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                         AMBASE SETTLES DISPUTED CLAIMS
                           WITH ZURICH SF HOLDINGS LLC



Greenwich,  CT - June 9, 2000 - AmBase  Corporation  (the  "Company")  announced
today that it entered  into a settlement  agreement  with Zurich SF Holdings LLC
(f/k/a  Reorganized Home Holdings,  Inc.) ("SF Holdings")  settling the disputed
claims  relating to the April 1999 complaint the Company filed in the Sumpreme
Court of New York. Pursuant to the settlement agreement, AmBase received, among
other  things,  $8,250,000  from SF Holdings.  In addition,  an affiliate of
SF Holdings has deposited  $9,500,000 in an interest bearing escrow account
(the "Escrow  Account") to be used to pay 50% of certain expenses and/or tax
obligations,  if any, up to the amount in the Escrow Account,  in connection
with the dispute with the Internal  Revenue Service ("IRS") over the Netherlands
Antilles  Withholding  Taxes Issue which is currently  pending before the United
States Tax Court. Upon final resolution of the Netherlands  Antilles Withholding
Tax Issue with the IRS and payment of outstanding expenses,  the residual of the
Escrow Account, if any, will be delivered to an affiliate of SF Holdings.

For a more  complete  discussion  of the  Company's  affairs,  refer  to  AmBase
Corporation's  Quarterly  Report on Form 10-Q for the  quarterly  period  ending
March 31, 2000 as filed with the Securities and Exchange Commission.