PetMed Express (PETS) 8-K Announces Record Financial Results for Fiscal 2009

Exhibit 99.1

PETMED EXPRESS, INC. D/B/A 1-800-PETMEDS

ANNOUNCES RECORD FINANCIAL RESULTS FOR FISCAL 2009

Fourth Quarter Earnings Increase 20% to $0.25 Diluted Per Share

Fourth Quarter Net Sales Increase 19% to $48.1 Million

Fiscal 2009 Earnings Increase 19% to $0.98 Diluted Per Share

Fiscal 2009 Net Sales Increase 17% to $219.4 Million

Pompano Beach, Florida, May 11, 2009 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the fiscal year ended March 31, 2009.  Net sales for the year ended March 31, 2009 were $219.4 million, compared to $188.3 million for the year ended March 31, 2008, an increase of 17%.  Net income was $23.0 million, or $0.98 diluted per share, for the year ended March 31, 2009, compared to net income of $20.0 million, or $0.82 diluted per share, for the year ended March 31, 2008, an increase to earnings per share of 19%.  For the quarter ended March 31, 2009, net sales were $48.1 million, compared to $40.4 million for the quarter ended March 31, 2008, an increase of 19%.  Net income for the quarter ended March 31, 2009 was $5.6 million, or $0.25 diluted per share, compared to net income of $4.9 million, or $0.20 diluted per share, for the same quarter the prior year, an increase to earnings per share of 20%.  The Company acquired approximately 142,000 new customers during the quarter ended March 31, 2009, compared to 126,000 for the same quarter the prior year, and approximately 802,000 new customers during fiscal 2009 compared to 710,000 during fiscal 2008.  Approximately 65% of all orders were placed on its website during the fiscal year.

Mendo Akdag, CEO and President, commented: “We are very proud of our financial performance for the year, which was highlighted by a strong fourth quarter.  The results can be attributed to reorder and new order growth and our success in leveraging operating expenses.  Our reorder sales increased 20%, from $31.0 million to $37.2 million, for the quarters ended March 31, 2008 and 2009, respectively.  Our new order growth accelerated to 16% in fiscal 2009 compared to 5% in fiscal 2008.  Our operating expenses as a percent of sales improved by approximately 120 basis points for the year ended March 31, 2009 compared to the same period the prior year.  Reorder sales for the year ended March 31, 2009 were $156.8 million, compared to $134.3 million for the year ended March 31, 2008, an increase of 17%.  New order sales for the year ended March 31, 2009 were $62.5 million, compared to $53.8 million for the ye ar ended March 31, 2008, an increase of 16%.  During the fiscal year we repurchased approximately 1,347,000 shares of our outstanding common stock for approximately $18.4 million, pursuant to the Company’s stock buy back plan, averaging approximately $13.70 per share.  Our continued focus in fiscal 2010 will be on capturing additional market share, and improving reorders and our customer service levels.”

This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a conference call to review the year-end financial results.  To access the call which is open to the public, dial (888) 455-1758 (toll free) or (210) 234-0009.  Callers will be required to supply PETMEDS as the passcode.  For those unable to participate in the live event, the call will be available for replay from 10 A.M. on May 11, 2009 until May 25, 2009 at 11:59 P.M.  To access the replay, call (800) 841-6832 (toll free) or (203) 369-3832, and enter passcode 5500.

Founded in 1996, PetMed Express is America’s Largest Pet Pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs, cats and horses at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and on the Internet through its website atwww.1800petmeds.com.

This press release may contain “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, that involve a number of risks and uncertainties, including the Company’s ability to meet the objectives included in its business plan.  Important factors that could cause results to differ materially from those indicated by such “forward-looking” statements are set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the PetMed Express Annual Report on Form 10-K for the year ended March 31, 2008.  The Company’s future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company's Form 10-Q and its Annual Report on Form 10-K.

For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 954-979-5995.

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Exhibit 99.1 Page1 of4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
		March 31,
		2009		2008
ASSETS
Current assets:
Cash and cash equivalents	$	30,126,041	$	20,267,829
Temporary investments		-		4,780,000
Accounts receivable, less allowance for doubtful
accounts of $58,525 and $32,040, respectively		2,881,085		1,575,263
Inventories - finished goods		26,778,096		17,909,549
Prepaid expenses and other current assets		753,602		691,859
Deferred income taxes		724,561		-
Prepaid income taxes		361,743		-
Total current assets		61,625,128		45,224,500
Long term investments		14,430,250		24,740,000
Property and equipment, net		5,057,561		1,903,294
Deferred income taxes		-		1,221,853
Intangible assets		850,000		365,000
Total assets	$	81,962,939	$	73,454,647
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,817,097	$	4,358,774
Accrued expenses and other current liabilities		2,177,838		1,876,655
Income taxes payable		-		185,243
Total liabilities		6,994,935		6,420,672
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized;
2,500 convertible shares issued and outstanding with a
liquidation preference of $4 per share		8,898		8,898
Common stock, $.001 par value, 40,000,000 shares authorized;
22,686,836 and 23,734,067 shares issued, respectively		22,687		23,734
Additional paid-in capital		-		8,396,277
Retained earnings		75,156,169		58,639,343
Less treasury stock, at cost; 0 and 3,100 shares, respectively		-		(34,277)
Accumulated other comprehensive loss		(219,750)		-
Total shareholders' equity		74,968,004		67,033,975
Total liabilities and shareholders' equity	$	81,962,939	$	73,454,647

Exhibit 99.1 Page2 of4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
		Year Ended March 31,				Quarter Ended March 31,
		2009		2008		2009		2008
						(UNAUDITED)
Sales	$	219,412,247	$	188,336,469	$	48,070,577	$	40,423,170
Cost of sales		134,084,680		114,122,433		28,708,877		23,731,798
Gross profit		85,327,567		74,214,036		19,361,700		16,691,372
Operating expenses:
General and administrative		21,604,654		20,367,392		5,156,223		4,865,084
Advertising		28,707,386		25,261,042		5,087,784		4,536,021
Depreciation and amortization		814,542		589,990		311,265		154,956
Total operating expenses		51,126,582		46,218,424		10,555,272		9,556,061
Income from operations		34,200,985		27,995,612		8,806,428		7,135,311
Other income (expense):
Interest income, net		1,056,077		1,771,653		97,342		443,962
Other, net		408,149		643,880		106,314		108,534
Loss on disposal of property and equipment		(8,565)		-		(8,565)		-
Total other income (expense)		1,455,661		2,415,533		195,091		552,496
Income before provision for income taxes		35,656,646		30,411,145		9,001,519		7,687,807
Provision for income taxes		12,680,235		10,388,914		3,352,182		2,784,368
Net income	$	22,976,411	$	20,022,231	$	5,649,337	$	4,903,439
Net income per common share:
Basic	$	0.99	$	0.83	$	0.25	$	0.21
Diluted	$	0.98	$	0.82	$	0.25	$	0.20
Weighted average number of common shares outstanding:
Basic		23,305,726		24,088,258		22,874,087		23,823,046
Diluted		23,482,177		24,299,364		23,006,722		24,007,498

Exhibit 99.1 Page3 of4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
		Year Ended March 31,
		2009		2008		2007
Cash flows from operating activities:
Net income	$	22,976,411	$	20,022,231	$	14,443,502
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		814,542		589,990		530,440
Share based compensation		1,464,225		1,679,600		1,095,740
Deferred income taxes		497,292		(327,313)		(100,538)
Loss on disposal of property and equipment		8,565		-		1,250
Bad debt expense		73,981		40,823		29,554
(Increase) decrease in operating assets
and increase (decrease) in liabilities:
Accounts receivable		(1,379,803)		(246,565)		(243,294)
Inventories - finished goods		(8,868,547)		(1,823,342)		(1,088,532)
Prepaid income taxes		(361,743)		-		-
Prepaid expenses and other current assets		(61,743)		379,312		(488,133)
Other assets		-		-		14,167
Accounts payable		(313,436)		(1,500,982)		2,806,803
Income taxes payable		(185,243)		(44,078)		(728,997)
Accrued expenses and other current liabilities		301,183		610,818		292,478
Net cash provided by operating activities		14,965,684		19,380,494		16,564,440
Cash flows from investing activities:
Net change in investments		14,870,000		9,605,000		(16,275,000)
Purchases of property and equipment		(3,207,615)		(502,706)		(1,025,079)
Purchase of intangible asset		(485,000)		-		-
Net proceeds from the sale of property and equipment		2,000		-		400
Net cash provided by (used in) investing activities		11,179,385		9,102,294		(17,299,679)
Cash flows from financing activities:
Purchases of treasury stock		(18,447,539)		(11,600,721)		-
Proceeds from the exercise of stock options		1,892,847		2,784,987		442,084
Tax benefit related to stock options exercised		267,835		284,305		242,718
Net cash (used in) provided by financing activities		(16,286,857)		(8,531,429)		684,802
Net increase (decrease) in cash and cash equivalents		9,858,212		19,951,359		(50,437)
Cash and cash equivalents, at beginning of year		20,267,829		316,470		366,907
Cash and cash equivalents, at end of year	$	30,126,041	$	20,267,829	$	316,470
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	16,462,095	$	10,331,000	$	9,344,063
Retirement of treasury stock	$	18,481,816	$	11,566,444	$	-
Property and equipment purchases in accounts payable	$	771,759	$	-	$	-

Exhibit 99.1 Page4 of4