PetSmart Reports Results for the Fourth Quarter and Fiscal 2007

Market Wire, March, 2008

                      PetSmart, Inc. and Subsidiaries
                        Consolidated Balance Sheets
                              (in thousands)
                                Unaudited


                                               February 3,    January 28,
                                                  2008           2007
                                              -------------  -------------
Assets
   Cash and cash equivalents                  $      58,322  $     148,799
   Short-term investments                                 -         19,200
   Restricted cash and short-term investments             -         60,700
   Receivables, net                                  49,341         36,541
   Merchandise inventories                          501,212        487,400
   Deferred income taxes                             46,765         39,580
   Prepaid expenses and other current assets         73,231         51,049
                                              -------------  -------------

      Total current assets                          728,871        843,269

   Property and equipment, net                    1,230,770      1,032,421
   Equity investment in affiliate                    23,346         38,065
   Deferred income taxes                            108,544         97,648
   Goodwill                                          44,333         14,422
   Intangible assets, net                             1,457          1,156
   Other noncurrent assets                           29,936         26,496
                                              -------------  -------------

      Total assets                            $   2,167,257  $   2,053,477
                                              =============  =============

Liabilities and Stockholders' Equity
   Accounts payable and bank overdraft        $     172,352  $     179,638
   Accrued payroll bonus and employee
    benefits                                        132,768        120,801
   Accrued occupancy expenses                        46,955         44,972
   Current maturities of capital lease
    obligations                                      24,982         17,667
   Other current liabilities                        148,832        155,304
                                              -------------  -------------
      Total current liabilities                     525,889        518,382

   Long-term debt                                    30,000              -
   Capital lease obligations                        508,765        431,334
   Deferred rents and other noncurrent
    liabilities                                     116,006        102,867
                                              -------------  -------------

      Total liabilities                           1,180,660      1,052,583
                                              -------------  -------------

   Stockholders' Equity:
     Preferred stock; $.0001 par value                    -              -
     Common stock; $.0001 par value                      16             16
     Additional paid-in capital                   1,079,190      1,024,630
     Retained earnings                              758,674        516,961
     Accumulated other comprehensive income           5,585          1,128
     Treasury stock                                (856,868)      (541,841)
                                              -------------  -------------

      Stockholders' equity                          986,597      1,000,894
                                              -------------  -------------

      Total liabilities and stockholders'
       equity                                 $   2,167,257  $   2,053,477
                                              =============  =============



                     PetSmart, Inc. and Subsidiaries
              Condensed Consolidated Statements of Operations
              (in thousands, except per share and store data)
                                (Unaudited)


                                Fourteen Weeks Ended  Thirteen Weeks Ended
                                --------------------  --------------------
                                 February 3,  % of     January 28,  % of
                                    2008      Sales       2007      Sales
                                -----------  -------  -----------  -------
Net sales                       $ 1,328,434    100.0% $ 1,166,909    100.0%
Cost of sales                       907,943     68.3%     782,675     67.1%
                                -----------  -------  -----------  -------
Gross profit                        420,491     31.7%     384,234     32.9%

Operating, general and
 administrative expenses            289,907     21.8%     255,521     21.9%
                                -----------  -------  -----------  -------
Operating income                    130,584      9.8%     128,713     11.0%

Gain on sale of investments               -      0.0%           -      0.0%
Interest expense, net               (14,381)    -1.1%      (8,745)    -0.7%
                                -----------  -------  -----------  -------
Income before income tax
 expense and equity in income
 from investee                      116,203      8.7%     119,968     10.3%

Income tax expense                  (40,881)    -3.1%     (43,021)    -3.7%
Equity in income from investee,
 net of tax                              78      0.0%           -      0.0%
                                -----------  -------  -----------  -------
Net income                      $    75,400      5.7% $    76,947      6.6%
                                ===========  =======  ===========  =======

Basic earnings per share        $      0.60           $      0.58
                                ===========           ===========
Diluted earnings per share      $      0.59           $      0.56
                                ===========           ===========

Weighted average shares
 outstanding - basic                126,134               133,188
Weighted average shares
 outstanding - diluted              128,867               136,928

                                -----------  -------  -----------  -------
Stores open at beginning of
 each period                            992                   887
Stores opened during each
 period                                  21                    22
Stores closed during each
 period                                  (5)                   (1)
Stores open at end of each
 period                               1,008                   908
                                -----------  -------  -----------  -------




                                  Fifty-three Weeks     Fifty-two Weeks
                                        Ended                 Ended
                                --------------------  --------------------
                                February 3,   % of    January 28,   % of
                                    2008      Sales       2007      Sales
                                -----------  -------  -----------  -------
Net sales                       $ 4,672,656    100.0% $ 4,233,857    100.0%
Cost of sales                     3,235,835     69.3%   2,926,087     69.1%
                                -----------  -------  -----------  -------
Gross profit                      1,436,821     30.7%   1,307,770     30.9%

Operating, general and
 administrative expenses          1,085,308     23.2%     985,936     23.3%
                                -----------  -------  -----------  -------
Operating income                    351,513      7.5%     321,834      7.6%

Gain on sale of investments          95,363      2.0%           -      0.0%
Interest expense, net               (44,683)    -1.0%     (31,717)    -0.7%
                                -----------  -------  -----------  -------
Income before income tax
 expense and equity in income
 from investee                      402,193      8.6%     290,117      6.9%

Income tax expense                 (145,180)    -3.1%    (105,048)    -2.5%
Equity in income from investee,
 net of tax                           1,671      0.0%           -      0.0%
                                -----------  -------  -----------  -------
Net income                      $   258,684      5.5% $   185,069      4.4%
                                ===========  =======  ===========  =======

Basic earnings per share        $      1.99           $      1.36
                                ===========           ===========
Diluted earnings per share      $      1.95           $      1.33
                                ===========           ===========

Weighted average shares
 outstanding - basic                129,851               135,836
Weighted average shares
 outstanding - diluted              132,954               139,537

                                -----------  -------  -----------  -------
Stores open at beginning of
 each period                            908                   826
Stores opened during each
 period                                 115                    92
Stores closed during each
 period                                 (15)                  (10)
Stores open at end of each
 period                               1,008                   908
                                -----------  -------  -----------  -------



                      PetSmart, Inc. and Subsidiaries
                Reconciliation of non-GAAP to GAAP Measures



                                        Quarter ended    Fiscal Year ended
                                      February 3, 2008   February 3, 2008
                                      -----------------  -----------------
                                                 (in millions)
GAAP Income before income tax
 expense and equity in income from
 investee                             $           116.2  $           402.2
Equine product line exit                            1.4               16.0
Gain on sale of MMIH stock                            -              (95.4)
53rd week                                         (16.0)             (16.0)
                                      -----------------  -----------------

Adjusted income before income tax
 expense and equity in income from
 investee                             $           101.6  $           306.8
                                      =================  =================

                                        Quarter ended    Fiscal Year ended
                                       February 3, 2008   February 3, 2008
                                      -----------------  -----------------

GAAP Diluted earnings per share       $            0.59  $            1.95
Equine product line exit                           0.01               0.07
Gain on sale of MMIH stock                            -              (0.48)
53rd week                                         (0.08)             (0.07)
                                      -----------------  -----------------
Adjusted Diluted earnings per share   $            0.52  $            1.47
                                      =================  =================