Page 3 - 3

PETMED EXPRESS, INC.

QUARTER ENDED SEPTEMBER 30, 2005

CONFERENCE CALL TRANSCRIPT

OCTOBER 24, 2005 AT 8:30 A.M. EDT

Coordinator Welcome to the PetMed Express Inc. doing business as

1-800-PetMeds conference call to review the financial

results for the 2nd fiscal quarter ended on September

30, 2005. Due to Hurricane Wilma, this conference

call has been prerecorded, and there will not be a

question and answer session following the

Founded in 1996, 1-800-PetMeds is America's Largest

Pet Pharmacy, delivering prescription and non-

prescription pet medications, and other health

products for dogs, cats and horses direct to the

consumer. 1-800-PetMeds markets its products through

national television, on-line and direct mail

advertising campaigns, which direct consumers to order

by phone or on the internet, and aim to increase the

recognition of the "1-800-PetMeds" brand name. 1-800-

PetMeds provides an attractive alternative for

obtaining pet medications in terms of convenience,

price, ease of ordering and rapid home delivery.

At this time I would like to turn the call over to the

Company's Chief Financial Officer, Mr. Bruce

B. Rosenbloom I would like to welcome everybody here today. Before

I turn the call over to Mendo Akdag, our Chief

Executive Officer and President, I would like to

remind everyone that the entire conference call will

be listen-only, and there will not be a question and

answer session following the presentation.

Also, certain information that will be included in

this press conference may include forward-looking

statements within the meaning of the Private

Securities Litigation Reform Act of 1995 or the

Securities and Exchange Commission that may involve a

number of risks and uncertainties. These statements

are based on our beliefs, as well as assumptions we

have used based upon information currently available

to us. Because these statements reflect our current

views concerning future events, these statements

involve risks, uncertainties and assumptions. Actual

future results may vary significantly based on a

number of factors that may cause the actual results or

events to be materially different from future results,

performance or achievements expressed or implied by

these statements. We have identified various risk

factors associated with our operations in our most

recent annual report and other filings with the

Securities and Exchange Commission.

Now let me introduce today's speaker, Mendo Akdag,

Chief Executive Officer and President of 1-800-

M. Akdag Welcome and thank you for joining us. Today we will

review the highlights of our financial results. We

will compare our 2nd fiscal quarter and six months

ended on September 30, 2005 to last year's quarter and

six months ended on September 30, 2004.

For the 2nd fiscal quarter ended on September 30, 2005,

sales were $38.7 million compared to sales of $28.8

million for the same period the prior year, an

increase of 34%. For the six months ended on September

30, 2005, sales were $82.3

million compared to $64.0 million for the six months

the prior year, an increase

of 28%. The increase was primarily due to increased

retail reorders, retail new orders and wholesale

sales. It was a hot summer with a favorable

advertising environment. Compared to last year, our

advertising was more efficient and effective and

included more discount offers.

For the 2nd fiscal quarter, Net Income was $2.7

million, or $0.11 diluted per share compared to $1.8

million, or $0.08 diluted per share for the same

quarter the prior year, an increase to net income of

50%. For the six months, net income was $6.3 million,

$0.26 diluted per share compared to $3.6 million,

$0.15 diluted per share a year ago, an increase to net

Retail Reorder sales increased by 33% to $22.9 million

for the quarter compared to retail reorder sales of

$17.2 million for the same quarter the prior year. For

the six months, the reorder sales increased by 31% to

$48.6 million compared to $37.2 million for the same

Retail New order sales increased by 35% to $14.7

million for the quarter compared to $10.9 million for

the same period the prior year. For the six months,

the new order sales increased by 21% to $31.1 mil

compared to $25.8 million for the same period last

Wholesale sales were $1.1 million for the quarter

compared to $600,000 for the same quarter the prior

year. For the six months, wholesale sales were $2.5

million compared to $1.1 million for the same period a

We acquired 208,000 new customers in our 2nd fiscal

quarter compared to 154,000 for the same period the

prior year, and we acquired 425,000 new customers in

the six months compared to 345,000 for the same period

Our average order was approximately $74 for the

quarter, and approximately 55% of our sales were

generated on our web site.

The seasonality in our business is due to the

proportion of flea, tick and heartworm medications in

our product mix. Spring and summer are considered peak