Press

Press Releases 2005

Lombard to become Underwriter to the PetCare Pet Insurance Programs in Canada.

Oakville, ON. – April 25, 2005. Pethealth Inc. ("Pethealth" or "the Company") (TSXV: PTZ) today announced that its wholly owned subsidiary, PetCare Insurance Brokers Ltd. (“PetCare”) has entered into an agreement with Lombard General Insurance Company of Canada (“Lombard”), a wholly-owned subsidiary of Lombard Canada Ltd. and member of the Northbridge Financial Group of Companies (TSX:NB), to underwrite 50% of the PetCare pet insurance programs in Canada. Lombard is rated “A-” Excellent by A.M. Best, North America’s leading financial rating agency for insurance companies.

PetCare first began offering pet insurance programs to Canadian pet owners in Ontario, Alberta and British Columbia in 1999. The PetCare pet insurance programs are currently available either directly or indirectly in all 10 provinces and 48 U.S. states plus Washington D.C. The PetCare pet insurance programs are distributed through five broad channels in Canada: strategic marketing partners; animal shelters; veterinarians; direct-to-consumer advertising and an on-line insurance broker network.

ING Novex Insurance Company of Canada, a member of ING Canada, also currently underwrites the PetCare pet insurance programs in Canada. Lombard will replace Kingsway General Insurance Company, a wholly owned subsidiary of Kingsway Financial Services Inc. in Canada and will begin assuming underwriting risk as of May 1, 2005. Kingsway Financial Services Inc., through their wholly owned subsidiary, Lincoln General Insurance Company, will continue to underwrite the PetCare Pet Insurance Programs in the United States.

About Lombard
Lombard Canada is 100% Canadian-owned. It has assets of over $1 billion and is one of the largest property and casualty insurance groups in Canada. Lombard Canada is a subsidiary of Northbridge Financial Corporation. Northbridge is a Toronto based financial services holding company, of which Fairfax Financial Holdings Limited is the major shareholder. Northbridge is traded publicly on the Toronto Stock Exchange.

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, 48 states plus 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 addition, Pethealth distributes Allflex pet microchip technology to the companion animal market in North America and operates the related pet recovery registry under the trade name 24PetWatch.

During 2004, the Company completed two innovations: PetPoint, the first web-hosted management software program for animal welfare organizations in North America, which allows shelters to easily offer the ShelterCare insurance and the 24PetWatch microchip programs electronically at the point of adoption; and EVE, the first web-based claims adjustment software for veterinary clinics in North America. This program, the first of its kind in the pet insurance industry, allows claims to be processed online at the veterinary clinic, thus simplifying the claims adjudication process.

Pethealth is based in Oakville, Ontario. To find out more about Pethealth Inc. (TSXV: PTZ), visit the web site at www.pethealthinc.com .

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:
Glen Tennison, Chief Financial Officer, Pethealth Inc. at (905) 842-2615

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