Urodynamix Technologies Ltd. Reports Fiscal 2009 Second Quarter Results

VANCOUVER, BRITISH COLUMBIA, Aug 27 (MARKET WIRE) --
Urodynamix Technologies Ltd. (TSX VENTURE: URO) today reported its
financial results for its fiscal second quarter ended June 30, 2009. The
Company reported revenues of $21,871, a 70% decrease over the same
quarter of the prior year. The Company's order backlog at June 30, 2009
was $92,576 compared to nil at the end of the comparative quarter June
30, 2008.

The decrease in revenue resulted from not being able to finalize
contracts with new distributors for the uroNIRS 2000 initially targeted
for completion during the quarter. "Although the Company made significant
progress in the expansion of its worldwide distribution, the Company was
not able to complete these new agreements in the second quarter. The
results for the quarter are below our expectations and we have taken
steps to get the sales of uroNIRS back on target including changes in
personnel and the re-alignment of duties. Notwithstanding these results,
customer and dealer feedback remains encouraging and new sales activities
are already showing results. Management is confident that the expansion
of its distribution channels can and will proceed as planned with this
new and enhanced sales infrastructure.

In addition to continued efforts to expand worldwide distribution and an
increased focus and resources for sales in the US market, we have also
made material reductions to our infrastructure costs, allowing us to
reduce our net cash burn. These cost reductions were implemented in all
departments and at all levels throughout the Company including a
voluntary reduction in executive compensation. We believe these
activities will allow us to secure the necessary short term financing to
allow us to achieve our revenue and earnings targets. The Company retains
its confidence in the uroNIRS technology and remains focussed on its
successful worldwide launch," stated Barry Allen, President and CEO of
Urodynamix Technologies Ltd.

Gross margin at 66.1% of revenue increased from 51.8% of revenue for the
comparative quarter ended June 30, 2008. Expenses for the three months
ended June 30, 2009 were $877,498 compared to $893,858 for the
comparative quarter of the prior year, a decrease of $16,360. The
increase in sales and marketing, to support the introduction of the
uroNIRS 2000 was offset by a decrease in research and development
expenses. Administrative expenses at $361,562 are comparable to the same
period of the prior year.

The net loss for the quarter ended June 30, 2009 was $909,934 or $0.01
per share basic and diluted, as compared to a net loss of $846,400 or
$0.01 per share basic and diluted for the quarter ended June 30, 2008.
The increase in the loss was due to the decrease in sales in the quarter
and a $47,018 foreign exchange loss on revaluation of US dollar assets
and liabilities at June 30, 2009.

As of June 30, 2009, the Company had cash and cash equivalents of
$575,027, is a decrease from $2,262,794 at December 31, 2008. Working
capital at June 30, 2009 was $505,289 and the Company remains debt free.
The Company has taken steps to reduce its monthly cash burn to
approximately $150,000 per month and management is actively seeking new
financing.

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.

The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.

Contacts:
Urodynamix Technologies Ltd.
Jonathan Jackson CA
Chief Financial Officer
(604) 638-0248
jjackson@urodynamix.com
www.urodynamix.com

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