Urologix Announces Restructuring of Payment Obligations to Medtronic and Reports Preliminary Fiscal Year 2013 Revenue and Cash

Urologix Announces Restructuring of Payment Obligations to Medtronic and
Reports Preliminary Fiscal Year 2013 Revenue and Cash Results

MINNEAPOLIS, July 1, 2013 (GLOBE NEWSWIRE) -- Urologix®, Inc. (OTCQB:ULGX),
the leading provider of in-office BPH therapy, announces the restructuring of
payment obligations to Medtronic related to the licensing agreement with
Medtronic for the Prostiva® Radio Frequency (RF) Therapy System and reports
preliminary revenue and cash results for its fourth quarter and fiscal year
2013 ended June 30, 2013.

Restructuring of Payment Obligations to Medtronic

The terms of the restructuring agreement focus on the Company's payment
obligations to Medtronic related to the Company's exclusive licensing
agreement of Prostiva.These obligations totaled $7.5M covering all
outstanding inventories payable to Medtronic, the second tranche of $500,000
for the initial licensing fee, other transition expenses and the first year
royalties on the product sold.Under the original terms of the licensing
agreement, approximately $6.2 million of the total was due as of June 30,
2013. Effective as of the closing date of the restructuring agreement, the
Company made a cash payment to Medtronic of approximately $2.0 million.
Additionally, the Company entered into a promissory note totaling
approximately $5.3 million and bearing interest at a rate of 6% compounded
annually. The approximately $2.0 million cash payment and issuance of the
promissory note settle the outstanding $7.5 million in obligations to
Medtronic mentioned above.The note requires repayment in five equal
installments of principal, plus accrued interest beginning March 31, 2015 and
annually thereafter through March 31, 2019. The note is secured by a
subordinated security interest on all assets, excluding intellectual property,
second in priority to the security interest of Silicon Valley Bank. The
restructuring agreement also includes amendments to the pre-existing
obligations related to the royalty rate to be paid and the timing of the
annual minimum royalty payment. These royalty adjustments do not increase the
maximum payments of $10 million under the existing license agreement.

Preliminary Fiscal Year 2013 Revenue and Cash Results

Fourth quarter fiscal year 2013 revenue totaled approximately $4.2 million, up
approximately 2.5% sequentially from the third quarter of fiscal year 2013 and
down approximately 7% compared to the fourth quarter of fiscal year
2012.Fiscal year 2013 revenue totaled approximately $16.6 million, down
approximately 3% year-over-year, and in-line with the Company's fiscal year
guidance range of $16 million to $17 million. As of June 30, 2013, the
Company's cash balance was approximately $2.3 million compared to $5.1 million
as of March 31, 2012.This amount includes the impact from the $2.0 million
payment to Medtronic described above which was made on June 28^th upon signing
of the restructuring agreement.The restructuring does not impair the
Company's ability to access its existing $2 million line of credit currently
in place with Silicon Valley Bank, which has not yet been drawn upon.

"We are encouraged by the improved financial flexibility this restructuring
provides.Lowering the immediate cash obligation due at fiscal year-end and
extending the balance of payables due thereafter at a modest interest rate
provides us the opportunity to allocate our resources towards our strategic
initiatives in growing the in-office BPH market," stated Greg Fluet, CEO.
"Medtronic's willingness to restructure these payments demonstrates
Medtronic's continued support of the Company and the broader urology

"We are also pleased to report our preliminary revenue for fiscal year 2013
which was in-line with our guidance range of $16 million to $17 million.The
cash on the balance sheet combined with our available credit facility provides
us the financial means to continue to execute against our strategic plan. We
look forward to providing further detail on our fourth quarter and fiscal year
performance on our earnings conference call scheduled for August 20th."

The preliminary unaudited results for the fourth quarter and fiscal year 2013
are subject to the Company's management and independent auditors' customary
audit procedures, which will include testing the Company's goodwill and
intangible assets for potential impairment given significant decline in the
Company's market capitalization. At this time, the Company has not yet
completed analysis sufficient to determine whether its goodwill or intangible
assets are impaired or, if impairment does exist, the amount of any impairment
charge. The Company intends to issue a press release reporting final results
of operations for the quarter and fiscal year ending June 30, 2013 after the
market close on August 20, 2013, with its conference call scheduled for 4:00
p.m. CDT on August 20, 2013.

Earnings Call Information

Urologix will host a conference call with the financial community to discuss
fiscal year 2013 fourth quarter results on Tuesday, August 20, 2013 at 4:00
p.m. Central Daylight Time.To listen to the call, please dial 1-877-703-6103
and enter the Participant Passcode 11902670 at least 10 minutes prior to the
call.A live webcast of the call will be available through the investor
relations section of the Company's website at www.urologix.com and available
for replay approximately two hours after the completion of the call.

About Urologix

Urologix, Inc., based in Minneapolis, develops, manufactures, markets and
distributes minimally invasive medical products for the treatment of
obstruction and symptoms due to Benign Prostatic Hyperplasia (BPH). Urologix'
Cooled ThermoTherapy™ produces targeted microwave energy combined with a
unique cooling mechanism to protect healthy tissue and enhance patient
comfort. The Prostiva® RF Therapy System delivers radio frequency energy
directly into the prostate destroying prostate tissue, reducing constriction
of the urethra, and thereby relieving BPH symptoms. Both of these therapies
provide safe, effective and lasting relief of the symptoms and obstruction due
to BPH.Prostiva® is a registered trademark of Medtronic, Inc., used under
license. All other trademarks are the property of Urologix.

If you'd like more information on this topic, please contact Brian Smrdel at
(763) 475-7696 or bsmrdel@urologix.com or to learn more about Urologix and its
products and services, visit their website at www.urologix.com.

The Urologix, Inc. logo is available at

Forward Looking Statements

This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Any statements contained in this press release that are not
statements of historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, words such as "may," "will," "expect,"
"believe," "anticipate," "estimate" or "continue" or comparable terminology
are intended to identify forward-looking statements. Such forward looking
statements include, for example, statements about the effectiveness of the
Company's sales and marketing strategies and organization, including growth of
the in-office BPH market; the Company's estimates of fourth quarter and fiscal
year 2013 revenue and cash balance at June 30, 2013, which are subject to
audit and potential adjustment; the possibility of an impairment charge
relating to the Company's goodwill and intangible assets, which may negatively
impact the Company's results of operations, financial position or market price
of its common stock;the availability of borrowing on the Company's line of
credit with Silicon Valley Bank; the Company's future revenue and operating
performance; or about the development and marketing of new products. The
statements made by the Company are based upon management's current
expectations and are subject to certain risks and uncertainties that could
cause the actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties include market
conditions and other factors beyond the Company's control and the risk factors
and other cautionary statements described in the Company's Annual Report on
Form 10-K for the year ended June 30, 2012 and other documents filed with the
Securities and Exchange Commission.

CONTACT: Urologix Investor Relations Contact
         Brian Smrdel
         (763) 475-7696
         Urologix Media Contact
         Karen Jackson
         (513) 484-2987

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