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FOR RELEASE:  Immediately                       CONTACT:  Shareholder Services
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          AMBASE CORPORATION - CORRECTION TO INTERNAL REVENUE SERVICE ("IRS")
                   NOTICE OF INTENTION TO APPEAL DATE


Greenwich,  CT - August 27, 2001 - AmBase Corporation (the "Company")  announced
that  information  recently  obtained from the United States Tax Court (the "Tax
Court")  indicates  that the IRS has until  September  24,  2001,  as opposed to
August 21, 2001, to file a Notice of Intention to Appeal the Tax Court's  ruling
that  was  previously  decided  in  favor  of  City  Investing  Company  in  the
Netherlands Antilles Withholding Obligation Case.

The  attorneys  on  the  case,  Davis,  Polk &  Wardwell,  have  indicated  that
procedurally  in many  cases  the  government  may file a  protective  Notice of
Intention to Appeal the Tax Court's ruling to preserve its appeal rights when no
final decision on the matter has been made by the Solicitor General.