Item 2.05 Costs Associated with Exit or Disposal Activities.

Advanta Corp. previously announced its intention to reduce expenses to levels commensurate with its current activities. As part of these efforts, the Company commenced a workforce reduction and began notifying affected employees on July 6, 2009. The Company expects to reduce the number of employees by approximately 50% and to have fewer than 200 employees remaining after the reduction. This reduction will take place across all functional areas within the organization.

In connection with the reduction of workforce, the Company expects to incur expenses of approximately $8.5 million to $9.5 million related to severance and related costs. The Company expects substantially all of the expenses associated with the reduction of workforce to result in cash expenditures.

This Current Report on Form 8-K contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) severance and related costs being different from estimated amounts; and (2) disruption in our business associated with the reduction in workforce. Additional risks that may affect the Company's future performance are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.