Press

Pethealth Comes to the Aid of PETCO P.A.L.S. Members Affected by Hurricane Katrina

OAKVILLE, ONTARIO--(CCNMatthews - Sept. 16, 2005) - Pethealth Inc. ("Pethealth" or "Company") (TSX VENTURE:PTZ), announced today that it will be suspending insurance premium payments through January 1, 2006 for all PETCO P.A.L.S. members enrolled in a PetCare insurance plan and who live in Louisiana, Mississippi, or Alabama. Pethealth, is a leading provider of accident and illness insurance for dogs and cats, offering PetCare Insurance Programs in the United States through PetCare Insurance Agency, (Brokers) Ltd.

"With a catastrophe of this magnitude we wanted to lessen the financial burden on P.A.L.S. members. Making certain pet owners maintain their insurance coverage during this period of uncertainty is critical. PETCO is an important partner of ours and helping their customers is a priority." said Mark Warren, President and CEO of Pethealth. PetCare insurance plans are made available to PETCO customers through an exclusive relationship.

"On behalf of our P.A.L.S. members, we thank Pethealth for their efforts to help our customers so that they can continue to insure the health and well being of their companion animals during this difficult time," said Mike Woodard, PETCO's Senior Vice President, Business Development.

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 and 24PetWatch.

Pethealth is based in Oakville, Ontario. To find out more about Pethealth, visit the web site at  www.pethealthinc.com.

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.

About PETCO
PETCO is a leading specialty retailer of premium pet food, supplies and services. PETCO's vision is to best promote, through its people, the highest level of well being for companion animals, and to support the human-animal bond. PETCO generated net sales of more than $1.8 billion in 2004. It operates over 750 stores in 49 states and the District of Columbia, as well as a leading destination for online pet food and supplies at www.petco.com. Since its inception in 1999, The PETCO Foundation, PETCO's non-profit organization, has raised more than $23 million in support of more than 2,700 non-profit grassroots animal welfare organizations around the nation.