We investigate discrete and continuum excitation of the Ps atom in Ps-H-2 scattering in the framework of the first Born approximation (FBA) using direct interactions. We report target elastic total cross sections as well as angle integrated cross sections for the discrete and continuum excitations of the Ps atom in the energy range 7-150 eV. The continuum excitation of the Ps atom is identified as the channel responsible for the experimental peak observed by Garner and Laricchia [Proc. Positron Workshop '95, Can. J. Phys., in press].