Euthanasia of Dogs and Cats Declining According to the December PetPoint Report

OAKVILLE, ONTARIO--(Marketwire - Jan. 18, 2011) - Pethealth Inc. (TSX:PTZ) - Euthanasia of both dogs and cats in animal shelters in December declined 12% and 8% respectively year over year, according to the December PetPoint Report. The reduced euthanasia rate can be attributed to declining intake numbers and a stabilized rate of adoption.

Despite a slight decrease in adoptions of dogs and cats in December, the average rate of adoptions over the last quarter of 2010 increased nearly 3% for cats and 1% for dogs over Q4 2009. Coupled with a decreasing rate of intakes averaging approximately 6% for cats and 4% for dogs, shelters appear to be making progress in their efforts to reduce unnecessary euthanasia.

"Despite media speculation that the economic environment has contributed to overcrowding and increased rates of euthanasia, this report provides evidence to the contrary," says Steve Zeidman, Managing Director, PetPoint Solutions. "It also highlights a need for animal welfare organizations to have accurate, objective analysis of trends nationally, regionally and in their own community."

The December report aggregated data from 884 animal welfare organizations using PetPoint. Findings were based on 108,021 intakes and 120,884 outcomes for dogs and cats that entered or left animal welfare organizations during the month. PetPoint is the most widely used animal management application in animal welfare.

For the December report, data was aggregated only from those organizations that were using PetPoint in December 2009 and December 2010. By comparing data from December 2010 to December 2009, the following can be summarized:

• Adoptions of dogs and cats declined 2% and 1% respectively.
• Owner surrenders of dogs and cats declined 3% and 5% respectively.
• Intakes of dogs and cats declined 4% and 7% respectively; intakes of stray dogs and cats also declined.
• Euthanasia of dogs and cats declined 12% and 8% respectively.
• Returns of cats previously adopted from the same organization increased 4% and in the case of dogs, decreased 4%.
• Average adoption fees for dogs and cats less than one year of age increased 4% and 2% respectively, while average fees for dogs over one year of age increased 5% and cats over one year decreased 9%.

Pethealth, the owner of the SaaS-based PetPoint application, hosts the data for all its licensed users, allowing data to be aggregated in a seamless and timely fashion. Today, over 1,570 animal welfare organizations in the United States and Canada have licensed PetPoint to manage their day to day operations. Pethealth aggregates more data on dogs and cats in animal welfare organizations than any other company.

Interested organizations can subscribe to receive more detailed reports that include localized regional and state data for a monthly fee. The full report can be accessed by visiting http://www.petpoint.com/petpoint-report-01-17-2011.asp. PetPoint reports are issued on the third Monday of each month.

About PetPoint

PetPoint, first introduced in 2005, is now licensed by more than 1,570 animal welfare organizations in North America and has facilitated the adoption of over 2.5 million pets. As a hosted application, animal welfare organizations can not only better organize and care for their homeless and abandoned animals, but can also reduce significantly, if not eliminate, their IT-related infrastructure costs. PetPoint is provided free to animal welfare organizations on the basis that these same organizations use the Company's 24PetWatch microchip program for all companion animals adopted. The 24PetWatch microchip program is the most widely used microchip and lost pet recovery service operating in both Canada and the United States.

About Pethealth Inc.

Pethealth is a leading provider of companion animal services in North America. In addition, the Company is the leading provider of management software to North American animal welfare organizations through its SaaS-based application and is the leading provider of pet related database management services to the North American companion animal industry. Pethealth offers a unique range of products and services for veterinarians, shelters and pet owners through a number of wholly owned subsidiaries using a range of brand names including PetCare, 24PetWatch, Pet Protect, Petpals Direct, ShelterCare, PetPoint, Petango.com and ThePetangoStore.com.

Pethealth is based in Oakville, Ontario. To find out more about Pethealth, visit the web site at www.pethealthinc.com.