Novel MiniChip(TM) Now Available Exclusively Through 24PetWatch(TM)

OAKVILLE, ONTARIO--(Marketwire - Jan. 17, 2012) - Pethealth Inc. (TSX:PTZ) ("Pethealth" or the "Company"), North America's leading provider of companion animal RFID technology operating in the United States, Canada, and the United Kingdom, today announced it is the exclusive provider of the ground-breaking new ISO-standard MiniChip™, offering a less invasive choice for the use of RFID microchip technology in cats, kittens, and small breed dogs.

"The size of the standard microchip and injection unit has long been a barrier to providing RFID microchip protection to small animals," said Mark Warren, President and CEO of Pethealth. "The MiniChip offers a smaller-scale alternative without compromising any of the protective benefits of our standard microchip technology."

The exclusive new 24PetWatch MiniChip is one third the size of the standard microchip which is itself, approximately the size of a grain of rice. In agreement with the reduction in implant size, the 16-gauge injection needle used for the MiniChip is 60% smaller than the standard injection needle. The MiniChip was developed and is also manufactured by Allflex USA, Inc., the world leader in design, technology, manufacturing, and distribution of animal identification systems for traceability purposes.

"We would highly recommend the MiniChip to anyone, but most especially to those who are chipping young or small animals," said Cynthia Martinez, Director of Operations at the Humane Society of San Antonio where shelter staff were given the opportunity to test the MiniChip. "The smaller applicator and needle make the chipping process so much easier. The needle enters the skin easily and leaves almost no mark at all. It is ideal for kittens and small puppies. We have even found it makes chipping cats with their tough skin, easier."

Coinciding with the product launch, the Company has also initiated the "Recover a Pet, Uncover a Cure" campaign in the U.S. market, through which a portion of the purchase price of every MiniChip is donated to the American Breast Cancer Foundation. In support of this campaign, the MiniChip injection unit and packaging were produced in pink, exclusively for Pethealth by Allflex.

In addition to the size-related advantages, as an exclusive product of 24PetWatch, each MiniChip includes free registration to the 24PetWatch Lost Pet Recovery database and a year of complimentary maintenance services. The Company sold over 1.3-million microchips last year to over 5,600 clinics and shelters in North America and the United Kingdom.

"We are thrilled to be able to offer this innovative product to animal welfare practitioners across North America as well as raise awareness about lost pet recovery in support of a worthy cause," said Warren.

The MiniChip will be made available through the Company's extensive network of shelters, animal welfare organizations and veterinary clinics, and is being featured at the 2012 North American Veterinary Conference this January 14 to 18 in Orlando, Florida where attendees will have an opportunity to test scan the MiniChip against the standard 24PetWatch microchip. It has already received approval from the National Companion Animal Coalition, the voice of the Canadian pet industry, formed to promote responsible pet ownership and enhance the health and wellbeing of companion animals.

Animal welfare practitioners and veterinarians interested in the MiniChip can call 1-866-597-2424 for more information.

About Allflex USA, Inc.

Allflex is the world leader in design technology, manufacture and delivery of animal identification for traceability systems across all production animal species and companion animals. Allflex has manufacturing and technology subsidiaries in the U.S., Canada, Europe, Australia, New Zealand, Brazil and China. Allflex products are distributed in 80 countries worldwide. Visit www.allflexusa.com for more information.

About the American Breast Cancer Foundation

The American Breast Cancer Foundation (ABCF) is a national 501(c)(3) nonprofit committed to providing direct financial assistance to uninsured and underinsured individuals for diagnostic tests to aid in the early detection and survival of breast cancer. More information is available at www.abcf.org.

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 cloud-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.