Press Release

Ambac Financial Group, Inc. Declares Quarterly Dividend

NEW YORK, January 29, 2008-- Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) today announced that its Board of Directors declared a regular quarterly cash dividend of $0.07 per share of common stock. The dividend is payable on March 5, 2008 to stockholders of record on February 11, 2008.

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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 from Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services; and a double-A rating from Fitch, Inc. Moody’s has placed Ambac’s triple-A rating on review for possible downgrade. Standard & Poor’s has placed Ambac’s triple-A rating on “credit watch negative.” Fitch has placed Ambac's double-A rating on “rating watch negative.” Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).