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Pethealth Inc. Announces U.S. Insurance Underwriting Agreement

Pethealth Inc. (“Pethealth” or “the Company”) (TSX-V: PTZ) today announced that it has entered into an agreement with Insurance Corporation of Hannover (“ICH”). Subject to regulatory approval, ICH will underwrite the Company’s pet insurance programs in 24 U.S. states including New York, New Jersey, Florida, Pennsylvania and Massachusetts. This is the first time that the Company’s pet insurance programs will be made available to pet owners residing in Massachusetts.

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

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.
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