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PETMED EXPRESS, INC.

YEAR ENDED MARCH 31, 2006

CONFERENCE CALL TRANSCRIPT

MAY 15, 2006 AT 8:30 A.M. EDT

Coordinator: Welcome to the PetMed Express Incorporated, doing

business as 1-800-PetMeds, conference call to

review the financial results for the fourth fiscal

quarter and fiscal year ending on March 31, 2006.

At the request of the company this conference call

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

largest pet pharmacy, delivering prescription and

non-prescription pet medication 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 customers

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 Rosenbloom. Sir you may begin.

Bruce Rosenbloom: Thank you. I'd like to welcome everyone here

today. Before I turn the call over to Mendo

Akdag, our Chief Executive Officer and President,

I'd like to remind everyone that the first portion

of this conference call will be listen-only, until

the question and answer session which will be

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

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

Chief Executive Officer and President of 1-800-

Mendo Akdag: Thank you Bruce.

Welcome everyone and thank you for joining us.

Today we will review the highlights of our

financial results. We will compare our fourth

fiscal quarter and fiscal year ended on March 31,

2006 to last year's quarter and fiscal year ended

For the fourth fiscal quarter ended on March 31,

2006 sales were $29.4 million compared to sales of

$23.5 million for the same period the prior year,

an increase of 25%. For the fiscal year ended on

March 31, 2006 sales were $137.6 million compared

to $108.4 million for the prior fiscal year, an

increase of 27%. The increase was primarily due

to increased retail reorders, retail new orders

and wholesale sales for the fiscal year.

For the fourth fiscal quarter net income was $3.1

million or $0.13 cents diluted per share compared

to $2.4 million or $0.10 cents diluted per share

for the same quarter the prior year, an increase

to net income of 30%. For the fiscal year net

income was $12.1 million or $0.50 cents diluted

per share compared to $8.0 million or $0.34 cents

diluted per share a year ago, an increase to net

Retail reorder sales increased by 28% to $21.7

million for the quarter compared to reorder sales

of $17.0 million for the same quarter the prior

year. For the fiscal year the reorder sales

increased by 29% to $88.4 million compared to

$68.7 million for the prior year.

Retail new order sales increased by 26% to $7.1

million for the quarter compared to $5.6 million

for the same period the prior year. For the

fiscal year, the new order sales increased by 22%

to $45.5 million compared to $37.2 million for the

Wholesale sales were approximately $600,000 for

the quarter compared to $900,000 for the same

quarter the prior year. For the fiscal year

wholesale sales were at $3.7 million compared to

$2.4 million for the prior year.

We acquired approximately 94,000 new customers in

our fourth fiscal quarter compared to 80,000 for

the same period the prior year and we acquired

approximately 624,000 new customers in the fiscal

year compared to 510,000 for the prior year.

Our average retail order was approximately $81 for

the quarter and $77 for the fiscal year.

Approximately 57% of our sales were generated on