OurPet's Releases Third Quarter Results.

Business Editors

FAIRPORT HARBOR, Ohio--(BUSINESS WIRE)--Dec. 4, 2002

OurPet's Company (OTCBB:OPCO)

-- Demographics: increasing numbers of aging members of the "baby boom" generation are becoming "empty nesters". Pets fulfill human needs for companionship, love and security.

-- Wealth: the average dog-owning family spends $1,266 annually on their pets. Cat owners typically spend $930 per year. Bird owners spend $881.

-- Lengthening life spans: Like humans, pets are living longer lives. They face similar pathologies to those of aging humans, requiring additional treatments and care by owners.

-- Multiple ownership: 62 percent of U.S. households own a pet, and 47 percent of households own more than one. On average, dog owners own 1.7 canines, cat owners have 2.1 felines, and bird owners keep 2.7 avians.

-- Health benefits: Research has identified medical benefits that pet owners, especially older ones, enjoy, including lowered blood pressure and stress levels.

OurPet's Company (OTCBB:OPCO) today released results for its third quarter, ended September 30, 2002. OurPet's also announced that, based on strong initial interest in new products by a number of its customers, it anticipates solid sales growth in 2003. The company also announced that is has appointed William Kahl as Special Advisor to OurPet's Board of Directors.

Quarterly revenues of $1,312,249 declined 18 percent, compared to year-earlier period revenue of $1,600,248. Net income was a loss of $49,245, versus net income of $170,271 in the third quarter of 2001. EPS, which are net of preferred stock dividends, were $0.00, or breakeven, versus $0.01 in the year-earlier quarter. For the first nine months of 2002, revenues of $3,270,764 declined 15 percent versus $3,835,248 in the year-earlier nine-month period. Net income for the first nine months of 2002 was a loss of $322,929 versus net income of $16,475 in the first nine months of 2001. EPS, net of preferred stock dividends, was ($0.03) in the first nine months of 2002, versus ($0.01) in the year-earlier period.

The following table summarizes financial highlights of the release:

                            Q3 2002      Q3 2001   Change(%)
                          ----------   ----------  --------
Gross Revenue             $1,312,249   $1,600,248   (18.0)

Gross