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Pethealth expands its underwriting relationship with Lombard Canada

OAKVILLE, ON, December 7, 2005 - Pethealth Inc. ("Pethealth" or "the Company") (TSXV: PTZ) today announced that its wholly owned subsidiary, PetCare Insurance Brokers Ltd. (“PetCare”) has expanded its underwriting relationship 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). Effective March 1, 2006, Lombard will increase its participation in the underwriting of the PetCare pet insurance programs in Canada from 50% to 100%. 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.

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
Pethealth is a leading provider of pet insurance and pet related data 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, ShelterCare, CherryBlue, 24PetWatch and PetPoint.

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.

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