Pethealth Inc. Announces Extension of Its Strategic Alliance with Allflex USA, Inc. to the End of 2016

Allflex USA, Inc., the world's leading provider of ID technology for animals, extends 10-year partnership and provides Pethealth with long term pricing certainty for its 24PetWatch technology

Marketwired

OAKVILLE, ONTARIO--(Marketwired - Dec 12, 2013) - Pethealth Inc. (PTZ.TO) ("Pethealth" or the "Company") is pleased to announce that it and Allflex USA, Inc. have agreed to extend their current agreement due to expire on December 31, 2013, to December 31, 2016. The extension provides Pethealth with access to Allflex's RFID microchip technology for companion animal distribution throughout the United States and Canada.

Companion animal microchipping is a key driver to Pethealth's insurance and non-insurance operations alike, most notably with respect to pet owner and pet data collection and aggregation. The Company currently has over 7.5-million registered subscribers in its 24PetWatch database and the Company's microchip platform is built into its PetPoint animal management software, which is the most widely used animal management application in North America, with over 2,000 licensed organizations running the web-based cloud application. Over 60% of the Company's North American pet insurance sales are driven off of its animal welfare platform.

"We are pleased to be making this announcement," said Mark Warren, President and Chief Executive Officer of Pethealth Inc. "This agreement provides us with certainty of supply through 2016, certainty of price, and in some cases certain pricing advantages. It also gives us the confidence to invest in the further growth of our program, which is one of the largest companion animal programs in the world."

The agreement provides Pethealth with access to both FDXA (FECAVA standard) and FDXB (ISO) microchips at its discretion. Pethealth sells only FDXB microchips to veterinary clinics and shelters in Canada in support of the National Companion Animal Coalition's recommendations and currently provides animal welfare organizations, veterinary clinics and breeders in the United States the choice of purchasing either FDXA or FDXB microchips under the 24PetWatch brand. Over the course of 2014, the Company will transition U.S. customers fully to FDXB technology. Additionally, the Company will continue to offer the Allflex MiniChip, a new technology first introduced in 2012. The Allflex MiniChip is available in FDXB form only.

The companion animal microchip is a transponder no larger than a grain of rice that has a number burnt on it which can be read at a particular frequency. The microchip is implanted in the tissue between the shoulder blades of cats and dogs. It is estimated that approximately 10% of dogs and cats are currently microchipped. Companion animal microchipping is supported by a wide network of readers that are maintained by animal welfare organizations and veterinary clinics throughout Canada and the United States. Allflex microchips sold under the 24PetWatch brand name can be read by all Universal readers in the marketplace. The 24PetWatch program is supported by a call centre which houses the pet owner and pet data tied to individual microchip numbers. The call centre receives over 30,000 inbound calls per month from which Pethealth sells both its insurance and non-insurance products and services.

"Pethealth continues to be Allflex USA's most important relationship in the companion animal space and one of our fastest growing customers," said Brian Bolton, Chief Executive Officer of Allflex USA, Inc. "We look forward to continuing our working relationship with them over the next three years."

About Allflex

With operations on five continents, Allflex is the world leader in design, technology, manufacture and delivery of animal identification for traceability systems across all species in either companion animals, equine, fish or production livestock. We bring cutting-edge, practical applications of visual, electronic and radio frequency animal identification technology across the world that contributes to both safer pets and a safer global food supply. Allflex USA is based in Dallas, TX.

About Pethealth

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

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

Contact:
Investor Relations
Pethealth Inc.
Mark Warren
President and Chief Executive Officer
(905) 842-2615
Pethealth Inc.
Glen Tennison
Chief Financial Officer
(905) 842-2615
www.pethealthinc.com

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