PETC Petco Animal Supplies

PETCO to Speak at the Merrill Lynch 2005 'Retailing Leaders' and Household Products & Cosmetics Conference Tomorrow SAN DIEGO, March 22 /PRNewswire-FirstCall/ -- PETCO Animal Supplies, Inc. (NASDAQ:PETC) announced that James M. Myers, Chief Executive Officer, Bruce C. Hall, President and Chief Operating Officer, and Rodney Carter, Senior Vice President and Chief Financial Officer, are scheduled to present at the Merrill Lynch 2005 "Retailing Leaders" and Household Products & Cosmetics Conference, tomorrow, March 23, 2005, at approximately 11:20 a.m. Eastern Time. A simulcast, or a replay, of the presentation over the Internet will be available via the Company's website at http://www.petco.com/. Mr. Carter is expected to comment on the Company's guidance for fiscal 2005. Mr. Carter plans to state, "We expect to achieve gains in comparable store net sales for the first quarter as well as the full year 2005 in the range of 5% - 6%." "For the first quarter ending April 30, 2005, we expect earnings in the range of $0.33 - $0.34 per diluted share. For the full year 2005, we expect diluted earnings per share in the range of $1.80 -$1.81. These expectations are consistent with the guidance PETCO provided on March 10, 2005 in its report of the fourth quarter and fiscal 2004 results." Mr. Carter is further expected to state, "The outlook for the first quarter and full fiscal year of 2005 excludes an after-tax charge of approximately $1.5 million, or $0.03 per diluted share, for debt retirement costs associated with the $14.7 million of senior subordinated notes repurchased during the first quarter of fiscal 2005." "Separately, the company plans to adopt the new pronouncement for expensing equity compensation, FAS123R, in the third quarter of fiscal 2005. If the standard were adopted for full fiscal year 2005, we would record stock-based compensation in the range of 7% - 8% of net earnings, or $0.14 to $0.15 per diluted share. However, as we do not expect to adopt the standard until the third quarter of 2005, this amount is not included in our current guidance," Mr. Carter intends to state. Non-GAAP Financial Measures The presentation to be made by Messrs. Myers, Hall and Carter at the Merrill Lynch 2005 "Retailing Leaders" and Household Products & Cosmetics Conference is expected to contain information presented on a pro forma basis. These pro forma financial measures are considered "non-GAAP" financial measures within the meaning of SEC Regulation G. The Company believes that this presentation of pro forma results provides useful information to both management and investors by excluding specific costs and expenses that it believes are not indicative of core operating results. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. In accordance with Regulation G, (i) the presentation of the most directly comparable GAAP-based financial measures for such pro-forma information, and (ii) a reconciliation of such pro-forma financial measures with the most directly comparable GAAP-based financial measures are both included in our earnings press release, dated March 10, 2005 and titled "PETCO Reports Results for the Fourth Quarter and Fiscal Year 2004" which can be found on our website at http://www.petco.com/ by accessing the link entitled "About PETCO" and then "Investor Relations". About PETCO Animal Supplies, Inc. PETCO is a leading specialty retailer of premium pet food, supplies and services. PETCO's vision is to best promote, through its people, the highest level of well-being for companion animals, and to support the human-animal bond. PETCO generated net sales of $1.8 billion in fiscal 2004. It operates over 725 stores in 47 states and the District of Columbia, as well as a leading destination for on-line pet food and supplies at http://www.petco.com/. Since its inception in 1999, The PETCO Foundation, PETCO's non-profit organization, has raised more than $21 million in support of more than 2,500 non-profit grassroots animal welfare organizations around the nation. Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of PETCO to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors, such as performance of new stores, ability to execute expansion strategy and sustain growth, debt levels, reliance on vendors and exclusive distribution arrangements, competition, integration of operations as a result of acquisitions, compliance with various state and local regulations and dependence on senior management, are discussed from time to time in the reports filed by PETCO with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended January 31, 2004. DATASOURCE: PETCO Animal Supplies, Inc. CONTACT: Rodney Carter, Senior Vice President and Chief Financial Officer of PETCO Animal Supplies, Inc., +1-858-202-7848 Web site: http://www.petco.com/

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