Industry Fact Sheet

The establishment of a professional, structured and technologically adept pet care franchise is significant for our time, due largely to the escalation of pet ownership and overall pet-related consumer spending both domestically and abroad. This veritable "pet boom" has motivated consumers world wide to seek animal care giving services at an ever-increasing rate but, until the advent of FETCH! Pet Care, such services often fell short of both consumer needs and expectations. Just how big is the pet industry? Consider the following:

According to Lifetime Networks December 2008 'FemiNation' Survey:

• 89% of women 18-49 will spend as much or more on their pets in 2009 despite the current economic downturn

According to the American Pet Products Manufacturers Association's (APPMA) 2005-2006 National Pet Owners Survey (NPOS):

• 63 percent of all U.S. households owning a pet which equates to more than 69 million households, up from 64 million in 2002 and 51 million in 1988 when APPMA's tracking began
• Americans own approximately 73 million dogs, 90 million cats, 139 million freshwater fish, 9 million saltwater fish, 16 million birds, 18 million small animals and 11 million reptiles
• According to the survey, nearly all pet owners say companionship, love, company and affection are the number one benefits to owning a pet.
• Three-quarters of dog owners and more than half of cat owners consider their pet like a child or family member
• The number of cat and dog owners with health insurance is increasing. Currently three percent of dogs and one percent of cats have health insurance, up from two percent of dog owners and less than one percent of cat owners in 2002
• The use of dental products is increasing with a rapidly expanding pet dental market including products such as pet toothpaste, whitening strips, mouthwash and orthodontic products.
• Eighty-eight percent of dog owners, 65 percent of cat owners, 73 percent of bird owners and 75 percent of small animal owners give treats
• Eight out of ten dog owners and 63 percent of cat owners buy gifts for their pet

Total U.S. Pet Industry Expenditures Year Billion 2005 $35.9 Est. 2004 $34.4 2003 $32.4 2002 $29.5 2001 $28.5 1998 $23 1996 $21 1994 $17

Estimated 2005 Sales within the U.S. Market For 2005, it is estimated that $35.9 billion will be spent on our pets in the U.S. Actual Sales within the U.S. Market in 2004 Breakdown Breakdown Food $14.5 billion Food $14.2 billion Vet Care $8.6 billion Vet Care $8.2 billion Supplies/Medicine $8.8 billion Supplies/Medicine $8.1 billion Live animal purchases $1.6 billion Live animal purchases $1.6 billion Pet Services: grooming & boarding $2.4 billion Pet Services: grooming & boarding $2.3 billion

* Unless otherwise stated, spending statistics are gathered by APPMA from various market reseach sources and are not included in the organization's bi-annual Pet Owners Survey.

According to the 2005/2006 APPMA National Pet Owners Survey, basic annual expenses for dog and cat owners in dollars include:

Annual expenses for dog and cat owners in dollars
	Dogs	Cats
Surgical Vet Visits	574	337
Food	241	185
Kennel Boarding	202	119
Routine Vet	211	179
Groomer/Grooming Aids	107	24
Vitamins	123	3
Treats	68	43
Toys	45	29

According to the U.S. Department of Labor Bureau of Labor and Statistics' Occupational Outlook Handbook, 2004-05 Edition:

• Animal care and service workers held 151,000 jobs in 2002; Over 80 percent worked as nonfarm animal caretakers
• In 2002, 1 out of every 4 nonfarm animal caretakers was self-employed
• Beginning animal caretakers in kennels learn on the job, and usually start by cleaning cages and feeding and watering animals.
• Animal caretakers in animal shelters are not required to have any specialized training
• In addition to replacement needs, employment of animal care and service workers is expected to grow faster than the average - increase 21-35 percent - for all occupations through 2012
• The pet population, which drives employment of animal caretakers in kennels, grooming shops, animal shelters, and veterinary clinics and hospitals, is expected to increase
• Pet owners, including a large number of baby boomers, whose disposable income is expected to increase as they age, are expected to increasingly take advantage of grooming services, daily and overnight boarding services, training services, and veterinary services, resulting in more jobs for animal care and service workers
• As many pet owners increasingly consider their pet as part of the family, their demand for luxury animal services and willingness to spend greater amounts of money on their pet will continue to grow

According to the American Veterinary Medical Association (AVMA) 2001 U.S. Pet Ownership & Demographics Sourcebook:

• On all types of veterinary services combined, including medical treatments and anything else spent at vet offices, such as boarding and medications), pet owners spend $19 billion annually; nearly double from 11.1 billion in 1996
• 83 percent of dog owners took their pet the vet at least once a year