Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers

Effective October 21, 2008 David W. Wallis, 48, was named President and Chief Executive Officer of Ambac Financial Group, Inc. ("Ambac") and Ambac Assurance Corporation ("AAC"). Mr. Wallis succeeds Michael A. Callen, who was named Interim President and Chief Executive Officer in January 2008. Mr. Callen will remain in his position as an executive officer of Ambac and will continue to serve as Chairman of Ambac and AAC.

A 12-year veteran of Ambac, Mr. Wallis previously held the title of Chief Risk Officer. He also was appointed a Director of both Ambac and AAC, effective October 21, 2008.

As Ambac's Chief Risk Officer, Mr. Wallis was responsible for Credit Risk Management, Capital and Risk Analysis, and Portfolio Risk Management. From July 2005 to January 2008, Mr. Wallis served as a Senior Managing Director and Head of Portfolio and Market Risk Management. Mr. Wallis joined Ambac in 1996 in Ambac's London office where he helped develop and lead Ambac's European Structured Finance and Securitization business. In 2003, he transferred to Ambac's New York headquarters where he was a member of the Credit Risk Management team. Prior to joining Ambac in 1996, he was an investment banker at NatWest in the Debt Structuring Group, having previously held positions in Japan and in Strategic Planning. Mr. Wallis holds an Economics degree from Downing College, Cambridge and an MBA from the City University Business School in London.

Mr. Wallis receives a base salary of $1 million. In addition, Mr. Wallis will be eligible to receive a bonus for 2008 to be determined by the Compensation Committee in early 2009. He also will be eligible to receive equity awards to be determined by the Compensation Committee in early 2009.

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