ABK Ambac Financial Grp. Common Stock

Ambac Financial Group, Inc. (NYSE:ABK) today announced that Kathleen A. McDonough, Senior Managing Director, has confirmed her intention to retire from Ambac in mid-August 2007. An orderly transition of her responsibilities to Robert G. Shoback, Senior Managing Director, who will head all of Ambac�s Public Finance business activity, is already in process. Robert J. Genader, Chairman, President and Chief Executive Officer, commented, �On behalf of Ambac�s Board of Directors and the entire Ambac team, I want to express heartfelt thanks to Kate for her many contributions to Ambac over the past 16 years. She has helped shape the Public Finance business both within Ambac and the financial guarantee industry. She is a quintessential professional and her leadership, vision and warmth will be greatly missed by all of us at Ambac and by her colleagues in the industry.� Ms. McDonough joined Ambac in 1991 and has held positions of increasing responsibility throughout her tenure. She began her career at Ambac as an attorney in the Legal Department later transferring to public finance underwriting. She became co-head of Public Finance with Robert Shoback in 2004 and was instrumental in establishing Ambac�s US Project Finance business while also leading the company�s efforts in Canada. Ms. McDonough has been an outstanding member of the senior management team and has served as a senior representative to the Association of Financial Guarantee Insurers (�AFGI�) since 2006. Prior to joining Ambac, she was an attorney at Orrick, Herrington & Sutcliffe. Ms. McDonough was honored by Irish America Magazine as one of the Wall Street Top 50 in 2001. Mr. Shoback has been with the company since 1998. He assumed his current responsibilities as co-head of Public Finance in 2004. Prior to joining Ambac, Mr. Shoback was a Senior Vice President in the Municipal Bond Department at Lehman Brothers. �Bob has extensive experience in designing and implementing innovative and complex financing structures involving a variety of credit and security types,� said Mr. Genader. �I am confident that he will continue to make a valuable contribution in his expanded role at 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 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 and Fitch, Inc. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).