<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>form8kjan08-confcallex991.txt
<TEXT>

                                                     Exhibit 99.1


                      PETMED EXPRESS, INC.
                 QUARTER ENDED DECEMBER 31, 2007
                   CONFERENCE CALL TRANSCRIPT
                JANUARY 22, 2008 AT 8:30 A.M. ET

Coordinator:   Welcome to the PetMed Express Incorporated,  doing
               business  as  1-800-PetMeds  conference  call   to
               review  the financial results for the third fiscal
               quarter ended on December 31, 2007. At the request
               of  the  company  this conference  call  is  being
               recorded.   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,   direct  mail,  and  print   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
               Rosenbloom.

Bruce Rosenbloom:    Thank you. I would like to welcome everybody
               here  today. Before I turn the call over to Mendo,
               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 later in
               the call.  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 very 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-PetMeds. Mendo.

Mendo Akdag:   Thank  you Bruce. Welcome everyone. Thank you  for
               joining  us. Today we'll review the highlights  of
               our  financial  results. We'll compare  our  third
               fiscal  quarter and nine months, ended on December
               31,  2007  to last year's quarter and nine  months
               ended on December 31, 2006.

               For the third fiscal quarter ended on December 31,
               2007,  sales were $37.3 million, compared to sales
               of  $31.4  million for the same period  the  prior
               year,  an  increase of 19%. For  the  nine  months
               ended  on  December  31, 2007, sales  were  $147.9
               million,  compared to sales of $125.8 million  for
               the  nine  months the prior year, an  increase  of
               18%.   The increase was primarily due to increased
               retail  reorders  for the quarter,  and  increased
               retail  reorders  and  new  orders  for  the  nine
               months.

               For the third fiscal  quarter  net income was $4.4
               million,  or $0.18  diluted per share, compared to
               $2.8 million, or  $0.11  diluted per share for the
               same  quarter the  prior year, an increase  to net
               income of 60%.  For the nine months net income was
               $15.1   million,  or  $0.62   diluted  per  share,
               compared  to  $10.8 million, or $0.44 diluted  per
               share a year ago, an increase to net income of 40%.

               Retail  reorder  sales  increased by  28% to $28.4
               million for the quarter, compared to reorder sales
               of   $22.1 million for the same quarter the  prior
               year.    For  the  nine  months  the reorder sales
               increased by 23%  to  $103.4  million, compared to
               $84.1 million  for  the same  period  a year  ago.
               Retail new order  sales  decreased  by 3%  to $9.0
               million for the quarter, compared  to $9.2 million
               for the same period  the prior  year. The decrease
               in new order  sales  can  directly  be  attributed
               to   a  13%  reduction  in   advertising  spending
               compared to the same  quarter last  year.  For the
               nine months the  new  order sales  increased by 8%
               to $44.4 million,  compared to $41.2  million  for
               the same period last year.

                    Exhibit 99.1 Page 1 of 7


<PAGE>



Mendo Akdag:   We acquired approximately 127,000 new customers in
               our  third fiscal quarter, compared to 130,000 for
               the  same  period the prior year, and we  acquired
               approximately  585,000  new  customers   in   nine
               months, compared to 549,000 for the same period  a
               year   ago.    Our   average  retail   order   was
               approximately $76 for the quarter, compared to $75
               for   the   same  quarter  the  prior  year,   and
               approximately 65% of our sales were  generated  on
               our  web site for the quarter compared to 63%  for
               the  same  period  the prior year.   Our  Internet
               sales  increased by 23% to $24.4 million  for  the
               quarter,  compared  to  Internet  sales  of  $19.8
               million for the same quarter the prior year.   For
               the nine months Internet sales increased by 24% to
               $96.0  million, compared to $77.4 million for  the
               same  period  last  year. 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 seasons with
               fall and winter being the off-season.

               For the third fiscal quarter our gross profit as a
               percent of sales was 40.6%, compared to 40.8%  for
               the  same  period a year ago. For the nine  months
               our  gross profit as a percent of sales was 38.9%,
               compared to 39.6% for the nine months a year  ago.
               The  percentage  decrease  can  be  attributed  to
               increased product costs and freight costs.

               Our  general  and  administrative  expenses  as  a
               percent  of  sales  decreased  to  12.2%  for  the
               quarter,  compared to 12.8% for the  same  quarter
               the  prior year. And for the nine months  the  G&A
               expenses  as  a  percent of sales were  at  10.5%,
               compared to 10.2% a year ago. The improvement  for
               the  quarter shows the leverage of the  G&A.   For
               the nine months, the adoption of FIN 48 during the
               June quarter resulted in approximately $386,000 of
               one  time uncollected sales tax expense in a state
               where for tax purposes it was determined that  the
               company had established nexus.

               For   the   quarter  we  spent  $4.2  million   in
               advertising compared to $4.8  million for the same
               quarter the prior year, a decrease of 13%. For the
               nine months we spent $20.7 million for advertising
               compared to $20.8 million a year ago. The decrease
               in  advertising for  the quarter can be attributed
               to  decreased television  advertising due to tight
               inventory as compared to last year's same quarter.
               Advertising  costs of acquiring a customer for the
               quarter was approximately $33, compared to $37 for
               the  same quarter the prior year, and for the nine
               months it was  $35,  compared to $38  for the same
               period  a year ago.

               Our working capital  increased by $14.0 million to
               $64.6  million since  March 31, 2007. The increase
               can mainly  be attributed to  cash flow  generated
               from operations. We had $47.0 million in cash  and
               temporary   investments,  and  $20.1   million  in
               inventory  with  no  debt as of December 31, 2007.
               The increase in inventory can be attributed to our
               taking advantage of buying opportunities. Net cash
               from  operations  for  the  nine  months  was $9.9
               million, compared  to net  cash from operations of
               $15.1  million  for  the  same period last year, a
               decrease of $5.2 million.  The decrease can mainly
               be  attributed  to  higher  inventory   and  lower
               accounts payable.

               In  accordance with our share repurchase  program,
               we   repurchased  approximately  182,000   shares,
               paying  approximately  $2.4  million  during   the
               quarter,  and  for the nine months we  repurchased
               approximately  369,000 shares paying approximately
               $4.9  million.  Capital expenditures for the  nine
               months were approximately $352,000. Overall we had
               a   highly  profitable  quarter,  which   can   be
               attributed  to strong reorders and our success  in
               leveraging  operating  expenses.  This  ends   the
               financial  review. Operator, we're ready  to  take
               questions.

Coordinator:   Our  first question is from Michael Cox  of  Piper
               Jaffray. Your line is open.

Michael Cox:   Congratulations on the quarter.

Mendo Akdag:   Thank you Michael.

Michael Cox:   My  first  question is related to the ad spend  in
               the  quarter. You mentioned tight inventory. I was
               wondering  if  you  could  just  comment  on  your
               outlook for the advertising environment as we move
               into  the  political  season,  and  if  we  should
               continue to expect 10 to 15% declines in ad  spend
               in the coming quarters?

                    Exhibit 99.1 Page 2 of 7


<PAGE>


Mendo Akdag:   Our  budget  is - we budgeted higher dollars  than
               what  we spent last year. Whether we can spend  it
               or   not   the  time  will  show.  What   we   are
               anticipating for the primaries - that most states'
               primaries  will be consolidated into February  and
               March  so we are anticipating some impact on cable
               news  stations.  We're anticipating  the  heaviest
               impact  in September and October, again mainly  on
               the  cable  news stations and there  may  be  some
               spillover,  but  it's difficult to  say  how  it's
               going  to  shape up. We're likely going  to  shift
               some  dollars to on-line advertising and  possibly
               some on print.

Michael Cox:   Okay  that's helpful, thank you, and as it relates
               to  share buyback, I'm curious as to what it would
               take  to get more aggressive in buying back  stock
               given your large cash position.

Mendo Akdag:   Well  it's subject to market conditions and  other
               factors  in  accordance with SEC requirements.  If
               you  noticed in the December quarter I  think  our
               average  purchase  price  was  almost  $13.00,  so
               obviously if we're willing to buy at $13.00,  then
               we  would  be willing to buy at the current  price
               level.

Michael Cox:   Okay that's helpful, and then my last question, as
               relates  to  the gross margin. You're starting  to
               see  a  moderation in the gross margin trend.  I'm
               curious as you look out over the next two to three
               quarters  if  you  expect that,  that  trend  will
               continue,  or  perhaps the early buy  opportunity,
               here  from an inventory, if that perhaps helps  on
               the gross margin as well? And thanks again.

Mendo Akdag:   It  will  help the early buying opportunities.  It
               will help our gross margins, but it depends on how
               competitive the market is. The market dictates our
               pricing  so we want to obviously - we want  to  be
               competitive, but we don't want to leave any  money
               on the table. So we price according to the market.
               So   if  the  market  is  competitive,  we'll   be
               aggressive price-wise, and that will put  pressure
               on the gross margins.

Michael Cox:   Thank you very much.

Mendo Akdag:   You're welcome.

Coordinator:   Next  question is from Mr. Edward Woo of  Wedbush,
               your line is open.

Edward Woo:    How does the competitive outlook (unintelligible).

Mendo Akdag:   I'm sorry, I could not hear you.

Edward Woo:    Oh sure, is this better?

Mendo Akdag:   Yes.

Edward Woo:    I  had a question. One is how does the competitive
               outlook  appear right now with some of your  other
               peers  and also, as the economy seems to be having
               a  slowdown,  how  do you think  that's  going  to
               impact  your business?

Mendo Akdag:   Right.   Off  peak season we are  in  now  usually
               there is less competition in off peak season.   In
               peak season, which is spring and summer, there's a
               lot  more competition. So where we are right  now,
               we're in - there's less competition currently, but
               we're  anticipating  that  the  competition   will
               increase in spring.  As far as the - usually,  the
               recession, if there is a recession, should help us
               clear  more  on  television and probably  at  more
               attractive  prices  because  there  will  be  less
               general advertisers advertising on television.  So
               it may actually help us.

Edward Woo:    Do  you  think that as consumers are  looking  for
               places,  to cut cost that this would provide  more
               (unintelligible) on-line?

Mendo Akdag:   I'm sorry, I lost you again.

Edward Woo:    I  apologize for that, my phone reception  is  not
               very good this morning. But if you see more people
               driven on-line to try to save money for their  pet
               medication, do you see any of that when we  had  I
               guess  our  last slowdown back in 2001, 2002  time
               period?

                    Exhibit 99.1 Page 3 of 7


<PAGE>


Mendo Akdag:   In  the  December quarter, 65% of our  sales  were
               generated on our website compared to 63%  for  the
               same quarter last year. So there was a 2% increase
               in  Internet sales, so we anticipate that trend to
               continue in the short term.

Edward Woo:    Great, thank you.

Mendo Akdag:   You're welcome.

Coordinator:   The   next  question  is  from  Dom  LaCava   with
               Canaccord Adams. Your line is open.


Dom LaCava:    Hello?


Coordinator:   Your line is open, sir.

Dom LaCava:    Can you hear me?

Mendo Akdag:   Yes.

Dom LaCava:    Okay,  sorry about that. Just wanted to  dig  down
               deeper  a little bit on the product cost  and  the
               freight  cost just to kind of expand on an earlier
               question. Can we expect - actually, first can  you
               kind  of  provide  some color  on  the  impact  of
               product  cost  versus  freight  cost  and   what's
               driving  each one, and then can we expect  freight
               cost  to continue to go up and offset some of  the
               product cost advantages you may be seeing  due  to
               the  increased inventory? Could you just  kind  of
               first separate the two and then talk a little  bit
               about what we can expect?

Mendo Akdag:   I  will  roughly separate it. Two  thirds  of  the
               increase  in  the cost was due to freight  expense
               increase  and  probably one third due  to  product
               price  increases,  but we just  had  product  cost
               increases  in  January  so that's  why  we  bought
               heavily  in December. And the freight, we ship  US
               Postal  Service priority mail the majority of  our
               shipping,  and the last price increase  I  believe
               was  in  May  2007, so it's already in  our  cost.
               FedEx   and   UPS  just  increased  their   prices
               recently,  but  that's a smaller  portion  of  our
               shipping so it should not have a huge impact.

Dom LaCava:    Okay so it sounds like the increased inventory was
               due to the better pricing than had you waited, but
               if  it's two thirds, one third we can still expect
               maybe  a little bit of gross margin pressure going
               forward is kind of what I'm hearing?

Mendo Akdag:   I would expect, yes. It depends on how competitive
               the  market is, which we are anticipating that  it
               will  be more competitive in the spring than  what
               it  is right now. I would expect some gross margin
               pressures, yes.

Dom LaCava:    Okay,  and then moving over to the advertising,  I
               understand that the TV environment - can you  talk
               a little bit - and I did see some more - I've seen
               some   PetMed  advertising  on-line  at  different
               sites, so I just wanted to see if you could talk a
               little  bit  more  about the  on-line  advertising
               campaign  versus  television.  I  know   you   had
               mentioned that inventory was tight so you kind  of
               reeled back the advertising spend on TV, but  does
               this  mean  that more money has been allocated  to
               the  on-line  channel, or how can we  think  about
               that?

Mendo Akdag:   Yes,  we'll  likely spend more money  on  on-line,
               assuming it pays off obviously. So we're not going
               to waste any dollars. If it's efficient and paying
               off,  yes  we  will  put more  money  on-line.  We
               basically  test  and find out what's  working  and
               what's not working, and there is a lot of tactical
               decisions obviously that goes in to it.
               If  it's working we put more money in it. If  it's
               not  working  we have to adjust it, or  maybe  try
               different creatives, etcetera. So it's an  ongoing
               maneuvering  that goes on, but I would  anticipate
               we'll spend more money on-line in 2008 compared to
               2007.

                    Exhibit 99.1 Page 4 of 7


<PAGE>


Dom LaCava:    Okay.  So what has changed since the last  quarter
               as far as - I know you have an ongoing analysis as
               far as what's working on-line, but can you talk  a
               little bit about what has changed with the on-line
               advertising  environment,  and  specifically  what
               you're seeing as far as effective campaigns?

Mendo Akdag:   We are operating pretty much similar to how we did
               in  the December quarter currently on-line, but we
               are  going  to be testing some other  avenues  and
               opportunities  on-line. It depends on  if  they're
               successful  or  not  obviously  whether  we   will
               continue or not.

Dom LaCava:    Okay,  and  what's the approximate mix of  on-line
               versus  television or non - I guess on-line versus
               offline?

Mendo Akdag:   We  discontinued  giving that information  due  to
               competitive  reasons.  It's really  multi-channel.
               When  you run on television that impacts your  on-
               line,  and  that impacts your print  too.  So  you
               cannot really separate these things. It's a multi-
               channel advertising effort.

Dom LaCava:    Right,  and  how much longer does the Betty  White
               campaign have? Is that something that runs through
               '08?

Mendo Akdag:   No,  actually  it  will  be  ending  the  end   of
               February, and we'll start a new campaign in March.

Dom LaCava:    Okay.  Is  it safe to say that it'll be continuing
               the same campaign, or someone, a new spokesperson,
               or a completely different campaign?

Mendo Akdag:   Different creative, you will see it in March.

Dom LaCava:    Okay, and my last question, is there any update on
               website re-launch?

Mendo Akdag:   We are still not live, but we have done some tests
               and  we  have  gone  live with  our  new  platform
               several  times, and we will be live in the spring.
               It should be shortly, but I'm hesitant to give any
               dates at this point.

Dom LaCava:    Okay.  And  I  guess the final question,  just  on
               that,  any  insight into what sort of features  we
               can expect as part of that re-launch?

Mendo Akdag:   You  will see a redesign not immediately after  we
               go  live but after about 30 days probably, a month
               later, and there will be more personalization - is
               our  focus,  more  personalized marketing  to  the
               consumer.

Dom LaCava:    Okay great, thank you very much.

Mendo Akdag:   You're welcome.

Coordinator:   Your   next  question  is  from  Bill  Lennan   of
               Broadpoint. Your line is open.

Bill Lennan:   Hi. I lost my call so I missed a couple of things.
               Could   you  repeat  the  new  customer   numbers,
               question  one?  And number two -  if  you  already
               covered   this   I  apologize,  but   what's   the
               environment for passing along shipping charges  so
               far this year between you and the competition?  Do
               you think people are generally passing along that,
               or is somebody going to be aggressive and eat that
               on behalf of customers?

Mendo Akdag:   We acquired approximately 127,000 new customers in
               the  December quarter, compared to 130,000 for the
               same  quarter the prior year. As far  as  freight,
               we'll  continue our free shipping on  orders  over
               $39.  We  may  look at increasing that  $39  as  a
               possibility,  but at this time we're  planning  on
               continuing with free shipping. I don't  know  what
               the competition is going to do.

Bill Lennan:   Okay thanks.

Coordinator:   The  next  question is from Paul Taylor with  TIS.
               Your line is open.

Paul Taylor:   Hi folks. Congrats on another great quarter.

                    Exhibit 99.1 Page 5 of 7


<PAGE>


Mendo Akdag:   Thank you.

Paul Taylor:   Just  a  personal  comment, I  heard  the  earlier
               fellow who said, "What is it going to take for you
               to  spend your cash?" There's some people out here
               who   are  perfectly  fine  with  you  being  very
               deliberate with that cash. I don't know  how  many
               buybacks  I've seen where people spend  all  their
               money and then have one poor quarter and the stock
               goes  down half, and then they don't buy  anything
               else.

               So  again, just a personal comment that  I'm  fine
               with  the cash as long you folks know what  you're
               doing  with  it, and I don't think  anybody  would
               question  that you do. Having said that, is  there
               any  way  that you could give us a little  bit  on
               what you're looking to do with the cash as far  as
               acquisitions  or  buybacks? What is  the  priority
               that  you  have? I know that you've bought  shares
               this  quarter, but what is your overall  plan  for
               that cash?

Mendo Akdag:   We  have  approval from the board to buy back  $20
               million. We only used almost $5 million, so  there
               is  $15  million still that we can use to buyback,
               which  we plan on doing. Other than that we  don't
               have  any  other plans.  As far as acquisition  is
               concerned  we  do  look  at  companies.  There  is
               nothing pending at this time.

Paul Taylor:   One  other question, and I know this is sort of  a
               fuzz  ball,  but your top line continues  to  grow
               close  to  a  20% rate and I guess  you  start  to
               wonder how long that can continue. Do you have any
               thoughts on that?

Mendo Akdag:   We  don't  give  guidance so  it  depends  on  how
               successful  we  are  with  reorders.  And  if  the
               reorders are strong it's got a chance to continue,
               and  we  still  need to continue  to  add  to  new
               customers  in  an efficient manner.  Obviously  we
               don't  want to waste any advertising dollars,  but
               the key to success in the model is reorders and we
               are  doing  a  better  job  of  marketing  to  our
               customer  base. Our marketing is more personalized
               and  relevant  to  their  needs,  and  if  we  can
               continue with that success, we'll be okay.

Paul Taylor:   Thank you.

Coordinator:   Your next question is from Anthony Lebiedzinski of
               Sidoti, your line is open.

A. Lebiedzinski:     Yes, good morning, just following up on  the
               questions  about  the cash usage.  Has  the  board
               discussed  the idea of perhaps initiating  a  cash
               dividend?

Mendo Akdag:   We  did  in  the past. We decided not to  at  this
               point.  We may discuss it again, but obviously  at
               this point there's no dividend.

A. Lebiedzinski:     Okay, and I was wondering if you guys  could
               comment  for  the  quarter sales  by  region.  Any
               thoughts about how the sales were and markets have
               been  most  impacted  by the housing  market,  any
               thoughts about that?

Mendo Akdag:   Not  really, no. There's really no change  in  our
               mix of regions compared to last year.

A. Lebiedzinski:     Okay, so across the country pretty much same
               type of sales growth?

Mendo Akdag:   Southern states obviously have heavier sales. Just
               seasonality - flea, tick, heartworm in the product
               mix that we sell.

A. Lebiedzinski:    Okay, thank you.

Mendo Akdag:   You're welcome.

Coordinator:   And  the final question comes from Dom LaCava from
               Canaccord Adams. Your line is open.

Dom LaCava:    Hi.  This is just a housekeeping question.  I  may
               have  missed it, but the breakup between - I  know
               you mentioned the wholesale or the new order sales
               and   reorder  sales.  Was  zero  the  figure  for
               wholesale?

                    Exhibit 99.1 Page 6 of 7


<PAGE>


Mendo Akdag:   It's  minimal. We probably did less  than  $50,000
               for  the quarter. That's why I did not mention  it
               for  the December quarter just finished up.  Let's
               see if I have that, just hold on one second.

Dom LaCava:    And  if  you could just repeat the new  order  and
               reorder,  I  just want to make sure I've  got  the
               right figures.

Mendo Akdag:   For the quarter wholesale was $43,000, compared to
               $72,000  for the same quarter last year.  For  the
               nine  months, wholesale was $176,000, compared  to
               $535,000  for  the  nine months  the  prior  year.
               Reorder  sales for the quarter was $28.4  million,
               and  the new order sales for the quarter was  $9.0
               million.

Dom LaCava:    Okay, that's it. Thank you.

Mendo Akdag:   You're welcome.

Coordinator:   That was our final question. I'll now turn it back
               over to the speakers for closing comments.

Mendo Akdag:   Thank  you. We'll be focusing our efforts in three
               areas  to capitalize on the pet industry's  growth
               trend.   One,  capturing additional market  share,
               two,   increasing   reorders   with   personalized
               communication  and health education  content,  and
               three, improving our current service levels.  This
               wraps  up today's conference call. Thank  you  for
               joining  us.  Operator, this ends  the  conference
               call.

Coordinator:   Thank  you  for  participating  and  you  may  now
               disconnect.

                    Exhibit 99.1 Page 7 of 7


<PAGE>


</TEXT>
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