Pethealth Inc. - Press Releases

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Press Releases 2001

PETHEALTH INC. receives final approval from CDNX

OAKVILLE, ON, March 5, 2001.

/CNW/ - PETHEALTH INC. ("Pethealth") (CDNX: PTZ) is pleased to announce that the Canadian Venture Exchange ("CDNX") has given its final approval to the previously announced completed Amalgamation between Pethealth and CAPITAL.COM INCORPORATED ("Capital"). The arm's length Amalgamation was first announced on July 24, 2000 and was completed following the approval by Shareholders of both companies in December, 2000. The Amalgamation was conditionally approved by the CDNX as Capital's Major Transaction on November 22, 2000.

Pethealth has to date raised over $12-million to finance its operations. Most recently Pethealth completed a $7.5-million private placement of 34,090,909 Series I Special Shares at a price of $0.22 per share. Each Series I Special Share of Pethealth will automatically convert into one common share and one common share purchase warrant of Pethealth on Thursday, March 8, 2001. Pethealth has been granted Tier 1 status and given the symbol "PTZ" by the CDNX. Trading under the new symbol commenced today.

About Pethealth Inc.

Pethealth, through its subsidiary PetCare Insurance Brokers Ltd. ("PetCare"), currently offers pet insurance products to owners of dogs and cats in Canada. PetCare products in Canada are underwritten by ING Wellington, a member of the ING Group, and CGU Elite Insurance Company, a member of CGU Canada. Pethealth has the endorsement of a number of industry leaders, including veterinary medical associations representing approximately four out of five practising veterinarians in Canada. Pethealth was founded in February 1998 and is based in Oakville, Ontario. Institutional investors include the VC Advantage Fund and Dynamic Mutual Funds, through its Dynamic Venture Opportunities Fund.

The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Not for dissemination in the United States of America or to United States news wire services.

For further information: E. Mark Warren, Chairman, President and Chief Executive Officer of Pethealth; or Glen H. Tennison, Chief Financial Officer of Pethealth, at (905) 842-2615.