Penn Treaty First To Offer Brain Fitness Program

Allentown, PA -- Penn Treaty American Corporation (NYSE: PTA), a leading long–term care insurance provider, has become the first in the industry to promote brain fitness as a tool to enrich its clients' lives. This move is part of a greater wellness initiative promoting healthy physical and mental fitness that the Company expects could revolutionize the long–term care insurance industry.

Penn Treaty is offering thousands of its policyholders the opportunity to try a computer–based mental exercise program created by Posit Science Corporation and hailed as one of the "medical breakthroughs of the year" by CNBC. The program guides users through a series of listen–and–respond exercises designed to improve memory, strengthen communication, and sharpen thinking, with the ultimate goal of delaying the onset of dementia–based impairment.

"We believe that each of our policyholders wants to maintain their independence and health well into their senior years," said Stephen R. La Pierre, Senior Vice President of Penn Treaty. "We need to be more than just a financial safety net if your health declines; insurers also have a responsibility to coach policyholders in ways of living longer, healthier lives."

La Pierre says dementia and Alzheimer's disease are the most extensive and costly causes of long–term care insurance claims. A proactive cognitive health program can give policyholders the tools they need to actively address their concerns of developing dementia. Such a program may also reduce the frequency and length of future cognitive claims.

"Scientific evidence convinced us that the Brain Fitness Program from Posit Science Corporation could really improve the cognitive abilities of many of our policyholders," La Pierre said.

In recently published studies, participants using the Brain Fitness Program showed statistically and clinically significant gains on standard cognitive batteries, while participants in control groups showed minimal or no gains. The gains are equivalent to 10 or more years of improved cognitive function (such as ability to remember and faster processing speed) among populations over age 60.

"Penn Treaty was one of the first providers to offer long–term care insurance more than 35 years ago, and continues to be a true leader in this industry," said Jeff Zimman, CEO of Posit Science.

Penn Treaty wants their policyholders to have the opportunity to enjoy healthy, independent lifestyles well into their retirement years through an emphasis on wellness. The Brain Fitness Program is the first component of Penn Treaty's comprehensive menu of wellness services and programs, which will be rolled out over the next year.

Dawn Helwig, Consulting Actuary at Milliman USA, Inc. and an expert in long–term care insurance products, said "The use of Posit Sciences' tools in the long–term care market is intriguing. If a significant percentage of people with long–term care insurance were to improve their cognitive skills in the manner indicated, the impact on the insurers' bottom line would be significant."

"The message that our customers will hear increasingly from us is that we care about their long–term health and we are devoting resources to being a positive coach in that regard," La Pierre said. "We are known already for effectively insuring individuals of higher risks. We are now complimenting that strength by offering our policyholders wellness programs that may enable them to lead longer, healthier and independent lives."

ABOUT PENN TREATY AMERICAN CORPORATION
Penn Treaty American Corporation, 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. Additional information about the Company can be viewed at www.penntreaty.com.

About Posit Science
Posit Science is the leading provider of clinically proven brain fitness programs. Its exercises have been shown to significantly improve brain speed, attention, memory and numerous standard measures of quality of life in multiple studies reported on in more than 60 peer-reviewed articles published in leading science and medical journals. Its science and exercises have been featured in three public television documentaries as well as numerous stories on network and local news programs, and in national magazines and major newspapers. Its science team includes more than 50 researchers and clinicians from leading institutions globally, and is led by Dr. Michael Merzenich.

Posit Science distributes its exercises through its website and through partnerships with leading insurance companies, AAA clubs, public television and radio stations, retirement communities and adult education programs. For more information, please visit www.PositScience.com.

Press Contact
Harden Communications for Posit Science
Peggy Jara
510-333-1160 cell
pjara@hardenpartners.com