Cat Transfers on the Rise According to June PetPoint Report

OAKVILLE, ONTARIO--(Marketwire - July 18, 2011) - Pethealth Inc. (TSX:PTZ) - Transfers of cats out of reporting animal welfare organizations ("AWOs") increased 20% year on year, continuing an unbroken nine month trend, according to the June PetPoint Report. Inbound transfers of cats also increased by 6% year on year, reversing a seven month declining trend.

At the same time, adoptions of cats increased 9% and euthanasia declined 13% year on year, continuing a declining trend in feline euthanasia. Stray cat returns to owner increased 16% year on year, accounting for less than 4% of stray cat intakes during the month of June.

"The focus of the transfer network has long been achieving a balanced canine population," says Steve Zeidman, Managing Director, PetPoint Solutions. "However, this month's results and trends in the PetPoint Report suggest animal welfare groups are also seeking to balance their feline populations and reduce euthanasia through transfer activity."

As a hosted management system, PetPoint not only helps shelters better organize and run their daily operations but also reduces, if not eliminates IT-related infrastructure costs. It also enhances operational reporting; allowing animal welfare organizations to track their own aggregate data on a monthly and annual basis.

The PetPoint Transfer Network, a module within PetPoint, is the first nation-wide logistics platform for transfers between animal welfare organizations, giving them the ability to promote and request animals available for transfer. It is also the only platform through which information on adoptable dogs can be electronically transferred between locations within a single cloud-based network, eliminating unnecessary paperwork and reducing incidence of error.

The June report aggregated data from 905 animal welfare organizations using PetPoint. Findings were based on 168,158 intakes and 159,054 outcomes for cats and dogs that entered or left animal welfare organizations during the month. PetPoint is the most widely used animal management application in animal welfare.

For the May report, data was aggregated only from those organizations that were using PetPoint in June 2010 and June 2011. By comparing data from June 2011 to June 2010, the following can be summarized:

• Year on year transfers of cats out of and into reporting AWOs increased 20% and 6% respectively;
• Adoptions of cats and dogs increased 9% and 3% respectively;
• Stray cats returned to owner increased 16%;
• Euthanasia of cats and dogs declined 13% and 2% respectively;
• Adoption fees for cats less than 1 year of age and adoption fees for cats over 1 year of age declined 6% and 15% respectively.

Pethealth, the owner of the cloud-based PetPoint application, hosts the data for all its licensed users, allowing data to be aggregated in a seamless and timely fashion. Today, nearly 1,700 animal welfare organizations in the United States and Canada have licensed PetPoint to manage their day to day operations. Pethealth aggregates more data on cats and dogs in animal welfare organizations than any other company.

Interested organizations can subscribe to receive more detailed reports that include localized regional and state data for a monthly fee. The full report can be accessed by visiting http://www.petpoint.com/petpoint-report-07-18-2011.asp. PetPoint reports are issued on the third Monday of each month, excepting statutory holidays in which case they are issued the following business day.

About PetPoint

PetPoint, first introduced in 2005, is now licensed by nearly 1,700 animal welfare organizations in North America and has facilitated the adoption of over 2.85 million pets, including nearly 800,000 adoptions in 2010 alone. As a hosted application, animal welfare organizations can not only better organize and care for their homeless and abandoned animals, but can also reduce significantly, if not eliminate, their IT related infrastructure costs. PetPoint is provided free to animal welfare organizations on the basis that these same organizations use the Company's 24PetWatch microchip program for all companion animals adopted. The 24PetWatch microchip program is the most widely used microchip and lost pet recovery service operating in both Canada and the United States.

About Pethealth Inc.

Pethealth is a leading provider of companion animal services in North America. In addition, the Company is the leading provider of management software to North American animal welfare organizations through its SaaS-based application and is the leading provider of pet related database 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, 24PetWatch, PetProtect, petPals Direct, ShelterCare, PetPoint, Petango.com and ThePetangoStore.com.

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