Press Release

Ambac Financial Group, Inc. Declares Quarterly Dividend

NEW YORK, July 23, 2008 -- Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) today announced that its Board of Directors declared a regular quarterly cash dividend of $0.01 per share of common stock. The dividend is payable on September 3, 2008 to stockholders of record on August 11, 2008.

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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 a Aa3 rating from Moody's Investors Service, Inc. and a AA rating from Standard & Poor's Ratings Services; Moody's rating is on negative outlook while Standard & Poor's maintains a credit watch negative. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).

Contact Information:

Investor/Media Contact: Vandana Sharma
212- 208-3333
vsharma@ambac.com

Fixed Income Contact: Peter Poillon
(212) 208-3222
ppoillon@ambac.com