American Medical Systems Expands Worldwide Headquarters.

New Building Opens as Company Marks 35(th) Anniversary

MINNEAPOLIS -- American Medical Systems Holdings, Inc. (NASDAQ:AMMD), the global leader in providing pelvic health solutions, will today celebrate the grand opening of a new building and its 35-year-anniversary. The new building - adjacent to its existing facility - signifies the Company's expanded revenue and employee base and adds over 50,000 square feet of new office space to the AMS campus.

The increased physical space mirrors the Company's solid business performance over the past five years. From 2002 to 2006, AMS increased its revenue from $118 million to $358 million, a 25 percent compounded annual growth rate, and has more than doubled its global employee base. AMS has also grown the number of employees at its company headquarters in Minnetonka by over 60 percent to 580 during the same time period. The new facility creates additional space capacity for 200 or more new employees in both technical and administrative roles, adding to the number of high-quality, professional jobs in the state.

"The decision to expand our Minnesota facility demonstrates our long-term commitment to the region and its world-class lifescience industry," said Martin J. Emerson, President and Chief Executive Officer of AMS. "With the state's well-educated and technically skilled workforce, AMS continues to attract competitive and committed employees who drive the success of the organization."

For the past 35 years, AMS has had a singular focus on pelvic health, a strategic decision that results in continued success for the Company. Founded in 1972, AMS delivers effective, innovative pelvic health solutions that improve the quality of life for men and women around the world. Last year, approximately 240,000 patients in more than 60 countries were treated with AMS products and therapies, compared to 78,000 in 2002 (a 32 percent compound annual growth rate). The Company aims to serve 375,000 patients in 2007.

AMS will recognize the opening of its new facility at a ceremony today for employees and invited guests. Speakers will include U.S. Congressman Jim Ramstad (Third Congressional District), a long-time supporter of the medical device industry and AMS for the past 17 years. Emerson will present Congressman Ramstad with an AMS "Leadership Award" in appreciation of his ongoing support for medical technology innovation. Vicki Tigwell, the state director for U.S. Senator Norm Coleman, will also participate in the celebration.