ABK Ambac Financial Grp. Common Stock

NEW YORK, Sept. 8 /PRNewswire-FirstCall/ -- Ambac Financial Group, Inc. (NYSE:ABK) (Ambac) today announced that it has provided additional Hurricane Katrina disclosures relating to bond exposures to issuers located in FEMA- designated counties within Greater New Orleans, Louisiana (excluding Greater New Orleans), Mississippi and Alabama. Greater New Orleans includes the parishes of Orleans, Jefferson, and St. Bernard. The additional disclosures include i) a tabular list of the 20 largest public finance exposures within the FEMA-designated areas affected by Hurricane Katrina and ii) additional net par exposures in the amount of $522 million to the recently announced additional FEMA-designated counties in the state of Mississippi. Ambac's total net par exposure to public finance issuers in the affected area is $4.3 billion, $1.7 billion of which is located within Greater New Orleans. Ambac's net par exposure to investor-owned utilities in the affected areas is $440 million. The complete disclosures relating to Ambac's Hurricane Katrina exposure are included in Ambac's website http://www.ambac.com/. Ambac will periodically update its website as additional information becomes available. Forward-Looking Statements This release may contain statements about our future results that may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. We caution you that these statements are not guarantees of future performance. They involve a number of risks and uncertainties that are difficult to predict. Our actual results could differ materially from those expressed or implied in the forward-looking statements. Among the factors that could cause actual results to differ materially are (1) changes in the economic, credit, or interest rate environment in the United States and abroad; (2) the level of activity within the national and worldwide debt markets; (3) competitive conditions and pricing levels; (4) legislative and regulatory developments; (5) changes in tax laws; (6) the policies and actions of the United States and other governments; (7) changes in capital requirement or other criteria of rating agencies; (8) changes in accounting principles or practices that may impact the Company's reported financial results; (9) inadequacy of reserves established for losses and loss adjustment expenses; (10) default of one or more of the Company's reinsurers; (11) market spreads and pricing on insured pooled debt obligations and other derivative products insured or issued by the Company; (12) prepayment speeds on insured asset-backed securities and other factors that may influence the amount of installment premiums paid to the Company; and (13) other risks and uncertainties that have not been identified at this time. We undertake no obligation to publicly correct or update any forward-looking statement if we later become aware that it is not likely to be achieved, except as required by law. 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, is a leading guarantor of municipal and structured finance obligations. It 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). DATASOURCE: Ambac Financial Group, Inc. CONTACT: Investors and Media: Peter R. Poillon of Ambac Financial Group, Inc., +1-212-208-3333, Web site: http://www.ambac.com/

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