Board of Directors of Ambac Assurance UK Limited Comments on the Implications for AUK of Rehabilitation of the Segregated Account of Ambac Assurance Corporation

The Board of Directors of Ambac Assurance UK Limited ("AUK”) today issued the following comments on the implications for AUK of the rehabilitation of the segregated account of AUK’s parent, Ambac Assurance Corporation ("AAC”), by the Office of the Commissioner of Insurance ("OCI”) of the State of Wisconsin, USA:

• AUK is a subsidiary of AAC and is a separate legal entity. AUK is regulated by the UK Financial Services Authority and is not in rehabilitation or any other insolvency proceedings.
• AUK has sent AAC a notice of termination of its reinsurance agreement with AAC, and is reviewing all its contractual relationships with AAC.
• AUK will remain able to meet all of its obligations as they fall due.
• AUK’s rights and obligations in respect of its financial guarantees are consequently unaffected.
• AUK remains staffed to continue to actively manage its current insured portfolio.

Ambac Assurance UK Limited is authorised and regulated by the Financial Services Authority and its registered office is: Level 7, 6 Broadgate, London EC2M 2QS. Ambac Assurance UK Limited (registration number 3248674) is a wholly owned subsidiary of Ambac Assurance Corporation who is a wholly own subsidiary of 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 a Caa2 rating (developing outlook) from Moody's Investors Service, Inc. and a CC rating (credit watch positive) from Standard & Poor's Ratings Services. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).