Pethealth Inc. TSX VENTURE: PTZ

OAKVILLE, ONTARIO--(CCNMatthews - May 24, 2005) - Not for dissemination in the United States of America or to United States news wire services.

Pethealth Inc. ("Pethealth" or the "Company") (TSX VENTURE:PTZ) is pleased to announce that it has formed a partnership with Don Cherry to create a pet insurance program for dogs and cats in Canada. Pethealth has additionally committed to provide financial support to Rose Cherry's Home for Kids, based on the success of the program. Mr. Cherry has partnered with Pethealth because of his belief in pet insurance, driven by his own experience as a pet owner, and Pethealth's willingness to tie the success of the program to funding for the Rose Cherry Home for Kids, a children's hospice established to provide palliative and respite care for chronically ill children. Policyholders will also be able to make donations towards this worthy cause.

The design for the CherryBlue^TM pet insurance program is consistent with Mr. Cherry's approach to life. It is straightforward, easy to understand, and will provide considerable benefit to those pet owners like Don who desire to provide the best possible health care for their dogs and cats. Less than 1% of dogs and cats in Canada are currently covered by health insurance. Given today's health care environment, insurance coverage provides an affordable way to plan in the unfortunate event that a pet has an accident or illness.

"I am a supporter of Pethealth's desire to make pets more a part of family life. This is shown by their willingness to tie CherryBlue^TM to contributions to the Rose Cherry Home for Kids," said Don Cherry. "I know first-hand that choosing the best medical care possible for dogs and cats is sometimes difficult for pet owners because of the cost. For instance Blue's knee operation cost me over $1500, & I foolishly didn't have insurance & paid the full Monty."

Pethealth plans to distribute the CherryBlue^TM pet insurance program through clinics and other forms of direct-to-consumer advertising. The program will be available in nine provinces starting later this month. Pet owners can also go to the http://www.cherryblue.ca web site. The program provides up to $20,000 of lifetime health insurance coverage for your pet, with programs starting at less than $10 a month.

"We are very excited about making this announcement and launching this new program in the coming weeks," said Mark Warren, President and Chief Executive Officer of Pethealth. "We believe that Pethealth's success depends in part on enhancing the human-animal bond. We have long felt and demonstrated that this can in part be achieved by tying the pet health insurance to worthy causes such as the Rose Cherry Home for Kids. Don's high profile, zest for life, and his love of his dog, we believe will message well with pet owners in Canada."

About Pethealth

Pethealth Inc. (TSXV: PTZ) is a leading provider of pet insurance and pet related data 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, ShelterCare and 24PetWatch.

Pethealth is based in Oakville, Ontario. To find out more about Pethealth Inc. (TSXV: PTZ), visit the web site at http://www.pethealthinc.com.

About Don Cherry

Don Cherry is recognised for his 23 years on Hockey Night in Canada's "Coaches Corner" and was named as one of the Top 10 Canadians in Canada's history.

About Rose Cherry's Home for Kids

Rose Cherry's Home for Kids will provide pediatric hospice care and respite services to families within communities in Ontario for children with life-limiting or life-threatening illness requiring complex and/or technology-dependent care. See http://www.rosecherryshome.ca.

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

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