OurPet's Company Reports 2008 Second-Quarter and First-Half Financial Results

FAIRPORT HARBOR, OH--(Marketwire - August 4, 2008) - OurPet's Company (OTCBB: OPCO), a growing designer, developer, producer and marketer of accessory and consumable pet products, today reported financial results for the 2008 second quarter and first half ended June 30, 2008.

Net revenues for the 2008 second quarter increased 7.1 percent to $3,015,604 from $2,816,812 in the same period a year ago. Gross margin, as a percent of sales for the 2008 second quarter, decreased 2.5 percentage points to 26.4 percent, from 28.9 percent in the 2007 second quarter. Significant price increases were received from both domestic and overseas suppliers during the second quarter. The Company is optimistic that an improvement in gross margin should occur by the 2008 fourth quarter from its continuous cost improvement efforts, emphasis on selling higher margin products and price increases.

Income before litigation expense for the 2008 second quarter decreased 30.1 percent to $120,256, compared to $172,012 for the 2007 second quarter. After litigation expense the net loss for the 2008 second quarter was $769,835, or a loss of $0.05 per share, compared to net income of $172,012, or $0.00 per diluted share for the same period in 2007. Earnings, before interest, taxes, depreciation and amortization (EBITDA), before litigation expense for the 2008 second quarter, decreased 16.1 percent to $278,268, compared to $331,508 for the 2007 second quarter.

Net revenues for the 2008 first half increased 9.6 percent to $5,920,868 from $5,400,182 in the same period a year ago. Gross margin, as a percent of sales for the 2008 first half, increased 0.3 percentage points to 28.1 percent, from 27.8 percent in the 2007 first half. Income before litigation expense for the 2008 first half increased to $287,906 compared to $287,525 for the 2007 first half. After litigation expense the net loss for the 2008 first half was $1,161,307, or a loss of $0.08 per share, compared to net income of $287,525, or $0.01 per diluted share for the same period in 2007. Earnings, before interest, taxes, depreciation and amortization (EBITDA), before litigation expense for the 2008 first half, increased 2.8 percent to $617,169, compared to $600,609 for the 2007 first half.

Dr. Steven Tsengas, President and CEO, stated, "Overall, we are satisfied with our growth for the 2008 second quarter and first half. We achieved increases in sales for both periods despite a difficult business environment for many of our customers. This increase in sales for both periods was the result of sales in all our product lines, including SmartScoop®, was accomplished despite a reduction of $245,161 for the 2008 second quarter and $397,710 for the 2008 first half in revenues from our two largest customers due to lower retail sales and inventory adjustments. These decreases in sales were more than offset by an increase of $443,953 for the 2008 second quarter and $918,396 for the 2008 first half in revenues from other customers including our new and foreign customers.

"Our sales growth is being achieved through our dedication to product innovation and customer service. We anticipate increased sales growth over the next nine months through expansion of our cat and dog interactive toys, significant product additions to the ecoPure Natural line and continuous market penetration of the cat and dog waste and odor control segment. In addition, we strengthened our sales and marketing department to better exploit new market channels as well as promotional and overseas opportunities.

"As we expected, our earnings for the second quarter and first half were adversely affected by the litigation expenses that we have incurred and will continue to incur in defending the Company against the patent infringement lawsuits filed by a competitor. We feel that such charges are without merit and are confident that we can prevail in the first proceedings, which will occur later this month at the International Trade Commission ("ITC") in Washington, D.C. Looking forward we anticipate litigation expenses to be reduced significantly following the ITC hearing scheduled for August 26 - 29, 2008. With anticipated ITC litigation expense reductions and seasonally high sales, we are cautiously optimistic that the Company will return to profitability during the 2008 fourth quarter," concluded Dr. Tsengas.

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. For more information about the Company and its products visit our Websites www.ourpets.com, www.smartscoop.com, www.ecoPureNaturals.com and www.playsnsqueak.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
                      CONSOLIDATED OPERATING RESULTS


                       For the Six Months Ended     For the Quarter Ended
                               June 30,                   June 30,
                       -------------------------  ------------------------
                           2008          2007         2008        2007
                       ------------  -----------  -----------  -----------

Net revenue            $  5,920,868  $ 5,400,182  $ 3,015,604  $ 2,816,812
Cost of goods sold        4,256,842    3,899,856    2,218,441    2,003,351
                       ------------  -----------  -----------  -----------
   Gross profit on
    sales                 1,664,026    1,500,326      797,163      813,461
Selling, general and
 administrative
 expenses                 1,285,938    1,135,724      631,735      601,044
                       ------------  -----------  -----------  -----------
   Income from
    operations              378,088      364,602      165,428      212,417
Other income and
 expense, net                  (811)      (2,069)      (1,028)          (1)
Interest expense             90,993       79,146       46,200       40,406
                       ------------  -----------  -----------  -----------
   Income before
    litigation expense      287,906      287,525      120,256      172,012
Litigation expense        1,449,213            -      890,091            -
                       ------------  -----------  -----------  -----------
   Net income (loss)   $ (1,161,307) $   287,525  $  (769,835) $   172,012
                       ============  ===========  ===========  ===========

Basic and Diluted Net
 Income (Loss) Per
 Common Share After
 Dividend
 Requirements For
 Preferred Stock       $      (0.08) $      0.01  $     (0.05) $         -
                       ============  ===========  ===========  ===========

Weighted average
 number of common
 and equivalent shares
 outstanding used to
 calculate basic and
 diluted earnings
 per share               15,245,105   17,531,447   15,246,226   17,828,206
                       ============  ===========  ===========  ===========



                    OURPET'S COMPANY AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS


                                                  June 30,    December 31,
                                                    2008          2007
                                                ------------- -------------
ASSETS
   Cash and equivalents                         $     183,338 $      28,843
   Receivables, net                                 1,514,099     1,239,410
   Inventories                                      3,884,865     3,395,512
   Prepaid expenses                                   148,049        91,069
                                                ------------- -------------
      Total current assets                          5,730,351     4,754,834
   Property and equipment, net                      2,247,443     2,309,529
   Other                                              343,371       337,967
                                                ------------- -------------

      Total assets                              $   8,321,165 $   7,402,330
                                                ============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY
   Notes payable                                $   2,000,000 $   1,800,000
Current maturities of long-term debt                  174,191       232,857
   Accounts payable                                 2,231,049     1,170,225
   Accrued expenses                                   193,141       122,813
                                                ------------- -------------
      Total current liabilities                     4,598,381     3,325,895
   Long-term debt                                   1,044,977       250,655
   Stockholders' Equity                             2,677,807     3,825,780
                                                ------------- -------------

      Total liabilities and stockholders'
       equity                                   $   8,321,165 $   7,402,330
                                                ============= =============

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