Bio in Season Three Edit
Penelope originally lived in Paris, France under the ownership of an unnamed mistress. At some point Penelope was kidnapped and forced to live in a circus under the custody of Basil and Cyril Circus. Her mistress had then moved to a new home and adopted a cat named Fifi as a replacement, but still mourned losing Penelope.
When Blinky and his friends first meet Penelope she is a rope-dancer in the Circus Bro's Circus. Blinky rescues her along with the other circus-animals and she travels with him around the world.
In "Diamonds Are Forever" the Circus Brothers steal her necklace (thanks to Tico) and she gets herself caught in an attempt to reclaim it, luckily Ling Ling brings it back (having fooled the brothers and Blinky into thinking she had thrown it into a stream).
In "A Dog's Best Friend" she finally returns to Paris and eventually finds her mistress, but her mistress has a cat now. She was originally going to trade her necklace to Maurice (a male poodle who is quite heartless himself) for a new home (believing her mistress doesn't miss her at all) but surrenders her necklace to the Circus brothers for Fifi and her Mistress gets her back, Blinky also returns the necklace after trading Cyril's teddy-bear for it and it was here that Penelope bids her rescuers farewell.