Pet Valu to acquire 15 Berrys... Your PetsChoice stores

MARKHAM, ON, July 18 /CNW/ - As part of its growth strategy, Pet Valu, Inc., today announced that its Canadian operating company, Pet Valu Canada Inc., has entered into conditional agreements to acquire the shares of the companies operating 15 Berrys...Your PetsChoice stores. These stores are all located in eastern Ontario.

According to Ed Casey, President and COO of Pet Valu Canada Inc., "Berrys strategically fits with Pet Valu, as both companies are aligned in their focus on better pet nutrition and commitment to informed and friendly customer service."

Pet Valu plans to maintain operations under the Berrys banner initially and to continue to offer the range of nutritious and wellness-focused products, which current customers enjoy, as well as enhancing Berrys' line-up with new products.

The transaction is scheduled to close in early-August, 2008 subject to due diligence review and satisfaction of certain other conditions.

Following the acquisition, Pet Valu will operate a total of 354 company-owned and franchised pet food and pet-related supply specialty stores in Canada and the United States under the PET VALU(R), PET VALU BETTER PET NUTRITION(R), PAULMAC'S PET FOOD(R), BERRYS...Your PetsChoice(TM) and CRITTER CRAVINGS(TM) names.

CORPORATE PROFILE

Pet Valu is a specialty retailer of pet food and pet-related supplies operating Company-owned and franchised locations in Canada and the U.S. The TSX stock symbol for Pet Valu Canada Inc., Pet Valu, Inc.'s publicly traded Canadian operating subsidiary, is PVC.

www.petvalu.com

FORWARD-LOOKING STATEMENTS

Certain information in this news release is forward-looking and is subject to important risks and uncertainties. Forward-looking information includes information concerning the Company's future financial performance, business strategy, plans, goals, objectives, business prospects and opportunities. The forward-looking information reflects predictions and does not in any way reflect a guarantee. Factors which could cause actual results or events to differ materially from current expectations include, among other things: the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits; competitive conditions in the businesses in which the Company participates; changes in consumer spending; the outcome of legal proceedings as they arise; general economic conditions and normal business uncertainty; the availability of suitable store locations; customer preferences towards product offerings; adverse climate changes; the occurrence of a pandemic or other catastrophic event which could create shortages of labour, products or services required to operate the business profitably; fluctuations in foreign currency exchange rates; changes in the Company's relationship with its merchandise and service suppliers; interest rate fluctuations and other changes in borrowing costs; and changes in laws, rules and regulations applicable to the Company or the markets in which the Company operates. The Company cautions that this is not an exhaustive list of factors that may affect the forward-looking information in this news release. Potential investors and readers are urged to give careful consideration to all of these factors in evaluating any forward-looking information and are cautioned not to place undue reliance on such information. While the Company believes that its forecasts and assumptions are reasonable, results or events predicted in this forward-looking information may differ materially from actual results or events.

Contacts

Michael Fitzgerald
Secretary
(905) 946-1200
extension 3503
mfitzgerald@petvalu.com