Announces Second Quarter Results

ALLENTOWN, Pa., August 11, 2003 -- Penn Treaty American Corporation (NYSE:PTA) today reported 2nd quarter, 2003 net income of $23,116,000 or $.32 per share on a fully diluted basis. During the 2nd quarter of 2002, the Company reported net income of $11,918,000 or $.57 per share on a fully diluted basis. Outstanding shares used for the computation of fully diluted earnings per share in 2003 reflect the potential conversion of the Company's convertible subordinated notes due 2008, which were issued after the 2nd quarter of 2002.

For the three months ended June 30, 2003, the Company's results were significantly affected by the following pre-tax items (per share amounts are net of tax and are on a fully diluted basis):

1. As a result of declining market interest rates during the second quarter, the Company recorded a gain on its notional experience account due from its reinsurer of approximately $39 million or $.34 per share. In comparison, during the second quarter of 2002, the Company recorded a gain on its notional experience account of approximately $20 million or $.59 per share.

2. During the second quarter, the Company finalized a consulting agreement with and retirement package for Irving Levit, the Company's former chairman and CEO. In addition, the Company has eliminated certain management positions, effective August 31, 2003. The Company has recognized all related compensation and severance associated with these events with a one-time charge of approximately $2.5 million or $.02 per share. As a result, the Company expects annual savings of approximately $900,000.

3. During the second quarter of 2003, the Company took advantage of opportunities in the long-term care insurance marketplace that have enabled it to establish the sales and marketing infrastructure it believes is necessary to realize its goal of becoming an industry leader. As a result, the Company has incurred additional expenses primarily related to the recommencement of new sales in certain key states, the development of its new sales and marketing management team, distribution of sales materials to agents and other product development costs. In addition, one of the Company's agency subsidiaries expanded its regional office structure by investing in seasoned, established long-term care insurance distributors. As a result of these investments, the Company incurred approximately $2.1 million of additional expense in the second quarter or $.02 per share. The Company has experienced a 67% rise in new long-term care insurance policy applications submitted, rising from an average of 141 per week in the first quarter of 2003 to an average of 236 applications submitted per week for the last three weeks of July 2003.

On June 30, 2003, the Company paid approximately $9.0 million to retire all of its remaining outstanding convertible subordinated notes due December 2003. In addition, subsequent to June 30, approximately $2.6 million of its convertible subordinated notes due October 2008 were converted into shares of the Company's common stock at a conversion price of $1.75. The Company's book value per share, or shareholders' equity divided by total outstanding shares, taking into account the potential conversion of all outstanding convertible subordinated notes, was $3.66 at June 30, 2003.

The Company will hold an investor conference call to discuss its results on Tuesday, August 12, 2003, at 2:00 p.m., EDT. Investors and analysts may participate by calling 1.888.273.9889. A replay of the call will be available until August 17 by calling 1.800.475.6701 with access code 695306.

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 in this press release may be considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that our expectations are based upon reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from our expectations. An investment in PTA securities includes certain risks, which may be specific to the Company or to the long-term care insurance industry. Factors which could cause actual results to differ from expectations include, among others, our ability to comply with our Corrective Action Plan, the Florida Consent Order, the orders or directives of other states in which we do business or any special provisions imposed by states in connection with the resumption of writing new business, our ability to commute our reinsurance agreement and to recapture our reinsured policies and accumulated notional experience account balance, whether our Corrective Action Plan will be accepted and approved by all states, our ability to meet our future risk-based capital goals, the adverse financial impact of suspending new business sales, our ability to raise adequate capital to meet regulatory requirements and to support anticipated growth, our ability to refinance, convert or repay our 2008 convertible notes, the cost associated with recommencing new business sales, liquidity needs and debt obligations, the adequacy of our loss reserves and the recoverability of our DAC asset, our ability to sell insurance products in certain states, our ability to resume generating new business in all states, including California, our ability to comply with government regulations and the requirements which may be imposed by state regulators as a result of our capital and surplus levels, the ability of senior citizens to purchase our products in light of the increasing costs of health care, our ability to defend our self against adverse litigation, and our ability to recapture, expand and retain our network of productive independent agents, especially in light of the suspension of new business. For additional information concerning these and other risks, please refer to our reports filed with the Securities and Exchange Commission.

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Hosts Investor Call for 2nd Quarter Results

ALLENTOWN, Pa., August 11, 2003 -- Penn Treaty American Corporation (NYSE:PTA) will host an investor conference call to discuss its second quarter, 2003 results on Tuesday, August 12 at 2:00 p.m., EDT. The Company expects to release its quarterly results following the close of business today, August 11.

Investors and analysts are invited to participate in the conference call by calling 888.273.9889. A replay of the call will be available until Sunday, August 17, by calling 800.475.6701, access code 695306.

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.

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Plans Earnings Release and Investor Conference Call

ALLENTOWN, Pa., May 8, 2003 -- Penn Treaty American Corporation (NYSE:PTA) today announced that it intends to release its 1st quarter 2003 earnings and file its Form 10-Q for the period ending March 31, 2003 on Monday, May 12, 2003.

In addition, the Company will hold an investor conference call to discuss its results on Tuesday, May 13, 2003, at 2:00 p.m., EDT. Investors and analysts may participate by calling 1.888.428.4479.

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