PetMeds® Press Releases

06.16.2003


1800PetMeds® ANNOUNCES RECORD SALES AND PROFITS FOR FISCAL 2003 FINANCIAL RESULTS – EXPECTS STRONG REVENUES FOR THE FIRST QUARTER OF FISCAL 2004

Pompano Beach, Florida, June16, 2003 - PetMed Express, Inc. (OTCBB: PETS) today announced results for thefiscal year ended March 31, 2003. Net income was $3,258,000, including a taxbenefit of $581,000 which was recognized in the fourth quarter of fiscal 2003,or $.19 per share, $.16 diluted per share, for fiscal 2003, compared to netincome of $825,000 or $.05 per share, $.04 diluted per share for fiscal 2002. Net sales for the fiscal year ended March 31, 2003 were $55.0 million, comparedto $32.0 million for the year ended March 31, 2002, an increase of 72%. PetMedExpress also reported new customer growth of approximately 414,000 customers infiscal 2003.

Mendo Akdag, CEO, commented:“We are very pleased with the sustained profitability and the incrementalincrease in sales over the past year. The Company’s business model, which wasinitiated in April 2001, with the vision of becoming the leading direct marketerof pet medications and a national household name has yielded strong results. Our sales have increased from $10.0 million for fiscal 2001, to $32.0 millionfor fiscal 2002, and to $55.0 million for fiscal 2003.

We are also excited aboutour prospects for our current fiscal year, and in particular our first quarterending June 30, 2003. Net sales for the first two months of the quarter haveincreased 96% over the same period prior year. This increase during our “peakseason” can be attributed to a boost from increased advertising spending and anincrease in customer reorders.”

Founded in 1996, PetMedExpress is America’s largest pet pharmacy, delivering prescription andnon-prescription pet medications, health and nutritional supplements atcompetitive prices through the PetMed Express catalog, customer servicerepresentatives, and on the Internet through its website atwww.1800PetMeds.com

This press release may contain “forward-looking”statements, as defined in the Private Securities Litigation Reform Act of 1995or by the Securities and Exchange Commission, that involve a number of risk anduncertainties, including the Company’s ability to meet the objectives includedin its business plan. Important factors that could cause results to differmaterially from those indicated by such “forward-looking” statements are setforth in Management’s Discussion and Analysis or Plan of Operations in thePetMed Express Annual Report on Form 10-KSB for the year ended March 31, 2003.

For investment relationscontact PetMed Express, Inc., Pompano Beach, Mendo Akdag, CEO, 954-979-5995.

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PETMED EXPRESS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS CONSOLIDATED STATEMENTS OF INCOME (AUDITED) Year Ended March 31, ----------------------- 2003 2002 ----------- ----------- Sales $54,974,916 $32,025,931 Cost of sales 31,517,639 18,894,493 ----------- ----------- Gross profit 23,457,277 13,131,438 ----------- ----------- Operating expenses: General and administrative 7,956,786 6,094,493 Advertising 11,649,811 5,717,242 Severance charges - 195,000 Depreciation and amortization 367,673 376,763 ----------- ----------- Total operating expenses 19,974,270 12,383,498 ----------- ----------- Income from operations 3,483,007 747,940 ----------- ----------- Other income (expense) Adjustment of estimate for legal settlement - 345,000 Gain (loss) on disposal of property and equipment 15,000 (314,332) Interest expense (30,658) (48,835) Interest income 6,973 18,582 Other, net 6,084 77,058 ----------- ----------- Total other income (expense) (2,601) 77,473 ----------- ----------- Income before provision for income taxes 3,480,406 825,413 Provision for income taxes 222,841 - ----------- ----------- Net income $ 3,257,565 $ 825,413 =========== =========== Net income per common share: Basic $ 0.19 $ 0.05 =========== =========== Diluted $ 0.16 $ 0.04 =========== =========== BALANCE SHEET DATA (AUDITED) March 31, March 31, 2003 2002 ----------- ----------- Working capital $ 3,017,641 $ 690,588 Total assets 9,025,796 4,654,236 Total liabilities 3,433,108 3,071,536 Total shareholders' equity 5,592,688 1,582,700

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