16.09.2005 15:43:00

Pethealth Comes to the Aid of PETCO P.A.L.S. Members Affected by Hurricane Katrina

Pethealth Inc. ("Pethealth" or "Company") (TSXVENTURE:PTZ), announced today that it will be suspending insurancepremium payments through January 1, 2006 for all PETCO P.A.L.S.members enrolled in a PetCare insurance plan and who live inLouisiana, Mississippi, or Alabama. Pethealth, is a leading providerof accident and illness insurance for dogs and cats, offering PetCareInsurance Programs in the United States through PetCare InsuranceAgency, (Brokers) Ltd.

"With a catastrophe of this magnitude we wanted to lessen thefinancial burden on P.A.L.S. members. Making certain pet ownersmaintain their insurance coverage during this period of uncertainty iscritical. PETCO is an important partner of ours and helping theircustomers is a priority," said Mark Warren, President and CEO ofPethealth. PetCare insurance plans are made available to PETCOcustomers through an exclusive relationship.

"On behalf of our P.A.L.S. members, we thank Pethealth for theirefforts to help our customers so that they can continue to insure thehealth and well being of their companion animals during this difficulttime," said Mike Woodard, PETCO's Senior Vice President, BusinessDevelopment.

About Pethealth

Pethealth is a leading provider of pet insurance and pet relateddata management services to the North American companion animalindustry. Pethealth offers a unique range of products and services forveterinarians, shelters and pet owners through a number of whollyowned subsidiaries using a range of brand names including PetCare,ShelterCare and 24PetWatch.

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

Statements contained in this news release, if not historical, areforward-looking statements, which involve risks and uncertainties thatcould cause actual results to differ materially from the resultsdescribed in forward-looking statements.

About PETCO

PETCO is a leading specialty retailer of premium pet food,supplies and services. PETCO's vision is to best promote, through itspeople, the highest level of well being for companion animals, and tosupport the human-animal bond. PETCO generated net sales of more than$1.8 billion in 2004. It operates over 750 stores in 49 states and theDistrict of Columbia, as well as a leading destination for online petfood and supplies at www.petco.com. Since its inception in 1999, ThePETCO Foundation, PETCO's non-profit organization, has raised morethan $23 million in support of more than 2,700 non-profit grassrootsanimal welfare organizations around the nation.

The TSX Venture Exchange Inc. has not reviewed and does not acceptresponsibility for the adequacy or accuracy of this release.

Pethealth Inc. (TSX VENTURE:PTZ)

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