American Medical Systems Reports Early Physician Experience with New System for Cystocele --Bladder Prolapse-- Repair.

MINNEAPOLIS -- New Perigee(TM) System Expands Company's Women's Health Portfolio

American Medical Systems Holdings, Inc. (Nasdaq:AMMD) announced today early feedback from physicians on Perigee(TM), its innovative treatment for cystocele repair.

Perigee is the most recent addition to the American Medical Systems portfolio of products for the repair of pelvic floor defects in women, joining the Apogee(TM) Vaginal Vault System, Straight-In(TM) Sacral Colpopexy System, IntePro(TM) Polypropelene Mesh, InteDerm(TM) Allograft Dermal Matrix and InteXen(TM) Porcine Dermal Matrix. The proprietary Perigee needles enable surgeons to position a supportive mesh and correct the bladder's herniation through the vaginal wall. This unique product and less invasive surgical technique are designed to improve patient outcomes and reduce operating room time as compared to traditional prolapse repair techniques.

The first U.S. surgeon to perform the Perigee procedure was Robert D. Moore, D.O, Director of Advanced Pelvic Surgery and Co-Director of Urogynecology, Atlanta Urogynecology Associates. Dr. Moore stated, "The Perigee system will revolutionize the treatment of anterior vaginal wall prolapse with a standardized approach, just as tension-free tape procedures have revolutionized the treatment of stress urinary incontinence. I am very excited to be providing this treatment option for my patients suffering from anterior vaginal wall prolapse."

Douglas W. Kohrs, Chairman and Chief Executive Officer of American Medical Systems, said, "With the addition of Perigee to our portfolio, American Medical Systems has the most comprehensive offering of prolapse products in the world today, again reinforcing our objective to deliver solutions for pelvic health disorders affecting patients' quality of life."

Professor Ajay Rane, M.D., a urogynecologist from Queensland Australia, is participating in the initial clinical evaluation of Perigee. Professor Rane stated, "The Perigee system addresses all types of anterior vaginal prolapse in an efficient and minimally invasive procedure. This system provides the surgeon the ability to customize the procedure with the flexibility to use either biologic or synthetic graft material. Using Perigee, I am providing comprehensive symptomatic relief in a high percentage of my patients."

About Pelvic Organ Prolapse

Pelvic organ prolapse, a widespread problem among women, can be caused by the effects of pregnancy, vaginal delivery, or obesity. This quality of life issue for women becomes more prevalent with age. Over thirty-six million women in the U.S. and Europe suffer from prolapse, with over six million having severe cases. It is estimated that only 350,000 patients are surgically treated each year worldwide. Current prolapse repair procedures are generally complex and lengthy, often having limited long-term success. The Perigee system offers the benefits of a graft-augmented repair with a simpler, less-invasive surgical approach.

Approximately 40 percent of women treated for incontinence are treated for prolapse at the same time. Physicians will be able to combine Perigee with any one of AMS' five urinary incontinence products, thus providing patients with complete, comprehensive pelvic repairs.

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, and other pelvic disorders in men and women. Although not life threatening, these disorders can significantly diminish one's quality of life and profoundly affect social relation-ships. 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 over 100,000 patients in 54 countries during the last year. More information about the company and its products may be found at www.AmericanMedicalSystems.com. Perigee, Apogee, IntePro, InteXen and Straight-In are trademarks of American Medical Systems or its subsidiaries.

Forward Looking Statements

Statements about the company's future product availability and sales are forward-looking statements subject to risks and uncertainties including the timing and success of new product introductions, physician acceptance, endorsement, and use of the company's products, competitor activities, changes in reimbursement rates, and potential product recalls. These risks and others are more fully described in the company's Annual Report on Form 10-K for the year ended January 3, 2004, and its other SEC filings. Actual results may differ materially from anticipated results.

NOTE TO EDITORS: In the product name InteXen noted in this news release, there is a macron over the second "e." This symbol may not appear properly in some systems.