Urologix Announces Strategic Restructuring, Reports Preliminary Revenue and Cash Results for the Second Quarter of Fiscal Year

Urologix Announces Strategic Restructuring, Reports Preliminary Revenue and
Cash Results for the Second Quarter of Fiscal Year 2014

  *Second quarter revenue totaled $3.8 million, up 1% sequentially
  *Cash balance of $1.3M as of December 31, 2013

MINNEAPOLIS, Jan. 8, 2014 (GLOBE NEWSWIRE) -- Urologix®, Inc. (OTCQB:ULGX),
the leading provider of in-office procedures for the safe, durable and
effective treatment of BPH, today announced a strategic restructuring of its
organization and reported preliminary financial results for its fiscal year
2014 second quarter ended December 31, 2013.

Strategic Restructuring of Sales and Operating Infrastructure

The strategic restructuring is designed to refocus the allocation of resources
and improve Company profitability. The restructuring includes both a
reorganization of the Company's operating groups and the deployment of a more
focused sales team structure. All affected employees have been notified. The
Company estimates that as a result of this program, it will be able to reduce
pre-tax operating expenses by more than $1.5 million annually, beginning in
the third quarter of fiscal year 2014.

The deployment is designed to focus our field sales and mobile organization on
the Company's strongest urology partners. These accounts, together, represent
approximately 90% of US Company revenue and have demonstrated improving trends
in recent years. Importantly, we have also dedicated resources in our inside
sales and customer service roles to provide continuing support to all current
customers by leveraging the combined resources of this sales-support group.

"This new organizational structure marks an important step towards
repositioning Urologix for future growth and sustainability," stated Greg
Fluet, Chief Executive Officer. "In addition to refocusing our resources on
our strongest urology partners, we believe these measures will lead to a more
cost effective sales and operating infrastructure. Importantly, by leveraging
our well-established, multi-tiered, distribution model, we expect to maintain
our market-leading service levels throughout our existing account base of
urologist practices. We expect this program to make the Company stronger and
to drive improving profitability and shareholder value going forward."

Preliminary Revenue and Cash Results for the Second Quarter of Fiscal Year
2014

Second quarter fiscal year 2014 revenue totaled $3.8 million, up 1% compared
to the first quarter of fiscal year 2014 and down 13% compared to the prior
year's results. Cash balances at the end of the second fiscal quarter totaled
$1.3 million.

The preliminary unaudited results for the second quarter fiscal year 2014 are
subject to the Company's management and independent auditors' customary review
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 ending December 31, 2013 after the market close on
February 4, 2014, with its conference call scheduled for 4:00 p.m. CST on
February 4, 2014.

Outlook

As of the result of the strategic restructuring, the Company has elected to
withdraw its previously issued fiscal year 2014 revenue guidance.

Earnings Call Information

Urologix will host a conference call with the financial community to discuss
fiscal year 2014 second quarter results on Tuesday, February 4, 2014at4:00
p.m. Central Standard Time. To listen to the call, please dial 1-800-688-0836
and enter the Participant Passcode 89504173 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 atwww.urologix.comand 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
www.urologix.com/clinicians/resource-library.php.

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, the effectiveness of the Company's sales and
marketing strategies and organization, the Company's future revenue and
operating performance, the development and marketing of new products, the
timing or payment of any amounts to Medtronic, or the availability of
borrowing under the line of credit with Silicon Valley Bank. 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, 2013 and other documents filed with the Securities and Exchange
Commission.

CONTACT: Urologix Media Contact
         Karen Snay
         (513) 484-2987
         KSnay@urologix.com
        
         Urologix Investor Relations Contact
         Brian Smrdel
         (763) 475-7696
         Bsmrdel@urologix.com

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