American Medical Systems Exceeds Revenue Expectations with 22 Percent Growth in Fourth Quarter 2005; Revenue Tops $73 Million on Strength in Male Continence, Prostate Treatments and Women's Health.

MINNEAPOLIS -- American Medical Systems Holdings, Inc. (NASDAQ:AMMD) reported preliminary sales of $73.1 million for the fourth quarter of 2005, a 22 percent increase over sales of $60.0 million in the comparable quarter of 2004. Preliminary sales for the year 2005 were reported at $262.6 million, a nearly 26 percent increase over sales of $208.8 million for the year 2004. The Company's organic growth rate for the year, adjusted for the July 2004 TherMatrx acquisition, was 20 percent.

Martin J. Emerson, President and Chief Executive Officer, commented, "We are excited to report strong organic growth across both men's and women's pelvic health for the fourth quarter of 2005. With prostate treatment sales of $8.2 million in the quarter, we believe that AMS has moved into the market leadership position for the office-based treatment of non-obstructive BPH. Our male continence product sales exceeded $15.0 million, growing a healthy 19 percent in the quarter. Our erectile restoration revenues were within our range for the quarter, growing over 9 percent for the full year."

Emerson continued, "Women's health grew by 43 percent over the fourth quarter of 2004 with prolapse revenues achieving record levels again this quarter. For 2005, prolapse increased by over $17 million when compared to the twelve month period 2004. Uterine health sales as well reached an all-time high for the quarter. Continued significant growth on both a year-over-year and sequential quarter basis supports what we believe will be an increasingly important role for office-based gynecologic procedures. Our female continence products continued to deliver strength as the foundation of our women's health portfolio in 2005."

In summary, Emerson concluded, "Our global team has created tremendous momentum with their performance in the fourth quarter. Growth rates around the world finished very strong for 2005. Our international team again achieved significant growth for the quarter at 31 percent. Our U.S. team delivered their highest organic quarterly growth rate, closing the fourth quarter at 19 percent. AMS provided a record of nearly 170,000 patient cures in 2005, giving our employees more reasons than ever before to feel proud of their contributions toward improving the lives of so many men and women with pelvic health disorders."

Earnings Call Information

American Medical Systems will host a conference call on Thursday, February 16, 2006 at 5:00 p.m. eastern time to discuss its fourth quarter and full year results for 2005. Those without internet access may join the call from within the U.S. by dialing 800-886-7217; outside the U.S., dial 706-679-3821.

A live webcast of the call will be available through the Company's corporate website at www.AmericanMedicalSystems.com and available for replay three hours after the completion of the call.

About American Medical Systems

American Medical Systems, headquartered in Minnetonka, Minnesota is a diversified supplier of medical devices and procedures to cure erectile dysfunction, benign prostatic hyperplasia, incontinence, menorrhagia, prolapse and other pelvic disorders in men and women. These disorders can significantly diminish one's quality of life and profoundly affect social relationships. In recent years, the number of people seeking treatment has increased markedly as a result of longer lives, higher quality-of-life expectations and greater awareness of new treatment alternatives. American Medical Systems' products reduce or eliminate the incapacitating effects of these diseases, often through minimally invasive therapies. The Company's products were used to treat approximately 170,000 patients in 56 countries during 2005.

More information about the Company and its products can be found at its website www.AmericanMedicalSystems.com and in the Company's Annual Report on Form 10-K for 2004 and its other SEC filings.

American Medical Systems Holdings, Inc.
                      Selected Sales Information
                            (In thousands)
                              (Unaudited)

                         Three Months Ended      Twelve Months Ended
                       ----------------------- -----------------------
                       December 31, January 1, December 31, January 1,
                           2005        2005        2005        2005
                       ------------ ---------- ------------ ----------

Sales
 Product Line
  Men's pelvic health
     Erectile
      restoration          $20,777    $20,066      $80,916    $74,070
     Continence             15,024     12,667       53,911     48,242
     Prostate treatment      8,155      6,928       28,256     14,697
                       ------------ ---------- ------------ ----------
     Total men's pelvic
      health                43,956     39,661      163,083    137,009

  Women's pelvic health     29,117     20,379       99,507     71,763
                       ------------ ---------- ------------ ----------

     Total                 $73,073    $60,040     $262,590   $208,772
                       ============ ========== ============ ==========

 Geography
     United States         $56,755    $47,628     $205,462   $165,140
     International          16,318     12,412       57,128     43,632
                       ------------ ---------- ------------ ----------

     Total                 $73,073    $60,040     $262,590   $208,772
                       ============ ========== ============ ==========

Percent of total sales
 Product Line            Three Months Ended      Twelve Months Ended
                       ----------------------- -----------------------
  Men's pelvic health  December 31, January 1, December 31, January 1,
                           2005        2005        2005        2005
                       ------------ ---------- ------------ ----------
     Erectile
      restoration               28%        33%          31%        35%
     Continence                 21%        21%          21%        23%
     Prostate treatment         11%        12%          11%         7%
                       ------------ ---------- ------------ ----------
     Total men's pelvic
      health                    60%        66%          62%        66%

  Women's pelvic health         40%        34%          38%        34%

                       ------------ ---------- ------------ ----------
  Total                        100%       100%         100%       100%
                       ============ ========== ============ ==========

 Geography
     United States              78%        79%          78%        79%
     International              22%        21%          22%        21%
                       ------------ ---------- ------------ ----------

  Total                        100%       100%         100%       100%
                       ============ ========== ============ ==========