On January 27, 2009, the Compensation Committee (the "Committee") of the Board of Directors of Ambac Financial Group, Inc. ("Ambac") awarded cash bonuses to the Company's Chairman, its Chief Executive Officer, its Chief Financial Officer and its named Executive Officers (which officers were determined by reference to the Company's proxy statement, dated April 21, 2008) for their 2008 performance.

Bonuses for 2008



                                                                            Long Term
                                                           2008 Cash        Incentive
 Name                         Title                       Bonus Amount    Compensation
 Michael A. Callen            Chairman                   $      975,000   $           0
 David W. Wallis              Chief Executive Officer    $      500,000   $           0
 Douglas C. Renfield-Miller   Executive Vice President   $      550,000   $           0
 Sean T. Leonard              Chief Financial Officer    $      950,000   $           0

The Committee did not award any long term equity incentive compensation (such as stock options and restricted stock units) to its Executive Officers for 2008. In granting the 2008 cash bonus awards, the Committee considered Ambac's performance during 2008, the performance of each individual executive and the overall economic environment. The ultimate goal of the compensation framework was to create an incentive for key Executive Officers that have been, and will continue to be, instrumental to the implementation of the Firm's corporate strategy. Overall, 2008 incentive compensation for Ambac's Executive Officers represents a decline of more than 60% from 2007 levels.

The Committee held the salary levels of Messrs. Callen and Wallis at their 2008 level. The Committee increased the salary of Ambac's Chief Financial Officer and other named executive officers (which officers were determined by reference to the Company's proxy statement, dated April 21, 2008) to the following levels.

Base Salaries for 2009



    Name                         Title                       Base Salary Amount
    Douglas C. Renfield-Miller   Executive Vice President   $            600,000
    Sean T. Leonard              Chief Financial Officer    $            550,000

Douglas Renfield-Miller, Executive Vice President of Ambac and previously Chairman and CEO of Ambac Assurance UK Limited, was named CEO designate for Connie Lee Insurance Company (re-named Everspan Financial Guarantee Corp.) in September, 2008.

It should also be noted that Messrs. McKinnon and Uhlein, who were named executive officers in 2008, are no longer with the Company.