Pet DRx Speculative Buy Rating Maintained in Update Coverage by Dutton Associates

  Dutton Associates continues its coverage of
Pet DRx (NASDAQ: VETS) maintaining its Speculative Buy rating.  The 13-page
report by Dutton senior analyst Sally H. Wallack, CFA is available at
www.jmdutton.com as well as from First Call, Bloomberg Professional,
Capital IQ, Fact Set and other leading financial portals.

Pet DRx owns 24 veterinary hospitals in California. In 3Q Pet DRx reported flat year-over-year revenue, a 2% decline in same-store revenue, and a net loss of $3.2 million ($0.13 per share) versus a $3.4 million loss ($0.80 per share) a year earlier. Q3 operating results fell short of our estimates. In light of this shortfall, as well as today's very challenging economic environment, we increased our FY2008 loss per share estimate from $(0.54) to $(0.60), while maintaining our 2009 estimate of a $0.15 per share loss. We believe a number of factors could contribute to improved financial results in 2009. We remain optimistic about Pet DRx's long-term growth prospects given its participation in the growing veterinary industry, which appears to be an excellent candidate for consolidation. The cornerstone of the Company's business strategy is implementation of a highly productive "hub and spoke" structure in select geographic markets in which the Company is able to acquire enough veterinary hospitals to obtain a market share leadership position. Since the end of the third quarter, Pet DRx has made a number of important management changes. On October 1, the Company named Gene Burleson interim Chief Executive Officer (CEO) effective immediately. Mr. Burleson has extensive experience in building and operating healthcare companies, including serving as Chairman of the Board, President, and CEO of GranCare and as President, Chief Operating Officer, and a Director of American Medical International, one of the nation's largest owners and operators of acute care hospitals, from 1986 to 1989.

About PetDRx

Pet DRx Corporation provides veterinary primary care and specialized services to companion animals through a network of fully owned veterinary hospitals. The Company currently owns and operates 23 leading veterinary hospitals in the state of California, which it has organized into unique, regional 'hub-and-spoke' networks. Pet DRx provides a full range of general medical treatments for companion animals, including (i) preventive care, such as examinations, vaccinations, spaying/neutering and dental care and (ii) a broad range of specialized diagnostic and medical services, such as internal medicine, surgery, cardiology, ophthalmology, dermatology, oncology, neurology, x-ray, ultrasound and other services.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 20 senior analysts are primarily CFAs, have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 110 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrolment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $45,000 from the Company for 5 Research Reports with coverage commencing on 11/26/2007. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

Contact: Dutton Associates John Dutton 916/960-0623 PetDRx Harry L. Zimmerman 615/369-1914