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NEW YORK--([ BUSINESS WIRE ])--Ambac Financial Group, Inc. (OTC: ABKFQ) ("Ambac Financial") announced today that the United States Bankruptcy Court for the Southern District of New York (the aBankruptcy Courta) entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial (the aPlana). The effective date of the Plan will be determined in accordance with the Plan terms, including the satisfaction of the conditions precedent to the consummation of the Plan.

Ambac Financialas President and Chief Executive Officer, Diana Adams, said, aI am pleased that through the diligent efforts of all of those involved, and months of negotiations with various constituents, we have successfully secured Plan confirmation. While many challenges lie ahead, this is a key milestone in our work to reorganize Ambac Financial. The courtas decision positions us to focus on consummation of the Plan and on our future.a

Copies of the Plan and the Bankruptcy Courtas Plan confirmation order can be obtained at [ http://www.kccllc.net/ambac ] under the heading "Court Documents."

About Ambac

Ambac Financial Group, Inc., 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 filed for a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. Until the Plan is consummated and Ambac emerges from bankruptcy, the Company will continue to operate in the ordinary course of business as adebtor-in-possessiona 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 Group, Inc.as common stock trades in the over-the-counter market under the ticker symbol ABKFQ.

Ambac's principal operating subsidiary, Ambac Assurance Corporation, is a guarantor of public finance and structured finance obligations.