Double-Digit Growth Continues in 2010 in Pethealth's Non-Insurance Business

OAKVILLE, ONTARIO--(Marketwire - Jan. 18, 2011) - Pethealth Inc. (TSX:PTZ) ("Pethealth" or the "Company") saw the development of a key partnership alongside continued year-on-year double-digit growth in its non-insurance business in 2010.

The Company reported total microchip sales of 1,242,845 units, up 17% over 2009. As previously reported, in May of 2010 Pethealth formed a 4-year strategic alliance with Allflex USA, Inc. the world's leading provider of ID technology for animals. The alliance has and will continue to provide the Company with fixed prices below 2009 pricing, volume discounts, and exclusive access to Allflex RFID microchip technology for companion animal distribution throughout the United States and Canada until end of 2013. Pethealth continues to be the leading provider of RFID microchips to companion animals serving Canada and the United States, and last year expanded into the United Kingdom.

As of December 31, the Company's SaaS-based animal management system called PetPoint had been licensed by 1,569 animal welfare organizations in the United States and Canada, representing an increase of 267 organizations or 21% over 2009. Included in this group are the Louisiana SPCA and the New Hampshire Humane Society, two of the longest running and most influential animal welfare organizations in their respective States. PetPoint remains the most widely used animal management software in North American animal welfare.

Animal intakes recorded by organizations using PetPoint increased 10% to surpass the 2-million mark in 2010 and adoptions completed via PetPoint increased 15% to over 780,000. Compared to 2009 figures, same shelter adoptions increased by 2% among licensed organizations in 2010 suggesting that adoption as a method of new pet acquisition continues to grow despite purported economic difficulty for new pet owners. 

Those same organizations recorded over 2.1-million vaccinations and over 355,000 spay and neuter surgeries last year. As of December 31, the Company holds records for over 11-million animals, including over 7.5-million vaccinations and over 1-million spay and neuter surgeries and is the largest aggregator of shelter data.

In an effort to generate greater efficiencies in the marketplace for adoptable pets and increase adoption rates, the Company launched the 'Transfer Available Module' for PetPoint in May of 2010. The new module facilitates the logistics of animal transfers, allowing shelters to list and request animals for transfers to reduce overcrowding and fill vacancies. It is the first and only software allowing animal welfare organizations to electronically select and transfer information on adoptable pets from one location to another. Organizations using PetPoint recorded total inbound transfers of 265,200 animals in 2010, of which 184,397 or 70% resulted in adoptions.

These same organizations fuel adoptable search site Petango.com, where pet information is uploaded via PetPoint to provide live data feeds of adoptable pets for online users. Total animals in inventory of organizations using PetPoint reached a peak of 277,420 in July. Over the course of 2010, organic traffic to Petango.com from search engines such as Google and Yahoo increased 45%.

Total individual pet and pet owner registrations in the 24PetWatch database surpassed 4.1-million by end of 2010. This represents an increase of over 1-million registered cats and dogs, or 35%, for the year. The 24PetWatch database plays a key role in Pethealth's insurance and non-insurance operations alike, particularly with respect to pet owner and pet data collection and aggregation. It is supported by a call centre that averaged over 17,000 inbound calls per month in 2010, up 24% over 2009.

The Company recorded over 55,400 unit sales, up 54% over 2009, of identification tags, Emergency Care policies, and annual and lifetime memberships to the Lost Pet Recovery Service hosted by the 24PetWatch call centre in 2010, representing a 27% conversion rate of products sold against inbound calls received.

"I am very pleased with the 2010 results of our non-insurance business," said Mark Warren, President and CEO of Pethealth. "I see year-on-year growth in every quarter which looks set to continue on the back of our product and service innovation, perhaps best illustrated by our foresight in making sure that PetPoint would become not only the animal management software of choice, but that it would also become the logistics software of choice allowing animal welfare organizations to more efficiently move adoptable dogs and cats between shelters." 

The Company expects to release its full year 2010 financial results on or about March 8, 2011.

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.