882873--9/13/2006--UROLOGIX_INC

related topics
{product, liability, claim}
{cost, regulation, environmental}
{customer, product, revenue}
{stock, price, operating}
{stock, price, share}
{provision, law, control}
{personnel, key, retain}
{property, intellectual, protect}
{product, market, service}
{control, financial, internal}
{acquisition, growth, future}
We are faced with intense competition and rapid technological and industry change. Our products, including our Cooled ThermoTherapy mobile service and recently approved CoolWave control unit, may not achieve market acceptance, which could limit our future revenue. Third- party reimbursement is critical to market acceptance of our products. We depend upon our Cooled ThermoTherapy products for all of our revenues. Government regulation can have a significant impact on our business. We have only attained profitability recently. We have limited experience manufacturing some of our products and are dependent upon a limited number of third-party suppliers to manufacture our products. We are dependent on adequate protection of our patent and proprietary rights. Our business of the manufacturing, marketing, and sale of medical devices involves the risk of liability claims and such claims could seriously harm our business, particularly if our insurance coverage is inadequate. Our products may be subject to product recalls even after receiving FDA clearance or approval, which would harm our reputation and our business. We have limited inventory of Prostatron control units and if customer demand exceeds our expectations, we will experience delays and expense in meeting customer demand that could be significant. We are dependent on key personnel. We may not have additional financing available to us. Fluctuations in our future operating results may negatively affect the market price of our common stock. Our stock price may be volatile and a shareholder s investment could decline in value. Future sales of shares of our common stock may negatively affect our stock price. Provisions of Minnesota law, our governing documents and other agreements may deter a change of control of us and may have a possible negative effect on our stock price.

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