ABK Ambac Financial Grp. Common Stock

Ambac Financial Group, Inc. (NYSE: ABK) (�Ambac�) today said that Moody�s Investor Service has completed its review of Ambac Assurance Corporation�s capital position and has affirmed the Company�s Aaa rating with a stable outlook. Chairman and CEO, Robert J. Genader, noted �Ambac is pleased by this result which underscores the strength of our portfolio. We are optimistic about the business opportunities ahead and we will strategically explore these opportunities while remaining absolutely committed to preserving our triple-A rating.� According to the Moody�s capital model, Ambac Assurance Corporation�s capital position is sufficient under both base case and stressed credit scenarios to maintain its Aaa rating. Under Moody�s model, Ambac�s excess capital position (the amount of capital in excess of the minimum required to maintain a Aaa rating) remains substantial albeit down from year end 2006, resulting from Moody�s downgrades of certain exposures related to subprime residential mortgage-backed securities. Ambac is investigating a number of solutions to expand its capital position. The Company will consider the results of its own ongoing evaluation of its capital position, the results of evaluations currently being performed by both Standard & Poor�s and Fitch, and the potential for future growth of its business in deciding upon capital expansion alternatives. Certain statements in this document 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. 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).