SOURCE: Pet Ecology Brands, Inc.

December 17, 2008 09:00 ET

Pet Ecology Brands, Inc. Secures New Financing, Enters Into a Supply Agreement and Adds New Board Members

DALLAS, TX--(Marketwire - December 17, 2008) - Pet Ecology Brands, Inc. (PINKSHEETS: PECD) announced today that it has secured $500,000 in new financing through the sale, in a private transaction, of 10,000,000 shares of its common stock. A condition of the purchase required PEB to enter into a supply agreement with LifeLabs International LLC, an Internet marketing company (an affiliate of the purchaser of stock), that would allow that company to market PEB's products on the Internet, initially on a non exclusive basis. This agreement may become exclusive if LifeLabs makes certain purchase commitments during 2009. The supply agreement is expected to become fully operational in the first quarter of 2009.

A Company spokesperson indicated that the financing will allow the Company to more fully implement its sales and marketing plans relating to retail food and drug chains.

The stock purchase agreement was also conditioned upon the changing of the Board of Directors of the Company through the addition of a new Board member to replace Robert Salluzzo who resigned as of December 12, 2008. Salluzzo was replaced by Jonathan Martin, a hedge fund portfolio manager from Ridgefield, CT.

Prior to this date two Board members, Alexandra Fincher and Weston Kirby, had resigned and were replaced by Michael Vasquez and Charles Miller. Mr. Vasquez is a telecom executive with significant business and management experience. Mr. Miller is an attorney and deputy managing director of Patton Boggs, a nationally recognized law firm. One of Mr. Miller's specialties is corporate governance and management.

Ralph Steckel, President and CEO, who remains on the Board, indicated that "the Board recomposition strengthens the company immensely by bringing experienced financial and management personnel into the support of operations."

About Pet Ecology Brands, Inc.

Pet Ecology Brands, Inc. has developed a revolutionary patented cat litter that destroys urine odor, clumps, and is earth-friendly. The litter is ultra-lightweight and convenient to use (3 lbs works like 21 lbs of clay/sand-based products), it is 100% flushable and safe for sewer and septic tank systems. Most importantly, it is completely safe for cats and our environment, and does not contain any sodium bentonite, as used in many competing brands. The design helps to protect the landfills, and yet does everything that clay litters do... and more. It has the ability to help indicate certain diseases commonly occurring in cats. The technique used is similar to that found in Merck's Veterinarian Manual. However, this litter not only warns of possible illness, but may also help indicate how far along the illness may be by the color the litter changes to, thereby providing the pet owner significant additional benefits and an early warning system concerning the cat's health.

Pet Ecology's K-9 Fat Free Dog Treats™ are the first fat free treats on the market that meet the standards of the U.S. Department of Agriculture, and offer dog owners an effective means to provide their pets with a non-fat tasty treat. They are also cholesterol free and sodium free. According to U.S. News & World Report, "the number one health problem for dogs is obesity." Today, dogs are fed fat rich food and treats, and often get significantly less exercise than required to maintain an ideal weight and healthy condition. Overweight dogs are more prone to serious injury, skeletal stress, and the same complications that people experience with significant weight gain via fat rich diets, ranging from heart and lung problems, to skin and kidney diseases, to circulatory and immune system issues.

SAFE HARBOR STATEMENT

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements, other than the statements of historical facts, may be deemed to contain forward-looking statements with respect to events, the occurrence of which involves risk and uncertainties, including, without limitation, demand and competition for the company's products and services, the availability to the company of adequate financing to support its anticipated activities, the ability of the company to generate cash flow from operations and the ability of the company to manage its operations. As statements regarding future events concern management's estimates of future results of operations, and as these estimates are based on many elements beyond management's control, differences from management's estimates may occur, and such differences may be material.

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