Ambac Assurance UK Limited Moves to New, Larger Location.

NEW YORK -- Ambac Financial Group, Inc. (NYSE:ABK) announced today that its London office for Ambac Assurance UK Limited ("Ambac UK") has moved to 6 Broadgate, London EC2M 2QS. The new location will encompass approximately 12,000 square feet of office space and will accommodate the expansion of Ambac's European operations. The office phone number is [phone] and the fax number is [phone].

Douglas Renfield-Miller, Chairman of Ambac UK, commented, "Ambac sees continued strong growth potential in international markets, particularly Europe. Coupled with the recent opening of Ambac's Milan office, our new office at 6 Broadgate affords us much needed space to accommodate recent staffing additions and allows room for growth as we continue to expand Ambac's European business."

Forward-Looking Statements

This release contains statements about our future results that may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. We caution you that these statements are not guarantees of future performance. They involve a number of risks and uncertainties that are difficult to predict. Our actual results could differ materially from those expressed or implied in the forward-looking statements. Among the factors that could cause actual results to differ materially are (1) changes in the economic, credit, or interest rate environment in the United States and abroad; (2) the level of activity within the national and worldwide debt markets; (3) competitive conditions and pricing levels; (4) legislative and regulatory developments; (5) changes in tax laws; (6) the policies and actions of the United States and other governments; and (7) other risks and uncertainties that have not been identified at this time. We undertake no obligation to publicly correct or update any forward-looking statement if we later become aware that it is not likely to be achieved, except as required by law.

Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac's principal operating subsidiary, Ambac Assurance Corporation, a leading guarantor of public finance and structured finance obligations, has earned triple-A ratings, the highest ratings available from Moody's Investors Service, Inc., Standard & Poor's Ratings Services, Fitch, Inc. and Rating and Investment Information, Inc. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).