X0202 4 2005-07-13 0 0000814181 PENN TREATY AMERICAN CORP PTA 0001257391 WHITEBOX ADVISORS LLC 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001317592 Whitebox Diversified Convertible Arbitrage Partners, L.P. 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001317593 Whitebox Diversified Convertible Arbitrage Fund, L.P. 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001317594 Whitebox Diversified Convertible Arbitrage Fund, Ltd. 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001307361 Pandora Select Advisors, LLC 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001311923 Pandora Select Partners, L.P. 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001307360 Pandora Select Fund, L.P. 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001263713 PANDORA SELECT FUND LTD 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 0001317591 Whitebox Diversified Convertible Arbitrage Advisors, LLC 3033 EXCELSIOR BOULEVARD, SUITE 300 MINNEAPOLIS MN 55416 0 0 1 0 Common Stock 2005-07-13 4 S 0 5700 10.35 D 504.25 I Refer to Footnote Common Stock 2005-07-13 4 S 0 5900 10.35 D 504.25 I Refer to Footnote Common Stock 2005-07-13 4 S 0 800 10.35 D 504.25 I Refer to Footnote Common Stock 2005-07-13 4 S 0 3300 10.35 D 504.25 I Refer to Footnote Common Stock 2005-07-13 4 S 0 400 10.35 D 504.25 I Refer to Footnote Common Stock 2005-07-13 4 S 0 1100 10.70 D 504.25 I Refer to Footnote Common Stock 2005-07-13 4 S 0 1200 10.70 D 504.25 I Refer to Footnote Common Stock 2005-07-13 4 S 0 600 10.70 D 504.25 I Refer to Footnote Reporting Person is Whitebox Convertible Arbitrage Partners, L.P. ("WCAP"). Reporting Person is Whitebox Hedged High Yield Partners, L.P. ("WHHYP"). Reporting Person is Whitebox Diversified Convertible Arbitrage Partners, L.P. ("WDCAP"). Reporting Person is Pandora Select Partners, L.P. ("PSP"). Each of WCAP, WHHYP, WDCAP, PSP and Whitebox Advisors, LLC beneficially own Convertible Subordinated Notes of which the Common Stock of Penn Treaty American Corporation is the underlying security. This amount reflects a four for one reverse stock split of shares of common stock of the Issuer, effective July 8, 2005. The general partner of WCAP, is Whitebox Convertible Arbitrage Advisors, LLC ("WCAA"), which manages accounts for the benefit of its clients WCAP, Whitebox Convertible Arbitrage Fund, L.P. ("WCAFLP") and Whitebox Convertible Arbitrage Fund, Ltd. ("WCAFLTD"); the general partner of WHHYP is Whitebox Hedged High Yield Advisors, LLC ("WHHYA"), which manages accounts for the benefit of its clients WHHYP, Whitebox Hedged High Yield Fund, L.P. ("WHYYFLP") and Whitebox Hedged High Yield Fund, Ltd. ("WHHYFLTD"). The managing member and controlling owner of each of WCAA and WHHYA is Whitebox Advisors, LLC. (Cont. in footnote 8) The general partner of PSP is Pandora Select Advisors, LLC ("PSA"), which manages accounts for the benefit of its clients PSP, Pandora Select Fund, L.P. ("PSFLP") and Pandora Select Fund, Ltd. ("PSFLTD"). The general partner of WDCAP is Whitebox Diversified Convertible Arbitrage Advisors, LLC ("WDCAA"), which manages accounts for the benefit of its clients WDCAP Whitebox Diversified Convertible Arbitrage Fund, L.P. ("WDCAFLP") and Whitebox Diversified Convertible Arbitrage Fund, Ltd. ("WDCAFLTD"). The managing member and controlling owner of each of PSA and WDCAA is AJR Financial, LLC. Whitebox Advisors, LLC and AJR Financial, LLC each have the same sole owner and managing member. (Cont. in footnote 9) Based on the relationships described herein, these entities may be deemed to constitute a "group" within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934. The filing of this statement shall not be construed as an admission that Whitebox Advisors, LLC, AJR Financial, LLC, WCCA, WHHYA, PSA, WDCAA, WCAP, WHHYP, PSP, WDCAP, WCAFLP, WHHYFLP, PSFLP, WDCAFLP, WCAFLTD, WHHYFLTD, PSFLTD and WDCAFLTD are a group, or have agreed to act as a group. Whitebox Advisors, LLC, AJR Financial, LLC, WCCA, WHHYA, PSA, WDCAA, WCAP, WHHYP, PSP, WDCAP, WCAFLP, WHHYFLP, PSFLP, WDCAFLP, WCAFLTD, WHHYFLTD, PSFLTD and WDCAFLTD each disclaim beneficial ownership of such shares of common stock except to the extent of their pecuniary interest in such shares. For additional information also refer to the Form 4 filed concurrently herewith by the Reporting Persons. /s/ Jonathan D. Wood, Chief Financial Officer 2005-07-19 /s/ Whitebox Diversified Convertible Arbitrage Advisors,LLC 2005-07-19 /s/ Whitebox Diversified Convertible Arbitrage Partners, LP 2005-07-19 /s/ Whitebox Diversified Convertible Arbitrage Fund,L.P. 2005-07-19 /s/ Whitebox Diversified Convertible Arbitrage Fund,Ltd. 2005-07-19 /s/ Pandora Select Advisors, LLC 2005-07-19 /s/ Pandora Select Partners, L.P. 2005-07-19 /s/ Pandora Select Fund, L.P. 2005-07-19 /s/ Pandora Select Fund, Ltd. 2005-07-19