Pet Airways and Veterinary Pet Insurance Announce Strategic Partnership

San Jose, CA – Sep. 14, 2011 -Pet Airways, a wholly owned subsidiary of The PAWS Pet Company, Inc. (OTCQB: PAWS) (OTCPK: PAWS) or “the Company”, the innovative pet services company, announced today it has entered into a partnership with Veterinary Pet Insurance, (VPI), the largest provider of pet health insurance in the US.

Under the terms of the partnership, Pet Airways will make available exclusive offers to nearly 500,000 VPI policyholders. It will also be possible for Pet Airways pet parents to purchase VPI insurance products from a link on the Pet Airways web site.

“Pet Airways is dedicated to providing the best care for pets while travelling and we recognize that this includes affordable health care,” said Alysa Binder, Chief Development Officer of The PAWS Pet Company. “VPI provides pet parents with an affordable solution to the high cost of health care for pets. We are excited to partner with the oldest and most recognized pet health insurance company.”

“Pet Airways is an innovator and like VPI is committed to the well being of pets. This is a very organic fit for both of our companies, promoting healthier pets and happier pet parents,” said Curtis Steinhoff, director of Corporate Communications, VPI. “We will be delivering greater value to our nearly half-million policyholders by offering Pet Airways exclusive promotions for pet travel. Since VPI policyholders can use any licensed veterinarian in the country, their protection against unexpected veterinary medical costs will travel with them and their pets.”

About Veterinary Pet Insurance®
With more than 485,000 pets insured nationwide, Veterinary Pet Insurance Co./DVM Insurance Agency is the No. 1 veterinarian-recommended pet health insurance company and is a member of the Nationwide Insurance family of companies. Providing pet owners with peace of mind since 1982, the company is committed to being the trusted choice of America’s pet lovers and an advocate of pet health education. VPI Pet Insurance plans cover dogs, cats, birds and exotic pets for multiple medical problems and conditions relating to accidents, illnesses and injuries. Optional CareGuard® is available for routine care.

Medical plans are available in all 50 states and the District of Columbia. More than 2,000 companies nationwide offer VPI Pet Insurance as an employee benefit. Policies are underwritten by Veterinary Pet Insurance Company in California and in all other states by National Casualty Company, an A+15 rated company in Madison, Wisconsin. Pet owners can find VPI Pet Insurance on Facebook or follow @VPI on Twitter. For more information about VPI Pet Insurance, call 800-USA-PETS (800-872-7387) or visit petinsurance.com.

About The PAWS Pet Company
The PAWS Pet Company, Inc. provides innovative pet services. Its wholly owned subsidiary Pet Airways is the only airline specifically designed for the safe and comfortable transportation of pets. Pet Airways' Pawsengers™ travel in the specially equipped main cabin of its planes - where pets are continuously monitored by an In-Flight Pet Attendant and the climate is controlled for maximum pet comfort. With Pet Airways, pet parents can be assured their pets will be treated with tender, loving care by pet professionals throughout the journey. The airline launched flight operations in 2009 and currently serves coast-to-coast destinations across the United States, including Los Angeles, Phoenix, Denver, Omaha, Chicago, Baltimore, New York, Atlanta and Ft. Lauderdale. The company has also announced its upcoming expansion to Orlando, Dallas, Austin, Houston and St. Louis. For more information on PetAirways, go to www.petairways.com.

Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, including, without limitation, statements regarding future financial position, business strategy, budgets, projected sales, projected costs, and management objectives, are forward-looking statements. Terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," “illustrates”, or "believes" or the negative thereof, any variation thereon or similar terminology are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from the results proposed in such statements. Important factors that could cause actual results to differ from our expectations include, but are not limited to: the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our business plan; our ability to control costs; our ability to attract and retain customers; transportation demand; general economic conditions; costs of aviation fuel; competitive pricing pressures; governmental regulation; weather conditions; and statements of assumption underlying any of the foregoing, as well as other factors set forth under the caption "Risk Factors" in the Form 8-K filed with the Securities and Exchange Commission (“SEC”) on March 8, 2011 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by the foregoing cautionary statements. We assume no duty to update or revise our forward-looking statements based on changes in our expectations or events after the date hereof.

Company Contact:
Investor Relations
408 248 6000 ext. 198
ir@petairways.com

Media Contact:
Alysa Binder
Pet Airways
408 248 6000 ext. 102
press@petairways.com

Investor Contact:
Laurel Moody
Corporate Profile
646 810 0608
lmoody@corporateprofile.com