NEW YORK, Sept. 13, 2017 (GLOBE NEWSWIRE) -- Ambac Financial Group, Inc. (Nasdaq:AMBC) (“Ambac”), a holding company
whose subsidiaries, including Ambac Assurance Corporation (“AAC”), provide financial guarantees, said today that the Commissioner
of Insurance for the State of Wisconsin, acting in his capacity as rehabilitator of AAC’s Segregated Account (the “Segregated
Account”), has revised the initial dates of the pre-trial hearing on the Segregated Account’s Rehabilitation Plan Amendment to
December 14, 2017 and the confirmation hearing to January 4, 2018 through January 5, 2018. The pre-trial hearing and confirmation
hearing are related to the holistic restructuring transaction (the “Transaction”) announced on July 19, 2017 designed to facilitate
the conclusion of the rehabilitation of the Segregated Account. Ambac expects the Transaction to close during the first
quarter of 2018, subject to court approval, among other conditions.
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 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’s primary goal is to maximize stockholder value by executing the following key strategies: active runoff of AAC and its
subsidiaries through transaction terminations, policy commutations, settlements and restructurings that we believe will improve our
risk profile, and maximizing the risk-adjusted return on invested assets; loss recovery through litigation and exercise of
contractual and legal rights; improved cost effectiveness and efficiency of the operating platform; rationalization of AAC's
capital and liability structures, enabling simplification of corporate governance and facilitating the successful rehabilitation of
the Segregated Account; and selective business transactions offering attractive risk adjusted returns that, among other things, may
permit utilization of Ambac’s tax net operating loss carry-forwards. 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 or a holder of 5% or more of
Ambac's common stock increases its ownership interest. 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.
CONTACTS:
Lisa A. Kampf
Managing Director, Investor Relations
(212) 208-3177
lkampf@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,” “planned,” “potential” 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” 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) the highly speculative nature of Ambac’s common stock and 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
(“Ambac Assurance”) or from transactions or opportunities apart from Ambac Assurance; (3) adverse effects on our share price
resulting from future offerings of debt or equity securities that rank senior to our common stock; (4) potential of rehabilitation
proceedings against Ambac Assurance; (5) dilution of current shareholder value or adverse effects on our share price resulting from
the issuance of additional shares of common stock; (6) inadequacy of reserves established for losses and loss expenses and
possibility that changes in loss reserves may result in further volatility of earnings; (7) decisions made by the rehabilitator of
the Segregated Account of Ambac Assurance Corporation (the “Segregated Account”) for the benefit of policyholders that may result
in material adverse consequences for holders of Ambac’s securities or holders of securities issued or insured by Ambac Assurance or
the Segregated Account; (8) increased fiscal stress experienced by issuers of public finance obligations or an increased incidence
of Chapter 9 filings or other restructuring proceedings by public finance issuers; (9) our inability to realize the expected
recoveries included in our financial statements; (10) 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; (11) the risk that our risk management policies and practices do not
anticipate certain risks and/or the magnitude of potential for loss; (12) risks associated with adverse selection as our insured
portfolio runs off; (13) adverse effects on operating results or our financial position resulting from measures taken to reduce
risks in our insured portfolio; (14) intercompany disputes or disputes with the rehabilitator of the Segregated Account; (15) our
inability to monetize assets, restructure or exchange outstanding debt and insurance obligations, or commute or reduce insured
exposures, or the failure of any such transaction to deliver anticipated results; (16) our substantial indebtedness could adversely
affect our financial condition, operating flexibility and ability to obtain financing in the future; (17) restrictive covenants in
agreements and instruments may impair our ability to pursue or achieve our business strategies; (18) loss of control rights in
transactions for which we provide insurance due to a finding that Ambac Assurance has defaulted, whether due to the Segregated
Account rehabilitation proceedings or otherwise; (19) our results of operation may be adversely affected by events or circumstances
that result in the accelerated amortization of our insurance intangible asset; (20) 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; (21) risks attendant to the change in composition of
securities in our investment portfolio; (22) changes in tax law; (23) changes in prevailing interest rates; (24) factors that may
influence the amount of installment premiums paid to Ambac, including the Segregated Account rehabilitation proceedings; (25)
default by one or more of Ambac Assurance’s portfolio investments, insured issuers or counterparties; (26) 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; (27) risks relating to determinations of amounts of impairments taken on investments; (28) 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; (29) our inability to realize
value from Ambac Assurance UK Limited or other subsidiaries of Ambac Assurance; (30) system security risks; (31) market spreads and
pricing on derivative products insured or issued by Ambac or its subsidiaries; (32) the risk of volatility in income and earnings,
including volatility due to the application of fair value accounting; (33) changes in accounting principles or practices that may
impact Ambac’s reported financial results; (34) legislative and regulatory developments; (35) the economic impact of “Brexit” may
have an adverse effect on Ambac’s insured international portfolio and the value of its foreign investments, both of which primarily
reside with its subsidiary Ambac UK; (36) operational risks, including with respect to internal processes, risk and investment
models, systems and employees, and failures in services or products provided by third parties; (37) 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 (38) other risks and uncertainties that have not been identified at this time.
