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NASHVILLE, TENNESSEE--(Marketwire - May 12, 2010) - Pethealth Inc. ("Pethealth" or the "Company") (TSX:PTZ) is pleased to announce that its new 'Transfer Available Module', previously in beta form, is now live for the nearly 1,400 animal welfare organizations that have licensed the Company's PetPoint animal management application, the number one name in animal management software.

In late 2007, the Company launched its Transfer Module which for the first time allowed animal welfare organizations to electronically transfer information on adoptable pets from one location to another, eliminating the need for time-consuming data entry for the receiving shelter. The new 'Transfer Available Module' has been designed to allow shelters with too many adoptable animals the ability to promote these animals as available for transfer and, conversely, for shelters that have extra space and resources to select animals to be transferred and co-ordinate the transfer process. Together, these two modules combine to create the PetPoint Transfer Network, an industry first.

"While over-population of cats remains a problem throughout the animal welfare community, more and more we are seeing that dog over-population is becoming regional," said Steve Zeidman, Chief Technology Officer of Pethealth Inc. "While we applaud those for-profit companies that have through their charitable arms endeavoured to help create a more efficient marketplace for adoptable dogs through the use of transport vehicles, the reality is that a digital online nationwide solution is required."

For those animal welfare organizations with animals available for transfer, they can now:

• automatically publish a list of animals to the PetPoint Transfer Network;
• add animal pictures and transfer memos to provide a comprehensive record for the animals' destination organization to review prior to transfer;
• set up a directory of approved organizations that can place requests for available animals;
• approve or decline requests for transfer as well as manage transfer logistics, including pick-up date and time.

For those destination organizations seeking animals for their shelter, they can now:

• search for pets within the PetPoint Transfer Network that are available for transfer by species, breed, colour and age;
• gain important information about a pet before a transfer is made;
• place requests for specific animals;
• manage transfer logistics, such as pick-up date and time.

The Company believes this business to business solution, which is only possible through PetPoint, will help create a more efficient marketplace particularly for adoptable dogs and will reduce the rate of euthanization of adoptable dogs in locations where shelter space is in short supply.

"This inter-shelter solution that we have created addresses the stated need of our PetPoint users to provide further assistance in making sure that as many dogs as possible can find new homes," said Christa Chadwick, Director of North American Shelter Outreach, Pethealth Inc. "Our PetPoint Transfer Network, by creating greater efficiencies in making more adoptable pets available to more potential adopters, will additionally support our consumer network Petango.com."

Petango.com, launched in May 2009, is the fastest growing web site for those pet owners looking to adopt dogs or cats from animal welfare organizations. It is the only adoptable search site tied directly to the animal management software used by those animal control agencies, SPCAs, humane societies and rescue groups running PetPoint. Through PetPoint, pets available for adoption are connected with a live feed straight to Petango.com.

The Company is demonstrating its Transfer Available module at the annual Humane Society of the United States Animal Expo, being held this year at the Nashville Convention Center from May 12 to 14.

Nearly 1,400 animal welfare organizations have licensed PetPoint to date. In 2010 to date, approximately 100 new organizations have been added to the PetPoint 'family', including The Anti-Cruelty Society of Chicago, Toronto Humane Society and Louisiana SPCA.

About PetPoint

PetPoint was first introduced in 2005, and has now been licensed by nearly 1,400 animal welfare organizations in North America. As a hosted application, animal welfare organizations can not only better organize and care for their inventory of adoptable dogs and cats, 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

Pethealth is North America's second largest provider of medical insurance for dogs and cats to pet owners, operating in Canada, the United States and the United Kingdom. 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, Pet Protect, 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 ].