NEW YORK, March 18, 2011 - Ambac Assurance Corporation today announced that, based on conversations with the Special Deputy Commissioner for the Segregated Account of Ambac Assurance Corporation (Segregated Account), it currently expects the Segregated Account will begin payment of policy claims in May 2011.  The effectiveness of the Plan of Rehabilitation and the commencement of policy claim payments are subject to the terms of, and the satisfaction of the conditions set forth in, the Plan, and there can be no assurances as to when policy claim payments will be made.

About Ambac Assurance

Ambac Assurance is a guarantor of public finance and structured finance obligations, has a Caa2 rating from Moody's Investors Service, Inc., and is the principal operating subsidiary of Ambac Financial Group, Inc. (Ambac Financial).

Ambac Financial, headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed for a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (“Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”). Ambac Financial will continue to operate in the ordinary course of business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.  Ambac Financial’s common stock trades in the over-the-counter market under ticker symbol ABKFQ.

Investor Contact: Michael Fitzgerald
(212) 208-3222
mfitzgerald@ambac.com