NEW YORK, June 1, 2011 - Ambac Assurance Corporation (Ambac) today announced that the Commissioner of Insurance of the State of Wisconsin has disapproved the requests of Ambac and the Rehabilitator of the Segregated Account of Ambac (Segregated Account), acting for and on behalf of the Segregated Account, to pay interest on all outstanding Surplus Notes issued by Ambac and the Segregated Account on the first scheduled interest payment date of June 7, 2011.

About Ambac Assurance

Ambac Financial, headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed for a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (“Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”). Ambac Financial will continue to operate in the ordinary course of business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.  Ambac Financial’s common stock trades in the over-the-counter market under ticker symbol ABKFQ.

Investor Contact: Michael Fitzgerald
(212) 208-3222
mfitzgerald@ambac.com