a conversion price of $20.90 per share), subject to adjustment and certain events. The Preferred Stock is not redeemable by Bethlehem before March 10, 1996.
 /delval/
 -0- 3/4/93
 /CONTACT: H.H. Von Spreckelsen, manager, corporate communications, of Bethlehem Steel, 215-694-3711/
 (BS)


CO: Bethlehem Steel Corporation ST: Pennsylvania IN: MNG SU:

MK-CC -- PH016 -- 2977 03/04/93 12:15 EST
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Publication:PR Newswire
Date:Mar 4, 1993
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