American Medical Systems Reports First Quarter Revenue of $120.4 Million.

* Strong revenue growth in Male Continence, Erectile Restoration and Female Continence

* First quarter EPS of $0.11 grows 83% over prior year

* First quarter cash EPS of $0.17

MINNEAPOLIS -- American Medical Systems Holdings, Inc. (NASDAQ: AMMD) reported revenue of $120.4 million for the first quarter of 2008, an 11.1 percent increase over revenue of $108.4 million in the comparable quarter of 2007. The Company reported 2008 first quarter net income of $8.2 million, or $0.11 per share, compared to net income from continuing operations in the same period last year of $4.4 million, or $0.06 per share. The Company also reported a strong cash EPS performance in the first quarter of 2008 of $0.17 per share compared to $0.13 per share in the comparable period last year.

Men's Health had a strong first quarter; growing 13.5 percent to $83.6 million. Highlighting the quarter were very strong performances from the Male Continence and Erectile Restoration businesses. The growth from these businesses was moderated by the Laser Therapy business which grew 3.1 percent to $27.8 million during the quarter. Women's Health grew 5.9 percent to $36.8 million in the first quarter, representing significant growth in Female Continence driven by the MiniArc[TM] sling, partially offset by lower than expected performance in Uterine Health.

"We are very pleased with the strong results in Men's Health, driven by the continued momentum of the 700 MS[TM] product line for Erectile Restoration, and both the artificial urinary sphincter and AdVance[TM] sling system used to treat male incontinence. Consistent with our message from last quarter, while the Laser Therapy business produced solid results internationally, it continues to struggle in the United States. Although we continue to identify and implement initiatives to address Laser Therapy growth in the U.S., we do not anticipate accelerated growth until late 2008," noted Ross Longhini, Interim Chief Executive Officer. "We are also very pleased with both our expense control and balance sheet management, as we saw a number of key financial metrics improve dramatically in the first quarter."

Outlook

The Company reiterates its full year 2008 revenue guidance in the range of $500 million to $520 million. The Company also confirms 2008 earnings per share guidance in the range of $0.57 to $0.72 and 2008 cash earnings per share guidance in the range of $0.84 to $0.99. The Company defines cash earnings per share as net income excluding the impact of significant non-cash items consisting of amortization of intangibles, amortization of financing costs and stock based compensation. This guidance excludes the impact of any unusual non-recurring type charges that could occur in 2008, such as in-process research and development on milestone payments related to prior acquisitions.

A reconciliation of guided net income per share to non-GAAP cash earnings per share is as follows:

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Second quarter 2008 revenue guidance is in the range of $123 million to $129 million, and earnings per share guidance is in the range of $0.13 to $0.15.

Use of Non-GAAP Financial Measures

Cash earnings per share is a non-GAAP measure that management believes provides useful supplemental information for management and investors, because it reports the net income from continuing operations excluding the impact of significant non-cash items consisting of amortization of intangibles, amortization of deferred financing costs and stock based compensation. Management believes cash earnings per share provides a useful measure to determine the health of the business and earnings generated by the business before significant non-cash charges. A reconciliation of net income from continuing operations, the GAAP measure most directly comparable to cash earnings per share to non-GAAP cash earnings per share, is provided on the attached schedule.

Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.

Earnings Call Information

American Medical Systems will host a conference call on Tuesday, April 29, 2008 at 5:00 p.m. eastern time to discuss its 2008 first quarter results. Those without internet access may join the call from within the U.S. by dialing 800-399-1239; outside the U.S., dial 706-758-0293.

A live web cast of the call will be available through the Company's corporate website at www.AmericanMedicalSystems.com and will be 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 310,000 patients in 2007.

Forward-Looking Statements

This press release contains forward-looking statements relating to the market opportunities, future products, sales and financial results of American Medical Systems. These statements and other statements contained in this press release that are not purely historical fact are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on management's beliefs, certain assumptions and current expectations. These forward-looking statements are subject to risks and uncertainties such as successfully competing against competitors; physician acceptance, endorsement, and use of AMS products; potential product recalls or technological obsolescence; successfully managing increased debt leverage and related credit facility financial covenants; factors impacting the stock market and share price and its impact on the dilution of convertible securities; changes in the accounting method for convertible debt securities; potential obligations to make significant contingent payments under prior acquisitions; ability of the Company's manufacturing facilities to meet customer demand; reliance on single or sole-sourced suppliers; loss or impairment of a principal manufacturing facility; clinical and regulatory matters; timing and success of new product introductions; patient acceptance of the Company's products and therapies; changes in and adoption of reimbursement rates; adequate protection of the Company's intellectual property rights; product liability claims; currency and other economic risks inherent in selling our products internationally and other risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 29, 2007, and its other SEC filings. Actual results may differ materially from anticipated results. The forward-looking statements contained in this press release are made as of the date hereof, and AMS undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

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 2007 and its other SEC filings.

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