Press

Pethealth Inc. Announces Dividend on Series I 6% Convertible Preference Shares

OAKVILLE, ON, January 23, 2006. The Board of Directors of Pethealth Inc. (“Pethealth” or “the Company”) (TSX-V: PTZ) today announced that they declared a dividend of $0.12 per series I 6% convertible preference shares (the “Convertible Preference Shares”), payable on January 31, 2006 to the holders of record at the close of business on January 20, 2006. On January 21, 2004, by way of private placement, Pethealth issued 5,000,000 Convertible Preference Shares. Holders of Convertible Preference Shares are entitled to receive cumulative dividends at the fixed rate of 6% per annum, equal to $0.12 per convertible Preference Share.  

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.

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

For further information contact:

Mark Warren, President and Chief Executive Officer
Glen Tennison, Chief Financial Officer
Pethealth Inc.
(905) 842-2615