URO Urodynamix Technologies Ltd.

Urodynamix Technologies Ltd. (TSX VENTURE:URO) today reported its financial
results for its fiscal third quarter ended September 30, 2009. The Company
reported a loss of $638,287 or $0.01 per share basic and diluted compared to a
loss of $737,341or $0.01, basic and diluted, for the comparative quarter of the
prior year. Revenue for the quarter ended September 30, 2009 at $15,285,
decreased 55% over the same quarter of the prior year. The Company's order
backlog at September 30, 2009 was $84,845 compared to nil at the end of the
comparative quarter September 30, 2008.


The Company continues to experience higher than expected resistance to the
adoption of its new technology by urologists related to the uncertainty
surrounding healthcare reform and physician reimbursement across all sectors of
the healthcare system including urology. As a result revenue for the current
quarter and the year to date is significantly below plan. The Company continues
to strategically market its devices in the US and expand its distribution
resources to offset this ongoing challenge. "While we are disappointed with the
results we remain confident in the value and opportunity for the NIRS
technology. We continue to adapt and review our sales and marketing strategy in
light of this challenging environment and we are optimistic that our efforts in
international markets will bear fruit in the near term." said Barry Allen,
President and Chief Executive Officer of Urodynamix Technologies Ltd. 


Gross margin at 83.3% of revenue increased from 68.3% of revenue for the
comparative quarter ended September 30, 2008 due to the recognition of license
revenue that has no corresponding cost of sales. Expenses for the three months
ended September 30, 2009 were $643,866 compared to $725,602 for the comparative
quarter of the prior year, a decrease of $81,736. The decrease in research and
development expenses, due to the narrowing of the Company's research and
development focus, was offset by an increase in sales and marketing expenses to
support the introduction of the uroNIRS 2000. Administrative expenses at
$324,154 increased $62,166 due to expenses associated with investor relations
and the non-brokered private placement that closed September 25, 2009. The
Company also recorded $20,909 in bad debt expense in the quarter resulting from
a pricing concession provided to its distributor Medical Measurement Systems
B.V. The Company will continue to take steps to lower its monthly cash burn
including the reduction of additional headcount. The Company's research and
development focus will continue to be the uroNIRS 2000 product and the
transurethral microwave treatment (TUMT) project.


As of September 30, 2009, the Company had cash and cash equivalents of
$1,333,014 compared to $2,262,794 at December 31, 2008. Working capital at
September 30, 2009 was $1,358,402 and the Company remains debt free. The Company
will continue to take steps to reduce its monthly cash burn. 


About Urodynamix Technologies Ltd.

Urodynamix Technologies Ltd. is a Canadian medical device company developing and
commercializing non-invasive medical technology based on proprietary
applications of near-infrared spectroscopy (NIRS). The Company is currently
focused on products that aid in the diagnosis and treatment of urinary
incontinence, lower urinary tract symptoms, prostate cancer, benign prostatic
hyperplasia, and traumatic increases in intra-abdominal pressure that cause
abdominal compartment syndrome. Urodynamix's breakthrough medical technology has
the potential to beneficially affect more than 200 million people worldwide.


Certain information contained in this press release may be forward-looking and
is subject to unknown risks, which could cause actual results to differ
materially from those set forth or implied herein. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove correct.

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