Laserscope's Aura Laser System Receives Approval for Marketing in Japan.

SAN JOSE, Calif.--(BW HealthWire)--Aug. 28, 1997--Laserscope (NASDAQ:LSCP) today announced that its Aura(TM) Laser System has been approved for sale in Japan by the Ministry of Health and Welfare. The Company expects to begin marketing Aura in the fourth quarter of this year, focusing on the ear, nose and throat (ENT) market.

Aura is a portable, desktop-sized medical laser, ideally suited for a broad range of hospital or in-office ENT procedures, with additional applications in dermatology, gynecology and urology. The system will be sold in Japan by Laserscope's distributor, HOYA Continuum Corporation. HOYA recently sold its 100th Laserscope laser system, an Orion(TM) Laser System, to Tokyo Medical College.

"We are extremely gratified by the approval to market our Aura Laser System in Japan," said Robert V. McCormick, Laserscope President & CEO. "We also have a number of other submissions at the Ministry of Health and Welfare and will announce them when approved."

"Japan, which is the world's second largest medical laser market behind the U.S., is a key element in our strategic plan to become an industry leader in the international medical laser business," said Mr. McCormick.

"The Company's laser system sales have experienced strong growth in Europe, particularly in Germany and France, and we are finding that the Asia Pacific markets have the potential to provide us with even greater opportunities. As recently as 1994, only 17% of the Company's business came from international markets. Through the first half of 1997, overseas business accounted for more than 30% of total revenues on a higher sales base."

The Aura Laser System, about the size of a household microwave appliance, is designed to facilitate surgical procedures in a physician's office and/or outpatient surgical center. It delivers up to 15 watts of KTP/532(R) laser energy and is available with a broad array of custom instrumentation and fiberoptic delivery devices.

In its continuous wave mode, Aura is well-suited for a variety of ENT procedures, including functional endoscopic sinus surgery, turbinectomy, tonsillectomy, stapedotomy, laryngeal surgery, and laser-assisted uvulopalatoplasty (treatment of snoring).

In its StarPulse(TM) variable pulsing mode, the Aura Laser System can be used for the photocoagulation of vascular, benign pigmented, and other cutaneous lesions. Conditions that can be effectively treated include leg veins, birth marks and facial spider veins, vascular malformations such as hemangiomas, in addition to benign lesions such as brown sun spots, liver spots, skin tags and warts.

Added Mr. McCormick: "Ear, nose and throat laser procedures comprise a strong market in Japan, and we believe that our Aura Laser System, initially targeted at this market, will be very well received by physicians."

Laserscope designs, manufactures, sells and services on a worldwide basis an advanced line of medical laser systems and related energy delivery devices for the office, outpatient surgical center and hospital markets. In addition, Laserscope's Ascent Medical Systems(TM) (AMS) provide innovative, custom equipment solutions for surgical suites and medical treatment rooms.

Statements in this announcement about future results are preliminary and based on partial information and assumptions. There can be no assurance that the Company will receive additional Japanese Ministry of Health and Welfare approvals or that the Aura Laser System will receive market acceptance in Japan. Except for the historical information presented, the matters discussed in this announcement contain forward-looking statements that involve risks and uncertainties, including the timely introduction and market acceptance of new products and procedures such as those described herein, the development and rate of growth of new markets and treatments, the impact of competitive products and technologies, and other risks detailed from time to time in the Company's public disclosure filings with the U.S. Securities and Exchange Commission (SEC). Copies of the most recent Forms 10K and 10Q are available upon request from Laserscope's Investor Relations Department.

CONTACT: Laserscope

Richard Wood (IR/Media)

Dennis LaLumandiere (Financial)

408/943-0636

or

Hilary Kaye Associates

Hilary Kaye or Shelle Murach, 714/851-5150