Pet DRx Acquires Valley Animal Medical Center in Coachella Valley

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Pet DRx, Inc. (NASDAQ: VETS) today announced it has acquired the Valley Animal Medical Center located in Indio, California. The acquisition will bring to eight (8) the total number of veterinary hospitals located in Coachella Valley owned by the Company. Terms of the transaction were not disclosed. Pet DRx estimates that the annual revenue generated from Valley Animal Medical Center will be in excess of $4 million.

“We are very pleased to add Valley Animal Medical Center to our strong network of veterinary practices serving Coachella Valley”

“We are very pleased to add Valley Animal Medical Center to our strong network of veterinary practices serving Coachella Valley,” said Bob Wallace, the Company’s chief executive officer. “Currently, we believe we are the leading provider of pet care and wellness in the region and the addition of Valley Animal Medical Center to our network of hospitals will further enable us to deliver the most comprehensive pet care in the Coachella Valley. Pet DRx’s high performing operations in this region demonstrate the viability of our unique ‘hub and spoke’ model, and we are focused on continuing to build out our network in this region.”

Pet DRx also announced that it has signed a definitive agreement to acquire a veterinary hospital located in San Diego, California. Terms of the transaction, which is subject to certain conditions and approvals, were not disclosed. Pet DRx anticipates completing this acquisition in the next two weeks.

Pet DRx also has signed letters of intent to acquire two additional veterinary hospitals in San Jose, California and San Diego, California. The Company is actively negotiating the terms of these transactions, which will be subject to certain conditions.

Mr. Gene Burleson, the Company’s chairman of the board, commented “Our business strategy has been to develop ‘hub and spoke’ networks pursuant to which we would use larger, fully equipped veterinary hospitals (“hubs”) to provide a wide range of specialty medical, diagnostic and non-medical services, and use traditional smaller general practices (“spokes”) to feed patients to the hub when the patients require a broader array of more specialized services that a general practice is not equipped to provide. We believe strongly in our business strategy and our acquisition of Valley Animal Medical Center underscores our commitment to execute on our business model. We remain optimistic about our ability to acquire veterinary hospitals and clinics that are strategic to our existing locations. We have a very rich pipeline of potential acquisitions on which we are conducting due diligence, and I expect we will have additional announcements regarding these in the near future.”

About Pet DRx

Pet DRx Corporation, headquartered in Brentwood, Tennessee, provides veterinary primary care and specialized services to companion animals through a network of fully-owned veterinary hospitals. The Company currently owns and operates leading veterinary hospitals in the state of California, which it has organized into unique, regional “hub and spoke” networks. Pet DRx provides a full range of general medical treatments for companion animals, including (i) preventive care, such as examinations, vaccinations, spaying/neutering and dental care and (ii) a broad range of specialized diagnostic and medical services, such as internal medicine, surgery, cardiology, ophthalmology, dermatology, oncology, neurology, x-ray, ultrasound and other services.

SAFE HARBOR STATEMENT

Certain statements and information included in this press release, including statements as to the Company’s pipeline of potential acquisitions and the timing of those acquisitions, and to the expected operations of the Company, its prospects for growth, and future product and service offerings constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the ability of the Company to successfully acquire, integrate and operate veterinary hospitals and clinics, requirements or changes affecting the businesses in which the Company is engaged, veterinary services trends, including factors affecting supply and demand, dependence on acquisitions for growth, labor and personnel relations, changing interpretations of generally accepted accounting principles and other risks detailed from time to time in the Company’s SEC reports, including its Current Report on Form 8-K, as amended, filed on April 4, 2008, its Registration Statement on Form S-4, as amended, filed on November 8, 2007, and its quarterly report on Form 10Q for the period ending March 31, 2008. These forward-looking statements speak only as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements.