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Press release from Business Wire

PetSmart Announces a 25% Increase to Its Quarterly Dividend and a New $400 Million Share Purchase Program

Monday, June 21, 2010

PetSmart Announces a 25% Increase to Its Quarterly Dividend and a New $400 Million Share Purchase Program16:02 EDT Monday, June 21, 2010 PHOENIX (Business Wire) -- PetSmart, Inc. (NASDAQ: PETM), the leader in pet specialty retail, announced the Board of Directors' approval to increase its quarterly dividend by 25% from $0.10 to $0.125 per share beginning in the second quarter of fiscal 2010. The Board of Directors also authorized a new $400 million share purchase program that expires in January 2012. This will replace the $350 million program approved by the Board in June 2009, including the $103 million that remained available under that program. “PetSmart continues to generate cash well above the amount needed for optimal reinvestment in our business,” said Bob Moran, President and Chief Executive Officer. “The return of excess cash to our stockholders through a combination of dividends and share repurchases reaffirms the stability and predictability of our cash flow as well as demonstrating the continued strength of our business.” “We believe we are well positioned to provide strong stockholder returns and growth for the future,” said Chip Molloy, Senior Vice President and Chief Financial Officer. “We remain committed to the balance of reinvesting in the business and returning excess cash to shareholders.” The dividend of $0.125 will be paid on August 13, 2010 to stockholders of record at the close of business on July 30, 2010. This is equivalent to an annual rate of $0.50 per share. About PetSmart PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company employs approximately 45,000 associates and operates more than 1,160 pet stores in the United States and Canada, 165 in-store PetSmart PetsHotel(R) cat and dog boarding facilities, and is a leading online provider of pet supplies and pet care information ( PetSmart provides a broad range of competitively priced pet food and pet products; and offers complete pet training, pet grooming, pet boarding, PetSmart(R) Doggie Day Camp(SM) pet day care services and pet adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)(3) non-profit animal welfare organization and the largest funder of animal welfare efforts in North America, has provided more than $109 million in grants and programs benefiting animal welfare organizations. Through its in-store pet adoption partnership with PetSmart Charities(R), PetSmart has helped save the lives of more than 4 million pets. Follow PetSmart on Twitter Find PetSmart on Facebook