I had my bub 3 months ago and have similar issues with the skin on my stomach. I was talking to a friend about it recently and she said that hers went away around 6 months after she gave birth - and she didn't do any particular exercises or anything.

I'm also having issues finding stuff to wear that doesn't show off my new muffin top, I had to resort to buying a few skirts with tie waists to hide it.