MINNEAPOLIS, Sept. 22 /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 British United
Provident Association (BUPA), the largest private health insurer in the United
Kingdom, will begin reimbursing providers using thermotherapy, such as the
company's Targis(TM) System, for the treatment of benign prostatic hyperplasia
(BPH).  BPH, commonly know as enlarged prostate disease, affects approximately
1.2 million men in the U.K.
    "BUPA's decision to reimburse for thermotherapy gives urologists the
opportunity to offer our Targis System to patients as an office-based
treatment alternative for BPH that has demonstrated in rigorous clinical
studies that it provides significant relief of BPH symptoms with little risk
of complications," said Jack Meyer, president and chief executive officer of
Urologix.  "This decision is particularly significant because it reverses
BUPA's previous position and authorizes reimbursement for thermotherapy for
BPH.  We believe this action is indicative of the high quality and integrity
of the Targis System clinical results, which were a factor in the decision
making process."
    The Targis System is a non-surgical, anesthesia-free, catheter-based
therapy that uses a proprietary microwave technology for the treatment of BPH.
Urologix has approval to market the Targis System in the 18 European Union
countries, Canada, Japan, and most recently, the U.S.  BUPA provides health
insurance for approximately 48 percent of patients in the U.K. who maintain
private health insurance.
    "Obtaining reimbursement has been a major part of our Targis System market
development activities in Europe," said Paul A. LaViolette, group president,
Nonvascular Businesses for Boston Scientific Corporation, Urologix's
distribution partner.  "This complements our previous reimbursement progress
in Germany and represents what we hope will be a trend throughout Europe in
securing reimbursement for the Targis System.  We are encouraged by BUPA's
recognition of the cost benefits of thermotherapy such as the Targis system,
and are excited about providing a less invasive, office-based solution to
urologists in the U.K. for their patients suffering from BPH."
    Urologix, Inc., based in Minneapolis, is engaged in the development of
minimally invasive medical products for the treatment of urological disorders.
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.
    Statements included in this press release that are not historical or
current facts are "forward-looking statements" made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
are subject to certain risks and uncertainties that could cause actual results
to differ materially.  These factors include: (1) competition from other
existing or new BPH treatments or devices; (2) the Company's ability to
successfully market its product in the United States through sales
representatives; (3) the ability of the Company's distributors to successfully
market and sell the Company's products in markets outside the United States;
(4) the Company's ability to successfully manufacture the Targis system in
sufficient quantities to meet future demand for the products (5) the extent to
which the physicians performing the Targis system procedures are able to
obtain third party reimbursement.

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