Ambac Announces Resignation of David Wallis, President and Chief Executive Officer, and Kevin Doyle, Senior Vice President and General Counsel, and Appointment of Diana Adams, as President and Chief Executive Officer, and Stephen Ksenak as General Counsel

NEW YORK--(BUSINESS WIRE)-- Ambac Financial Group, Inc.(OTC: ABKFQ) (“Ambac Financial”) announced that David Wallis has resigned as President and Chief Executive Officer and as a director of Ambac Assurance Corporation (“Ambac Assurance”), in each case effective as of July 6, 2011. Mr. Wallis will remain a director of Ambac Financial.

Commenting on the departure of Mr. Wallis, Michael Callen, Chairman of the Board, stated, “Since joining Ambac in 1996 David Wallis has provided invaluable service to the company, first in our London office, where he played a key role in developing and leading our European businesses, then beginning in 2003, at our New York headquarters, where he was a key member of our risk management team, ultimately assuming responsibility as Chief Risk Officer. In October, 2008, amid a period of unprecedented turmoil in the financial markets, David was appointed President and Chief Executive Officer of Ambac, and has led the company admirably during extremely trying times. The Board is grateful for his years of dedicated service.”

The Board has appointed Diana Adams, Senior Managing Director, as President and Chief Executive Officer, effective as of July 7, 2011. In addition, Ms. Adams was appointed as a director of both Ambac Financial and Ambac Assurance, effective as of July 7, 2011.

Ms. Adams is Ambac’s Chief Administrative Officer with executive responsibility for Human Resources, Technology and Administration. She is a member of the board of Ambac’s UK subsidiary, Ambac Assurance UK Limited, which she chaired from 2008-2010. Prior to taking on her current responsibilities, Ms. Adams had overseen Ambac’s origination efforts in the Emerging Markets and Structured Insurance, and in 2008 assumed responsibility for other areas including International and Structured Finance. Ms. Adams joined Ambac in 2000 following the winding down of the international joint venture between the company and MBIA, which she had joined the prior year. Before that, Ms. Adams was a Vice President at JP Morgan in the capital markets and structured products divisions, and prior to that she was at Mitsubishi Bank in acquisition finance, and at Merrill Lynch in investment banking. Ms. Adams holds a JD from Harvard Law School and a BA in Economics from Johns Hopkins University.

Mr. Callen commented, “Diana Adams has been a highly regarded leader within Ambac for more than 10 years. She successfully managed several business units, has served as Chairman of our UK subsidiary, and has been an integral part of the company’s management team as Chief Administrative Officer. Her demonstrable skills and depth of experience in many facets of our business make Diana a worthy successor to David Wallis. The Board has full confidence in her ability to lead the company as President and Chief Executive Officer, and I welcome her to the boards of Ambac Financial and Ambac Assurance.”

Ms. Adams stated, “I look forward to leading the company through its next phase, as Ambac Financial prepares to emerge from bankruptcy. David Wallis and I will continue to work closely together to orchestrate a smooth transition. Working with Ambac’s employees and regulators, I am confident that we can succeed in implementing strategies that add value to our constituents. We have the capacity to make an enormous difference in outcome if we execute the current strategies and carefully develop new ones in response to changing conditions in the coming years. The team here is deep, experienced and motivated, and is well positioned to realize these goals.”

Ambac Financial also announced that Kevin Doyle has resigned as Senior Vice President and General Counsel, effective as of July 29, 2011. Stephen Ksenak will succeed Mr. Doyle as General Counsel, effective as of July 30, 2011.

On the departure of Mr. Doyle, Mr. Callen said, “Kevin Doyle joined Ambac 20 years ago and has been a highly valued General Counsel and member of our management team for more than a decade. His tireless efforts and judicious counsel have been instrumental in guiding the company through very challenging times. On behalf of the Board, I thank Kevin for his exemplary service to the company. We are fully confident that Steve Ksenak, who has been with the company since 2002, will capably succeed Kevin as General Counsel.”

Mr. Callen added, “Until their departures, Messrs. Wallis and Doyle will continue to work to develop and file a plan of reorganization for Ambac Financial before the expiration of its current exclusivity period on July 6, 2011.”

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. The Company will continue to operate in the ordinary course of business as “debtor-in-possession” 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.’s 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.

Ambac Financial Group, Inc.Michael Fitzgerald, 212-208-3222
[email protected]

Source: Ambac Financial Group, Inc.