Urodynamix Technologies Ltd.

Urodynamix Technologies Ltd.

October 15, 2008 09:00 ET

BC Advantage Funds Increases Stake in Urodynamix Technologies Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2008) - Urodynamix Technologies Ltd. (TSX VENTURE:URO) is pleased to announce that the Company has entered into an agreement with BC Advantage Funds wherein BC Advantage Funds has agreed, subject to normal closing conditions, to purchase 25,000,000 shares of the Company at a price of $0.10 per share for total proceeds of $2.5 million. Under the terms of the agreement, the Company may raise up to an additional $1 million by offering 10,000,000 shares to third parties at a price of $0.10. The Company will pay a commission of up to 7.5% on sales to third parties. There is no commission payable on the $2.5 million investment of BC Advantage Funds.

The price represents a 67% premium to the October 14, 2008 closing market price and a 13% discount to the average five day closing market price. The securities issued by this non-brokered private placement will be subject to a four month hold from the date of closing and the placement is subject to regulatory approval.

Proceeds from this private placement will be used to fund the commercialization of Urodynamix's NIRS diagnostic and monitoring technologies and for general working capital purposes. Barry Allen, President and Chief Executive Officer, said, "We are very pleased that, during these very turbulent times, BC Advantage Funds has chosen to significantly increase its investment in Urodynamix. This investment is validation of BC Advantage Funds' belief in the commercial potential of our technology and the impact it will have in our targeted markets." Upon closing, if the overallotment allowance is filled, BC Advantage Funds will hold 36.7% of the voting shares of the Company compared to 40.2% if the overallotment is not filled. The Company will also grant BC Advantage Funds the ongoing right to invest up to 20% on all future financings.

About Urodynamix Technologies Ltd.

Urodynamix Technologies 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.

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