Ambac Financial Group, Inc. Issues $200 Million In Long-Term Debentures.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 11, 2001

Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) announced the issuance of $200 million of 7.00% Debentures due October 17, 2051.

The Debentures were priced at par and are callable on or after October 17, 2006. The Company expects that the Debentures will be listed for trading on the New York Stock Exchange.

The Debentures are rated Aa2 by Moody's Investors Service, Inc. and are expected to be rated AA by Standard and Poor's Ratings Services.

Commenting on the sale, Ambac's Chief Financial Officer, Frank J. Bivona noted, "With strong retail interest, we viewed this as an excellent opportunity to access the capital markets at very attractive rates. As with our debt offering in 1998, we will be using the proceeds over time to fund future growth."

Merrill Lynch & Co. and Goldman Sachs & Co. acted as co-lead managers for the underwriting syndicate. A Prospectus relating to the offering may be obtained by faxing a request to [phone].

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, is a leading guarantor of municipal and structured finance obligations. It 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).