American Medical Systems Expands Commitment to Erectile Restoration Market With Acquisition of Line of Urological Prostheses.

Business Editors/Health/Medical Writers

MINNEAPOLIS--(BUSINESS WIRE)--April 7, 2003

American Medical Systems Holdings Inc. (Nasdaq:AMMD) announced it is expanding its leadership in prosthetic urology by acquiring the Dura II(R) line of erectile restoration products from Endocare Inc. The transaction, valued at approximately $2 million, includes all related intellectual property, production equipment, and current Dura II inventory. Sales of the acquired products were approximately $1.5 million in 2002.

Douglas W. Kohrs, President and Chief Executive Officer of American Medical Systems said that the Dura II product line is an important addition to the AMS erectile dysfunction product category. "The Dura II prosthesis has a more than 10-year record of very high patient satisfaction and durability," said Kohrs. "We look forward to using our strong sales and marketing infrastructure to bring this product to many more patients around the world."

A study published in the February 2003 edition of Urology, K.H. Ferguson, M.D. and R. D. Cespedes, M.D., of the Wilford Hall Medical Center and the Department of Urology at the University of Texas in San Antonio, Texas, reported that men who had the device implanted up to eight years earlier found very high satisfaction rates, with 88 percent of them saying they would recommend the procedure to a friend. These results are similar to the outstanding patient satisfaction data found in the recent multi-center clinical review of AMS' gold standard inflatable prosthesis, the AMS 700CX.

Professor John J. Mulcahy, M.D., of the Indiana University School of Medicine, President of the Society for the Study of Impotence, and Co-Chairman of the Sexual Function Council of the American Foundation for Urologic Diseases, added "The Dura II line is an excellent option for patients who have limited dexterity or in cases where a surgeon considers an inflatable device to be too complex. Most urologists know about the Dura II, and will now have better access to this product to treat ED. It will be well received as part of the full line of AMS products."

About Erectile Dysfunction

Erectile dysfunction is the inability to achieve or maintain an erection sufficient for sexual intercourse. It usually results from vascular disease, complications from diabetes, or prostate surgery which can damage both nerves and arteries necessary for erectile function. This disease can also be caused by spinal cord injury, and may have a psychogenic component. Erectile dysfunction may affect 100 million men and their partners around the world. The primary treatment for erectile dysfunction is Viagra or a similar-acting drug. If these drugs do not work, the patient may try a vacuum device or a topical or injected drug before considering penile implants such as Dura II. If the patient elects to have implant surgery, the surgeon would replace the erectile tissues of the penis with a prosthesis which would provide sufficient rigidity for sexual intercourse. More information about erectile dysfunction and the role of prostheses in curing ED may be found at the websites of organizations such as the Erectile Dysfunction Institute (www.Cure-ED.com) and the Institute for Urologic Excellence (www.EndingED.com).

About American Medical Systems

American Medical Systems, headquartered in Minnetonka, Minnesota, is the world leader in the penile implant market, with a series of semi-rigid malleable prostheses and a complete range of more naturally functioning inflatable prostheses. It is also the world leader in curing the incontinence that often follows prostate surgery, and offers several products to relieve the urinary obstructions caused by benign prostate hyperplasia (BPH) or other urethral strictures. In the last several years, it has developed a rapidly growing range of products for women's health, including cures for incontinence and abnormal uterine bleeding.

Although not life-threatening, 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 life expectancy, higher quality-of-life expectations, and greater awareness of new treatment alternatives. American Medical Systems' products reduce or eliminate the incapacitating effects of these disorders, often through minimally invasive surgery. The company's products were used to treat nearly 70,000 patients in 54 countries during the last 12 months. More information about the company and its products may be found at www.AmericanMedicalSystems.com. AMS 700CX and Dura II are trademarks of American Medical Systems.