ABK Ambac Financial Grp. Common Stock

Ambac Assurance UK Limited (AUK) met today with holders of bonds issued by Metronet Rail BCV (BCV) and Metronet Rail SSL (SSL) to provide further information on the escrow arrangements for funds recently received in respect of those bonds and the application of those funds. As previously reported, funds paid on February 12, 2008, by London Underground Ltd (LUL) in respect of the put option price on bonds issued by BCV and SSL are being held in escrow and are available to meet debt service and other amounts due in accordance with the Bond Trust Deed, escrow agreements and other relevant documentation. The slide presentation used at today�s meeting is available on Ambac�s website, www.ambac.com. AUK insures �193m of the SSL indexed-linked bonds and �350m of the BCV fixed rate bonds. The debt was issued under Public Private Partnership (PPP) contracts to finance the operation, maintenance and the initial phase of asset upgrades for part of the London Underground. Under the applicable PPP contracts, insured bondholders and other senior creditors including commercial banks and the EIB benefit from an �Underpinned Amount� providing support from LUL. With respect to the AUK-insured BCV and SSL bonds, the sum of �617 million has been segregated through deposit into two separate escrow accounts opened in the joint names of AUK and Deutsche Trustee Company Limited (Deutsche) at Citibank, N.A., London Branch. Deutsche is the Bond Trustee under the Bond Trust Deed governing the BCV and SSL bonds. The funds held in escrow are available to meet debt service guaranteed by AUK and other amounts due in accordance with the Bond Trust Deed, the escrow agreement and other relevant documentation. While in escrow, the funds will be invested in UK government securities, entities which invest solely in UK government securities, any short term instruments or deposits with a rating of A-1 or better by S&P and P-1 or better by Moody�s, or other investments as agreed by AUK and the Bond Trustee. As is typical for insured transactions that experience an event of default, AUK has the right to direct that the funds held in escrow be used either to continue to meet debt service as scheduled or to fund the acceleration and immediate payment of all principal and interest due in accordance with the documentation. AUK�s unconditional and irrevocable guaranty remains in full force and effect. Forward-Looking Statements This release contains statements about our future results that may constitute �forward-looking statements� within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management�s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Ambac Financial Group Inc.�s (ultimate parent company to AUK) (�Ambac�) filings with the Securities and Exchange Commission. There are a variety of factors, many of which are beyond Ambac�s control, which affect the operations, performance, business strategy and results and could cause its actual results to differ materially from the expectations and objectives expressed in any forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date they are made. Ambac does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. The reader should, however, consult any further disclosures Ambac may make in its future filings of its reports on Form 10-K, Form 10-Q and Form 8-K. 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 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).