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

(b) In light of Ambac's decision to postpone the launching of Everspan Financial Guarantee Corp. ("Everspan"), Douglas Renfield-Miller, an Executive Vice President of Ambac Financial Group, Inc. ("Ambac") and Ambac Assurance Corporation ("Ambac Assurance") and Chief Executive Officer of Everspan, informed Ambac that he would be retiring from Ambac and Ambac Assurance effective January 1, 2010. Between now and December 31, 2009, Mr. Renfield-Miller will provide support and consultation to the Company.

Item 8.01 Other Events.

Today, Ambac announced that it has postponed its efforts to launch Everspan. It will, however, continue to focus on its ongoing loss mitigation efforts and other new business initiatives.

Ambac had been seeking to launch Everspan in order to write financial guarantee insurance in the public finance market as a separate, stand-alone legal entity. To launch the business, it was essential that it receive sufficient financial strength ratings to enable Everspan to successfully compete in the targeted market. Everspan was seeking to raise third party capital in addition to any amounts contributed by Ambac Assurance Corporation in order to achieve such ratings. Although Ambac engaged in discussions with third parties to raise capital for Everspan, none of these discussions have resulted in a satisfactory outcome.

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