ALLENTOWN, Pa., July 7 /PRNewswire-FirstCall/ -- Penn Treaty American
Corporation (NYSE: PTA) today announced that A.M. Best Company ("A.M.
Best") has placed the financial strength ratings of its insurance
subsidiaries under review pending the completion of the Company's audit for
the period ended December 31, 2005. The Company has announced that its
independent certified accountant is in process of completing its audit
process.

In a press release dated July 6, 2006, A.M. Best placed the financial
strength ratings of the Company's insurance subsidiaries, which remain at
"B", under review with negative implications, given the uncertainty that
remains pending the Company's auditor's completion of its audit process. In
the same release, A.M. Best downgraded the Company's Issuer Credit Rating
("ICR") from "b" to "b-." The Company does not utilize its ICR rating,
which represents the Company's credit rating in the event of the issuance
of debt. The Company is currently debt-free.

The Company, through its wholly owned direct and indirect subsidiaries,
Penn Treaty Network America Insurance Company, American Network Insurance
Company, American Independent Network Insurance Company of New York, United
Insurance Group Agency, Inc., Network Insurance Senior Health Division and
Senior Financial Consultants Company, is primarily engaged in the
underwriting, marketing and sale of individual and group accident and
health insurance products, principally covering long-term nursing home and
home health care.

Certain statements made by the Company - in this press release - may be
considered forward-looking. Although the Company believes that its
expectations are based upon reasonable assumptions, actual results could
differ from expectations. For a discussion of risks related to the Company,
please refer to its filings made with the Securities and Exchange
Commission, which can be viewed at http://www.sec.gov.

SOURCE Penn Treaty American Corporation

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