Urodynamix Discovers New NIRS Application

Vancouver, British Columbia - January 17, 2007 - Urodynamix Technologies Ltd. (TSX-V:URO) today announced further expansion of its near infrared spectroscopy (“NIRS”) clinical development program to include applications in acute Compartment Syndrome (“CS”). The Company also filed a patent application extending its intellectual property portfolio to encompass CS applications and released the results of a preliminary CS clinical study completed at Foothills Medical Center in Calgary, Alberta.

CS is a common but life-threatening condition that occurs in the abdomen and limbs following traumatic, hemorrhagic, surgical or vascular injuries. Inflammatory response, capillary leakage and tissue edema lead to elevated pressure within a closed anatomical space, resulting in decreased blood flow to the tissues and organs, followed by ischemia, sepsis and other severe complications. If undiagnosed and untreated, CS may cause cellular
damage that results in necrosis, organ failure and ultimately death.

Urodynamix will initially target CS applications related to Abdominal Compartment Syndrome (“ACS”), which is multiple organ dysfunction caused by intra-abdominal hypertension (“IAH”) or elevated intra-abdominal pressure (“IAP”). Physical examination is not an accurate indicator of IAH in critically ill patients, and current diagnostic procedures rely on manual, intermittent and highly invasive catheter- or needle-based IAP measurements.  Published data indicate that IAH presents in up to 50% of intensive care patients and is therefore a condition that should be monitored in all ICU patients. Untreated IAH can advance to ACS, which is considered fatal if untreated.

The Company believes that its NIRS platform technology will allow the early detection of ischemia caused by IAH and replace more invasive diagnostic methods by allowing continuous, non-invasive, and cost-effective monitoring of patients at risk of developing IAH and ACS, thereby greatly reducing morbidity and improving mortality.

The CS development program is expected to be highly synergistic with the Company’s URO-NIRS urology product, which is currently being advanced at three North American clinical sites. Furthermore, Urodynamix believes that its NIRS platform technology is uniquely suited to address the unmet medical need for continuous, non-invasive ACS monitoring, and that it is well-positioned to capitalize upon a significant market opportunity.

“We are confident in the performance and value of this breakthrough technology,” said Barry Allen, President and CEO of Urodynamix. “NIRS for compartment syndrome is another example of our expertise in developing technologies with significant market potential and unmet clinical need. We believe our proprietary CS technology is highly valuable due to its disruptive nature, and the high morbidity and mortality rate of the condition. Furthermore we believe this technology will become part of the standard of care for monitoring in ICUs, emergency trauma units, and cardiac/surgical recovery units.”

Urodynamix also announced significant progress in building and leveraging its intellectual property portfolio with the filing of a new US patent application with the United States Patent and Trademark Office. The patent application contains broad claims that cover methods and systems for detecting ACS in the world’s largest medical device market.

Positive ACS Clinical Data

In a preliminary clinical study of Intensive Care Unit (“ICU”) patients at Foothills Medical Center in Calgary, the Company’s prototype device was used to continuously record NIRS data over 24 hours from the abdominal wall of patients at risk of developing ACS. IAP measurements were also recorded from the bladder using intermittent conventional invasive

techniques. Sixty-six (66) paired IAP and NIRS readings were taken from ten (10) ICU patients (4 to 12 IAP observations per patient). The study demonstrated that the NIRS technique is completely safe over long periods of monitoring and a significant inverse association was found between NIRS readings and changes in IAP at a significance level of 0.992 (p = 0.008).

“Our preliminary findings suggest that NIRS could be a great asset for trauma and critical care specialists faced with managing ACS,” said Dr. Andrew Kirkpatrick, MD, FRCSC, FACS, a leading expert in ACS and trauma
care at Foothills Medical Center and principal investigator for the clinical study. “Given the high incidence and risks associated with IAH and ACS, critically ill patients should be monitored on a continuous basis for IAH, and
there is currently no practical continuous method for monitoring, even with an invasive device. The prevention of ACS may translate into fewer patient deaths, which is the ultimate objective of all professionals working in
trauma management.”

Health Canada has approved and the Company is funding a second phase of the Foothills ACS study, which will enroll up to 60 ICU patients and obtain more frequent IAP readings over longer periods of critical illness. Confirmatory data from a larger patient population is expected to be available within 3 months.

Significant ACS Market Opportunity

Urodynamix intends to leverage its unique and globally recognized expertise in NIRS to develop an automated continuous monitoring device that can trend IAP like a vital sign, allowing critical care practitioners to improve
patient outcomes by alerting caregivers to the onset of ACS. In addition, automated IAP monitoring may allow hospitals to increase productivity and control ICU costs by reducing or eliminating the need for manual IAP
measurements.

According to the American Hospital Association, there are approximately 60,000 adult ICU beds in the United States, which equates to nearly 5 million adult ICU patients per year in North America alone. This represents a
significant initial market opportunity for the Company’s ACS monitoring devices and recurring consumables revenue in 24/7 monitoring of these critical care patients. There is also a significant need for continuous IAP
monitoring in cardiac, GI and orthopaedic surgical recovery units, and emergency departments.

Urodynamix is actively pursuing strategic relationships with world-class medical device companies. The acute care patient monitoring market is currently dominated by companies such as GE Healthcare, Philips Medical
Systems, Spacelabs Healthcare, Nellcor-Tyco, Masimo Corporation and Drägerwerk AK.

For more information about ACS, visit

www.abdominalcompartmentsyndrome.org or www.wsacs.org.

About Urodynamix Technologies Ltd.

Urodynamix Technologies is the world leader in the development of revolutionary, non-invasive medical technology and diagnostic devices based on near-infrared spectroscopy (NIRS). Urodynamix is focused on developing and commercializing breakthrough diagnostic technology for urological disorders such as urinary incontinence and related critical care applications including compartment syndrome.

On behalf of the Board,

“Barry Allen”
President & CEO
Urodynamix Technologies Ltd.

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.Al though 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.

For further information, please contact:

Craig Pamplin, PhD

Director, Corporate Development and Communications

Urodynamix Technologies Ltd.

Tel: (604) 638-0247

Email: cpamplin@urodynamix.com

www.urodynamix.com