MINNEAPOLIS, Jan. 13 /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 it received a
letter from the United States District Court for the District of Minnesota
regarding the company's request to clarify issues relating to its litigation
with BSD Medical Corporation ("BSD").  The Court's letter confirmed the
company's interpretation that the Court's recent order did not take a position
as to whether BSD is entitled to the remedy of termination of a settlement
agreement between the company and BSD (the "BSD Settlement Agreement").
    Remaining issues in the lawsuit, such as whether BSD is entitled to any
damages or whether BSD is entitled to a remedy of termination will be
determined at trial.  The company continues to believe it did not breach the
confidentiality provision of the BSD Settlement Agreement that the company,
has not caused any damage to BSD and that BSD has no basis for attempting to
terminate the BSD Settlement Agreement.  The lawsuit is currently scheduled to
go to trial on or after February 16, 1998.  Because the lawsuit is under seal
by the Court, further details regarding the order cannot be disclosed.  See
the company's press release of January 6, 1998 for background information
concerning this lawsuit and the Court's recent order.
    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 Urologix, Inc. 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.
    To receive Urologix, Inc.'s latest news release and other corporate
documents, free of charge via fax, simply dial 1-800-PRO-INFO.  Use company
ticker ULGX.

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