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Press Releases 2004

Pethealth Inc. Increases Staffing of its 24PetWatch Registry and Recovery Call Centre Unit in Response to Developments in Microchip Market

OAKVILLE, ON, August 19, 2004. Pethealth Inc. ("Pethealth" or "the Company") (TSX-V: PTZ) announced today that it was adding staff to its 24PetWatch call centre to meet the increased volume of calls coming from pet owners who have been unable to access the PetNet toll-free number, which was disconnected earlier this week. Late last month, the Canadian Competition Bureau announced that it had fined Anitech Enterprises Inc., owners of PetNet, $150,000 for misleading consumers through a recent advertising campaign.

24PetWatch is now the most widely used microchip program by clinics and shelters in Canada by volume of microchips sold on a monthly basis. Registration in the 24PetWatch registry is free for pets microchipped with the 24PetWatch microchip. Pet owners who also use clinics or shelters that have switched to the 24PetWatch microchip program can also register for free directly with 24PetWatch even if they are microchipped with a competitor’s technology. No third party intermediary is required. Pethealth runs and operates the www.24petwatch.com web site and the 1-866-597-2424 toll-free number 24 hours per day, 365 days per year. 24PetWatch provides a reliable robust database and pet recovery network, using a model unmatched in the industry, with the goal of reuniting pet owners with their lost pets as soon as possible.

145,000 pets have now registered with 24PetWatch since Pethealth entered the microchip industry in February 2003. Monthly registrations now approximate 15,000 pets. In addition, approximately 20% of the Company’s Canadian registry is comprised of pets microchipped with a PetNet microchip.

Additionally, in response to market developments, Pethealth Inc. has agreed to offer for an indefinite period free registration in the 24PetWatch registry to pet owners with PetNet microchipped pets, even if their clinics or shelters have yet to switch to the 24PetWatch program.

All pet owners need to do is call toll-free 1-866-597-2424 to speak to a 24PetWatch operator or go online at www.24petwatch.com.

About Pethealth

Founded in February 1998, Pethealth is Canada’s number one provider of pet insurance and is number two in North America, currently offering its PetCare Pet Insurance Programs in 10 provinces, 45 states and Washington, D.C. In addition to the PetCare Pet Insurance Programs, Pethealth offers its pet insurance programs under a variety of names, including QuickCare, ShelterCare and Union Plus Pet Insurance. In the United States, the PetCare Pet Insurance Programs are underwritten by Lincoln General Insurance Company, York, PA, through PetCare Insurance Brokers Ltd., PetCare Insurance Agency, Ltd., both wholly owned subsidiaries of the Company, and Avalon Risk Management Inc. In Canada, the Company’s pet insurance is underwritten by ING Novex, a member of ING Group, and Kingsway General Insurance Company and offered through PetCare Insurance Brokers Ltd. In addition, Pethealth, through its wholly owned subsidiaries Pethealth Services Inc. and Pethealth Services (USA) Inc., distributes Allflex pet microchip supplies to the companion animal market in North America and operates the related pet recovery registry under the trade name 24PetWatch. Pethealth is based in Oakville, Ontario.

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

Statements contained in this news release, if not historical, are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the results described in forward-looking statements.

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

For further information contact:
Mark Warren, President and CEO of Pethealth at (905) 339-4428
Glen Tennison, Chief Financial Officer of Pethealth at (905) 339-4429

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