Exhibit 99.1



# FOR IMMEDIATE RELEASE

|Contacts: |  | Urologix:
Fred B. Parks, Chairman and CEO
Todd E. Paulson, CFO
(763) 475-1400
|--------- |  | -----------------------------------------------------------------------------

# UROLOGIX REPORTS FISCAL FOURTH QUARTER AND 2004 FULL-YEAR RESULTS

# Fiscal 2004 Revenue Increases 30 Percent; Company Reports First Annual Profit

MINNEAPOLIS 
August 9, 2004  Urologix®, Inc. (NASDAQ:ULGX  news), today reported financial results for the
fiscal fourth quarter and year ended June 30, 2004, and provided financial guidance for fiscal 2005.

Fourth-quarter
revenue rose 35 percent to nearly $7.0 million from $5.2 million in the same period last year. Sales of treatment
catheters drove the growth and accounted for more than 94 percent of revenue in the just completed quarter, compared to
88 percent of revenue in the prior year period. Net earnings for the quarter were $837,000, or $0.06 per diluted share,
compared to a net loss of $3.7 million, or $0.27 per share, for the fiscal fourth quarter of 2003. The fiscal 2003
fourth quarter results included a $610,000 charge to cost of goods sold for a lower-of-cost or market write-down of
control unit inventory and a $1.3 million restructuring charge.

Annual revenue for
fiscal 2004 increased 30 percent to $24.3 million from $18.8 million in fiscal 2003. Net earnings for fiscal 2004
reached $642,000, or $0.04 per diluted share, compared to a net loss of $10.0 million, or $0.72 per share, in fiscal
2003.

We are proud
to announce another quarter of solid financial performance, which has culminated in the first profitable year in
Urologix history, said Fred B. Parks, Chairman and Chief Executive Officer of Urologix. Our financial
results have improved steadily over the past year, and affirm that physicians and patients are recognizing the benefits
of Cooled ThermoTherapy for the treatment of BPH.

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Urologix, Inc.
August 9, 2004
Page 2

Gross profit for
the quarter improved to 69 percent of revenue, from 46 percent in the same period last year. Fourth quarter operating
expenses declined to $4.0 million, or 58 percent of revenue, from $6.1 million, or 119 percent of revenue, in the prior
year period. For the fiscal year, gross profit improved to 65 percent of revenue, from 58 percent in fiscal 2003. Fiscal
2004 operating expenses decreased to $15.2 million, or 62 percent of revenue, from $21.0 million, or 112 percent of
revenue, in fiscal 2003. The fiscal 2003 fourth quarter and annual gross profit and operating expenses were impacted by
the inventory write-down and restructuring charge, respectively, described above.

Balances of cash
and available-for-sale investments rose to $7.6 million at June 30, 2004, from $5.6 million at March 31, 2004 and $4.6
million at June 30, 2003. In the fourth quarter, $782,000 of proceeds from stock option exercises favorably impacted the
June 30, 2004 cash balance. The domestic installed base of Cooled ThermoTherapy system control units reached 427 units
at June 30, 2004, up sequentially from 414 units at March 31, 2004, and up from 381 units at June 30, 2003.

# Fourth Quarter Highlights

In May, at the
American Urological Association annual meeting, physicians presented results from a one-year multi-center trial
evaluating treatment with Cooled ThermoCath®, the Companys most advanced catheter technology. The
investigators concluded that treatment with the Cooled ThermoCath provides clinical outcomes similar to Urologix
Targis® treatment but in less than 30 minutes and with improved patient comfort. In the study, 70
patients were treated at five leading U.S. medical centers.

Urologix joined the
Russell 3000® Index mid-year and is automatically included in the small-cap Russell 2000®
Index for one year. Russells U.S. equity indexes are widely used by managers for index funds and as benchmarks for
both passive and active investment strategies.

# Outlook

The company
anticipates fiscal 2005 annual revenues of $30 million to $32 million, a 23 percent to 32 percent increase over fiscal
2004, and diluted earnings per share of $0.20 to $0.26 per share. The fiscal 2005 guidance includes an incremental $1
million investment in research and development from fiscal 2004 levels, and assumes an income tax rate of 5 percent for
fiscal 2005. Parks commented, Record revenue, consecutive profitable quarters, and now our first profitable year
all validate the momentum of our strategy. Our commitment to improving patient outcomes will benefit from the increased
technology investment in fiscal 2005.

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Urologix, Inc.
August 9, 2004
Page 3

# Earnings Call Information

Urologix will host
a conference call with the financial community to discuss fourth quarter and full year results and the business outlook
for fiscal 2005 on Tuesday, August 10, at 10:00 a.m. Central Time. Those interested in listening can log on at
www.urologix.com.

# About Urologix

Urologix, Inc.,
based in Minneapolis, develops, manufactures and markets minimally invasive medical products for the treatment of
urological disorders. The Company has developed and offers non-surgical, anesthesia-free, catheter-based treatments that
use a proprietary cooled microwave technology for the treatment of benign prostatic hyperplasia (BPH), a condition that
affects more than 23 million men worldwide. Urologix markets its products under the Targis® and
Prostatron® names. Both systems utilize Cooled ThermoTherapy  targeted microwave energy
combined with a unique cooling mechanism to protect healthy tissue and enhance patient comfort  and provide safe,
effective, lasting relief of the symptoms of BPH.

Certain statements
in this news release contain forward-looking information. Actual results may vary significantly from those anticipated
in these forward-looking statements due to risks and uncertainties, including the rate of adoption of Cooled
ThermoTherapy by the medical community; the ability of third-party suppliers to produce and supply products; the impact
of competitive treatments, products and pricing; the development and effectiveness of the Companys sales
organization and marketing efforts; developments in the reimbursement environment for the Companys products
including the determination of reimbursement rates for Cooled ThermoTherapy (transurethral microwave thermotherapy); the
Companys ability to successfully defend its intellectual property against infringement and the cost and expense
associated with that effort; and other risks, including those set forth in the Companys reports filed with the
Securities and Exchange Commission, including its Annual Report on Form 10-K.

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Urologix, Inc.
August 9, 2004
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# UROLOGIX, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)

|                                  | For theThree Months EndedJune 30, |  | For the12 Months EndedJune 30,
|--------------------------------- | --------------------------------- |  | ------------------------------
|
|Sales                             |                                   |  | $                             
|Cost of goods sold                |                                   |  |                               
|                                  |                                   |  |                               
|Gross profit                      |                                   |  |                               
|                                  |                                   |  |                               
|Costs and expenses:               |                                   | 
|Selling, general and              |                                   | 
|administrative                    |                                   |  |                               
|Research and development          |                                   |  |                               
|Amortization of intangibles       |                                   |  |                               
|Restructuring                     |                                   |  |                               
|                                  |                                   |  |                               
|Total costs and expenses          |                                   |  |                               
|                                  |                                   |  |                               
|Operating earnings (loss)         |                                   |  |                               
|Interest income, net              |                                   |  |                               
|                                  |                                   |  |                               
|Net earnings (loss)               |                                   |  | $                             
|                                  |                                   |  |                               
|Basic net earnings (loss) per     |                                   | 
|common share                      |                                   |  | $                             
|                                  |                                   |  |                               
|Diluted net earnings (loss) per   |                                   | 
|common share                      |                                   |  | $                             
|                                  |                                   |  |                               
|Weighted average number of shares |                                   | 
|used in basic per share           |                                   | 
|calculations                      |                                   |  |                               
|                                  |                                   |  |                               
|Weighted average number of shares |                                   | 
|used in diluted per share         |                                   | 
|calculations                      |                                   |  |                               
|                                  |                                   |  |                               

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Urologix, Inc.
August 9, 2004
Page 5

# UROLOGIX, INC.
Selected Balance Sheet Data
(Unaudited, in thousands)

|                                        | June 30,2004 |  | June 30,2003
|--------------------------------------- | ------------ |  | ------------
|Cash and available for sale investments |              |  | $           
|Accounts receivable                     |              |  |             
|Inventory                               |              |  |             
|Current assets                          |              |  |             
|Total assets                            |              |  |             
|Current and total liabilities           |              |  |             
|Shareholders equity                    |              |  |             

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