AmBase Corporation
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FOR RELEASE:    Immediately                     CONTACT: Shareholder Services
                                                         (203) 532-2048

   AMBASE COROPRATION ANNOUNCES ADDITIONAL DETAILS ON JUDGE SMITH'S DECISION

Greenwich,  CT - August 26, 2003 - AmBase Corporation (the "Company").  The
Court of  Federal  Claims has issued a  decision  in the  Company's  supervisory
goodwill    lawsuit   against   the   Government.    The   Court   granted   the
Plaintiff-Intervenor  FDIC's  Motion for  Partial  Summary  Judgment on contract
liability and denied the Government's  Cross-Motion on contract  liability.  The
Court also denied the Company's  Motion for Partial  Summary  Judgment under the
takings clause,  and granted the Government's  Cross-Motion for Summary Judgment
on the Company's takings clause claim.

Thus, the Court found that an express  contract  existed  between  Carteret
Savings Bank and the Government, and that the Government breached that contract.
The Court,  however,  was  unpersuaded  by the  Company's  takings  and  illegal
exaction  arguments,  and therefore  ruled that the  governments  action did not
constitute a Fifth Amendment  taking of the Company's  property  rights,  nor an
unlawful  exaction of funds. The court held that the question of damages for the
breach of contract would be addressed in subsequent proceedings.

No  assurances  can  be  given  regarding  the  ultimate  outcome  of  this
litigation.