MINNEAPOLIS, SALT LAKE CITY, and LAKE FOREST, Ill., May 26 /PRNewswire/ --
Urologix, Inc. (Nasdaq: ULGX); BSD Medical Corp. (OTC Bulletin Board: BSDM);
and TherMatrx, Inc., jointly announced today that they have entered into a
Settlement Agreement resolving their current litigation, entitled:  Urologix,
Inc. v. BSD Medical Corp., et al. Case No. 4-96-647.
    Pursuant to the Settlement Agreement, Urologix has paid BSD and TherMatrx
a total of $5 million, the parties have executed mutual releases, and the
parties have jointly filed a Notice of Dismissal With Prejudice of the pending
litigation.  Under the terms of the Settlement, Urologix will maintain its
non-exclusive license to certain patents owned by TherMatrx and BSD pertaining
to transurethral insertable applicators and systems for the treatment of
benign prostatic hyperplasia (BPH) and other urological conditions.  The
non-exclusive license is now fully paid-up, irrevocable, perpetual, non-
cancelable, and non-terminable under all circumstances.
    Urologix, Inc., based in Minneapolis, develops, manufactures and markets
minimally invasive medical devices for the treatment of urological diseases.
BSD Medical Corp., based in Salt Lake City, Utah, is the leading developer and
manufacturer of hyperthermia systems for cancer therapy.  TherMatrx, Inc., a
Delaware corporation headquartered in Lake Forest, Ill., was formed by BSD and
Oracle Strategic Partners, L.P. of New York, N.Y. in November of 1997 to focus
on minimally invasive treatments of urological diseases, specifically benign
prostatic hyperplasia (BPH).

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