There are Cats in This Book by Viviane Schwarz (2008)

If you want an interactive picture book where the kids are part of the story, There are Cats in this Book  by Viviane Schwarz is the perfect book for you! Kids will come alive when they meet the 3 cats who live in the book, Moonpie, Tiny and Andre.  The friendly cats ask the readers to come play with them and as the story goes on the readers will get to have some fun adventures with the 3 kitties. Children will want to read the book over and over and this leads to great print motivation as children are asked to turn pages, throw yarn and even blow dry the cats. Kids will also get a dose of narrative skills as great conversations can be had around what the cats have gotten themselves into and what will happen next.  Perfect for storytime or one on one lap time, children will thoroughly enjoy the flow of the book and the excitement that happens throughout.

- Diana Stubee

I second this recommendation.  This is the most fun I've had with a storytime book in a while.  There is so much you can do interactively with kids.  I've read it to at least 12 or 15 groups over the past couple months and it can be different every time, depending on what questions you ask as you read.  It's great to recommend this one to parents because you really can't read it without getting the kids involved too.

- Steven Engelfried