PETsMART.com to be an Anchor in Pet Departments ofShop @ AOL; Merchant Offers Internet's Largest...

PASADENA, Calif.--(BUSINESS WIRE)--Aug. 18, 1999--

PETsMART.com, the premier one-stop site for pet care needs and supplies, today announced an agreement with America Online (AOL), the world's leading interactive service, to sell pet food and merchandise through Shop @ AOL, America Online's

PETsMART.com is the successful collaboration between two industry powerhouses, PETsMART, Inc. (Nasdaq:PETM), a leading retailer of pet food, supplies and services, and idealab!, the nation's leading Internet incubator of such companies as eToys and GoTo.com.

PETsMART.com will be part of the Web's largest shopping destination when it premiers on the AOL shopping channel, featuring the greatest selection of merchandise at the Internet's lowest prices. More than just a superior shopping destination, PETsMART.com delivers compelling and informative content, as well as advice from pet industry experts, such as the "Ask the Vet" section. Entertaining, too, PETsMART.com features articles on a variety of relevant topics for today's pet owner ranging from "Seven Weird Things Your Pet Does and Why," explaining why they turn in circles before nap time, to "The Medicine Chest," a guide to medicating your pet for minor ailments such as aches and pains or upset tummy.

"With over 17 million members and established leadership in cyberspace, AOL is clearly a powerful partner for PETsMART.com, enabling us to further expand our brand," said Tom McGovern, PETsMART.com CEO and president. "Our agreement with AOL demonstrates our ongoing commitment to become the ultimate online provider of pet supplies and information for pet owners and lovers."

"AOL's mission is to provide our members with top brands and quality products using the convenience of the Internet," said Greg Shove, AOL Vice President for Interactive Marketing. "With PETsMART's long-standing reputation for quality and customer service, we're delighted that PETsMART.com has joined us as an anchor tenant."

About PETsMART.com

PETsMART.com is the premier one-stop site for all one's pet care needs and supplies. PETsMART.com offers the largest product selection, excellent customer value, superior service, and compelling content. PETsMART.com was founded in May 1999, and is a privately held company based in Pasadena, Calif. PETsMART, Inc. (Nasdaq:PETM) has a 49.9 % interest in PETsMART.com. Other investors include idealab!, idealab! Capital Partners and Global Retail Partners.

About PETsMART, Inc.

PETsMART is a leading operator of superstores specializing in pet food, supplies and services. PETsMART currently operates 456 stores in 40 states in the U.S., 20 stores in Canada and 95 stores in the UK. The Company's common stock trades on The Nasdaq Stock Market under the symbol PETM.

About idealab!

idealab! is an integrated incubator for starting and growing Internet businesses. Founded in March of 1996, the company has more than 20 businesses in various stages of development. In addition to seed capital, idealab! provides creative capital resources to infuse startup companies with the development strategies and financial support needed to rapidly introduce innovative products and services. idealab! itself currently employs 25 people, while idealab! companies employ more than 1000. idealab! is located in historic Old Town Pasadena, California and draws many of its creative people from Caltech, the Art Center College of Design and Hollywood.