##### 



Exhibit 99.1 NEWS RELEASE UROPLASTY, INC. REPORTS
FIRST QUARTER FINANCIAL RESULTS ENDING
JUNE 30, 2004 Monday, August 23, 2004 MINNEAPOLIS, MN  Uroplasty, Inc. (OTC: UPST  news) reports its worldwide
financial results for the first quarter ended June 30, 2004. Net Sales: In the first quarter ended June 30, 2004, net sales of all products
were $1,752,496, representing a $392,907 or 29% increase when compared to net
sales of $1,359,589 for the first quarter ended June 30, 2003. Excluding
fluctuations in foreign currency exchange rates, there was a sales increase of
approximately 20%. Management believes the increase in sales is related to the
impact of the hiring of experienced sales directors and representatives, and
their focus of initiating sales plans to increase our market share within the
global distributor markets and to increase sales penetration to surgeons in our
direct market in the United Kingdom. The Macroplastique product line accounts
for 79% and 84% of total net sales during the periods presented. Gross Profit: Gross profit was $1,288,938 and $962,618 for the quarter ended
June 30, 2004 and 2003, respectively, or 74% and 71% of net sales. Gross profit
in any one period is highly variable depending on unit sales and utilization of
manufacturing capacity. Historically, the gross margin percentage has varied
between approximately 70-80% of net sales. General and Administrative Expense: General and administrative (G&A) expenses
decreased from $467,229 during the first quarter of fiscal 2004 to $391,112
during the first quarter of fiscal 2005. Decreased consulting fees and
shareholders expense, offset by increased salary costs, combined with general
price increases and fluctuations in foreign currency exchange rates caused the
decrease in G&A expenses. The consulting fees and shareholder expenses relate
to the consulting agreements with the Executive Advisory Group (EAG) to perform
services for and on behalf of the Company and the consulting agreement with
CCRI Corporation to provide investor relations and development services. Research and Development Expense: Research and development (R&D) expenses
increased $150,097, or 35%, from $429,956 during the first quarter of fiscal
2004 to $580,053 during the first quarter of fiscal 2005. The increase in R&D
expense is related to clinical, quality and regulatory costs related to the
development of the Companys Premarket Approval (PMA) submission for U.S.
market clearance for Macroplastique® in the treatment of adult female stress
urinary incontinence. Selling and Marketing Expenses: Selling and marketing (S&M) costs increased
24% from $424,365 during the first quarter of fiscal 2004 to $527,957 during
the first quarter of fiscal 2005. The increase resulted from travel costs and
costs relating to trade-shows, conventions and congresses, marketing materials,
general price increases, and fluctuations in foreign currency exchange rates. Net loss for the first quarter ended June 30, 2004 was $285,359 compared to a
net loss of $448,684 for the
comparable period a year ago.




---



##### 



Summary of Operations: Three Months Ended6/30/04
    
    6/30/03(restated)Net sales
    
    $
    1,752,496
    
    
    $
    1,359,589Operating loss
    
    
    (210,184
    )
    
    
    (358,932
    )Net loss
    
    
    (285,359
    )
    
    
    (448,684
    )Net loss per common share:Basic
    
    $
    (0.06
    )
    
    $
    (0.10
    )Diluted
    
    $
    (0.06
    )
    
    $
    (0.10
    )Weighted average common shares
outstanding:Basic
    
    
    4,591,136
    
    
    
    4,483,971Diluted
    
    
    4,591,136
    
    
    
    4,483,971
 Consolidated Balance Sheet Data June 30, 2004
    
    March 31, 2004AssetsCurrent assets
    
    $
    4,233,529
    
    
    $
    4,517,054Property, plant, and equipment, net
    
    
    1,065,876
    
    
    
    1,071,116Intangible assets, net of accumulated
Amortization
    
    
    47,229
    
    
    
    51,495Deferred tax assets
    
    
    108,636
    
    
    
    123,893Total assets
    
    $
    5,455,270
    
    
    $
    5,763,558Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    220,977
    
    
    $
    225,315Income tax payable
    
    
    128,817
    
    
    
    101,562Accrued liabilities
    
    
    427,969
    
    
    
    475,957Current maturities  long-term debt
    
    
    41,905
    
    
    
    42,301Total current liabilities
    
    
    819,668
    
    
    
    845,135Long-term debt  less current maturities
    
    
    464,760
    
    
    
    479,720Accrued pension liability
    
    
    333,469
    
    
    
    334,470Total liabilities
    
    
    1,617,897
    
    
    
    1,659,325Shareholders equity
    
    
    3,837,373
    
    
    
    4,104,233Total liabilities and shareholders equity
    
    $
    5,455,270
    
    
    $
    5,763,558




---



##### 



Uroplasty is a medical device company that develops, manufactures and markets a
family of injectable implant products used for soft-tissue augmentation for
specific indications in urology, urogynecology, colon and rectal,
otolaryngology and plastic surgery markets. The Companys products offer
physicians and their patients a minimally invasive treatment option for urinary
incontinence, vesicoureteral reflux, fecal incontinence, vocal cord
rehabilitation and dermal augmentation. Uroplastys products are CE marked for
these indications and sold in markets outside the United States. The Company
is conducting a multi-center U.S. IDE clinical trial with its urethral bulking
agent, MACROPLASTIQUE®, as a minimally invasive, office-based procedure for
treating female stress urinary incontinence. *** The Private Securities Litigation Reform Act of 1995 provides a safe harbor
for certain forward-looking statements. This press release contains
forward-looking statements, including our internal projections of anticipated
fiscal 2005 operating results, which reflect our views regarding future events
and financial performance. These forward-looking statements are subject to
certain risks and uncertainties, including those identified below, which could
cause actual results to differ materially from historical results or those
anticipated. The words aim, believe, expect, anticipate, intend,
estimate and other expressions which indicate future events and trends
identify forward-looking statements. Actual future results and trends may
differ materially from historical results or those anticipated depending upon a
variety of factors, including, but not limited to: the effect of government
regulation, including when and if we receive approval for marketing of our
products in the United States; the impact of international currency
fluctuations on our cash flows and operating results; the impact of
technological innovation and competition; acceptance of our products by
physicians and patients, particularly since our principal product contains
silicone; our reliance on a single product for most of our current sales; our
intellectual property and the ability to prevent competitors from infringing
our rights; the ability to receive third party reimbursement for our products;
the results of our current human clinical trial; our continued losses and the
possible need to raise additional capital in the future; our ability to manage
our international operations; our ability to hire and retain key technical and
sales personnel; our dependence on key suppliers; future changes in applicable
accounting rules; and volatility in our stock price. Uroplasty, Inc. stock is traded on the OTC Bulletin Board system under the
symbol UPST.OB. FOR FURTHER INFORMATION: visit Uroplastys web page at www.uroplasty.com or
contact Mr. Holman. UROPLASTY, INC.
Daniel G. Holman, President / CEO
2718 Summer Street NE, Minneapolis, MN 55413-2820
Tel: 612-378-1180
Fax: 612-378-2027
E-mail: danielh@uroplasty.com