Press Release

Ambac Financial Group, Inc. Declares Quarterly Dividend

NEW YORK, May 6, 2008 -- Ambac Financial Group, Inc. (NYSE:ABK) (Ambac) today announced that its Board of Directors declared a regular quarterly cash dividend of $0.01 per share of common stock. The dividend is payable on June 4, 2008 to stockholders of record on May 20, 2008.

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Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provide financial guarantees 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 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, Standard & Poor's and Fitch all maintain a “negative outlook”. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).