ABK Ambac Financial Grp. Common Stock

On November 9, 2007, Ambac Financial Group, Inc. (“Ambac” or the “Company”) posted on its website, a list of Frequently Asked Questions (“FAQs”) by its investors, covering such topics as Ambac’s sources of capital and liquidity, the Company’s mark-to-market on credit default swap (“CDS”) contracts and its reserves, as well as questions regarding ultimate and potential losses and surveillance over its portfolio. The FAQs also cover questions about the market and Ambac’s stock price, including a listing of recently closed deals and its CDS spreads. A copy of the FAQs, filed as Exhibit 99.01 to this Current Report on Form 8-K is incorporated by reference herein.

The information in Item 7.01 of this report is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 7.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1934, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company, that the information in this report is material or complete or that investors should consider this information before making an investment decision with respect to any security of the Company or any of its affiliates.

Certain statements in this document and the exhibits are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act. 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’s filings with the Securities and Exchange Commission.