Key Indicators for Animal Welfare Organizations in March All Point to a Positive Outlook

ROLLING MEADOWS, ILLINOIS--(Marketwire - April 18, 2011) -(TSX:PTZ) Pethealth Inc.—For the first time since Pethealth started publishing its monthly PetPoint Report, all key indicators for both animal intakes and outcomes pointed to a positive trend in the month of March.

Most notable with respect to intakes of stray cats and dogs, was the reduction of 13% and 5% respectively in March. This reduction in the intake of strays continues the trend which began with the first PetPoint Report published in September 2010. At the same time, as a percentage of stray animal intakes, the rate of return to owner is increasing for both dogs and cats.

With respect to outcomes, adoptions of both cats and dogs increased by 2% and 1% respectively while euthanasia declined by 3% and 5% respectively for the month. Moreover, the percentage of outcomes resulting in euthanasia (not including transfers, returns to owner, and non-euthanasia deaths) has declined for both cats and dogs over the last 6 months.

While price declines continued for all cats regardless of age and dogs older than a year, price increases occurred for dogs less than a year. As the declines in prices in three of the four segments were not matched by increases in intakes and as adoptions were up, price equilibrium for adoptions in all four categories appears to have occurred.

"Considering the month on month upswing in intakes has done little to upset the positive trends emerging with respect to the goals of the animal welfare community, March has been a bellwether month and we are hopeful these trends will continue throughout the year," says Susan Arts, Vice President of Marketing at Pethealth Inc.

The March report aggregated data from 912 animal welfare organizations using PetPoint. Findings were based on 124,837 intakes and 120,404 outcomes for cats and dogs that entered or left animal welfare organizations during the month. PetPoint is the most widely used animal management application in animal welfare.

For the March report, data was aggregated only from those organizations that were using PetPoint in March 2010 and March 2011. By comparing data from March 2011 to March 2010, the following can be summarized:

• Intakes of cats and dogs declined 6% and 2% respectively.

• Intakes of stray cats and dogs declined 13% and 5% respectively.

• Adoptions of cats and dogs increased 2% and 1% respectively.

• Owner surrenders of cats remained flat but declined 4% for dogs.

• Euthanasia of cats and dogs declined 3% and 5%.

• Returns of cats previously adopted from the same organization remained flat but decreased 5% for dogs.

• Average adoption fees for cats and dogs over 1 year old declined 17% and 2%, while average fees for cats under 1 year old declined 7% and dogs under 1 year old increased 2%.

Pethealth, the owner of the cloud-based PetPoint application, hosts the data for all its licensed users, allowing data to be aggregated in a seamless and timely fashion. Today, nearly 1,640 animal welfare organizations in the United States and Canada have licensed PetPoint to manage their day to day operations. Pethealth aggregates more data on cats and dogs 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-04-18-2011.asp. PetPoint reports are issued on the third Monday of each month, excepting statutory holidays in which case they are issued the following business day.

About PetPoint

PetPoint, first introduced in 2005, is now licensed by nearly 1,640 animal welfare organizations in North America and has facilitated the adoption of over 2.7 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 cloud-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, PetProtect, 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.