Hartville Group, Inc. Receives $2 Million of Funding

Hartville Group, Inc., a provider of health insurance plans for domestic pets, recently announced that it has successfully obtained $2 million in funding from existing investors. The funding provides Hartville with additional financial flexibility to continue to execute the strategic growth initiatives begun in the 3^rd quarter of 2006.

Effective September 17, 2007, The Company received $2 million in funding through the issuance of $2,531,646 of Original Issue Discount Secured Convertible Debentures due September 2010 in order to provide additional working capital. These Debentures can be converted into the Companys common stock at a conversion price of $0.15 per share and bear prepaid interest at an annualized rate of 7% ($531,646). The company also issued warrants to purchase 16,877,638 shares of common stock at an exercise price of $0.15 per share. The warrants expire in September 2011. The Convertible Debentures and warrants include demand registration rights which require the Company to file a registration statement with respect to the resale of the shares which may be issued upon conversion of the Debentures or the exercise of the warrants by investors.

Dennis Rushovich, Chief Executive Officer of Hartville, commented, We are very pleased to have obtained this financing from existing shareholders, as it demonstrates their continued confidence in our growth strategy and our ability to execute these plans. As we announced in August, as of June 30, 2007, we had increased our total number of pets insured by approximately 100% versus the previous year, from 26,055 as of June 30, 2006, to 50,368 as of June 30, 2007. The additional capital we have just received will provide us with resources to continue consistent additions of pets to our policy base.

Hartville Group, Inc. is a holding company whose wholly owned subsidiaries include Hartville Re Ltd. (Hartville) and Petsmarketing Insurance.com Agency, Inc. (the Agency). Hartville is a reinsurance company that is registered in the Cayman Islands, British West Indies. Hartville was formed to reinsure pet health insurance that is being marketed by the Agency. The Agency is primarily a marketing/administration company concentrating on the sale of its proprietary health insurance plans for domestic pets. Its business plan calls for introducing its product effectively and efficiently through a variety of distribution systems. The Company accepts applications, underwrites and issues policies.

For more information, please visit www.hartvillegroup.com