Ambac Guarantees First Public Private Partnership Transaction in Canada

NEW YORK, March 24, 2006 -- Ambac Assurance UK Limited (NYSE:ABK) announced today that it has guaranteed 50% of the CAN$928.5 million bank loan facilities used to finance the Golden Ears Bridge Project in Vancouver, BC. The project, a new bridge linking growing communities in Greater Vancouver, is being built for The Greater Vancouver Transportation Authority, known as TransLink. The transaction was negotiated and executed in London and is the first monoline-wrapped public private partnership ("PPP") project in Canada. It is also the first wrapped bank loan transaction in North America.

Kate McDonough, Senior Managing Director, co-head of U.S. Public Finance and head of Project Finance North America, commented, "We are delighted to have been involved with this important transaction and see this as leading to future Canadian monoline-wrapped PPP deals and wrapped bank solutions." Ian Dixon, Managing Director and head of Infrastructure Finance in Ambac's London office, commented further, "This funding structure offered the Public Sector ("Translink") with a "value for money" solution similar to those seen regularly in the UK."

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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, 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).