American Medical Systems (AMMD) 8-K American Medical Systems Announces First Quarter 2011 Financial Results

Exhibit 99.1

DATE: May 3, 2011

FOR IMMEDIATE RELEASE

AMERICAN MEDICAL SYSTEMS ANNOUNCES FIRST QUARTER 2011 FINANCIAL RESULTS

• First quarter revenue of $140.8 million grows 4.3%; 5.4% growth excluding impact of currency and previously divested Uterine Health product line

• First quarter non-GAAP adjusted EPS of $0.33 grows 13.8% over prior year; GAAP EPS of $0.27 in both periods

MINNEAPOLIS, May 3, 2011 — American Medical Systems Holdings, Inc. (NASDAQ: AMMD) reported revenue of $140.8 million for the first quarter of 2011, a 4.3 percent increase over sales of $134.9 million in the comparable quarter of 2010. Adjusting revenue for the impact of currency fluctuation and the impact of theHer Option^®uterine health product line, which was sold during the first quarter of 2010, results in constant currency revenue growth of 5.4 percent.

Men’s Health sales of $67.4 million in the first quarter represented an increase of 4.5 percent on a reported basis compared to the same quarter last year, and grew 4.3 percent on a constant currency basis, with growth primarily driven by the Male Continence product line. The BPH Therapy business increased 8.3 percent on a reported basis and 7.8 percent on a constant currency basis to $28.1 million for the quarter. BPH Therapy sales were led by continued enthusiasm surrounding the newGreenLight™XPS console and the MoXy™ Liquid Cooled Fiber. The Women’s Health business increased 6.0 percent on a reported basis and 5.7 percent on a constant currency basis to $45.3 million in the first quarter. The Women’s Health growth is primarily driven by the pelvic floor repair product line which continues to benefit from both theElevate^® anterior and posterior systems.

The Company reported first quarter net income of $21.6 million, or $0.27 per share. This compares to net income in the same quarter last year of $20.7 million, also $0.27 per share. Non-GAAP adjusted earnings per share of $0.33 compares to $0.29 per share in the same quarter last year, an increase of 13.8 percent. Non-GAAP adjusted earnings per share excludes the impact of the amortization of intangible assets and amortization of financing costs, both significant non-cash items affecting comparability to other companies. First quarter 2011 non-GAAP adjusted earnings per share also excludes the start-up costs related to the transition of certain manufacturing operations to a new facility in Ireland and first quarter 2010 non-GAAP adjusted earnings per share excludes the gain on the sale of theHer Option^®Uterine Health product line. A reconciliation of reported net income to non-GAAP adjusted net income for all periods is provided in the attached schedules.

Proposed Transaction with Endo Pharmaceuticals

On April 10, 2011, Endo Pharmaceuticals (Endo) (NASDAQ: ENDP) and American Medical Systems entered into a definitive agreement under which Endo will acquire AMS for $30 per share, or $2.9 billion in cash, which includes the assumption and repayment of $312 million of AMS debt. The transaction is expected to close in the third quarter of 2011, subject to approval by AMS stockholders, clearance by the relevant antitrust authorities and the satisfaction of other customary conditions.

American Medical Systems
May 3, 2011
Page 2 of 8

A special meeting of the stockholders of AMS will be announced in due course to obtain stockholder approval of the proposed transaction. AMS has filed with the Securities and Exchange Commission (SEC) a preliminary proxy statement and intends to file with the SEC and distribute to its stockholders a definitive proxy statement and other relevant documents in connection with the proposed transaction. Investors of AMS are urged to read the definitive proxy statement and other relevant materials when they become available because they will contain important information about AMS, Endo and the proposed transaction. Investors may obtain a free copy of these materials (when they are available) and other documents filed by AMS with the SEC at the SEC’s website at www.sec.gov, at AMS’s website at www.AmericanMedicalSystems.com or by sending a written request to American Medical Systems Holdings, Inc., 10700 Bren Road West, Minnetonka, Minnesota, 55343, attention: Corporate Secretary.

AMS and its directors, executive officers and certain other members of management and employees may be deemed to be participants in soliciting proxies from its stockholders in favor of the proposed merger. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of AMS’s stockholders in connection with the proposed transaction will be set forth in AMS’s definitive proxy statement for its special meeting. Additional information regarding these individuals and any interest they have in the proposed transaction will be set forth in the definitive proxy statement to be filed with the SEC.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), management provides non-GAAP adjusted net income, non-GAAP adjusted earnings per share and constant currency revenue growth rates because management believes that in order to properly understand the Company’s short-term and long-term financial trends and for purposes of comparability to other companies, investors may wish to consider the impact of certain adjustments (such as gain or loss on extinguishment of debt, gain or loss on sale of non-strategic assets, in-process research and development charges (IPRD), amortization of intangible assets, amortization of financing costs, start-up costs of global manufacturing expansion and related income tax adjustments and the impact of foreign currency translation on reported revenue). These adjustments result from facts and circumstances (such as acquisition, business development and expansion activities and other non-recurring items) that vary in frequency and impact on the Company’s results of operations, represent significant items, which when excluded provide a useful measure to determine the health of the business and earnings by the business before significant non-cash charges and costs of a start-up nature or in the case of foreign currency translation, are highly variable and difficult to predict. Management uses non-GAAP adjusted net income, non-GAAP adjusted earnings per share and constant currency revenue growth rates to forecast and evaluate the operational performance of the Company as well as to compare results of current periods to prior periods on a consistent basis.

A reconciliation of net income and revenue growth rate percentages, the GAAP measure most directly comparable to non-GAAP adjusted earnings per share and constant currency revenue growth rates, respectively, are provided on the attached schedules.

Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be directly 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.

American Medical Systems
May 3, 2011
Page 3 of 8

About American Medical Systems

American Medical Systems, headquartered in Minnetonka, Minnesota, is a diversified supplier of medical devices and procedures to treat incontinence, erectile dysfunction, benign prostatic hyperplasia (BPH), pelvic floor 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 340,000 patients in 2010.

Forward-Looking Statements

This press release contains forward-looking statements relating to, among other things, the market opportunities, future products, sales, financial results of American Medical Systems and the proposed merger between AMS and Endo. 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; timing and success of new product introductions; clinical and regulatory matters; product liability claims; potential product recalls or technological obsolescence; changes in and adoption of reimbursement rates; global healthcare reform; patient acceptance of the Company’s products and therapies; current worldwide economic conditions; reliance on single or sole-sourced suppliers; loss or impairment of a principal manufacturing facility; factors impacting the stock market and share price and its impact on the dilution of convertible securities; adequate protection of the Company’s intellectual property rights; successfully managing debt leverage and related credit facility financial covenants; currency and other economic risks inherent in selling our products internationally; whether the merger with Endo will be consummated; and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the year ended January 1, 2011, 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 2010 and its other SEC filings.

Contact:	Mark Heggestad
	Executive Vice President and Chief Financial Officer
	952-930-6495
	Mark.Heggestad@AmericanMedicalSystems.com
	Anthony Bihl
	President and Chief Executive Officer
	952-930-6334
	Tony.Bihl@AmericanMedicalSystems.com

American Medical Systems
May 3, 2011
Page 4 of 8

American Medical Systems Holdings, Inc.
Statements of Operations
(In thousands, except per share data)

	Three Months Ended
	April 2, 2011			April 3, 2010
	(Unaudited)			(Unaudited)
Net sales	$	140,786		$	134,926
Cost of sales		22,133			21,027
Gross profit		118,653			113,899
Operating expenses
Sellling, general and administrative		60,286			60,887
Research and development		14,418			13,509
Global manufacturing start-up costs		197			—
Amortization of intangibles		2,948			3,047
Total operating expenses		77,849			77,443
Operating income		40,804			36,456
Other (expense) income
Royalty income		82			308
Interest expense		(3,101	)		(3,954	)
Amortization of financing costs		(3,163	)		(3,693	)
Gain on sale of non-strategic assets		—			7,719
Other expense		(827	)		(516	)
Total other (expense) income		(7,009	)		(136	)
Income before income taxes		33,795			36,320
Provision for income taxes		12,234			15,662
Net income	$	21,561		$	20,658
Net income per share
Basic net income	$	0.28		$	0.28
Diluted net income	$	0.27		$	0.27
Weighted average common shares used in calculation
Basic		76,866			75,117
Diluted		78,691			76,270

American Medical Systems
May 3, 2011
Page 5 of 8

American Medical Systems Holdings, Inc.
Condensed Balance Sheets
(In thousands)

	April 2, 2011		January 1, 2011
	(Unaudited)
Assets
Current assets
Cash and short-term investments	$	110,015	$	77,815
Accounts receivable, net		96,442		98,518
Inventories, net		35,492		33,789
Other current assets		24,220		22,305
Total current assets		266,169		232,427
Property, plant and equipment, net		40,820		41,405
Goodwill and intangibles, net		772,642		774,501
Other long-term assets		8,768		5,101
Total assets	$	1,088,399	$	1,053,434
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	9,500	$	8,833
Accrued liabilities and taxes		58,802		60,719
Total current liabilities		68,302		69,552
Debt and other long-term liabilities		320,618		315,321
Total liabilities		388,920		384,873
Stockholders’ equity		699,479		668,561
Total liabilities and stockholders’ equity	$	1,088,399	$	1,053,434

American Medical Systems
May 3, 2011
Page 6 of 8

American Medical Systems Holdings, Inc.
Condensed Statements of Cash Flows
(Unaudited)
(In thousands)

	Three Months Ended
	April 2, 2011			April 3, 2010
Cash flows from operating activities
Net income	$	21,561		$	20,658
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including financing costs		8,552			9,264
Gain on sale of non-strategic assets		—			(7,719	)
Stock-based compensation		2,190			1,829
Other adjustments, including changes in operating assets and liabilities		874			2,576
Net cash provided by operating activities		33,177			26,608
Cash flows from investing activities
Purchase of property, plant and equipment		(1,802	)		(1,314	)
Purchase of intangibles		(508	)		(693	)
Purchase of investments		(34,468	)		(25,041	)
Sale of investments		8,571			7,337
Sale of non-strategic asset		—			20,186
Other cash flows from investing activities		(425	)		783
Net cash provided by investing activities		(28,632	)		1,258
Cash flows from financing activities
Payments on senior secured credit facility		—			(45,719	)
Other cash flows from financing activities		6,298			9,560
Net cash used in financing activities		6,298			(36,159	)
Effect of currency exchange rates on cash		(329	)		(165	)
Net (decrease) increase in cash and cash equivalents		10,514			(8,458	)
Cash and cash equivalents at beginning of period		16,481			30,670
Cash and cash equivalents at end of period	$	26,995		$	22,212

American Medical Systems
May 3, 2011
Page 7 of 8

American Medical Systems Holdings, Inc.
Selected Sales Information and Constant Currency Growth Reconciliation
(Unaudited)
(In thousands)

	Three Months Ended						Constant Currency Growth Reconciliation (a)
												Percent Growth
							Percent			Currency		at Constant
	April 2, 2011			April 3, 2010			Growth			Impact		Currency
Sales
Men’s health	$	67,407		$	64,480			4.5	%	$	175		4.3	%
BPH therapy		28,054			25,911			8.3	%		132		7.8	%
Women’s health		45,325			42,748			6.0	%		137		5.7	%
Sub-total		140,786			133,139			5.7	%		444		5.4	%
Uterine health (b)		—			1,787			-100.0	%		—		-100.0	%
Total	$	140,786		$	134,926			4.3	%	$	444		4.0	%
Geography
United States	$	99,675		$	96,523			3.3	%	$	—		3.3	%
International		41,111			36,616			12.3	%		444		11.1	%
Sub-total		140,786			133,139			5.7	%		444		5.4	%
United States-Uterine health (b)		—			1,787			-100.0	%		—		-100.0	%
Total	$	140,786		$	134,926			4.3	%	$	444		4.0	%
Percent of total sales
Men’s health		48	%		48	%
BPH therapy		20	%		19	%
Women’s health		32	%		32	%
Sub-total		100	%		99	%
Uterine health (b)		0	%		1	%
Total		100	%		100	%
Geography
United States		71	%		73	%
International		29	%		27	%
Total		100	%		100	%

(a)	To calculate the currency impact on revenue growth rates, the Company compares each period’s sales, assuming no fluctuation in foreign currency exchange rates between periods. The generally accepted accounting principle (GAAP) measure most comparable to this non-GAAP measure is growth rate percentages based on GAAP revenue.
(b)	The uterine health product line,Her Option®was sold in February, 2010. Revenues for 2010 consist of end-customer revenue earned prior to the date of sale, in addition to revenue earned as part of the product supply agreement with CooperSurgical, Inc., which continued through the fourth quarter of 2010.

American Medical Systems
May 3, 2011
Page 8 of 8

American Medical Systems Holdings, Inc.
Reconciliation of Reported Net Income to Non-GAAP Adjusted Net Income
(Adjustments are presented on a pre-tax basis)
(Unaudited)
(In thousands, except per share data)

	Three Months Ended
	April 2, 2011			April 3, 2010
Net income, as reported	$	21,561		$	20,658
Adjustments to net income:
Amortization of intangibles (a)		2,948			3,047
Amortization of financing costs (b)		3,163			3,693
Global manufacturing start-up costs (c)		197			—
Gain on sale of non-strategic assets (d)		—			(7,719	)
Tax effect of adjustments to net income (e)		(2,147	)		2,533
Non-GAAP adjusted net income	$	25,722		$	22,212
Net income per share
Basic	$	0.28		$	0.28
Diluted	$	0.27		$	0.27
Non-GAAP adjusted earnings per share
Basic	$	0.33		$	0.30
Diluted	$	0.33		$	0.29
Weighted average common shares used in calculation:
Basic		76,866			75,117
Diluted		78,691			76,270

(a)	Consists of amortization of intangible assets, primarily developed and core technology.
(b)	Consists of amortization of financing costs on our convertible senior subordinated notes and senior secured credit facility.
(c)	Consists of start-up costs in connection with the expansion of manufacturing capacity internationally, which are incremental to on-going operations.
(d)	Relates to the gain on the sale of theHer Option® Global Endometrial Ablation product line.
(e)	Includes the tax effect of each of the above items in each of the periods.