<SEC-DOCUMENT>0000943440-12-000461.txt : 20120509
<SEC-HEADER>0000943440-12-000461.hdr.sgml : 20120509
<ACCEPTANCE-DATETIME>20120509104753
ACCESSION NUMBER:		0000943440-12-000461
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120507
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120509
DATE AS OF CHANGE:		20120509

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PETMED EXPRESS INC
		CENTRAL INDEX KEY:			0001040130
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DRUG STORES AND PROPRIETARY STORES [5912]
		IRS NUMBER:				650680967
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			0330

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28827
		FILM NUMBER:		12824266

	BUSINESS ADDRESS:	
		STREET 1:		1441 SW 29 AVENUE
		CITY:			POMPANO BEACH
		STATE:			FL
		ZIP:			33069
		BUSINESS PHONE:		9549794788

	MAIL ADDRESS:	
		STREET 1:		1441 SW 29 AVENUE
		CITY:			POMPANO BEACH
		STATE:			FL
		ZIP:			33069
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>pets050712_8k.htm
<DESCRIPTION>CURRENT REPORT ON FORM 8-K
<TEXT>
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<HEAD>
<TITLE>Form 8-K</TITLE>
<META NAME="date" CONTENT="05/09/2012">
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<A NAME="FIS_UNIDENTIFIED_TABLE"></A><P style="margin:0px"><BR></P>
<P style="margin-top:15px; margin-bottom:0px; font-family:Arial" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B></P>
<P style="margin-top:15px; margin-bottom:0px; font-family:Arial; font-size:13.5pt" align=center><B>FORM 8-K</B></P>
<P style="margin-top:15px; margin-bottom:0px; font-family:Arial" align=center><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
<P style="margin-top:15px; margin-bottom:0px; font-family:Arial" align=center>Date of report (Date of earliest event reported): May 7, 2012</P>
<P style="line-height:11.25pt; margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=253.133 /><TD width=34.867 /><TD width=144 /><TD width=29.2 /><TD width=258.8 /></TR>
<TR><TD style="margin-top:0px" valign=top width=720 colspan=5><P style="margin:0px; padding-right:1.067px; font-family:Arial; font-size:12pt" align=center><B><U>PetMed Express, Inc.<BR>
</U></B><FONT style="font-size:10pt"> (Exact name of registrant as specified in its charter)</FONT></P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=253.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=34.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=144><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=29.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=258.8><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=253.133><P style="margin:0px; padding-right:1.067px; font-family:Arial" align=center><B><U>Florida</U></B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=34.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=144><P style="margin:0px; padding-right:1.067px; font-family:Arial" align=center><B><U>000-28827</U></B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=29.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=258.8><P style="margin:0px; padding-right:1.067px; font-family:Arial" align=center><B><U>65-0680967</U></B></P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=253.133><P style="margin:0px; padding-right:1.067px; font-family:Arial" align=center>(State or other jurisdiction<BR>
of incorporation)</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=34.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=144><P style="margin:0px; padding-right:1.067px; font-family:Arial" align=center>(Commission<BR>
File Number)</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=29.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=258.8><P style="margin:0px; padding-right:1.067px; font-family:Arial" align=center>(I.R.S. Employer<BR>
Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=720 /></TR>
<TR><TD style="margin-top:0px" valign=top width=720><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman" align=center><B><U>1441 S.W. 29</U></B><B><U><SUP>th</SUP></U></B><B><U> Avenue, Pompano Beach, FL &nbsp;33069</U></B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=720><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman" align=center>(Address of principal executive offices) (Zip Code)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=704.467 /><TD width=15.533 /></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=704.467><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman" align=center><B><U>(954) 979-5995</U></B></P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=15.533><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=704.467><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman" align=center>(Registrant&#146;s telephone number, including area code)</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=15.533><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=720 /></TR>
<TR><TD style="margin-top:0px" valign=top width=720><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman" align=center><B><U>Not Applicable</U></B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=720><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman" align=center>(Former name or former address, if changed since last report)</P>
</TD></TR>
</TABLE>
<P style="margin-top:12.533px; margin-bottom:0px"><BR></P>
<P style="margin-top:12.533px; margin-bottom:0px; font-family:Arial,Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</P>
<P style="line-height:11.25pt; margin:0px"><BR></P>
<P style="line-height:11.25pt; margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=22.733 /><TD width=697.267 /></TR>
<TR><TD style="margin-top:0px" valign=top width=22.733><P style="margin:0px; font-family:Arial,Times New Roman">[ ]</P>
</TD><TD style="margin-top:0px" valign=top width=697.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=22.733><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=697.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=22.733><P style="margin:0px; font-family:Arial,Times New Roman">[ ]</P>
</TD><TD style="margin-top:0px" valign=top width=697.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=22.733><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=697.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=22.733><P style="margin:0px; font-family:Arial,Times New Roman">[ ]</P>
</TD><TD style="margin-top:0px" valign=top width=697.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=22.733><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=697.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=22.733><P style="margin:0px; font-family:Arial,Times New Roman">[ ]</P>
</TD><TD style="margin-top:0px" valign=top width=697.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
</TD><A NAME="eolPage2"></A></TR>
</TABLE>
<P style="margin-top:12.533px; margin-bottom:0px"><BR></P>
<P style="margin-top:12.533px; margin-bottom:0px"><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style=page-break-before:always;margin-top:0;margin-bottom:-4pt;font-size:4pt /><P style=margin-top:12.533px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; width:96px; font-family:Arial,Times New Roman; float:left"><B>Item 8.01</B></P>
<P style="margin:0px; text-indent:-2px; font-family:Arial,Times New Roman"><B>Other Events.</B></P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px; text-indent:24px; font-family:Arial,Times New Roman" align=justify>On May 7, 2012, PetMed Express, Inc. discussed its financial results for the quarter and year ended March 31, 2012. &nbsp;A copy of this conference call transcript is attached hereto as Exhibit 99.1 and is incorporated herein by reference.</P>
<P style=margin-top:12.533px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; width:96px; font-family:Arial,Times New Roman; float:left"><B>Item 9.01</B></P>
<P style="margin:0px; text-indent:-2px; font-family:Arial,Times New Roman"><B>Financial Statements and Exhibits.</B></P>
<P style="line-height:11.25pt; margin:0px; clear:left"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=77.733 /><TD width=24.2 /><TD width=666.067 /></TR>
<TR><TD style="margin-top:0px" valign=top width=77.733><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=24.2><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">(d)</P>
</TD><TD style="margin-top:0px" valign=top width=666.067><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Exhibits.</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=77.733><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=24.2><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=666.067><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=77.733><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=24.2><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=666.067><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">99.1 &#150; Conference call transcript by PetMed Express, Inc. on May 7, 2012.</P>
</TD><A NAME="FIS_EXHIBIT_INDEX"></A></TR>
</TABLE>
<P style="margin-top:15px; margin-bottom:0px; font-family:Arial,Times New Roman" align=center><B>EXHIBIT INDEX</B></P>
<P style="line-height:11.25pt; margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=80.8 /><TD width=17.133 /><TD width=652.933 /><TD width=17.133 /></TR>
<TR><TD style="margin-top:0px" valign=top width=80.8><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman"><U>Exhibit No.</U></P>
</TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=652.933><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman"><U>Description</U></P>
</TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=80.8><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=652.933><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=80.8><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">99.1</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=17.133><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=652.933><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Conference call transcript by PetMed Express, Inc. on May 7, 2012.</P>
</TD><TD style="margin-top:0px; background-color:#FFFFFF" valign=top width=17.133><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><A NAME="FIS_SIGNATURES"></A></TR>
</TABLE>
<P style="margin-top:15px; margin-bottom:0px; font-family:Arial,Times New Roman" align=center><B>SIGNATURES</B></P>
<P style="margin-top:15px; margin-bottom:0px; text-indent:48px; font-family:Arial,Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin-top:15px; margin-bottom:0px; font-family:Arial,Times New Roman">Dated: May 9, 2012</P>
<P style="line-height:11.25pt; margin:0px"><BR></P>
<DIV align=right><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=383.333 /><TD width=46.4 /><TD width=338.267 /></TR>
<TR><TD style="margin-top:0px" valign=top width=383.333><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=384.667 colspan=2><P style="margin:0px; padding-right:2.4px; font-family:Arial,Times New Roman">PETMED EXPRESS, INC.</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=383.333><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=46.4><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=338.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=383.333><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=46.4><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">By:</P>
</TD><TD style="margin-top:0px" valign=top width=338.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman"><U>/s/ Bruce S. Rosenbloom</U></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=383.333><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=46.4><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Name:</P>
</TD><TD style="margin-top:0px" valign=top width=338.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Bruce S. Rosenbloom</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=383.333><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=46.4><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Title:</P>
</TD><TD style="margin-top:0px" valign=top width=338.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">Chief Financial Officer</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=383.333><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=46.4><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=338.267><P style="margin:0px; padding-right:1.067px; font-family:Arial,Times New Roman">&nbsp;</P>
</TD></TR>
</TABLE></DIV>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
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<BR></P>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>pets050712fm8k_ex99z1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>United States Securities & Exchange Commission</TITLE>
<META NAME="author" CONTENT="Karen">
<META NAME="date" CONTENT="05/09/2012">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin-top:0px; margin-bottom:12.2px; font-family:Calibri,Times New Roman; font-size:11pt" align=right><B>Exhibit 99.1</B></P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-family:Arial,Times New Roman; font-size:11pt" align=center><B>PETMED EXPRESS, INC.</B></P>
<P style="margin:0px; font-family:Arial,Times New Roman; font-size:11pt" align=center><B>QUARTER AND YEAR ENDED MARCH 31, 2012</B></P>
<P style="margin:0px; font-family:Arial,Times New Roman; font-size:11pt" align=center><B>CONFERENCE CALL TRANSCRIPT</B></P>
<P style="margin:0px; font-family:Arial,Times New Roman; font-size:11pt" align=center><B>MAY 7, 2012 AT 8:30 A.M. ET</B></P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial; font-size:9pt" align=justify>Welcome to the PetMed Express Incorporated doing business as 1-800-PetMeds conference call to review the financial results for the fourth quarter and fiscal year ended on March 31, 2012. &nbsp;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 nonprescription pet medications and other health products for dogs and cats direct to the consumer. &nbsp;1-800-PetMeds markets its products through national television, online, 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 PetMeds family a brand name. &nbsp;1-800-PetMeds provides an attractive alternative for obtaining pet medication in terms of convenience, price, ease of ordering and rapid home delivery. &nbsp;At this time I would like to turn the call over to the company's Chief Financial Officer, Mr. Bruce Rosenbloom, and sir you may begin.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial; font-size:9pt; float:left">Bruce Rosenbloom:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial; font-size:9pt" align=justify>Thank you. Good morning. I would like to welcome everybody here today. Before I turn the call over to Mendo Akdag, our President and Chief Executive Officer, I&#146;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. &nbsp;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 &amp; Exchange Commission that may involve a number of risks and uncertainties. &nbsp;These statements are based on our beliefs as well as assumptions we have used based upon information currently available to us. &nbsp;Because these statements reflect our current views concerning future events these statements involve risks, uncertainties and assumptions. &nbsp;Actual future results may vary significantly based on a number of factors that may cause actual results or events to be materially different from future results, performance, or achievements expressed or implied by these statements. &nbsp;We have identified various risk factors associated with our operations in our most recent Annual Report and other filings with the Securities &amp; Exchange Commission. &nbsp;Now let me introduce today's speaker, Mendo Akdag, President and Chief Executive Officer of 1-800-PetMeds, Mendo.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial; font-size:9pt" align=justify>Thank you Bruce. Welcome everyone. Thank you for joining us. Today we will review the highlights of our financial results. &nbsp;We'll compare our fourth fiscal quarter and fiscal year ended on March 31, 2012 to last year's quarter and fiscal year ended on March 31, 2011.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial; font-size:9pt" align=justify>For the fourth fiscal quarter ended on March 31, 2012 our sales were $55.9 million compared to sales of $50.9 million for the same period the prior year, an increase of 10%. &nbsp;For the fiscal year ended on March 31, 2012 sales were $238.3 million compared to $231.6 million for the prior fiscal year, an increase of 3%. &nbsp;The increases were due to increases in new order and reorder sales.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial; font-size:9pt" align=justify>For the fourth fiscal quarter net income was $4.0 million or $0.20 diluted per share compared to $4.1 million or $0.19 diluted per share for the same quarter the prior year, a 7% increase in earnings per share. &nbsp;For the fiscal year net income was $16.7 million or $0.80 cents diluted per share compared to $20.9 million or $0.92 cents diluted per share a year ago, a decrease to earnings per share of 13%. &nbsp;The decrease to net income for the year was primarily due to a decrease in gross profit margins as a result of more aggressive pricing and an increase in advertising to revitalize sales.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial; font-size:9pt" align=justify>New order sales increased by 22% to $11.5 million for the quarter compared to $9.4 million for the same period the prior year. &nbsp;For the fiscal year new order sales increased by 8% to $51.3 million compared to $47.3 million for the prior year. The increases were due to increases in advertising. &nbsp;Reorder sales increased by 7% to $44.4 million for the quarter compared to reorder sales of $41.5 million for the same quarter the prior year. &nbsp;For the fiscal year reorder sales increased by 1% to $187.0 million compared to $184.3 million for the prior year. &nbsp;We acquired approximately 162,000 new customers in our fourth fiscal quarter compared to 130,000 for the same period the prior year, and we acquired approximately 722,000 new customers in the fiscal year compared to 645,000 for the prior year.</P>
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<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt" align=center>Exhibit 99.1 &nbsp;Page 1 of 6</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Our average order was approximately $76 for the quarter compared to $78 for the same quarter the prior year, and it was $76 for the fiscal year compared to $79 for the prior fiscal year. &nbsp;The decline was due to more aggressive pricing. &nbsp;For the quarter approximately 76% of our sales were generated on our Web site compared to 73% for the same period the prior year, and for the year it was 75% compared to 71% for the prior year. As a result our online sales increased by 16% for the quarter and 8% for the year. &nbsp;The seasonality in our business is due to the proportion of flea, tick and heartworm medications in our product mix. &nbsp;Spring and summer are considered peak seasons with fall and winter being the offseason.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>For the fourth fiscal quarter our gross profit as a percent of sales was 33.9% compared to 34.3% for the same period a year ago. &nbsp;For the fiscal year our gross profit as a percent of sales was 33.7% compared to 36.2% for the prior year. &nbsp;The percentage decreases can be attributed to more aggressive pricing and increases in product costs.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Our general and administrative expenses as a percent of sales was 9.7% for the quarter, compared to 10.2% for the same quarter the prior year, and for the fiscal year the G&amp;A was 9.4% compared to 9.6% for the prior year. With increased sales for the quarter we showed improvement in leveraging the G&amp;A.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>For the quarter we increased our advertising spending to $6.9 million compared to $5.5 million for the same quarter the prior year, an increase of 26%. &nbsp;For the fiscal year we spent $30.4 million for advertising compared to $27.4 million for the prior fiscal year, an increase of 11%. &nbsp;Advertising costs of acquiring a customer for the quarter was relatively flat at approximately $43 compared to $42 for the same quarter the prior year, and for the fiscal year it was $42 which was the same as the prior year.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>We had $57.1 million in cash and temporary investments and $26.2 million in inventory with no debt as of March 31, 2012. &nbsp;Net cash from operations for the fiscal year was $20.4 million. &nbsp;Capital expenditures for the fiscal year were approximately $575,000. &nbsp;In accordance with our share repurchase program we repurchased approximately 2.1 million shares paying approximately $23.7 million in the fiscal year. There were no repurchases during the quarter.</P>
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<P style="margin:0px; padding-left:144px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>This ends the financial review. Operator we are ready to take questions.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thank you. At this time if you would like to ask a question press Star 1 on your touch-tone phone. &nbsp;Please un-mute your phone and record your name clearly when prompted, one moment please for the first question. &nbsp;Anthony Lebiedzinski, Sidoti &amp; Company your line is open.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Good morning.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Good morning.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>I was wondering if you could - if you saw any pull forward of demand for flea and tick products because of the warmer weather in the March period?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Yes probably the warmer weather positively impacted flea and tick sales.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay, and I don't know if, I may have missed this but did you give a breakdown between your revenue between OTC and prescription medications?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>No, I have not.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Is that something that I think the company has provided on an annualized basis before?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>I will give that to you now, prescription was 40%, OTC 59% and freight a 1%...</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Got it, okay.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>&#133;for the fiscal year.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>And also can you comment on the competitive landscape for both OTC products and the prescription medications?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Typically the competition increases during spring and summer so that is the case this year also compared to the prior years.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay and you're seeing that for both those segments?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Yes</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay, all right I'll get back in the queue. Thank you.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thank you. Next question comes from Erin Wilson, Bank of America. Your line is open.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Erin Wilson:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Hi. Thanks for taking my questions. First on the customer acquisition costs they increased I guess year over year. Can you discuss some of the dynamics in the advertising market that were the primary factors I guess driving that trend?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>It was relatively flat in the quarter. Customer acquisition cost was $43 compared to $42 for the same quarter last year. &nbsp;We spent a lot more money so when you're spending more money typically incrementally you're not going to be as efficient. So I would say the results, that we were happy with the results.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Erin Wilson:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay, and then looking at your cash conversion cycle there was an uptick sequentially &nbsp;year over year in inventories in the quarter and just is this a function of your overall growth, seasonality, or attributable to some sort of fundamental shift?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Both seasonality and buying opportunities, so if there are buying opportunities it's not unusual for us to increase our inventory. So it will fluctuate.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Erin Wilson:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay and then just one last one. Did you see an impact from the manufacturing issue at Novartis?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Yes, we&#146;ve seen a negative impact in sales.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Erin Wilson:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Can you quantify that?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>It's difficult to quantify because we've been asking the prescribing veterinarian to prescribe an available brand. &nbsp;So some pet owners are loyal to the brand so I would hesitate to quantify. I would say low to mid-single digits...</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Erin Wilson:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>...would be rough estimate.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Erin Wilson:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. Thank you so much.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>You're welcome.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Ross Taylor, CL King, your line is open.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Ross Taylor:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Yes hi, a couple questions, I guess if you could comment at all about any of your advertising plans for fiscal year &#145;13 whether you expect to be, more aggressive than you were in the past fiscal year? &nbsp;You know, it looks like for the year I think you said your acquisition costs were, you know, flat at about $42. Do you think that number probably goes up in fiscal year &#145;13 or just any color there would be helpful.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Our budget for advertising spending for the coming fiscal year, we are in I should say is going to be higher than what we spent last year. &nbsp;Having said that, you know, we have flexible budgets depending on how our advertising is doing we&#146;ll increase or decrease it. &nbsp;As far as where it's going to end up the time will show. &nbsp;So we'll see that as we announce the actual numbers.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Ross Taylor:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. And you also you all I think, you know, focused or emphasized, you know, generics or lower priced medications more than you have in the past. And, can you talk at all about what kind of impact that might have had on both increasing orders or on your revenues as well as, you know, maybe on margins?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Generics are, the price points are lower. So it's going to have a negative impact on sales. Obviously we have to sell more to make up for it. &nbsp;But generics have much higher gross profit margins so they will help us stabilize the margins.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Ross Taylor:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. All right, that's all my questions. Thank you.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thank you. Kevin Ellich from Piper Jaffray, your line is open.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Kevin Ellich:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Hi, can you Bruce maybe could you talk a little bit about the G&amp;A expense as a percent of revenue? &nbsp;It was very low. Just wondering if there is more that you guys can do or, you know, where should we expect that to go through the year?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Bruce Rosenbloom:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>You know, we saved about 20 basis points year over year. Obviously, it was a function of, you know, increased revenue. &nbsp;At this point when we look at the G&amp;A we&#146;re always looking to improve. &nbsp;You know, as far as going forward it's a function of revenue, we'll see where we can go. We really don't give any type of indication, but we&#146;re always looking to improve upon that number. &nbsp;So if you look at what we've done historically it&#146;s around 9.4%, there's always room for improvement. &nbsp;But, you know, as far as any further indication we&#146;re going to try to improve upon that number but it really depends on revenue.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Kevin Ellich:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Got it, okay that's helpful. And then going back to the comment about Novartis and the impact that you guys saw, were you able to make up for some of the lost sales by switching customers to other products?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>That's what we&#146;re attempting to do but some pet owners are loyal to the Novartis brand so there is some negative impact to our sales.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Kevin Ellich:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. And then the last question is you&#146;ve made a couple comments about competitive pricing and more aggressive pricing strategy. &nbsp;Just wondering if you can provide some more color maybe quantify what the discount is and is it really just switching customers over to more generic product offerings or I guess what's the plan for the year?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>I would say our pricing obviously the market is going to dictate. And we want to be competitive so we survey the market and price accordingly. &nbsp;And we'll be aggressive but the comparison is, we have an easier comparison now to last fiscal year. And the generics will help stabilize the margins.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Kevin Ellich:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. And then just one last quick question, you know, obviously we have two nice quarters here with good growth. &nbsp;Mendo what do you think is driving that? Is it just improving vet trends and are there any specific products that you'd call out or is it just a general strength we&#146;re seeing in the animal health market?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>We were aggressive with our advertising. You know, in the last quarter we spent I believe 26% more than the prior year. So we've been aggressive both price-wise and advertising-wise.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Kevin Ellich:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>That's what I'm thinking.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>But I 'm not going to get into specific product.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Kevin Ellich:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thank you.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>You're welcome.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Once again if you'd like to ask a question please press Star 1 on your touch-tone phone. &nbsp;The next question comes from Mitch Barlett, Craig Hallum. Your line is open.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mitch Barlett:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Hi. Yes how are the generics doing overall? Are they ramping as to your expectation? Can you give us some sense of how big they are now, how big they might be in the future but as they&#146;re playing a major role in stabilizing the gross margin? It&#146;d be useful to know.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>They&#146;re increasing but we&#146;re not going to give you any specific numbers.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mitch Barlett:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay, and the warmer weather, does that have an effect on pulling forward demand as people buy six months supplies or not?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>It probably does, it probably does, but also if the warmer weather continues for the rest of the year that means overall more product is going to be sold.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mitch Barlett:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Right, thank you very much.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>You're welcome.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thank you. Anthony Lebiedzinski, Sidoti &amp; Company, your line is open.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Yes good morning. I had a follow-up question. In regards to your advertising strategy now with the Presidential election coming up later what is your strategy in terms of spending TV versus online and versus other channels?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>We will continue shifting advertising dollars to online. Actually we have been doing that in the last six months. The increase in advertising has all been online.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Anthony Lebiedzinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay thank you.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>You're welcome.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thank you. And this is the last question coming from Michael Kupinski, Noble Financial. Your line is open. You may ask your question.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thanks, and thanks for taking the questions. Mendo I was wondering can you tell me what the advertising rates were up in the last quarter in the fourth...</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>I would say it was similar to the prior year, probably slightly better on TV.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. And what are you seeing as you go into the next quarter because obviously we haven't really seen the political advertising in this last quarter or even in this quarter &nbsp;much to speak of. And it seems like the races are now just starting to heat up. Are what are...</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Well...</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>...seeing in terms of pricing and...</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>I mean we&#146;re not seeing anything yet but we anticipate that TV advertising inventory will get tight as the Presidential election gets closer. &nbsp;And our strategy is to shift dollars to online, and that's what we've been doing actually in the last six months.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay great. And what is - what percentage of your advertising budget right now is online?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>We&#146;re not going to disclose that.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. And then in terms of the competitive landscape, you know, I didn't - I haven't really seen any advertising yet really pick up from like the Wal-Marts and the Targets and so forth. &nbsp;Do you have a read on what's going on in terms of the flea and tick market at this point?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Just, we&#146;re just seeing the manufacturers. We&#146;re not seeing any individual retailer advertising at this time.</P>
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<P style="margin-top:0px; margin-bottom:10px; font-family:Arial,Times New Roman; font-size:9pt" align=center>Exhibit 99.1 &nbsp;Page 5 of 6</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay. And what was the reason the company didn't buy back stock in the last quarter? I know the stock got hit at least early in the quarter and then strengthened towards the end. &nbsp;But you didn't seem to buy back stock whereat previous levels you were buying. What was the reason you didn't buy back in the last quarter?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>We have a plan in place and the plan was put in place before the quarter and it didn't trigger a buy.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay, and in terms of the, I guess, the, if we look at the prices - I'm sorry, the average order size since I guess this quarter&#146;s going to be the first quarter that you really introduced the generics, the average order size, should we continue to expect that that's going to come down relative to this last quarter?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Yes, depending on what percent of the business switches to generics it will, so...</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>And then in terms of any of your other, you know, you're trying at one point to develop additional accessories and things like that. Did you have any meaningful sales in the accessories in the last quarter?</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>It's growing so, we&#146;re but we&#146;re not going to disclose specific percentages but all I can tell you is its growing.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Michael Kupinski:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Okay, that's all I have, thank you.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>You're welcome.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Coordinator:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>And Mr. Akdag I turn it back over to you.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-family:Arial,Times New Roman; font-size:9pt; float:left">Mendo Akdag:</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-family:Arial,Times New Roman; font-size:9pt" align=justify>Thank you. Going forward we will continue to advertise aggressively while expanding our product offerings. This wraps up today's conference call. Thank you for joining us. Operator this ends the conference call.</P>
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<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt" align=center>Exhibit 99.1 &nbsp;Page 6 of 6</P>
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