HealthTronics, Inc. (NASDAQ: HTRN), a leading provider of urology services and products, announced that it has acquired UroPath, LLC ("UroPath") for $7.5 million.

 Founded in 2003, UroPath is a leading provider of anatomical pathology laboratory services in the U.S. In 2007, labs managed by UroPath processed over 400,000 specimens, serving more than 50 urology practices with over 450 physicians across 17 states. UroPath's unique historical operating model focused on the patient benefits of a more disease-focused diagnosis capability for prostate health with greater involvement by the urologist who often acts as the primary care physician when dealing with prostate disease.

 Effective January 1, 2008, the Centers for Medicare and Medicaid Services ("CMS") amended existing health care regulations to establish limits on the amount a provider can bill Medicare for pathology services under certain conditions. These regulations limit the Medicare reimbursement for Medicare reimbursed pathology services provided in pathology laboratories UroPath manages. On June 30, 2008, CMS proposed additional amendments to these regulations which could further affect the way in which pathology services may be reimbursed.

 James S.B. Whittenburg, CEO of HealthTronics, commented, "We believe UroPath's historical model provides greater continuity in the handling of specimens, increased communication between specialists in the continuum of care, and improved focus on the needs of the patient. We believe we achieve many of the same benefits in our other urology services platforms, including lithotripsy, cryo surgery, BPH laser surgery and radiation therapy. UroPath's decision to join HealthTronics affirms the prominent and unique role that we play in urology today. More than ever, our urologist partners share in our mission of improving both patient care and practice economics in a context that addresses the constantly changing reimbursement and regulatory landscape. HealthTronics brings deep and capable resources to bear in restructuring the existing UroPath model to fully address the regulatory environment while preserving, to the greatest extent possible, the tangible patient and quality of care benefits. Our existing laboratory, ClariPath, adds significant flexibility and efficiencies as we refine the UroPath business model."

 Whittenburg added, "The practices that utilize UroPath's services are some of the larger and more entrepreneurial urology practices in the country. Many of these practices do not currently partner with HealthTronics. We welcome these thought leaders to the HealthTronics network and look forward to developing mutually beneficial relationships that go beyond the lab to span a more comprehensive breadth of urology services."

 Pat Hezmall, a UroPath co-founder and Chairman of the Board, commented, "The combination of UroPath and HealthTronics will enhance our pathology operations by providing superior service and new technologies, as well as a broad platform of offerings in a very dynamic market and ever-changing regulatory environment. HealthTronics' record of effectively navigating the complex regulatory environment positions us to maximize the pathology opportunity for UroPath's urologist partners. Our mission and philosophy at UroPath align well with those of HealthTronics."