OurPet's Company Reports Record Fourth Quarter and 2009 Full-Year Results

FAIRPORT HARBOR, OH--(Marketwire - February 16, 2010) - OurPet's Company (OTCBB: OPCO) (www.ourpets.com), a leading proprietary pet supply company, today reported record financial results for its fourth quarter and year ended December 31, 2009.

Net revenues increased 18% for the 2009 fourth quarter to a record $3,741,050 from $3,161,243 for the same period a year ago. Gross profit rose 32% to $1,120,524 for the 2009 fourth quarter from $848,687 last year. Gross profit margin increased 3.1 percentage points to 30.0% for the 2009 fourth quarter from 26.9% for the 2008 fourth quarter due to higher revenues, continuous improvement and favorable product mix. Income from operations increased to $225,730 for the 2009 fourth quarter from $96,645 last year. The Company recognized $125,370 of deferred tax benefits for the 2009 fourth quarter compared to none a year ago. Net income for the 2009 fourth quarter increased to $319,136, or $0.02 per diluted share, from $50,698, or $0.00 per share, for the 2008 fourth quarter.

Net revenues increased 15% to a record $14,251,786 for the twelve months ended December 31, 2009 from $12,410,135 the prior year. Gross profit increased 22% for 2009 versus a year ago and gross profit margin increased to 30.0% for 2009 from 28.2% for 2008. Litigation expenses were $373,608 for 2009 compared to $2,322,983 a year ago. Income from operations was $791,522 for 2009 compared to a loss from operations of $1,530,350 for 2008. The Company recognized $125,370 of deferred tax benefits for 2009 versus none for 2008. Net income was $ 775,767, or $0.05 per diluted share, for 2009 compared to a net loss of $1,728,198, or $0.11 per share, for 2008.

Dr. Steven Tsengas, President and CEO, stated, "I am pleased with the accomplishments of the OurPet's Team for 2009, especially considering the global recession during the past year. We achieved a double-digit increase in net revenues and our results were profitable each quarter. This performance benefited from tight cost controls as reflected in gross profit margin and inventory management. Additionally, we continued to enhance our financial position through improved cash flow and by further strengthening the company's balance sheet."

Dr. Tsengas continued, "We stayed the course of our long range business plan and successfully executed our strategy in a volatile business and economic environment. These accomplishments included further progress regarding implementation of our consumer brand strategy as we moved closer to a total consumer brand portfolio. This improved brand equity is expected to provide additional benefits as we continue to increase our market penetration, especially with Play N Squeak, and launch over 100 new products (SKUs) at the International Global Pet Exposition next month. Additional product and marketing initiatives are planned for later this year. We exited 2009 with solid performance and look forward to improved results in 2010."

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. The Company's Websites include: www.smartscoop.com, www.ecopurenaturals.com, www.playnsqueak.com, and www.flappydogtoys.com.

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.

                    OURPET'S COMPANY AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               UNAUDITED

                        For the Year Ended        For the Quarter Ended
                           December 31,                December 31,
                    --------------------------  --------------------------
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------

Net revenue         $ 14,251,786  $ 12,410,135  $  3,741,050  $  3,161,243
Cost of goods sold     9,971,696     8,911,274     2,620,526     2,312,556
                    ------------  ------------  ------------  ------------
  Gross profit on
   sales               4,280,090     3,498,861     1,120,524       848,687
Selling, general and
 administrative
 expenses             (3,114,960)   (2,706,228)     (830,523)     (687,399)
Litigation expense      (373,608)   (2,322,983)      (64,272)      (64,642)
                    ------------  ------------  ------------  ------------
  Income (loss)
   from operations       791,522    (1,530,350)      225,730        96,646
Other income and
 (expense) - net          38,153         1,577           (73)          765
Interest expense        (178,902)     (193,350)      (44,124)      (48,638)
                    ------------  ------------  ------------  ------------
   Income (loss)
    before taxes         650,773    (1,722,123)      181,532        48,773
Income tax benefit
 (expense)               124,994        (6,075)      137,604         1,925
                    ------------  ------------  ------------  ------------
   Net income
    (loss)          $    775,767  $ (1,728,198) $    319,136  $     50,698
                    ============  ============  ============  ============

Basic and diluted
 earnings per
 common share after
 dividend
 requirements
 for Preferred Stock:

   Net income
    (loss)          $       0.05  $      (0.12) $       0.02  $         --
                    ============  ============  ============  ============

Weighted average
 number of common
 and equivalent
 shares outstanding
 used to calculate
 basic and diluted
 earnings per share   15,523,288    15,257,050    16,897,046    15,371,621
                    ============  ============  ============  ============




                        CONSOLIDATED BALANCE SHEETS
                                 UNAUDITED

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

ASSETS
  Cash and equivalents                             $    84,555  $   363,573
  Receivables, net                                   1,881,179    1,420,884
  Inventories                                        2,984,035    3,303,617
  Prepaid expenses                                      93,130       73,995
   Deferred tax asset, net                             125,370           --
                                                   -----------  -----------
          Total current assets                       5,168,269    5,162,069
  Property and equipment, net                        1,954,805    2,076,550
  Other                                                475,668      339,367
                                                   -----------  -----------

           Total assets                            $ 7,598,742  $ 7,577,986
                                                   ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  Short-term borrowings and current maturities
   of long-term debt                               $ 1,905,589  $ 2,044,581
  Accounts payable                                   1,046,101    1,238,367
  Accrued expenses                                     417,199      666,051
                                                   -----------  -----------
          Total current liabilities                  3,368,889    3,948,999
  Long-term debt                                     1,254,080    1,474,036
  Stockholders' equity                               2,975,773    2,154,951
                                                   -----------  -----------

           Total liabilities and stockholders'
            equity                                 $ 7,598,742  $ 7,577,986
                                                   ===========  ===========

Contact Information: CONTACT: OurPet's Company Dr. Steven Tsengas CEO (440) 354-6500 (Ext. 111) INVESTOR RELATIONS: Robert A. Lentz and Associates, Inc. Robert Lentz (614) 876-2000