Press Release

Ambac Addresses NYSE Listing Standard

NEW YORK, December 9, 2009 -- Ambac Financial Group, Inc. (NYSE: ABK) (“Ambac” or the “Company”) announced today that the New York Stock Exchange (NYSE) has notified the company that it has fallen below the NYSE’s continued listing standard relating to the price of its common stock. The NYSE requires that the average closing price of a listed company’s common stock be above $1.00 per share over a consecutive 30 trading-day period. As of December 8, 2009, the date of the NYSE notice, the 30 trading-day average closing price of Ambac’s common stock was $0.94 per share.

Under the NYSE’s rules, Ambac has six months from the date of the NYSE notice to bring its share price and 30 trading-day average share price back above $1.00 in order to avoid the delisting of its shares. During this period, Ambac’s common stock will continue to be traded on the NYSE, subject to Ambac’s compliance with other NYSE continued listing requirements. As required by the NYSE, in order to maintain the listing of its common shares, Ambac will notify the NYSE within 10 business days of receipt of the non-compliance notice of its intent to cure the price deficiency.

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About Ambac

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 guarantor of public finance and structured finance obligations, has a Caa2 rating (developing outlook) from Moody's Investors Service, Inc. and a CC rating (outlook developing) from Standard & Poor's Ratings Services. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).

Investor Contact: Peter Poillon
(212) 208-3333
ppoillon@ambac.com

Media Contact: Susan Oehrig
(212) 208-3248
soehrig@ambac.com