Technological advances are improving the understanding of the genetic mechanism that governs Alzheimer's disease and are making it feasible to identify the complete set of genes influencing risk for Alzheimer's disease, Dr. Tanzi said.

In addition to the genome-wide association screen, Dr. Tanzi and Dr. Lars Bertram of Harvard Medical School have been analyzing Alzheimer's genetics literature to determine which of the hundreds of proposed Alzheimer's candidate genes are genuine disease genetic risk factors. These summarized findings, implicating 30 gene candidates, are updated regularly at http://AlzGene.org (a public Web site sponsored by the Cure Alzheimer's Fund). Tanzi and Bertram highlighted 10 of the most interesting of these genes in the current issue of Nature Reviews Neuroscience. Ultimately, the goal is to combine the results of the Alzheimer's family-based genome-wide association screen with the bioinformatics results of AlzGene.org.

The combined efforts of the family-based genome-wide association screen and AlzGene.org studies have led to the identification of 70 genes containing variants that either confer risk for, or protect against, Alzheimer's, making up the most comprehensive genetic map of the disease.

"This project is the most complete and comprehensive search for the genes that cause Alzheimer's disease published to date," Tanzi said. "Our hope is to use this new information to not only better diagnose and someday predict risk for Alzheimer's but to also learn from these genes the biological causes of Alzheimer's. The knowledge gained from understanding the Alzheimer's-associated defects in these genes will almost certainly accelerate the development of novel therapeutics and hopefully lead to a potential cure for this devastating disease."

The current understanding of the causes and pathological progression of Alzheimer's disease have been made possible by studies of four Alzheimer's genes discovered between 1987 and 1995, three of which were co-discovered by Tanzi. Since these genes account for only 30 percent of the genetic basis of Alzheimer's disease, three years ago Cure Alzheimer's Fund initiated the Alzheimer's Genome Project aimed at determining the remaining 70 percent of the genetic basis of Alzheimer's disease. Taking advantage of major technological and analytical breakthroughs in human genetic studies, the project was able to reach this milestone with a limited budget, led by a contribution of $3 million from Cure Alzheimer's Fund.

"We are on the cusp of a rare 'science moment' that could alter the way we diagnose, treat and prevent Alzheimer's disease," said Tanzi. "Ultimately, the combined results of the family-based genome-wide screen and AlzGene.org will allow for the reliable prediction of Alzheimer's disease while also guiding the development of therapies."

Alzheimer's disease is the most common cause of dementia in the elderly and a burgeoning unmet medical need that only will worsen as individuals continue to live longer. The Alzheimer's Association estimates that as many as 5.2 million Americans are living with Alzheimer's disease, including between 200,000 and 500,000 people under age 65 with young-onset Alzheimer's disease or other dementias. Experts predict that, by 2010, nearly a half million new cases of Alzheimer's disease will occur each year; and by 2050, nearly a million new cases will occur annually.

Cure Alzheimer's Fund has no endowment and passes funds raised directly to selected research as determined by the Cure Alzheimer's Research Consortium. The Foundation has no financial or intellectual property interest in the research funded, and will make known the results of all funded research as soon as possible. At a time when the federal government investment for Alzheimer's research and education is decreasing, Cure Alzheimer's Fund has raised more than $10 million, investing all of it directly into research.

Cure Alzheimer's Fund(TM) is a 501c3 public charity established to fund targeted research with the highest probability of slowing, stopping or reversing Alzheimer's disease. For more information, please visit http://www.curealzfund.org.

Contact: David Roscow

+1-703-276-2772 x21

SOURCE Cure Alzheimer's Fund

http://www.curealzfund.org

The Last Man's Club is now available for ordering at your local bookstore and through telephone at (888) 795-4274.

About the Author

Lorraine St. Martin resides in Oceanside, California. She has worked as a beautician, as a Technician demonstrating and instructing in nine states for Helene Curtis Industries of Chicago. She later owned several beauty salons in St. Paul-Minneapolis and Bloomington, Minnesota and was enormously successful. The author has written numerous articles on the homeless, and biographies in several publications. Her research on this book included trips to Europe, Quebec, Canada and Minnesota.

               The Last Man's Club * by Lorraine St. Martin
                    Publication Date: January 28, 2003
           Trade Paperback; $19.54; 300 pages; 978-1-4010-4820-4
           Cloth Hardback; $29.69; 300 pages; 978-1-4010-8491-2

To request a complimentary paperback review copy, contact the publisher at (888) 795-4274 x. 7479. Tear sheets may be sent by regular or electronic mail to Marketing Services. To purchase copies of the book for resale, please fax Xlibris at (610) 915-0294 or call (888) 795-4274 x.7876.

Xlibris books can be purchased at Xlibris bookstore. For more information, contact Xlibris at (888) 795-4274 or on the web at www.Xlibris.com.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Xlibris

Xlibris
          Marketing Services
          (888) 795-4274 x. 7876
          MarketingServices@Xlibris.com

The Urgent PC system is the only FDA-approved minimally invasive nerve stimulation device designed for office-based treatment of urinary frequency, urinary urgency and urge incontinence -- symptoms often associated with overactive bladder. The system is an office-based, nonsurgical, percutaneous tibial nerve stimulation (PTNS) device that treats these symptoms. Macroplastique is an injectable urethral bulking agent for the treatment of adult-female stress-urinary incontinence primarily due to intrinsic sphincter deficiency.

Fiscal Second Quarter and Six Month Results for the Periods Ended September 30, 2008

    -- Net sales for the three months ended September 30, 2008 were $3.9
       million, an increase of 29%, compared with $3.0 million for the same
       period a year ago.  Net sales for the six months ended September 30,
       2008 were $8.4 million, up 41% from $6.0 million for the same period a
       year ago.
    -- Sales to customers in the U.S. for the three months ended September 30,
       2008 were $2.2 million, an increase of 83%, compared with $1.2 million
       in the same period a year ago. This increase was due to the growing
       effectiveness of the company's sales force and the continued growth in
       the active Urgent PC customer base.  Non-U.S. sales for the three
       months ended September 30, 2008 were $1.7 million, down 7% from $1.8
       million in year ago period.  Excluding the translation impact of
       fluctuations in foreign currency exchange rates, non-U.S. sales
       declined by approximately 10%.
    -- Six month sales to customers in the U.S. were $4.4 million, up 99% from
       $2.2 million for the same period last year.  Six month non-U.S. sales
       were $4.0 million, up 7% from $3.8 million for the same period last
       year.  Excluding the translation impact of fluctuations in foreign
       currency exchange rates, non-U.S. sales declined by approximately 1%.
    -- Net loss for the second fiscal quarter ended September 30, 2008 was
       $561,000, or $0.04 per diluted share versus $1.4 million, or $0.10 per
       diluted share for the second quarter of last year.  For the six months
       ended September 30, 2008, net loss was $968,000, or $0.06 per diluted
       share compared with a net loss of $2.2 million, or $0.17 per diluted
       share for the same period last year.
    -- Non-GAAP operating performance, which excludes non-cash charges for
       share-based compensation under SFAS 123 (R), and depreciation and
       amortization expenses, improved from a loss of approximately $0.6
       million and $1.0 million, respectively, for the three and six months
       ended September 30, 2007, to a (loss) gain of approximately ($98,000)
       and $8,000, respectively for the three and six months ended September
       30, 2008.  The improvement in non-GAAP operating performance is
       attributed to the increase in sales and an improvement in gross margin,
       partially offset by an increase in cash operating expenses.
    -- At September 30, 2008, cash and cash equivalents, and short-term
       investments were $9.0 million compared with $9.2 million at June 30,
       2008 and $10.1 million at March 31, 2008.

"Earlier this month, we announced the first patient enrollment in a new, multicenter clinical study that will support our U.S. reimbursement efforts, and is part of a very focused strategy to solidify reimbursement coverage for PTNS," continued Mr. Kaysen. "We are making impressive progress with center and patient enrollment in the new study which compares the Urgent PC system treatment against non-active treatment (placebo or sham treatment). This study design was suggested by professional associations that help to educate third party insurance carriers establish reimbursement for procedures. We anticipate applying to the American Medical Association for a specific "listed" CPT reimbursement code for Urgent PC treatments once the data is compiled and analyzed.

"Meanwhile, we have implemented a comprehensive program designed to educate medical directors of insurance carriers around the country. Physicians using Urgent PC are communicating their successes to these medical directors. In addition, we are in active communication with professional associations who are involved with reimbursement and believe we have the right people and the right resources to proactively address various reimbursement related issues. It is important to remember that reimbursement uncertainties are common with practically every new medical technology. We have been successfully educating the market on the benefits of Urgent PC since we received FDA approval and believe that our strategies to solidify reimbursement coverage are generating positive responses from the market," added Mr. Kaysen.

"As we look to the remainder of fiscal 2009, we still anticipate solid revenue growth over the prior fiscal year, albeit at a lower rate than we previously forecasted. In this challenging market environment we have maintained more than 330 active customers through the end of the second fiscal quarter. We now believe that overall sales in the current fiscal year will grow by approximately 20% over fiscal 2008, and we expect U.S. sales to grow between 30% and 40%. As we have previously discussed, we anticipate spending between $1.1 million and $1.4 million for the new clinical study, substantially all of it in the second half of fiscal 2009. We continue to expect consistent operating income breakeven on a non-GAAP basis, which excludes non-cash and unusual charges, to occur between revenues of $19 million to $20 million," Mr. Kaysen concluded.

Conference Call

Uroplasty will host an audio conference call today at 3:30 pm Central, 4:30 pm Eastern, to review the financial results for the second fiscal quarter of 2009. David Kaysen, President and Chief Executive Officer and Medi Jiwani, Vice President, Chief Financial Officer and Treasurer will host the call. Individuals wishing to participate in the conference call should dial (800) 218-0204 (domestic) or (303) 262-2161 (international). An audio replay will be available two hours after the call for 30 days by dialing (800) 405-2236 (domestic) or (303) 590-3000 (international), with the passcode 11121202#.

About Uroplasty, Inc.

Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in The Netherlands and the United Kingdom, is a medical device company that develops, manufactures and markets innovative proprietary products for the treatment of voiding dysfunctions. Our primary focus is the continued commercialization of our Urgent PC system, which we believe is the only FDA-approved minimally invasive nerve stimulation device designed for office-based treatment of urinary urgency, urinary frequency and urge incontinence -- symptoms often associated with overactive bladder. We also offer Macroplastique(R) Implants, an injectable bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency. Please visit Uroplasty, Inc. at http://www.uroplasty.com.

Forward Looking Information

This press release contains forward-looking statements, which reflect our best estimates regarding future events and financial performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our anticipated results. We discuss in detail the factors that may effect the achievement of our forward-looking statements in our Annual Report on Form 10-K filed with the SEC. These factors include:

    -- decisions by government and third party reimbursement agencies as to
       the rate of reimbursement for our products, or whether reimbursement
       will be allowed;
    -- 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;
    -- our intellectual property and the ability to prevent competitors from
       infringing our rights;
    -- the effect of government regulation, including when and if we receive
       approval for marketing products in the United States;
    -- the results of clinical trials; and
    -- our continued losses and the possible need to raise additional capital
       in the future.

We cannot assure you that our clinical trial will produce favorable results, that third-party payors will provide or continue to provide coverage and reimbursement, or reimburse the providers an amount sufficient to cover their costs and expenses, nor can we assure you that we will timely obtain, or even succeed at all at obtaining, a specific "listed" CPT reimbursement code from the AMA for Urgent PC treatments. We further cannot assure that reimbursement or other issues will not further impact our fiscal 2009 results.

     For Further Information: Uroplasty, Inc.
     David Kaysen, President and CEO, or
     Medi Jiwani, Vice President, CFO, and
     Treasurer,
     952.426.6140

     EVC Group
     Doug Sherk/Dahlia Bailey
     (Investors)
     415.896.6820
     Chris Gale/Steve DiMattia (Media)
     646.201.5431



                         UROPLASTY, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

                            Three Months Ended         Six Months Ended
                               September 30,             September 30,

                            2008         2007         2008         2007

    Net sales           $3,920,516   $3,039,543   $8,446,138   $5,988,217
    Cost of goods sold     549,199      669,041    1,257,166    1,263,253

    Gross profit         3,371,317    2,370,502    7,188,972    4,724,964

    Operating expenses
      General and
       administrative      918,394    1,147,432    1,957,108    1,955,806
      Research and
       development         327,978      426,997      733,498      933,122
      Selling and
       marketing         2,505,598    1,974,583    5,125,632    3,607,372
      Amortization of
       intangibles         210,966      206,482      421,941      423,003
                         3,962,936    3,755,494    8,238,179    6,919,303

    Operating loss        (591,619)  (1,384,992)  (1,049,207)  (2,194,339)

    Other income (expense)
      Interest income       63,542       65,239      138,656      141,622
      Interest expense      (6,750)      (9,279)     (13,585)     (20,644)
      Foreign currency
       exchange gain (loss)  5,038      (13,877)        (732)     (15,906)
      Other, net            (4,687)           -       (4,687)       1,880
                            57,143       42,083      119,652      106,952

    Loss before income
     taxes                (534,476)  (1,342,909)    (929,555)  (2,087,387)

    Income tax expense      26,487       41,783       38,057      137,940

    Net loss             $(560,963) $(1,384,692)   $(967,612) $(2,225,327)

    Basic and diluted
     loss per common
     share                  $(0.04)      $(0.10)      $(0.06)      $(0.17)

    Weighted average
     common shares
     outstanding:
      Basic and
       diluted          14,916,540   13,342,284   14,916,540   13,162,862



                          UROPLASTY, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                            September 30, 2008  March 31, 2008
                                                (unaudited)

    Assets
      Current assets:
        Cash and cash equivalents and
         short-term investments                   $9,024,697    $10,146,081
        Accounts receivable, net                   1,690,285      2,318,604
        Income tax receivable                         34,445         50,841
        Inventories                                  527,460        558,657
        Other                                        359,598        244,517
      Total current assets                        11,636,485     13,318,700

      Property, plant, and equipment, net          1,546,601      1,638,953

      Intangible assets, net                       3,778,949      4,200,890

      Prepaid pension asset                           36,482         26,482

      Deferred tax assets                            105,961        105,298

      Total assets                               $17,104,478    $19,290,323

    Liabilities and Shareholders' Equity
      Total current liabilities                    1,830,420      2,739,933
      Long-term debt - less current maturities             -        413,279
      Deferred rent - less current portion           164,277        180,979
      Accrued pension liability                      290,744        353,411

      Total liabilities                            2,285,441      3,687,602

      Total shareholders' equity                  14,819,037     15,602,721

      Total liabilities and shareholders'
       equity                                    $17,104,478    $19,290,323



                          UROPLASTY, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                   Six Months Ended September 30, 2008 and 2007
                                   (Unaudited)

                                                       Six Months Ended
                                                         September 30,
                                                      2008           2007

    Cash flows from operating activities:
      Net loss                                     $(967,612)   $(2,225,327)
      Adjustments to reconcile net loss to net
       cash used in operating activities:
        Depreciation and amortization                566,949        529,766
        (Gain) loss on disposal of equipment           4,687         (2,771)
        Share-based consulting expense                36,409         26,005
        Share-based compensation expense             453,592        644,637
        Deferred income taxes                        (10,164)         2,474
        Deferred rent                                (17,500)       (17,500)
      Changes in operating assets and liabilities:
        Accounts receivable                          537,959       (498,578)
        Inventories                                  (11,128)       (16,176)
        Other current assets and income tax
         receivable                                 (108,041)        64,660
        Accounts payable                            (145,610)       190,508
        Accrued liabilities                         (634,851)       (80,460)
        Accrued pension liability, net               (44,772)      (305,435)
    Net cash used in operating activities           (340,082)    (1,688,197)

    Cash flows from investing activities:
      Proceeds from sale of short-term
       investments                                 8,808,304      1,800,000
      Purchase of short-term investments          (7,891,373)    (1,200,000)
      Purchases of property, plant and equipment    (130,421)      (135,984)
      Proceeds from sale of equipment                      -          4,417
      Payments for intangible assets                       -        (89,725)
    Net cash provided by investing activities        786,510        378,708

    Cash flows from financing activities:
      Proceeds from financing obligations                  -        178,374
      Repayment of debt obligations                 (455,913)      (184,458)
      Net proceeds from issuance of
       common stock, warrants and option exercise          -        768,298
    Net cash provided by (used in) financing
     activities                                     (455,913)       762,214

    Effect of exchange rates on cash and cash
     equivalents                                    (194,967)        93,320

    Net decrease in cash and cash equivalents       (204,452)      (453,955)

    Cash and cash equivalents at beginning
     of period                                     3,880,044      3,763,702

    Cash and cash equivalents at end of period    $3,675,592     $3,309,747

    Supplemental disclosure of cash flow
     information:
      Cash paid during the period for interest       $13,612        $17,024
      Cash paid during the period for income taxes    35,474         38,923

    Supplemental disclosure of non-cash financing
     and investing activities:
      Purchase of intellectual property funded
       by issuance of stock                              $ -     $4,658,861

Non-GAAP Financial Measures: The following table reconciles our financial results calculated in accordance with accounting principles generally accepted in the U.S. (GAAP) to non-GAAP financial measures that exclude non-cash charges for share-based compensation under SFAS 123 (R), and depreciation and amortization expenses from gross profit, operating expenses and operating loss. The non-GAAP financial measures used by management and disclosed by us are not a substitute for, or superior to, financial measures and consolidated financial results calculated in accordance with GAAP, and you should carefully evaluate our reconciliations to non-GAAP. We may calculate our non-GAAP financial measures differently from similarly titled measures used by other companies. Therefore, our non-GAAP financial measures may not be comparable to those used by other companies. We have described the reconciliations of each of our non-GAAP financial measures above to the most directly comparable GAAP financial measures.

Management uses our non-GAAP financial measures, and in particular non-GAAP operating loss, for internal managerial purposes because we believe such measures are one important indicator of the strength and the performance of our business as they provide a link to operating cash flow. We also believe that analysts and investors use such measures to evaluate the overall operating performance of companies in our industry, including as a means of comparing period-to-period results and as a means of evaluating our results with those of other companies.

Our non-GAAP operating performance improved from a loss of approximately $0.6 million and $1 million, respectively, for the three and six months ended September 30, 2007 to a (loss) gain of approximately ($98,000) and $8,000, respectively, for the three and six months ended September 30, 2008. We attribute this improvement in non-GAAP operating performance to the increase in sales and an improvement in gross margin rate, offset partially by an increase in cash operating expenses.

                             Three Months Ended         Six Months Ended
                                September 30,              September 30,
                             2008         2007         2008         2007

    Gross Profit
      GAAP gross profit  3,371,317   $2,370,502    7,188,972   $4,724,964
      % of sales                86%          78%          85%          79%
      SFAS 123 (R)
       share-based
       compensation          8,879        9,107       25,253        9,686
      Depreciation
       expenses             13,057       13,054       25,847       28,604
      Non-GAAP gross
       profit            3,393,253    2,392,663    7,240,072    4,763,254
    Operating Expenses
      GAAP operating
       expenses          3,962,936    3,755,494    8,238,179   $6,919,303
      SFAS 123 (R)
       share-based
       compensation        198,131      494,449      464,748      660,956
      Depreciation
       expenses             62,104       46,379      119,161       78,159
      Amortization
       expenses            210,966      206,482      421,941      423,003
      Non-GAAP operating
       expenses          3,491,735    3,008,184    7,232,329    5,757,185
    Operating (Loss) Gain
      GAAP operating
       loss               (591,619)  (1,384,992)  (1,049,207)  (2,194,339)
      SFAS 123 (R)
       share-based
       compensation        207,010      503,556      490,001      670,642
      Depreciation
       expenses             75,161       59,433      145,008      106,763
      Amortization
       expenses            210,966      206,482      421,941      423,003
      Non-GAAP
       operating (loss)
       gain                (98,482)   $(615,521)       7,743    $(993,931)

SOURCE Uroplasty, Inc.

http://www.uroplasty.com

"The impact of the credit crunch in advanced countries on our economy is largely indirect and therefore, apart from the exchange rate impact, it will take time to be felt in the economy," he stressed.

The financial crisis, which continues to dominate headlines, culminated from the sub-prime mortgage crisis that hit the US last year.

Experts say the global financial meltdown, billed as the worst since the 1920s, has been characterised by contraction in liquidity, leading to credit shortage.

They explained that the shortage stemmed from undervaluation of real risk in the sub-prime mortgage market, which affected the financial system in the US and adversely affected global financial markets.

Because of the housing market bubble (non-sustainable increase in prices) in the sub-prime segment of the housing market, people in America who either had no credit history or had a bad credit history were given loans.

The easy terms were based on the premise that housing prices would continue to rise and in cases of failure to pay, the value of underlying collateral would have gone up to pay for the loan.

The mortgage-backed securities were created and bought or resold and traded using borrowed money. These mortgage-backed securities were also traded outside the US, with investors buying these assets where the borrower had a bad history and would not be able to pay if something went wrong.

With the plummeting of housing prices in mid-2006 in the US, most of the borrowers were unable to repay.

Consequently, interest terms were reset at higher levels, which accelerated foreclosures.

Experts suggest that because investors suspected that assets may be of sub-prime category, they were unwilling to take assets and banks, too, feared to buy assets from each other or from the market and this resulted into the credit crunch.

This was the premise on which investment banks in America collapsed with ramifications across the globe for financial institutions that were exposed to this toxic debt.

Immediate impact

Uganda 's financial sector, buoyed by a record of robust growth, is generally sheltered from this crisis because it lacks direct exposure, according to Mutebile's prediction.

"The cause of the credit crunch namely the exposure of commercial banks and investment banks in America and Europe to the 'toxic debt' will not affect our banks. Our banks are subsidiaries of the banks in Europe and America but they have their own balance sheets," he stressed.

"Our banks are well-capitalised and operating within macro prudential requirements of the central bank. There is no bank that is at risk of closure. Bank of Uganda is keenly monitoring the performance of these banks," he added.

However, the governor warned that the immediate impact was fluctuation in the foreign exchange market that has seen the shilling depreciate against the dollar.

But we shouldn't panic, he said, because he considered this a short-term situation.

"This is the only impact we have seen from the crisis. This is temporary and should not cause alarm. Bank of Uganda has no target exchange rate of the shilling vs the dollar. We intervene in the market to maintain stability. Therefore, I am not losing sleep over the fact that exchange rate has moved."

According to the central bank, the shilling has been depreciating at a rate of 13.4% per day during October, reaching 1,903.6 on October 21 from 1,645 in September. The shilling breached the 2,000 mark during trading in the second last week of October.

The depreciation is attributed to a combination of increase in demand for dollars from offshore investors and local importers and the strengthening of the green back against other currencies.

Offshore investors in search of high yields had targeted Uganda 's government securities market. However, as the crisis accelerated, they chose not to roll over their investments and bought dollars that they repatriated. This caused the depreciation of the shilling to the dollar.

While the governor is not losing sleep over the rate of the shilling to the dollar, Ugandans have been impacted by the rise in fuel prices.

A strong dollar impacts on the price of imports like fuel, making them expensive. And the oil companies have passed on the cost to the consumer by raising pump prices to an average of sh2,800 for petrol and sh2,550 for diesel.

The strong dollar also comes against a background of increasing demand by importers who are preparing to import goods in readiness for the festive season.

Ugandans should expect more expensive shopping as the importers will pass on this cost to consumers.

For businesses that rely on imported inputs, the impact of the global financial crisis is immediate.

Zubair Musoke, the finance manager of Vision Group, says some of the increase in costs of doing business have to be partly borne by the consumer.

"The global crisis has hit dollar inflow and outflows. Because we are net importers, the cost of our inputs has gone up due to a strong dollar. We can't absorb all of it. We have to share part of it with our customers by increasing the cover price of the newspaper, unfortunately. That is the immediate impact," he explains.

Investors on the Uganda Securities Exchange (USE) are also feeling the pinch. Fluctuation in share prices has also been occasioned by some foreign investors exiting, which has resulted into the downward movement of stock prices.

Simon Rutega, the USE chief executive, calls for calm, noting that stock market prices either go up or down.

"The fundamentals are still strong but we have jitters and prices do come down. As far as we are concerned, it's a bear market," Rutega explains.

The situation has also been exacerbated by speculators whose actions have put more pressure on prices.

Long-term impact

The International Monetary Fund (IMF) has predicted that Uganda's growth will slow down, falling short of the projected 8.1 rate for 2008/09.

"IMF staff estimates economic growth to slow, albeit to a healthy 7-7.5% in the 2008/09 fiscal year," said Roger Nord, the IMF's assistant director in the African department.

The IMF also suggested that while Uganda would be impacted by possible recession in the global economy, the country should stick to its spending plans. "The slowdown in the global economy and its repercussions on Uganda will make achieving the targeted revenue increase more challenging. Nevertheless, it will be important to sustain critical spending on roads infrastructure," Nord explained.

Governor Mutebile also considers a recession in America and Europe impacting on Uganda's remittances from abroad, aid flows, foreign direct investments and export earnings in the second half of this financial year.

"Areas to be impacted in the near future include the demand for our exports. We shall have less export earnings and associated with that, we will have fewer earnings from tourism. There will be reduced money from Ugandans abroad. This is likely to be the worst consequence of the credit crunch," he said.

Uganda gets about $800m annually in aid inflows, while private transfers amount to $900m.

Exporters of fish and flowers are predicting tougher times ahead.

Juliet Musoke, the executive director of the Uganda Flower Exporters Association, says that while they have not had any cancellations in orders yet, the impact will be felt in the peak season in February to March next year.

"Flower purchases are determined by how much money a customer has at their disposal. Our markets are facing the brunt of the crisis, which means that if there is a tightening in spending as priorities change, less flowers will be bought," she says.

Musoke noted that the appreciation of the dollar, which is a boon for exporters, would not cover high input (fertilisers) and other related costs.

Phillip Borrel, the chairman of the Uganda Fish Processors and Exporters Association, projected that companies that relied on credit to purchase fish may find it difficult to do business with fish exporters.

"As exporters, we are part of the global economy. If there is a general recession, people will be careful about spending so demand for our products is likely to go down," he said.

While no one can predict the extent of the impact on Uganda 's economy in real terms, suggestions have been made to minimise them.

Mutebile said the financial sector and the economy were strong to weather impact of the financial markets turmoil.

"The Ugandan economy is fundamentally strong and can withstand these pressures. Our foreign reserves are equivalent to 5A 1/2 months of imports, which is a strong arsenal to fight any pressures arising from the crisis in Europe and America," he said.

The IMF suggested that going forward, it would be important for the central bank to step up prudential supervision to ensure that any emerging risks are identified early and addressed expeditiously.

"Fiscal policy should use any available scope to cushion a temporary revenue shortfall, guided by medium-term macro-economic stability considerations," said the IMF's Roger Nord.