MINNEAPOLIS, Jan. 6 /PRNewswire/ -- Urologix, Inc. (Nasdaq: ULGX), a
rapidly emerging developer and marketer of minimally invasive medical products
for the treatment of urological disorders, announced today that the United
States District Court, for the District of Minnesota issued an order granting
BSD Medical Corporation's ("BSD") motion for partial summary judgment that
alleged Urologix breached the confidentiality provisions of a settlement
agreement between Urologix and BSD ("the BSD Settlement Agreement").  The
Court's Order granted BSD's motion that the confidentiality provision of the
BSD Settlement Agreement was breached by Urologix, but, in the company's view,
did not address other issues of the suit, including whether BSD was damaged by
the breach and whether the BSD Settlement Agreement remains in full force and
effect or has been terminated.  Urologix has requested status conference with
the Court to clarify issues remaining for trial and is currently evaluating
its litigation and appeal options.  Because the lawsuit is under seal by the
Court, further details regarding the motion or order cannot be disclosed.
    The motion for partial summary judgment stemmed from a July 1996 lawsuit
filed by the company under seal in United States District Court for the
District of Minnesota against BSD to enforce the terms of the BSD Settlement
Agreement, which includes a patent license for certain patents owned by BSD.
The company chose to enter into the BSD Settlement Agreement in 1994 to
resolve a patent infringement suit that BSD initiated in 1992.  In June 1996,
BSD accused the company of breaching a confidentiality provision of the BSD
Settlement Agreement, and notified the company that BSD was terminating the
BSD Settlement Agreement.  The company initiated a lawsuit against BSD seeking
a declaratory judgment that the company had not breached the confidentiality
provision of the BSD Settlement Agreement, and that the BSD Settlement
Agreement remained in full force and effect.  BSD answered the company's
complaint and counterclaimed for a declaratory judgment of breach and
termination of the BSD Settlement Agreement.  The Court's Order was in
response to motions for partial summary judgment filed by BSD and Urologix.
    Urologix disagrees with the Court's decision and continues to believe that
it has fully complied with the BSD Settlement Agreement and that the BSD
Settlement Agreement remains in full force and effect.  The company intends to
continue complying with the BSD Settlement Agreement pending final resolution
of all issues relating to this lawsuit.  The lawsuit is currently scheduled to
go to trial on or after Feb. 16, 1998.
    Although the company continues to believe that it did not violate the
terms of the BSD Settlement, there can be no assurance that the District
Court's finding that the company breached the BSD Settlement Agreement will
not enable BSD to terminate the BSD Settlement Agreement.  Nor can there be
assurance that the Court's finding will be reversed on appeal.  A final
resolution of the lawsuit in favor of BSD could result in patent litigation
against the company.  The company believes that the patent that was the
subject of the previous litigation between the company and BSD is invalid,
unenforceable and not infringed by the company's product.
    Certain statements in this press release that relate to future performance
of the company are "forward-looking" and are subject to risks and
uncertainties inherent in the company's business.  These risks and
uncertainties include: competition from other BPH treatments; the ability of
the company's distributors and representatives to successfully market and sell
the Targis System; the company's ability to manufacture the Targis Systems in
sufficient quantities; the company's ability to maintain intellectual property
protection for its proprietary products and to defend its existing
intellectual property rights from challenges by third parties; and the extent
to which the physicians performing the Targis System procedures are able to
obtain third-party reimbursement.  In addition, a detailed discussion of risks
and uncertainties may be found in the Risk Factors section of the company's
Prospectus dated November 12, 1997.
    Urologix, Inc., based in Minneapolis, develops, manufactures and markets
minimally invasive medical devices for the treatment of urological diseases.
The company has developed the Targis System, a non-surgical, anesthesia-free,
catheter-based therapy that uses a proprietary microwave technology for the
treatment of benign prostatic hyperplasia (BPH), a disease that affects over
23 million men worldwide.  The Targis System has been approved for marketing
in the United States, the European Union, Japan and Canada.

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