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AMBASE CLARIFIES PRESS REPORTS ON GOODWILL DECISION

 AMBASE CLARIFIES PRESS REPORTS ON GOODWILL DECISION
 MORRISTOWN, N.J., May 12 /PRNewswire/ -- AmBase Corporation


(NYSE: ABC) issued two clarifications of press reports dealing with the just released decision on "supervisory goodwill" of the United States Court of Appeals for the Third Circuit.
 The court's decision overturns a preliminary injunction originally issued by United States District Court Judge John Bissell in April 1991. The Court of Appeals decision held that the supervisory goodwill, which AmBase's principal subsidiary, Carteret Savings Bank, had been permitted to include in its regulatory capital under Judge Bissell's injunction, could no longer be counted and that the only remedy available for the goodwill taken from Carteret by Congress in the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) would be in The United States Claims Court.
 Richard A. Bianco, president and chief executive officer of AmBase and chairman, president and chief executive officer of Carteret, stated that "AmBase has retained Kidder Peabody & Co., Incorporated and Merrill Lynch & Co. as private placement agents to raise approximately $215 million in new capital for Carteret and the Third Circuit's decision did not impact the amounts required by the Office of Thrift Supervision (OTS). The bank's capital plan, approved by the OTS on March 2, 1992 did not provide for the use of any supervisory goodwill. I have been meeting almost daily with prospective investors and am encouraged by the interest shown in Carteret by some very sophisticated investor groups." In addition, Bianco noted, "I have been in almost daily contact with the OTS, keeping them advised of our progress."
 In a further clarification, Bianco noted, "Contrary to one news report, AmBase is seeking a direct investment in Carteret and does not expect that there will be any change in the ownership of AmBase."
 -0- 5/12/92
 /CONTACT: Donald E. Reinhard of Carteret Savings Bank, 201-263-3011, ext. 6450/
 (ABC) CO: AmBase Corporation ST: New Jersey IN: INS SU:


SM -- NY064 -- 9111 05/12/92 11:59 EDT
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Publication:PR Newswire
Date:May 12, 1992
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