OurPet’s Company Reports Record Third Quarter 2016 Results

Record Q3 Net Revenue of $7.26 million — Net Income Increases to
$495,669

FAIRPORT HARBOR, Ohio–(BUSINESS WIRE)–OurPet’s Company (OTCQX: OPCO) (www.ourpets.com),
a leading proprietary pet supply company, today reports record
third-quarter revenue of $7.26 million, an increase of 21% compared to
revenues of $5.99 million reported in the same period of 2015. Net
income for the third quarter ended September 30, 2016, increased 21% to
$495,669, or $0.025 per share, compared to $410,450, or $0.020 per
share, for the same period of 2015. Third quarter 2015 results included
a one-time U.S. Custom exam refund of $94,000. Discounting the $94,000
refund, the adjusted net income between third quarters 2015 and 2016
grew 57%.

“With the resumption of shipments to our major specialty pet retail
customer, we were firing on all cylinders this past quarter. The
double-digit growth in sales was also driven by a 19% growth in the Food
Drug & Mass market segment, as well as initial shipments of our new
electronic cat toy, Intelligent Pet Care, and Switchgrass BC cat litter
products. With the strong third-quarter sales, we are up almost 10% for
the nine months of 2016, more than double the pet industry average,”
states Dr. Steven Tsengas, president and CEO of OurPet’s.

Based on initial October sales bookings and the strong acceptance of
product innovations, OurPet’s is guardedly optimistic of a strong fourth
quarter and fiscal year 2016, with growth thereafter supported by new
products and key partnerships.

“Beyond 2016, our strategy is to achieve double-digit growth in sales
and net income with an emphasis on developing and launching proprietary,
innovative products and entering appropriate new market segments,” says
Dr. Tsengas. “We recently announced our new partnership with Paulee
Cleantec, Inc. whereby we plan to commercialize its patented technology
to develop portable and fixed-base product solutions to safely and
conveniently eliminate pet waste.

“In addition, we recently completed contracts with a leading direct TV
(DRTV) marketing company to test market several of our new electronic
interactive cat toys for a possible DRTV campaign to launch sometime in
the second quarter of 2017. The contracts will allow both parties to
move forward with what we believe will be the first of several DRTV
programs to raise customer awareness for our entire electronic
interactive pet toy category. We have many ‘irons in the fire’ and are
very excited about the future.”

2016 Third-Quarter Results

Net revenue increased 21% to $7,259,904 versus revenues of $5,986,645
for the same period last year. The approximate $1.3 million increase was
due to strong sales in the Pet Specialty and Food, Drug and Mass
channels.

Net income increased 20.76% to $495,669 compared to $410,450 for the
third quarter of 2015. Net income per diluted share increased to $0.025
compared to $0.021 a year ago and would have been higher if not for an
additional 265,573 shares added to the weighted average of common and
basic shares used in calculating diluted earnings per share.

As previously mentioned, third quarter 2015 results included a one-time
U.S. Custom exam refund of $94,000. Discounting the $94,000 refund, the
adjusted net income between third quarters 2015 and 2016 grew 57%.

Gross profit for third quarter 2016 was $2,443,470 compared to
$2,012,177 the prior year. Gross profit margin stayed about the same
year-over-year at 33.66%.

As of September 30, 2016, OurPet’s reduced total long-term liabilities
by $672,008 (-15%), maintained strong liquidity and achieved a Current
Ratio of 5.04, and grew stockholder’s equity by $964,773 (+11%).

2016 First Nine Months Results

Net revenue for the first nine months of 2016 increased 10% to
$18,872,791 versus revenues of $17,170,795 reported for the same period
last year. The year-over-year increase was due to strong Food, Drug, and
Mass sales.

Net income for the 2016 period increased 3.4% to $916,882 compared to
$886,319 for the same period of 2015. Net income per share increased to
$0.045 for the first nine months of 2015 from $0.044 last year.

Gross profit increased 8% to $5,847,171 for the first nine months of
2016 versus the prior year.

About OurPet’s Company

OurPet’s Company designs, produces and markets a broad line of
innovative, high-quality accessory and consumable pet products in the
U.S. and overseas. Investors and customers may visit www.ourpets.com
for more information about our company and its products. OurPet’s
websites include www.petzonebrand.com
and www.ourpets.com.

Forward-Looking Statements

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; 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 currency
rates; rising costs for raw materials and sources of supply that may be
limited or unavailable from time to time; the timing of orders booked;
and the other risks that are described from time to time in OurPet’s SEC
reports.

Contacts

OurPet’s Company
Dr. Steven Tsengas, CEO, 440-343-6500, x111
or
DreamTeamNetwork
512-758-8877
Office
www.DreamTeamNetwork.com
Editor@DreamTeamNetwork.com