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PETCO Animal Supplies, Inc. , headquartered in San Diego, today announced that it has acquired property that more than doubles the size of its national headquarters campus, building on its commitment to and investment in San Diego.

"PETCO has been a part of the San Diego community for nearly four decades, growing from our first store in La Mesa to now more than 20 throughout the area," said James Myers, PETCO Executive Vice President and Chief Financial Officer. "Expanding our office campus with additional land and office buildings adjacent to our existing national support center offices reflects our continued success and growth. We looked at other potential sites, but elected to stay within the San Diego city limits. This demonstrates our long- term commitment to San Diego," Myers added.

PETCO currently operates more than 600 stores in 43 states and the District of Columbia and plans to add about 60 stores per year as it continues to build what is currently expected to be a total of approximately 1,250 stores in the United States.

The real estate deal involves acquiring about 9 acres of land and two existing, two-story buildings with approximately 86,000 square feet of space at 8945 Rehco Road in the Sorrento Mesa area for approximately $14 million from Carroll Canyon Properties, Ltd.

In addition to the existing two buildings, PETCO intends to design and construct a third office building on the property with a parking structure. With this future expansion, PETCO would have approximately 250,000 square feet of office space in its national support center campus on nearly 20 acres. Final design of the project is subject to city approvals, which PETCO anticipates receiving.

PETCO employs approximately 1,200 people in the San Diego area with about half of those working in the company's national support center.

Recently, the national premium pet food and supplies specialty retailer which has called San Diego home since opening its first store in 1965 in La Mesa, announced a naming rights deal with the San Diego Padres. That 22-year multi-million dollar agreement calls for the Padres new downtown ballpark to carry the name PETCO Park. PETCO Park will open in April 2004.

Another part of PETCO's commitment to the San Diego community, in addition to PETCO Park, is its long-standing support of local animal welfare organizations. The company and its non-profit PETCO Foundation have provided more than $4 million to support San Diego groups that focus on companion animal adoption and spay and neuter programs, among other things. This supports spans more than 30 years.

PETCO is a leading specialty retailer of premium pet food and supplies, with a commitment to quality animal care and education. PETCO's strategy is to offer its customers a complete assortment of pet-related products and services at competitive prices, with superior levels of customer service at convenient locations, by hiring pet lovers and training them to become counselors to their pet-loving customers. PETCO generated net sales of $1.5 billion in the fiscal year ended February 1, 2003. In addition to operating more than 600 neighborhood stores in 43 states and the District of Columbia, it is also a leading destination for on-line pet food and supplies at www.petco.com. The PETCO Foundation, PETCO's non-profit organization, has raised more than $12 million since inception in 1999. More than 1,500 non-profit grassroots animal welfare organizations from around the nation have received support from the Foundation.

SOURCE: PETCO Animal Supplies, Inc.