NEWS RELEASE
FOR RELEASE: Immediately CONTACT: Shareholder Services
(203) 532-2048
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.
