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Press Release

Ambac Financial Group, Inc. Declares Quarterly Dividend

NEW YORK, October 21, 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 December 3, 2008 to stockholders of record on November 10, 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 (on review for downgrade) from Moody's Investors Service, Inc. and a AA rating (negative outlook) from Standard & Poor's Ratings Services. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).