Ambac Reports $37-Mil. Net Profit for Month Ended Feb. 28

FAIRLESS HILLS, Pa. -- Ambac Financial Group, Inc. reported net profit
of $37 million for the month ended February 28, 2011, compared to a
$83 million net profit for January 2011.

Retired Judge James Robertson has also been selected as mediator in
the Ambac-IRS adversary complaint.  Mediation is expected to commence
in May.

Details on these developments and other stories are available at AMBAC
BANKRUPTCY NEWS, Issue No. 16, published by Bankruptcy Creditors'
Service, Inc.

The  8-page newsletter contains stories with these headlines:

[00150] ADVERSARY PROCEEDING -- Ambac Financial Group vs. IRS
[00151] DEBTOR'S MOTION TO APPROVE ONE STATE STREET SETTLEMENT
[00152] DEBTOR'S MOTION TO SET UP CLAIMS OBJECTION PROCEDURES
[00153] DEBTOR'S APPLICATION TO EMPLOY CORNERSTORE RESEARCH
[00154] BANKRUPTCY PROFESSIONALS FILE FEE APPLICATIONS
[00155] DIRECTORS DISCLOSE OWNERSHIP OF AFG COMMON STOCK
[00156] AAC EXPECTS TO BEGIN PAYMENTS UNDER PLAN IN MAY 2011
[00157] MONTHLY OPERATING REPORT -- Ended February 28, 2011


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AMBAC BANKRUPTCY NEWS tracks the restructuring of Ambac Financial Group Inc.

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