1-800-PetMeds September 2011 Business Plan

$137.6$162.2

$188.3

$219.4$238.3

$231.6

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$78.4

$100.9

$122.5

$143.3

$162.8 $165.5

$0.0

$25.0

$50.0

$75.0

$100.0

$125.0

$150.0

$175.0

$200.0

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

0%

25%

50%

75%

100%

7/2/

2011

7/16

/201

1

7/30

/201

1

8/13

/201

1

8/27

/201

1 PETS

AVG

AMZN

0

250

500

750

1000

Jun-

10

Sep

-10

Dec

-10

Mar

-11

Jun-

11PETS

AVG

PETS

75%

AMZN

70% (1)

AVG

47%

(1)(2)

PETS

858 (3)

AVG

457 (2)(3)

1%

38%

61%

OTC

Rx

Shipping

Compared to 64% OTC, 35% RX and 1%

Shipping for the year ended March 31, 2010.

According to American Pet

Products Manufacturers

Association (APPMA).

$18.8

$2.1

$3.5

$10.9

$13.0

Food 7.4 % Growth

Vet Care 8.3% Growth

Supplies/Medicine 4.8% Growth

Grooming/Boarding 2.9% Growth

AnimalPurchases -4.5% Growth

According to IMS Health and

NACDS Economics Dept., in

human pharmaceuticals, 19%

of the market is serviced by

mail order/on-line channel.

67%5%

6%

22%

Veterinarians

Retailers

1-800-PetMeds

Other Mail Order

32%

22%

20%

26%

1st Q EndingJune 30, $74.4 million

2nd Q EndingSeptember 30,$61.2 million

3rd Q EndingDecember 31,$45.1 million

4th Q EndingMarch 31, $50.9 million

681

3,136

710

3,846

802

4,648

815

5,463

645

6,108

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

New

Customers

Total

Accumulated

Note: As of FY 2011, 2.6 million customers

purchased in the last 24 months. For the quarter

ended June 30, 2011, we acquired 226,000 new

customers, compared to 220,000 new customers

for the same period prior year.

$37 $36 $36$34

$42

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$79.0$80.0

$82.0

$80.0$79.0

$72.0

$74.0

$76.0

$78.0

$80.0

$82.0

$84.0

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

New Order Revenue 17.0$ 23.0% 16.8$ 22.5%

Reorder Revenue 56.6$ 77.0% 57.6$ 77.5%

Total Net Revenue 73.6$ 74.4$

Gross Profit 24.1$ 32.8% 27.2$ 36.6%

G&A Expenses 6.1$ 8.3% 6.2$ 8.3%

Advertising Expenses 10.1$ 13.7% 8.8$ 11.9%

Depreciation Expenses 0.3$ 0.5% 0.4$ 0.5%

Operating Income 7.6$ 10.3% 11.8$ 15.9%

Net Income 4.8$ 6.6% 7.2$ 9.7%

EPS - Diluted 0.22$ 0.32$

2011 2010

New Order Revenue 47.3$ 20.4% 60.5$ 25.4% 62.5$ 28.5%

Reorder Revenue 184.3$ 79.6% 177.8$ 74.6% 156.9$ 71.5%

Total Net Revenue 231.6$ 238.3$ 219.4$

Gross Profit 84.0$ 36.2% 91.9$ 38.6% 85.3$ 38.9%

G&A Expenses 22.2$ 9.6% 22.4$ 9.4% 21.6$ 9.8%

Advertising Expenses 27.4$ 11.8% 27.7$ 11.6% 28.7$ 13.1%

Depreciation Expenses 1.4$ 0.6% 1.3$ 0.6% 0.8$ 0.4%

Operating Income 33.0$ 14.3% 40.5$ 17.0% 34.2$ 15.6%

Net Income 20.9$ 9.0% 26.0$ 10.9% 23.0$ 10.5%

EPS - Diluted 0.92$ 1.14$ 0.98$

2011 2010 2009

$12.1

$14.4

$20.0

$23.0

$26.0

$20.9

$0.0

$10.0

$20.0

$30.0

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$0.50

$0.60

$0.82

$0.98

$1.14

$0.92

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$10.3

$16.6$19.4

$15.0

$27.7$30.1

$0.0

$10.0

$20.0

$30.0

$40.0

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

1.