<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>form8k0512-ex99.txt
<TEXT>
                      PETMED EXPRESS, INC.
                    YEAR ENDED MARCH 31, 2008
                   CONFERENCE CALL TRANSCRIPT
                  MAY 12, 2008 AT 8:30 A.M. ET

Coordinator:        Good   morning  and  welcome  to  the  PetMed
                    Express,  Inc. d/b/a 1-800-PetMeds Conference
                    Call to review the financial results for  the
                    4th  fiscal quarter and fiscal year ended  on
                    March 31, 2008. 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    it   products   through   national
                    television,    online   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 Rosenbloom.

Bruce Rosenbloom:   Thank  you.  Good morning. I  would  like  to
                    welcome  everyone 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 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  includes
                    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  belief,  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-PetMeds. Mendo.

Mendo Akdag:        Thank  you Bruce. Welcome and thank  you  for
                    joining   us.  Today  we  will   review   the
                    highlights of our financial results. We  will
                    compare our 4th fiscal quarter and the fiscal
                    year  ended on March 31, 2008, to last year's
                    quarter and  fiscal year ended on  March  31,
                    2007.

                    For the 4th fiscal quarter ended on March 31,
                    2008  sales  were $40.4 million  compared  to
                    sales  of  $36.4 million for the same  period
                    the  prior year, an increase of 11%. For  the
                    fiscal  year  ended on March 31, 2008,  sales
                    were   $188.3  million  compared  to   $162.2
                    million   for  the  prior  fiscal  year,   an
                    increase  of 16%. The increase was  primarily
                    due  to  increased  retail reorders  for  the
                    quarter and increased retail reorders and new
                    orders  for  the  fiscal year.  For  the  4th
                    fiscal  quarter net income was $4.9  million,
                    or $0.20 cents diluted per share, compared to
                    $3.6  million,  or  $0.15 cents  diluted  per
                    share for the same quarter the prior year, an
                    increase to net income of 35%.For the  fiscal
                    year,  net  income, was $20.0 million  --  or
                    $0.82  cents  diluted per share, compared  to
                    $14.4  million  or  $0.60 cents  diluted  per
                    share  a year ago, an increase to net  income
                    of 39%.

                    Retail  reorder  sales increased  by  17%  to
                    $31.0  million  for the quarter  compared  to
                    reorder  sales of $26.4 million for the  same
                    quarter the prior year. For the fiscal  year,
                    the  reorder sales increased by 22% to $134.3
                    million  compared to $110.5 million  for  the
                    prior year.


                        Exhibit 99.1 Page 1 of 9

<PAGE>
                    Retail  new order sales decreased  by  5%  to
                    $9.4 million for the quarter compared to $9.9
                    million  for the same period the prior  year.
                    For  the  fiscal  year, the new  order  sales
                    increased by 5% to $53.8 million compared  to
                    $51.1 million for the prior year.

                    We   acquired   approximately   126,000   new
                    customers in our 4th fiscal quarter  compared
                    to  132,000  for  the same period  the  prior
                    year,  and we acquired approximately  710,000
                    new customers in the fiscal year compared  to
                    681,000  for  the  prior  year.  Our  average
                    retail  order was approximately $81  for  the
                    quarter   and   $80  for  the  fiscal   year.
                    Approximately 65% of our sales were generated
                    on  our Web site for the fiscal year compared
                    to 62% for the prior fiscal year.

                    Our  Internet sales increased by 13% to $26.5
                    million  for the quarter compared to Internet
                    sales  of $23.5 million for the same  quarter
                    the  prior year. For the fiscal year Internet
                    sales  increased  by 21%  to  $122.5  million
                    compared  to  $100.9  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 season with  fall
                    and winter being the off season.

                    For  the 4th fiscal quarter our gross  profit
                    as  a percent of sales was 41.3% compared  to
                    40.5% for the same period a year ago. For the
                    fiscal year our gross profit as a percent  of
                    sales  was  39.4% compared to 39.8%  for  the
                    prior year.

                    The  percentage increase for the quarter  can
                    mainly  be  attributed to a shift in  product
                    mix  to  higher margin items. The  percentage
                    decrease  for the fiscal year can  mainly  be
                    attributed  to increased product and  freight
                    costs  offset  by a shift in product  mix  to
                    higher margin items.

                    Our general and administrative expenses as  a
                    percent  of sales were 12.0% for the  quarter
                    compared  to  12.4% for the same quarter  the
                    prior  year, and for the fiscal year the  G&A
                    was  10.8%  compared to 10.6% for  the  prior
                    year.  The improvement for the quarter  shows
                    leverage of the G&A.

                    For  the fiscal year 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, about the  same,
                    $4.5  million for advertising as we  did  the
                    same  quarter  the prior year,  and  for  the
                    fiscal  year we spent approximately the  same
                    $25.2  million in advertising, as we did  the
                    prior  fiscal  year.  Advertising  costs   of
                    acquiring  a  customer for  the  quarter  was
                    approximately  $36 compared to  $34  for  the
                    same  quarter  the prior year,  and  for  the
                    fiscal  year it was $36 compared to  $37  for
                    the same period a year ago.

                    Our   working  capital  decreased  by   $11.8
                    million  to  $38.8 million  since  March  31,
                    2007.  The  decrease can mainly be attributed
                    to  our reclassification of $24.7 million  of
                    auction   rate   municipal  securities   from
                    temporary     investments    to     long-term
                    investments due to lack of market  liquidity,
                    and  the  repurchase  of approximately  $11.6
                    million of our stock under our stock buy-back
                    plan  offset  by  cash  flow  generated  from
                    operations and the exercise of stock options.

                    We  had  $25.0 million in cash and  temporary
                    investments,   $24.7  million  in   long-term
                    auction rate securities investments and $17.9
                    million in inventory with no debt as of March
                    31,  2008. Net cash from operations  for  the
                    fiscal year was $19.4 million compared to net
                    cash from operations of $16.6 million for the
                    prior  fiscal  year,  an  increase  of   $2.8
                    million.

                    In   accordance  with  our  share  repurchase
                    program, we repurchased approximately 583,000
                    shares   paying  approximately  $6.7  million
                    during  the quarter, and for the fiscal  year
                    we  repurchased approximately 952,000  shares
                    paying approximately $11.6 million.

                          Exhibit 99.1 Page 2 of 9
<PAGE>

                     Capital expenditures for the fiscal year were
                     approximately  $500,000.  Overall  we  had  a
                     highly   profitable   year   which   can   be
                     attributed  to  increased  reorders  and  our
                     success in leveraging operating expenses.

                     This  ends  the  financial review.  Operator,
                     we're ready to take questions.

Coordinator:         Thank you.  At  this  time  we are  ready  to
                     begin  the  question and answer  session.  If
                     you'd  like  to ask a question, please  press
                     star  1  and  you'll  be announced  prior  to
                     asking. To withdraw your question, press star
                     2.  Once again at this time if you'd like  to
                     ask  a  question, please press  star  1.  One
                     moment  please. Our first question does  come
                     from  July Johnson of Piper Jaffray. You  may
                     ask your question.

July Johnson:        Thank you. Congratulations on the quarter.

Mendo Akdag:         Thank you.

July Johnson:         My first question is related to ad spend. Can
                      you  comment  or  provide an update  on  your
                      outlook for the advertising environment as we
                      move into the political campaign season?

Mendo Akdag:          We  are  expecting  the heaviest  impact,  we
                      think,  will be in September and October  for
                      the  political  season.  I  would  say  there
                      probably   was  some  impact  in  the   March
                      quarter.   There   was  a  larger   base   of
                      advertisers   also  impacted   by   primaries
                      compared to last year. So we spent less on TV
                      in  the March quarter than what we planned on
                      spending.

July Johnson:         And  would  you  plan  on  spending  less  on
                      television  advertising  through   the   fall
                      quarter as well?

Mendo Akdag:          April  was pretty well, pretty good -  so  we
                      cleared  pretty  well  in  April,  but   it's
                      difficult to tell. So we were able  to  spend
                      more money in April so I don't know if that's
                      any indication. Obviously that could change.

July Johnson:         Okay, thank you. My next question would be on
                      your  large cash position. Could you  provide
                      an  update on your thoughts in terms of share
                      repurchasing?

Mendo Akdag:          We  spent  I  believe about $11.6 million  so
                      far,  so  we have about $8.4 million left  in
                      our  stock buy-back plan. So we plan on using
                      that at this time. At this time we don't have
                      any other plans.

July Johnson:         Okay, thank you. And my last question is kind
                      of  a  more macro trend. Can you discuss what
                      you're  seeing in your business as it relates
                      to the challenging economic backdrop?

Mendo Akdag:          The  March  quarter was a  little  soft.  The
                      weather might have played a role. Other  than
                      that  we are probably - I'm not going to  say
                      we  are immune from recession but probably we
                      are in a recession resistant industry.

July Johnson:         Okay  that's  helpful. Thank you.  I'll  jump
                      back in queue.

Coordinator:          Anthony  Lebiedzinski of Sodoti  and  Company
                      you may ask your question.

Anthony Lebiedzinski: Good  morning.   My question  is  actually  a
                      follow  up  on  the  last  comment.  You  had
                      mentioned that the weather had somewhat of an
                      impact.  Can  you perhaps give us  some  more
                      color  on  that,  and also did  you  see  any
                      changes  in  terms of sales by region  versus
                      last year?

Mendo Akdag:          We  looked  at - I believe January and  March
                      were  colder this year compared to last year.
                      February  was almost - was probably  somewhat
                      about the same. So overall industry was soft.
                      We  were  not the only one. So at this  point
                      our  guess  is  that the weather  might  have
                      played a role in it.

Anthony Lebiedzinski: In terms  of  sales by  region  and  anything
                      you can comment there?


                        Exhibit 99.1 Page 3 of 9

<PAGE>


Mendo Akdag:          Always in  off-peak  seasons, in the Southern
                      States  we  have  a  lot  higher  sales  than
                      Northern  States so it was - that  was  still
                      the case this year.

Anthony Lebiedzinski: Okay  and  also  you  mentioned   that    the
                      gross margin benefited from a mix shift.  Can
                      you  give  us some examples of some of  these
                      higher  margin items that drove the  increase
                      in the gross margin?

Mendo Akdag:          Due  to  competitive reasons I prefer not  to
                      get into details of that.

Anthony Lebiedzinski: Okay  that's  fair,  and  my  last   question
                      is  you  mentioned in the release  here  that
                      you're   adding  another  15,000  in   square
                      footage.  What's  the incremental  CAPEX  and
                      rent expense that we should expect for this?

Mendo Akdag:          I'm going to have Bruce answer that.

Bruce Rosenbloom:     As  far  as  incremental CAPEX, basically  we
                      have  an  update where - actually I can  tell
                      you   right   now  -  initially  before   our
                      extension we were forecasting about  $520,000
                      of  rent  expense for fiscal 2009,  but  that
                      goes   up  to  $641,000,  and  then  it  will
                      increase approximately, 4 or 5% after that.

Anthony Lebiedzinski: And  is  there  any CAPEX there that you're
                      going to be putting into this?

Mendo Akdag:          We  are  but we are in the middle of planning
                      it, so we don't have solid numbers really  to
                      report at this time.

Anthony Lebiedzinski: Okay, thank you.

Coordinator:          Dom  LaCava  of Canaccord Adams you  may  ask
                      your question.

Dom LaCava:           Good morning.

Mendo Akdag:          Good morning.

Dom LaCava:           So  I'm  looking at the new customers in  the
                      March quarter. And it looks like they're down
                      year-over-year  5%  approximately.   I   know
                      reorder sales were up, but it also looks like
                      customer acquisition costs were up.  Can  you
                      just give us some color as to what's going on
                      there?   Was  that  expected  or,   are   you
                      targeting  a different kind of customer?  How
                      can we look at that?

Mendo Akdag:          There  were - we did not spend on TV as  much
                      as  we planned spending in the March quarter.
                      The inventory was tight in the March quarter.
                      The  larger base of advertisers also impacted
                      that,  and we paid a higher  cost.  We  had a
                      higher  cost  of  advertising  in  the  March
                      quarter  so that impacted that.  So  we  were
                      not  able to spend more in the March  quarter
                      is  the one reason, and the second reason was
                      the higher cost of advertising.

Dom LaCava:           Okay,  and  is there concern that in  today's
                      new customers or tomorrow's reorder customers
                      are  you  still planning maybe to  pay  up  a
                      little  bit for some advertising even if  the
                      inventory is tight? Or has your view  changed
                      on that?

Mendo Akdag:          Yes, we are  willing to pay a little bit more
                      to get new customers.

Dom LaCava:           Okay,  and  then  as far as the  state  sales
                      taxes  you  mentioned - I'm not sure  if  you
                      mentioned the state that was associated  with
                      that  -  but are you seeing pressure  in  any
                      other  states here? Or how can we  view  your
                      exposure to potential sales tax issues  going
                      forward?

Mendo Akdag:          That  was  really  a  nexus  issue.  We   had
                      presence in that state that's why.

Dom LaCava:           Okay,  and  which state was that?  Could  you
                      mention the state?


                        Exhibit 99.1 Page 4 of 9
<PAGE>

Mendo Akdag:        Yes, Georgia.

Dom LaCava:         Okay, sorry about that. Okay and then on  the
                    new  Web site it looks like the Web site  was
                    redone.  Can  you talk about the improvements
                    there? You know, how have the new hopes  been
                    faring  in terms of organic search or natural
                    search?  And then can you talk about some  of
                    the  -  do  you  have  any  metrics  tied  to
                    improvements in the business related  to  the
                    new Web site?

Mendo Akdag:        We  have a new platform. So we launched  that
                    probably it was late February, and it's still
                    a   work  in  progress.  So  as  far  as  the
                    matrixes,  I'd rather not give  any  at  this
                    time.

Dom LaCava:         Okay  and  then  a housekeeping  question  on
                    wholesale, I know wholesale is tiny, but  can
                    you  break  out  wholesale versus  new  order
                    sales both for the quarter and for the year?

Mendo Akdag:        For   the  quarter  it  was  really  minimal,
                    wholesale,  let me see here was  $44,000  for
                    the quarter.

Dom LaCava:         Yep.

Mendo Akdag:        And for the year it was $220,000 roughly.

Dom LaCava:         Okay,  and  then just going back to  the  Web
                    site  a  little  bit, I know you  had  talked
                    about  adding some personalization  features.
                    Is  there  any early insight into how  that's
                    impacting reorders or conversion?

Mendo Akdag:        We  already had some personalization so  this
                    is  nothing new. This is just improving  upon
                    what we got.

Dom LaCava:         Okay, and then I guess the last question then
                    is,  you  know, if key - are you  seeing  any
                    keyword  inflation  for  the  year  for  your
                    vertical?  And then if you are seeing  it  in
                    keywords and TV advertising are both  looking
                    high  what  are your most effective marketing
                    means right now to reach new customers?

Mendo Akdag:        Well, it's really multi-channel marketing, so
                    it's  difficult to point out whether it's  TV
                    our TV drives, for example, keyword searches.
                    So  I'm  not going to break it up, but  there
                    are   certain  advertisings  that  are   most
                    efficient,  and  what we do  is  we  maximize
                    that,  then  you look at the other  channels,
                    and  online  is  probably, there  is  certain
                    portions  online that's most  efficient.  But
                    there are also some TV stations that are very
                    efficient.

Dom LaCava:         Okay.

Mendo Akdag:        It's really a multi-channel approach.

Dom LaCava:         Right, so are you seeing  keyword pricing  go
                    up?

Mendo Akdag:        Yes,  the  cost is higher. That doesn't  mean
                    obviously  -  obviously we control  how  much
                    we're willing to pay, and we're going to  pay
                    what we can afford so.

Dom LaCava:         Okay, and then I guess my last question is on
                    gross  margins  it-looks like they  improved.
                    Can you talk about transportation and product
                    costs?  I know you had some upfront purchases
                    last  quarter that may have helped.  Can  you
                    talk a little about that? Thanks.

Mendo Akdag:        Yes, the  quarter, we had done well, it's off
                    peak    season,    typically   there's   less
                    competition, and there was a shift to  higher
                    margin  products during the quarter,  but  if
                    you look at the year there was, we went down.
                    Actually  gross profit decreased by 40  basis
                    points,  and that was  made up of an increase
                    in product costs and freight costs, offset by
                    shift to higher margin products.

Dom LaCava:         Thank you.


                        Exhibit 99.1 Page 5 of 9
<PAGE>

Mendo Akdag:        You're welcome.

Coordinator:        Michael  Friedman of Noble Financial you  may
                    ask your question.

Michael Friedman:   Yeah,  hi  guys.  A follow up  on  the  gross
                    profit  margin. So this higher  margin  shift
                    happened,  is this something that  you  think
                    the   company  had  a  hand  in  or  is  this
                    sustainable?  Can you give us a little  color
                    on that?

Mendo Akdag:        Off  peak season we will have, it's going  to
                    fluctuate.  so  we attempt  to  maximize  the
                    gross profit dollars. We really do not pay  a
                    lot of attention to gross profit percent, but
                    peak  season  the market is more competitive.
                    So  to  maximize gross profit  dollars  we're
                    going  to  be more aggressive price-wise.  So
                    that  was pretty high. It was impressive  the
                    March  quarter, but I don't expect to  attain
                    that  during  the peak season.  I  anticipate
                    that gross profit percentage to go down.

Michael Friedman:   Okay, but did that just naturally happen,  or
                    did the new advertising campaigns or Web site
                    -  did  anything have a - an impact to  shift
                    that   or   it  just  happened  through   the
                    consumer?

Mendo Akdag:        Well,  if  you recall we had a high inventory
                    levels  in  December, at the end of December,
                    and  obviously  we bought before  the  prices
                    went up compared to last year. So that had  a
                    positive  impact on it. The second impact  is
                    really a shift to higher margin items.

Michael Friedman:   Fair enough, and.

Mendo Akdag:        Off peak season there's less competition.

Michael Friedman:   Okay  and  then talking about competition  do
                    you  sense  that the vets are  becoming  more
                    aggressive? Is there anybody else  out  there
                    that you feel is really stepped up their, you
                    know, their campaign against you guys?

Mendo Akdag:        Probably so far this year it's about the same
                    as  last year I would say. I mean it's -  the
                    market  is  competitive, and there  are  more
                    players  entering,  we notice,  everyday.  So
                    it's a competitive market.

Michael Friedman:   Okay and you had mentioned we talked a little
                    bit  about freight costs. The consumers,  are
                    they  becoming more price competitive as well
                    and  the  two  of those together,  will  that
                    pressure your margins?

Mendo Akdag:        I  mean there are different consumers.  There
                    are different segments. Some of the consumers
                    are  price sensitive. Some are not. Some  are
                    more  focused on the service. So the  really,
                    the ideal, the personalization and segmenting
                    it   properly  and  addressing  each  segment
                    properly.    If   they're   price   sensitive
                    obviously  we  need to address that,  and  if
                    their  focus  is service we need  to  address
                    that,  so  at the end of the day we  need  to
                    differentiate ourselves with better service.

Michael Friedman:   Okay,  but  in  general  conceptualizing  the
                    business,  is  it correct to think  that  the
                    consumer   generally  would  be  more   price
                    sensitive, if the competitors would  probably
                    focus  a little bit on that, and you'd assume
                    freight  costs  would  probably  increase   a
                    little bit in the fiscal year. Is that fair?

Mendo Akdag:        Again  it  depends  on what  segment  of  the
                    customers   you're   talking   about.    Some
                    customers are not price sensitive. They focus
                    on the service.

Michael Friedman:   Okay.

Mendo Akdag:        So if we service them well, you know, they're
                    not going to sell you for a couple dollars.


                        Exhibit 99.1 Page 6 of 9

<PAGE>


Michael Friedman:   Got   you,   and   you've  had   some   early
                    indications as to the advertising environment
                    in  general.  You've been through  the  cycle
                    before. Any surprises so far?

Mendo Akdag:        In April the inventory - TV inventory was not
                    tight,  so we were able to clear, so that was
                    a  pleasant  surprise.  So that doesn't  mean
                    that it's not going to change though.

Michael Friedman:   Okay,  but  early  indications  seem  to   be
                    slightly  more  favorable if, you  know,  I'm
                    reading  between  the  lines.  Obviously   we
                    can't.

Mendo Akdag:        We  are  able to clear. We're paying a little
                    bit  more but we were able to clear  what  we
                    wanted to clear in April. So compared to last
                    year so.

Michael Friedman:   Okay,  and  then looking at your  advertising
                    spend   obviously  we're  talking   about   a
                    potentially  tight period  of  time  for  the
                    advertising  space. If you're able  to  clear
                    everything you'd like and then do you have  a
                    sense for whether you could hold it year-over-
                    year  at the same pace like you did recently?
                    Or do you expect to spend a little bit more?

Mendo Akdag:        Dollar-wise we'd like to spend a  little  bit
                    more.  And that's what, you know, we  attempt
                    to do. So we'll see if we're able to.

Michael Friedman:   Okay,  and then one last question as  far  as
                    you  talked  about Internet sales that  those
                    are  creeping up a little bit. Can  you  just
                    discuss  the  financial impact a  little  bit
                    when  a  customer orders over  the  telephone
                    versus  ordering  through  the  Internet?  Is
                    there  a  big gain there for the company  one
                    way or the other?

Mendo Akdag:        Obviously  it's more efficient,  having  said
                    that  don't  think that Internet customer  is
                    service  free. They e-mail us, we  have  live
                    chats,  they  call  us anyway  although  they
                    ordered  from the Internet. So it  is  really
                    not service free. We don't look at it as, you
                    know,  shifting the customer. We  are  giving
                    every  channel to the customer.  So  if  they
                    want  to buy from the Internet, you know,  we
                    got  it.  If they want to call us and  order,
                    we'll  be happy to take their order. If  they
                    want  to fax us, if they want to mail us,  if
                    they  want to e-mail their order we're  going
                    to  take it, so the consumer really calls the
                    shots  on  that.  There is  some  efficiency,
                    obviously, if they order on the Internet. But
                    it's   not   totally  service  free   as   we
                    theoretically think.

Michael Friedman:   Okay, and then, actually just I'm sorry,  one
                    last  question. Can you comment on  your  new
                    advertising   campaign?  We  haven't   really
                    touched  on that at all. On TV, how has  that
                    been  received? Can you give us any  feedback
                    on that?

Mendo Akdag:        It's doing okay, so we don't have complaints.
                    Obviously  we're running it.  We  have  other
                    creatives  also, and we're running it,  means
                    that we're satisfied with the results.

Michael Friedman:   Great thank you.

Mendo Akdag:        You're welcome.

Coordinator:        Edward  Woo  of  Wedbush, you  may  ask  your
                    question.

Edward Woo:         Yeah,  going  back to the increasing  freight
                    costs for the year, do you think that's going
                    to  be  impacting you this year as well?  You
                    hear a lot about oil prices and whatnot.

Mendo Akdag:        Yes,  it will be impacting us this year  too,
                    and we're going to have to make a decision as
                    to maybe pass it to the consumer, some of the
                    increases.

Edward Woo:         Great, and then the other question I have is,
                    in  terms  of price increases, also  by  your
                    suppliers.  You mentioned that  there  was  a
                    little bit of increases done, you guys were a
                    bit  up some inventory. Is it price increases
                    typically once a year?

                        Exhibit 99.1 Page 7 of 9
<PAGE>


Mendo Akdag:        Yes.

Edward Woo:         And  they're typically right at the beginning
                    of the year?

Mendo Akdag:        Well, yes, most of them are, yes.

Edward Woo:         Great. Thanks a lot.

Mendo Akdag:        You're welcome.

Coordinator:        Kristine  Koerber of JMP Securities  you  may
                    ask your question.

Kristine Koerber:   Yeah,  hi,  with  regards  to  the  warehouse
                    extension  has that 15,000 square  feet,  has
                    that  been added already? And, you know, with
                    the  extension how much will you be  able  to
                    support in sales going forward?

Mendo Akdag:        It has not been added yet. We anticipate that
                    it  will  be added by probably January  2009,
                    February  2009, before our next peak  season.
                    We  are  doing  some more automation  on  our
                    fulfillment, and we anticipate that  it  will
                    double our capacity from current capacity,  I
                    would say.

Kristine Koerber:   Thank you.

Mendo Akdag:        You're welcome.

Coordinator:        Once  again  if  you'd  you  like  to  ask  a
                    question,  please  press  star  1.  The  next
                    question does come from Paul Taylor of Taylor
                    Investment   Services.  You  may   ask   your
                    question.

Paul Taylor:        Hi folks, another good quarter. I just wanted
                    to  ask about the long-term investment  line,
                    the  auction  notes.  Any  possibility  there
                    would   be  an  impairment  there?  I  assume
                    they're all paying and everything. And I know
                    everybody else has them but.

Mendo Akdag:        They're  municipals, they're valued  at  100%
                    currently. Do you have anything to add  Bruce
                    .

Bruce Rosenbloom:   Well,  just to give you an idea as  of  March
                    31,  2008,  the  Company  had  $29.5  million
                    invested in auction rate securities with $4.8
                    million  classified as short-term investments
                    and  $24.7  million classified  as  long-term
                    investments. As of May 9, 2008,  actually  as
                    of  today, we're currently - we have $24.7 in
                    auction rate securities. We actually did - we
                    were  able  to sell about $4.8 million  since
                    March  31, 2008.  Since January 1, 2008 we've
                    been  able to cash out about almost  half  of
                    our  position in auction rate securities. Our
                    auction  rate  security investments  are  not
                    mortgage-back  based, they're municipal-based
                    and  banks are still valuing those  bonds  at
                    100%  of  par.  Currently we  don't  see  any
                    valuation issues, and for us again an auction
                    failure  is  no different than holding  these
                    investments.  Luckily  we're  in  a  position
                    where  we don't need the liquidity,  and  the
                    extra interest income is a big benefit to us.

Paul Taylor:        I've got some too for what it's worth. Number
                    2  -  your CAPEX budget - I know you're doing
                    the  extension but should we expect  anything
                    different  than the normal $1 million  or  so
                    for this year or.

Mendo Akdag:        We  do  not have completed our plans yet  for
                    the  automation. We're going  to  do  further
                    automation on our fulfillment center, and the
                    numbers are not nailed down yet.

                    So  it will probably be in the million dollar
                    range  is what I would anticipate, but  we'll
                    probably  put something in the 10-K.  But  it
                    has not, the numbers have not been finalized.

Paul Taylor:        That's  a  $1 million additional  or  million
                    dollar total or.

Mendo Akdag:        Yes,  I  would  anticipate about a $1 million
                    additional for the warehouse automation.  The
                    million to million and a half is roughly what
                    you would be looking at for the fiscal 2009.

                        Exhibit 99.1 Page 8 of 9

Paul Taylor:        All right. Thank you.

Mendo Akdag:        You're welcome.

Coordinator:        Dom  LaCava  of Canaccord Adams you  may  ask
                    your question.

Dom LaCava:         Sure,  just a follow up on the transportation
                    costs.  Are you seeing - is the cost increase
                    you're   seeing  from  a  supplier  to   your
                    warehouse  or from the warehouse to  customer
                    or  both, and which one is having the  bigger
                    impact  based  on  - I guess  based  on  your
                    contracts with the transportation companies.

Mendo Akdag:        Our shipments outbound from our warehouse  to
                    the customer will have the biggest impact.

Dom LaCava:         Okay, thank you.

Mendo Akdag:        You're welcome.

Coordinator:        Once  again if you'd like to ask a  question,
                    please press star 1. At this time we have  no
                    further questions.

Mendo Akdag:        Thank  you.  According to  the  American  Pet
                    Products  Manufacturers Association, spending
                    on pets in the U.S. increased by about 7% and
                    reached  $41.2  billion  in  2007.  The   pet
                    supplies    and   medicine   category    grew
                    approximately  5% and reached  $9.8  billion.
                    There is a continuing increase in pet-related
                    spending,  a higher awareness of  pet  health
                    and   the  continued  humanization  of   pets
                    integrating  them  into all  aspects  of  our
                    lives.  To capitalize on this trend we'll  be
                    focusing  our  efforts  on  three  areas.  1)
                    Capturing   additional   market   share;   2)
                    increasing    reorders   with    personalized
                    communication  and health education  content;
                    and 3) improving our current service level.

                    This  wraps up today's conference call. Thank
                    you  for joining us. Operator, this ends  the
                    conference call.

Coordinator:        Thank you. Today's conference has ended.  You
                    may disconnect at this time.


                        Exhibit 99.1 Page 9 of 9
<PAGE>
</TEXT>
</DOCUMENT>
