A.M. Best Withdraws Ratings of American Independent Network Insurance Company of New York

Business Wire, April 14, 2009

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of D (Poor) and issuer credit rating (ICR) of “c” of American Independent Network Insurance Company of New York (American Independent Network) (New York, NY). The outlook for these ratings is negative. A.M. Best also has affirmed the ICR of “d” on the holding company, Penn Treaty American Corporation (Penn Treaty) [NASDAQ: PTYA].

Subsequently, A.M. Best has assigned a category NR-4 (Company Request) to American Independent Network’s FSR and an “nr” to the ICR in response to a request from company management to be removed from A.M. Best’s interactive rating process. A.M. Best also has assigned an “nr” to Penn Treaty’s ICR.

American Independent Network is a subsidiary of Penn Treaty Network America Insurance Company and American Network Insurance Company, both of which entered into voluntary rehabilitation in their domiciliary jurisdiction of the Commonwealth of Pennsylvania on January 6, 2009. The rating affirmations reflect the extremely weak balance sheet, concentrated business profile and the continued weak statutory operating performance of the organization as a whole.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.