ABK Ambac Financial Grp. Common Stock

Ambac Announces Sale of Investment Advisory and Cash Management Business to Public Financial Management NEW YORK, Nov. 24 /PRNewswire-FirstCall/ -- Ambac Financial Group, Inc. (Ambac) today announced that it has entered into an agreement to sell the operations of Cadre Financial Services, Inc., its investment advisory and cash management business to PFM Asset Management LLC, an affiliate of Public Financial Management, for cash and notes. The sale is scheduled to close in the first quarter of 2004. As a result of this sale, Ambac will record a fourth quarter net charge of approximately $7.6 million. Operating earnings generated by Cadre are insignificant to Ambac's consolidated results. Commenting on the transaction, Ambac President and Chief Operating Officer, Robert J. Genader noted, "The decision to sell this business confirms that Ambac's focus is on its core financial guarantee business and complementary services which continue to provide ample opportunities for growth and attractive returns. We are pleased to announce this transaction with PFM as we believe their commitment to serving the financial advisory and investment management needs of this marketplace is second to none." F. John White, Chief Executive Officer of PFM, commented "We are delighted that Ambac chose to accept our offer for Cadre. This represents a significant addition to our existing money management business and reaffirms our commitment to our core business of serving the financial advisory and money management needs of state and local governments throughout the United States, a business we have been in for the past 25 years." Forward-Looking Statements This release, in particular Ambac's President's remarks, contains 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; and (7) 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, 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, 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: Peter R. Poillon, +1-212-208-3333, Web site: http://www.ambac.com/

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