Pethealth Inc. - Press Releases

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Press Releases 2002

Pethealth Inc. Announces the Completion of its Rights Offering

OAKVILLE, Ontario, January 2, 2002 - Pethealth Inc. ("Pethealth" or "the Company") (CDNX: PTZ) today reported that it has completed its previously announced rights offering. Rights were exercised for a total of 35,549,394 common shares under the offering for gross proceeds to Pethealth of approximately $3.55 million. The proceeds will be applied towards Pethealth's general and administrative expenses and investment in marketing and advertising for its U.S. and Canadian operations with its current and future strategic alliance partners.

About Pethealth Inc.
Founded in February 1998, Pethealth is the leading provider of pet insurance in Canada and one of the fastest growing providers of pet insurance in North America, currently offering its PetCare Pet Insurance Programs in 9 provinces, 37 states and Washington, D.C. In Canada, the Company's pet insurance is offered to owners of dogs and cats through its wholly owned subsidiary, PetCare Insurance Brokers Ltd. ING Wellington, a member of the ING Group, and CGU Elite Insurance Company, a member of CGU Group Canada Ltd., underwrite PetCare products in Canada. The PetCare programs also carry the exclusive endorsements of a number of industry leaders, including veterinary medical associations representing approximately four out of five practising veterinarians. In the United States, the PetCare Pet Insurance Programs are underwritten by Lincoln General Insurance Company, York, PA, through Avalon Risk Management Inc. Pethealth is based in Oakville, Ontario. Institutional investors include 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, President and Chief Executive Officer of Pethealth; Glen H. Tennison, Chief Financial Officer of Pethealth, at (905) 842 2615. www.petcareinsurance.com