NEW YORK, May 16, 2016 (GLOBE NEWSWIRE) -- Ambac Financial Group, Inc. (Nasdaq:AMBC) ("Ambac"), a holding company
whose subsidiaries, including Ambac Assurance Corporation, provide financial guarantees and other financial services, today
commented on Canyon Capital’s (“Canyon”) decision to withdraw from the proxy contest it initiated:
Ambac welcomes Canyon’s decision to withdraw its proxy materials. Canyon’s decision reflects the overwhelming shareholder
support Ambac received for its current board and management team, with all of its directors receiving the approval of at least 95.6
percent of shares voted and Canyon’s nominee receiving only 4.1 percent of shares voted as of the close of business on May 12,
2016.
In addition, all three independent proxy advisory firms, Institutional Shareholder Services, Glass Lewis and Egan-Jones Proxy
Services, recommended that stockholders vote FOR all of Ambac’s nominees and NOT for Canyon’s handpicked nominee. Ambac’s
shareholders and the proxy advisory firms clearly and decisively rejected Canyon’s wasteful proxy fight and creditor-focused
agenda and our Board stands firmly in support of management and its demonstrated record of accomplishment.
The Board and management are grateful to our stockholders for their input and support throughout this process. Ambac
remains committed to executing on the strategic priorities that have driven our strong operating results and to maximizing
value for all shareholders.
Important Information
Ambac Financial Group, Inc., ("Ambac") filed a definitive proxy statement with the Securities and Exchange
Commission ("SEC") on April 20, 2016 in connection with its 2016 Annual Meeting. STOCKHOLDERS ARE URGED TO READ THIS
PROXY STATEMENT, THE ACCOMPANYING WHITE PROXY CARD AND OTHER RELEVANT DOCUMENTS FILED BY AMBAC WITH THE SEC IN THEIR ENTIRETY
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain free copies of these documents through the website
maintained by the SEC at http://www.sec.gov and
through the website maintained by Ambac at http://ir.ambac.com.
Certain Information Regarding Participants
Ambac, its directors and certain of its officers and other employees may be deemed to be participants in the solicitation of
Ambac's stockholders in connection with its 2016 annual meeting. Information regarding the names, affiliations and direct and
indirect interests (by security holdings or otherwise) of these persons can be found in Ambac's definitive proxy statement for its
2016 Annual Meeting, which was filed with the SEC on April 20, 2016. To the extent holdings of Ambac’s securities by such
persons have changed since the amounts printed in the 2016 definitive proxy statement, such changes have been or will be reflected
on Initial Statements of Beneficial Ownership on Form 3 or on Statements of Change in Ownership on Form 4 filed with the SEC. More
detailed information regarding the identity of potential participants, and their direct or indirect interests, by security holdings
or otherwise, is set forth in the definitive proxy statement and, to the extent applicable, will be updated in other materials to
be filed with the SEC in connection with Ambac’s 2016 Annual Meeting. Stockholders may obtain a free copy of the proxy statement
and other documents filed by Ambac with the SEC from the sources listed above.
About Ambac
Ambac Financial Group, Inc. ("Ambac"), headquartered in New York City, is a holding company whose subsidiaries, including its
principal operating subsidiaries, Ambac Assurance Corporation ("AAC"), Everspan Financial Guarantee Corp., and Ambac Assurance UK
Limited ("Ambac UK"), provide financial guarantees and other financial services to clients in both the public and private sectors
globally. AAC, including the Segregated Account of AAC (in rehabilitation), is a guarantor of public finance and structured finance
obligations. Ambac is also selectively exploring opportunities involving the acquisition and/or development of new businesses.
Ambac‘s common stock trades on the NASDAQ Global Select Market under the symbol “AMBC”. The Amended and Restated Certificate
of Incorporation of Ambac contains substantial restrictions on the ability to transfer Ambac’s common stock. Subject to limited
exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer
(or any series of transfers of which such transfer is a part), any person or group of persons shall become a holder of 5% or more
of Ambac’s common stock. Ambac is committed to providing timely and accurate information to the investing public, consistent
with our legal and regulatory obligations. To that end, we use our website to convey information about our businesses, including
the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the
posting of updates to the status of certain primary residential mortgage backed securities litigations. For more information,
please go to www.ambac.com.
Forward-Looking Statements
In this press release, we have included statements that may constitute “forward-looking statements” within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “plan,” “believe,”
“anticipate,” “intend,” “potential,” “going forward,” “looking ahead” and similar expressions, or future or conditional verbs such
as “will,” “should,” “would,” “could,” and “may,” or the negative of those expressions or verbs, identify forward-looking
statements. We caution readers that these statements are not guarantees of future performance. Forward-looking statements are not
historical facts but instead represent only our beliefs regarding future events, which, may by their nature be inherently uncertain
and some of which may be outside our control. These statements may relate to plans and objectives with respect to the future, among
other things which may change. We are alerting you to the possibility that our actual results may differ, possibly materially, from
the expected objectives or anticipated results that may be suggested, expressed or implied by these forward-looking statements.
Important factors that could cause our results to differ, possibly materially, from those indicated in the forward-looking
statements include, among others, those discussed under “Risk Factors” described in our most recent SEC filed quarterly or annual
report. Any or all of management’s forward-looking statements here or in other publications may turn out to be incorrect and are
based on management’s current belief or opinions. Ambac’s actual results may vary materially, and there are no guarantees about the
performance of Ambac’s securities. Among events, risks, uncertainties or factors that could cause actual results to differ
materially are: (1) volatility in the price of Ambac’s common stock; (2) uncertainty concerning our ability to achieve value for
holders of Ambac securities, whether from Ambac Assurance Corporation (“AAC”) or from new business opportunities; (3) dilution of
current shareholder value or adverse effects on our share price resulting from the issuance of additional shares of common stock;
(4) adverse effects on our share price resulting from future offerings of debt or equity securities that rank senior to our common
stock; (5) potential of rehabilitation proceedings against AAC; (6) decisions made by the Rehabilitator of the Segregated Account
of AAC (the “Segregated Account”) for the benefit of policyholders that may result in material adverse consequences for Ambac’s
security holders; (7) our inability to realize the expected recoveries included in our financial statements; (8) intercompany
disputes or disputes with the rehabilitator of the Segregated Account; (9) our inability to monetize assets, restructure or
exchange outstanding debt and insurance obligations, or the failure of any such transaction to deliver anticipated results; (10)
our results of operations may be adversely affected by events or circumstances that result in the accelerated amortization of our
insurance intangible asset; (11) increased fiscal stress experienced by issuers of public finance obligations or an increased
incidence of Chapter 9 filings by municipal issuers; (12) adverse tax consequences or other costs resulting from the Segregated
Account rehabilitation plan, from rules and procedures governing the payment of permitted policy claims, or from the
characterization of our surplus notes as equity; (13) credit risk throughout our business, including but not limited to credit risk
related to residential mortgage-backed securities, student loan and other asset securitizations, collateralized loan obligations,
public finance obligations and exposures to reinsurers; (14) risks attendant to the change in composition of securities in our
investment portfolio; (15) inadequacy of reserves established for losses and loss expenses; (16) the risk that our risk management
policies and practices do not anticipate certain risks and/or the magnitude of potential for loss as a result of unforeseen risks;
(17) changes in prevailing interest rates; (18) factors that may influence the amount of installment premiums paid to Ambac,
including the Segregated Account rehabilitation proceedings; (19) default by one or more of AAC’s portfolio investments, insured
issuers or counterparties; (20) market risks impacting assets in our investment portfolio or the value of our assets posted as
collateral in respect of investment agreements and interest rate swap transactions; (21) risks relating to determinations of
amounts of impairments taken on investments; (22) the risk of litigation and regulatory inquiries or investigations, and the risk
of adverse outcomes in connection therewith, which could have a material adverse effect on our business, operations, financial
position, profitability or cash flows; (23) our inability to realize value from Ambac Assurance UK Limited ("Ambac UK"); (24)
system security risks; (25) market spreads and pricing on derivative products insured or issued by Ambac or its subsidiaries; (26)
the risk of volatility in income and earnings, including volatility due to the application of fair value accounting; (27) changes
in accounting principles or practices that may impact Ambac’s reported financial results; (28) legislative and regulatory
developments; (29) operational risks, including with respect to internal processes, risk models, systems and employees, and
failures in services or products provided by third parties; (30) Ambac’s financial position and the Segregated Account
rehabilitation proceedings that may prompt departures of key employees and may impact our ability to attract qualified executives
and employees; and (31) other risks and uncertainties that have not been identified at this time.
Contact Abbe F. Goldstein, CFA Managing Director, Investor Relations and Corporate Communications (212) 208-3222 agoldstein@ambac.com
