OurPet's Company Reports Record 2009 First-Quarter Financial Results

FAIRPORT HARBOR, OH--(Marketwire - April 22, 2009) - OurPet's Company (OTCBB: OPCO)

--  Highest Ever Quarterly Sales Up 16.7% Year-Over-Year
--  First-Quarter Income From Operations up Significantly
--  Management Optimistic About Balance of 2009
    

OurPet's Company (OTCBB: OPCO), a growing designer, developer, producer and marketer of accessory and consumable pet products, today reported financial results for its first quarter ended March 31, 2009.

Net revenues for the 2009 first quarter increased 16.7 percent to $3,390,379 from $2,905,264 for the same period a year ago. Gross margin, as a percent of sales for the 2009 first quarter, was 29.5 percent, compared to 29.8 percent in the 2008 first quarter. Income from operations for the 2009 first quarter was $121,001, compared to a loss of $346,462 for the 2008 first quarter or an improvement of $467,463. Litigation expenses for the 2009 and 2008 first quarters were $164,313 and $559,122, respectively. Net income for the 2009 first quarter was $78,610, compared to a net loss of $391,472 for the same period in 2008. Earnings, before interest, taxes, depreciation and amortization (EBITDA), were $244,054 in the 2009 first quarter compared to a negative $220,222 in the 2008 first quarter.

Dr. Steven Tsengas, President and CEO, stated, "We are extremely pleased about our record sales for the 2009 first quarter, despite the difficult business environment for many of our customers. The sales increase for the quarter was primarily the result of higher sales of products across all our product lines. In addition, we experienced a substantial increase of $508,591 in revenue from our two largest customers mainly due to new product introductions and additional product penetration.

"We have expanded our R&D group and continue to develop new, innovative, trend setting, proprietary products utilizing our extensive knowledge about pets, pet owners and engineering/process technologies. During the first quarter of 2009 we introduced our new Flappy (www.flappydogtoys.com) brand of dog toys. Our initial production run sold out quicker than any of our previous product introductions. We are optimistic that this line of products will become a significant contributor to both 2009 revenues and earnings. We expect the retailing industry will remain difficult for sometime as consumers have tightened their spending habits. With this said, we see many opportunities in the pet industry, which continues to show relative resilience within the overall challenging retail industry. We remain guardedly optimistic that the balance of 2009 will see continued revenue and earnings growth as we continue implementing our strategic business plan."

Dr. Tsengas concluded, "Our earnings for the first quarter continued to be adversely affected by the litigation expenses that we incurred in defending against the patent infringement lawsuits filed against us. On April 7, 2009, the December 2008 decision by the International Trade Commission was upheld. We plan on pursuing further appeals on the one patent claim that we lost and we plan to certify that our new revised product is non-infringing so that we can continue to import and supply our customers."

About OurPet's Company

OurPet's designs, produces and markets a broad line of innovative, high-quality accessory and consumable pet products in the U.S. and overseas. Investors and customers may visit www.ourpets.com for more information about the Company and its products.

Certain of the matters set forth in this press release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and growth in the industry; general economic conditions; addition or loss of significant customers; the loss of key personnel; product development; competition; risks of doing business abroad; foreign government regulations; fluctuations in foreign rates; rising costs for raw materials and the unavailability of sources of supply; the timing of orders booked; and the other risks that are described from time to time in OurPet's SEC reports.

--Financial Results Follow--

                  OURPET'S COMPANY AND SUBSIDIARIES
                    CONSOLIDATED OPERATING RESULTS


                                                    Three Months Ended
                                                          March 31,
                                                      2009         2008
                                                  ------------ -----------
Net revenue                                       $  3,390,379 $ 2,905,264
Cost of goods sold                                   2,390,311   2,038,401
                                                  ------------ -----------
    Gross profit on sales                            1,000,068     866,863
Selling, general and administrative expenses           714,754     654,203
Litigation expense                                     164,313     559,122
                                                  ------------ -----------
    Income (loss) from operations                      121,001    (346,462)
Other income and expense, net                               32         217
Interest expense                                        42,359      44,793
                                                  ------------ -----------
    Net income (Loss)                             $     78,610 $  (391,472)
                                                  ============ ===========
Basic and diluted earnings per common share
 after dividend requirements for preferred stock:
    Net income (loss)                             $          - $     (0.02)
                                                  ============ ===========

Weighted average number of common and equivalent
 shares outstanding used to calculate basic and
 diluted earnings per share                         15,313,600  16,361,732
                                                  ============ ===========







                      OURPET'S COMPANY AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS


                                                    March 31,  December 31,
                                                      2009         2008
                                                  ------------ ------------

ASSETS
   Cash and equivalents                           $    306,634 $    363,573
   Receivables, net                                  1,650,928    1,420,884
   Inventories                                       3,466,557    3,303,617
   Prepaid expenses                                    154,617       73,995
                                                  ------------ ------------
      Total current assets                           5,578,736    5,162,069

   Property and equipment, net                       1,984,428    2,076,550
   Other                                               343,051      339,367
                                                  ------------ ------------

      Total assets                                $  7,906,215 $  7,577,986
                                                  ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
   Short-term borrowings and current maturities
    of long-term debt                             $  2,647,385 $  2,044,581
   Accounts payable                                  1,513,981    1,238,367
   Accrued expenses                                    665,886      666,051
                                                  ------------ ------------
      Total current liabilities                      4,827,252    3,948,999

   Long-term debt                                      836,246    1,474,036
   Stockholders' equity                              2,242,717    2,154,951
                                                  ------------ ------------

      Total liabilities and stockholders' equity  $  7,906,215 $  7,577,986
                                                  ============ ============

Contact Information: CONTACT: OurPet's Company Dr. Steven Tsengas (440) 354-6500 (Ext. 111) INVESTOR RELATIONS: SM Berger & Company, Inc. Andrew Berger (216) 464-6400