American Medical Systems (AMMD) 8-K/A Completion of Acquisition or Disposition of Assets

EXHIBIT 99.4

DATE: July 29, 2004

American Medical Systems Reports Record $49.1 Million
Sales with 33 Percent Net Income Growth in Second Quarter

Second Half Revenues, Aided by TherMatrx
Acquisition, Expected to Increase by Over 25%

MINNEAPOLIS, July 29, 2004 – American Medical Systems Holdings Inc. (NASDAQ: AMMD) reported another sales record of $49.1 million in the second quarter of 2004, a 16 percent increase over sales of $42.2 million in the comparable quarter of 2003 (14 percent without gain from currency exchange rate changes). Net income in the quarter was $8.4 million, or $0.24 per share, up 33 percent from $6.3 million, or $0.19 per share, in the comparable quarter of 2003.

Sales for the first six months of 2004 were $96.4 million, up 18% from sales of $81.6 million in 2003 (16 percent without gain from currency exchange rate changes). Net income in the six month period totaled $16.5 million, or $0.47 per share, up 40% from $11.8 million, or $0.35 per share in 2003.

Douglas W. Kohrs, Chairman and Chief Executive Officer of American Medical Systems, commented, “Our worldwide ability to leverage across our broad product portfolio was again clear in the second quarter. Women’s continence products led our growth at 52% above 2003’s comparable period. Male continence continued its momentum with a 17% increase in the quarter. Erectile restoration revenue was even with last year’s second quarter, but is poised to resume growth following the FDA’s clearance of ourAMS 700 Tactile Pump™ announced earlier this week. Our TherMatrx acquisition closed early in the third quarter, thereby giving us another growth engine, and providing us the opportunity to work directly with our urology customers in meeting the needs of the high-growth, in-office benign prostatic hyperplasia market.”

Outlook

Inclusive of its recently closed acquisition of TherMatrx, AMS expects 2004 revenue to be in the range of $205 to $210 million, generating EPS of $0.95 to $0.99. For the third quarter of 2004, the Company expects revenue to be in the range of $49 to $51 million. EPS for the third quarter is anticipated in the range of $0.22 to $0.24.

Earnings Call Information

American Medical Systems will host a conference call today at 5:00 p.m. (EST) to discuss its second quarter 2004 results. To access the call within the U.S., dial (800) 309-5451, outside the U.S., (706) 679-3605. A live web cast of the call will be available through the Company’s corporate website at www.AmericanMedicalSystems.com and available for replay two 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, 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.

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.

Contact:	Carmen Diersen
	Executive Vice President and Chief Financial Officer
	952-930-6495
	Carmen.Diersen@AmericanMedicalSystems.com
	Doug Kohrs
	Chairman and Chief Executive Officer
	952-930-6118
	Doug.Kohrs@AmericanMedicalSystems.com

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

	Three Months Ended						Six Months Ended
	July 3, 2004			June 28, 2003			July 3, 2004			June 28, 2003
Net sales	$	49,093		$	42,224		$	96,406		$	81,571
Cost of sales		9,047			7,381			17,977			14,324
Gross profit		40,046			34,843			78,429			67,247
Operating expenses
Marketing and selling		17,250			16,984			33,743			31,781
Research and development		3,577			3,483			7,161			7,274
General and administrative		5,210			3,845			10,086			7,915
Amortization of intangibles		1,058			1,039			2,119			2,104
Total operating expenses		27,095			25,351			53,109			49,074
Operating income		12,951			9,492			25,320			18,173
Other income (expense)
Royalty income		430			687			921			1,464
Interest income		172			112			310			242
Interest expense		(248	)		(698	)		(449	)		(1,424	)
Other income (expense)		(31	)		286			(187	)		321
Total other income (expense)		323			387			595			603
Income before income taxes		13,274			9,879			25,915			18,776
Provision for income taxes		4,845			3,542			9,459			6,985
Net income	$	8,429		$	6,337		$	16,456		$	11,791
Net income per share
Basic	$	0.25		$	0.19		$	0.49		$	0.36
Diluted	$	0.24		$	0.19		$	0.47		$	0.35
Weighted average common shares used in calculation
Basic		33,384			32,800			33,313			32,673
Diluted		35,037			34,077			35,004			34,057

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

	July 3, 2004		January 3, 2004
Assets
Current assets
Cash and short-term investments	$	77,240	$	58,953
Accounts receivable, net		36,922		33,507
Inventories		17,600		18,402
Deferred taxes and other current assets		8,030		8,533
Total current assets		139,792		119,395
Property, plant and equipment, net		23,471		25,489
Goodwill and intangibles, net		114,204		116,455
Deferred taxes and other assets		18,043		17,988
Total assets	$	295,510	$	279,327
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	3,648	$	4,621
Accrued liabilities and taxes		17,068		17,996
Current portion of notes payable		7,363		7,159
Total current liabilities		28,079		29,776
Long-term notes payable		5,523		9,205
Stockholders’ equity		261,908		240,346
Total liabilities and stockholders’ equity	$	295,510	$	279,327

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

	Six Months Ended
	July 3, 2004			June 28, 2003
Cash flows from operating activities
Net income	$	16,456		$	11,791
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		3,466			2,865
Loss on asset disposals		(5	)		—
Amortization of intangibles, including deferred financing costs		2,231			2,239
Non-cash deferred compensation		3			88
Income tax benefit related to stock option plans		1,294			892
Change in net deferred taxes		(618	)		(992	)
Changes in operating assets and liabilities		(4,128	)		(5,155	)
Net cash provided by operating activities		18,699			11,728
Cash flows from investing activities
Purchase of property, plant and equipment		($1,443	)		($1,599	)
Purchase of businesses, net of cash acquired		—			(43,069	)
Net cash used in investing activities		(1,443	)		(44,668	)
Cash flows from financing activities
Issuance of common stock	$	4,590		$	1,269
Payments on long-term debt		(3,478	)		(3,319	)
Net cash provided by (used in) financing activities		1,112			(2,050	)
Effect of exchange rates		(81	)		(40	)
Net increase (decrease) in cash and cash equivalents	$	18,287			($35,030	)

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American Medical Systems Holdings, Inc
Selected Sales Information
(In thousands)

	Three Months Ended						Six Months Ended
(in thousands)	July 3, 2004			June 28, 2003			July 3, 2004			June 28, 2003
Sales
Product line
Men’s health
Erectile restoration	$	17,919		$	17,966		$	35,384		$	35,818
Continence		12,266			10,471			24,432			20,503
Prostate treatment		1,089			1,312			2,255			2,511
Total men’s health		31,274			29,749			62,071			58,832
Women’s health		17,819			12,475			34,335			22,739
Total	$	49,093		$	42,224		$	96,406		$	81,571
Geography
United States	$	37,643		$	33,919		$	74,241		$	66,266
Outside United States		11,450			8,305			22,165			15,305
Total	$	49,093		$	42,224		$	96,406		$	81,571
Percent of total sales
Product line
Men’s health
Erectile restoration		37	%		43	%		37	%		44	%
Continence		25	%		25	%		25	%		25	%
Prostate treatment		2	%		3	%		2	%		3	%
Total men’s health		64	%		70	%		64	%		72	%
Women’s health		36	%		30	%		36	%		28	%
Total		100	%		100	%		100	%		100	%
Geography United States		77	%		80	%		77	%		81	%
Outside United States		23	%		20	%		23	%		19	%
Total		100	%		100	%		100	%		100	%

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