Exhibit 99.1

PENN TREATY AMERICAN ANNOUNCES THIRD QUARTER RESULTS
IN LINE WITH EXPECTATIONS

November 9, 2005 — Allentown, PA – Penn Treaty American Corporation (PTA-NYSE) today announced its third quarter financial results for the period ended September 30, 2005. Net income for the 2005 third quarter was $3.0 million or $0.18 per fully diluted share, which includes an after tax realized loss on the sale of investments of $221,650, or $0.01 per fully diluted share. These results are in line with the Company’s recently announced expectations.

In comparison, for the third quarter of 2004, the Company recorded $41.7 million in net income, or $1.91 per fully diluted share, which included an after tax gain of $34.9 million, or $1.61 per fully diluted share, attributable to a market gain recorded on its notional experience account. Due to the commutation of the Company’s reinsurance agreement with Centre Solutions (Bermuda) Limited on May 24, 2005, the notional experience account no longer exists and therefore did not have any impact on the third quarter of 2005.

During the third quarter of 2005, the Company recorded premium revenue of $76.1 million, including $3.1 million of first year collected premium revenue. Approximately $5.4 million of annualized new policy premium was issued during the third quarter of 2005, which represents a 6% increase from the same period in 2004.

During the nine month period ended September 30, 2005, the Company recorded premium revenue of $234.4 million, including $9.1 million of first year collected premium revenue. Approximately $15.4 million of annualized new policy premium was issued during the first nine months of 2005, which represents a 12% increase from the same period in 2004.

For the nine months ended September 30, 2005, the Company recorded net income of $18.5 million, or $0.93 per fully diluted share. The results included the impact of the May 24, 2005 commutation of the Company’s reinsurance agreement with Centre Solutions (Bermuda) Limited. In comparison, for the nine months ended September 30, 2004, the Company recorded net income of $24.9 million, or $1.34 per fully diluted share. These results included an after tax gain of $16.6 million, or $0.78 per fully diluted share, attributable to the Company’s notional experience account.

Book value at September 30, 2005 was $15.13 per share, and fully converted book value (taking into account the conversion of the Company’s outstanding convertible debt) was $12.48 at September 30, 2005. A reconciliation of book value to fully converted book value is as follows:

(amounts in thousands, except per share amounts)

Shareholders' equity	$	237,026
Convertible debt, net of discount		52,517
Preferred interest on early conversion		3
Unamortized deferred offering costs		782
Shareholders' equity, fully converted	$	290,328
Outstanding shares, as reported		15,666
Shares issuable upon conversion of debt		7,602
Outstanding shares, fully converted		23,268
Book value per share, as reported	$	15.13
Book value per share, fully converted	$	12.48

The Company’s outstanding 6¼% subordinated convertible notes due 2008 (the “Notes”) automatically converted to shares of its common stock on November 4, 2005. The conversion occurred under the terms of the Notes because the average closing price of the Company’s common stock on the fifteen trading days following October 15, 2005 was greater than 110% of the conversion price of $7.00. Approximately $46 million in Notes converted to approximately 6.6 million shares of the Company’s common stock. After the conversion there are approximately 23.3 million shares of common stock issued and outstanding.

William W. Hunt, President and C.E.O., stated, “We are pleased to have met our revised earnings expectations for the third quarter of 2005. The conversion of the outstanding debt to common stock is a significant accomplishment and greatly improves the risk profile of our Company. The process to finalize a new reinsurance agreement for new business with Imagine International Reinsurance Limited has progressed as anticipated. These are important steps for our future performance and allow us to devote more of our energy toward growth and value creation for our shareholders through enhanced sales efforts and operational efficiencies.”

The Company will host an investors’ conference call at 2:00 PM, EST, Wednesday, November 9, 2005 to discuss its third quarter results. Investors and analysts should call 800.762.4717 in order to participate. The conference call will be available by replay until November 23, 2005 by calling 800.475.6701 with access code 802840. The Company also plans to make the call available online via a downloadable file on its website, http://www.penntreaty.com.

Certain statements made by the Company in this press release may be considered forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes that its expectations are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results of its operations will not differ materially from its expectations. An investment in the Company’s 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, the Company’s ability to gain reinsurance coverage for new business.

Contact:

Investor Relations
1.800.222.3469

Cameron Waite, Executive Vice President
cwaite@penntreaty.com

Mark Cloutier, Senior Vice President and Chief Financial Office
mcloutier@penntreaty.com

PENN TREATY AMERICAN CORPORATION AND SUBSIDIARIES Consolidated Statements of Income (amounts in thousands, except per share data)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2005			2004			2005			2004
Revenues:		(unaudite	d)		(unaudite	d)		(unaudite	d)		(unaudite	d)
Premium revenue	$	76,066		$	80,309		$	234,360		$	241,795
Net investment income		12,580			12,055			37,673			34,584
Net realized capital (loss) gain		(341	)		(31	)		(424	)		148
Market gain on notional experience account		--			54,438			48,799			26,388
Change in preferred interest on early conversion liability		331			2,251			1,400			2,215
Other income		3,123			1,180			6,625			4,222
		91,759			150,202			328,433			309,352
Benefits and expenses:
Benefits to policyholders		59,325			56,256			185,710			172,412
Commissions		9,383			9,564			28,725			29,792
Net policy acquisition costs amortized		227			1,246			4,206			9,649
General and administrative expense		13,310			12,672			40,117			39,446
Litigation accrual expense		137			--			1,037			--
Commutation expense		--			--			18,300			--
Reinsurance warrant expense		--			--			7,267			--
Expense and risk charges on reinsurance		2,980			2,807			8,648			8,422
Excise tax expense		--			730			749			2,259
Interest expense		1,780			1,851			5,262			7,838
		87,142			85,126			300,021			269,818
Income before federal income taxes		4,617			65,076			28,412			39,534
Federal income tax provision		(1,616	)		(23,336	)		(9,944	)		(14,657	)
Net income	$	3,001		$	41,740		$	18,468		$	24,877
Basic earnings per share from net income	$	0.21		$	4.11		$	1.47		$	2.74
Diluted earnings per share from net income	$	0.18		$	1.91		$	0.93		$	1.34
Weighted average number of shares outstanding		14,122			10,155			12,537			9,091
Weighted average number of shares and share equivalents		23,289			21,718			23,270			21,349