American Medical Systems (AMMD) 8-K American Medical Systems Reports Third Quarter Revenue of $109.0 Million

Exhibit 99.1

DATE: October 29, 2007

FOR IMMEDIATE RELEASE

AMERICAN MEDICAL SYSTEMS REPORTS THIRD QUARTER REVENUE OF $109.0 MILLION

MINNEAPOLIS, October 29, 2007 — American Medical Systems Holdings, Inc. (NASDAQ: AMMD) reported revenues of $109.0 million for the third quarter of 2007, a 20 percent increase over sales of $90.5 million in the third quarter of 2006. Year over year revenue comparisons are impacted by the July 2006 acquisition of Laserscope. Excluding Laserscope, 2007 and 2006 third quarter base revenue was $83.0 million and $72.0 million, respectively, representing a 15 percent increase. Adjusted for foreign exchange, the Company’s base business growth rate was 14 percent.

The Company reported net income for the quarter of $6.9 million, or $0.09 per share. The prior year’s third quarter had a reported net loss of $58.6 million, or $0.84 per share, and included $61.5 million of in-process research and development (IPR&D) charges from the Laserscope acquisition completed during that quarter, along with a loss from discontinued operations of $0.7 million. Net income for the third quarter of 2006, adjusted to exclude the effect of these charges, was $5.2 million, or $0.07 per share. A reconciliation of reported earnings to these adjusted results for the prior year is included in the attached financial tables.

Martin J. Emerson, President and Chief Executive Officer, noted, “Third quarter revenue performance from most of our base businesses was very strong, with our erectile restoration, male continence, female continence and international laser therapy businesses all recording growth rates at the top end of our expectations or higher. We continue to be pleased with market acceptance of both theAdvance™ Male Sling Systemfor treating mild male incontinence and the newMiniArc™ Single Incision Sling Systemfor female incontinence.”

Mr. Emerson further stated, “We are behind our full year growth expectations in our BPH business. The most significant variance to our BPH expectations this year has been our laser therapy business, where we have not maintained consistent revenue performance. Third quarter international laser therapy revenues were sequentially higher than in the second quarter, indicating that our focused efforts outside the U.S. are gaining traction. However, our U.S. laser therapy business struggled in the third quarter following a strong first half of 2007. Despite the inconsistencies we have experienced in our laser therapy business in the past few quarters, we remain optimistic for the therapy’s market potential, and we have a number of initiatives in place to improve both the performance and predictability of the business.”

Credit Facility Amendment

The Company further announced that it has entered into an amendment of senior secured credit facility which modifies certain financial covenants for future quarters. While the Company remains in full compliance with all debt covenants for its third quarter, it has completed an amendment with the support of its lenders lengthening the period of time over which performance ratios must be achieved. Details of the amendment will be shared on the conference call later today and are fully disclosed in a Form 8-K also filed today.

American Medical Systems
October 29, 2007
Page 2 of 8

Outlook

For the year 2007, the Company has updated its expected revenue range to $458 to $464 million, from the previous guidance of $470 to $482 million. Revenue projected for the fourth quarter of 2007 ranges from $124 to $130 million.

The Company’s projected earnings per share from continuing operations for 2007 is anticipated in the range of $0.40 to $0.45 per share, adjusted from the previous guidance of $0.52 to $0.60. Fourth quarter earnings per share is projected to be $0.15 to $0.20.

Earnings Call Information

American Medical Systems will host a conference call today at 5:00 p.m. eastern time to discuss its third quarter 2007 results. Those without internet access may join the call from within the U.S. by dialing 800-886-7217; outside the U.S., dial 706-679-3821.

A live web cast of the call will be available through the Company’s corporate website at www.AmericanMedicalSystems.com and available for replay three hours after the completion of the call.

About American Medical Systems

American Medical Systems, headquartered in Minnetonka, Minnesota and including its 2006 acquisition of Laserscope, 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 240,000 patients in 2006.

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; successful integration of Laserscope into AMS’ business; 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; ability of the Company’s manufacturing facilities to meet customer demand; reliance on single or sole-sourced suppliers; successful upgrade of its global software system; 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; and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the year ended December 30, 2006, and its other SEC filings.

American Medical Systems
October 29, 2007
Page 3 of 8

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 2006 and its other SEC filings.

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

American Medical Systems
October 29, 2007
Page 4 of 8

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

	Three Months Ended						Nine Months Ended
	September 29,			September 30,			September 29,			September 30,
	2007			2006			2007			2006
Net sales	$	109,041		$	90,500		$	333,879		$	242,906
Cost of sales		24,441			18,865			77,925			42,302
Gross profit		84,600			71,635			255,954			200,604
Operating expenses
Marketing and selling		42,278			31,465			123,402			88,649
Research and development		9,918			9,295			32,047			22,849
In-process research and development		—			61,500			—			89,575
General and administrative		10,128			8,552			31,704			22,681
Integration costs		—			273			1,103			273
Amortization of intangibles		4,516			5,172			13,969			8,798
Total operating expenses		66,840			116,257			202,225			232,825
Operating income (loss)		17,760			(44,622	)		53,729			(32,221	)
Other (expense) income
Royalty income		3,482			479			4,664			1,340
Interest income		333			1,364			962			2,120
Interest expense		(9,460	)		(8,907	)		(28,681	)		(9,260	)
Financing charges		(1,130	)		(491	)		(2,667	)		(7,446	)
Other income		736			107			2,710			397
Total other (expense) income		(6,039	)		(7,448	)		(23,012	)		(12,849	)
Income (loss) before income taxes		11,721			(52,070	)		30,717			(45,070	)
Provision for income taxes		4,796			5,862			12,083			9,485
Net income (loss) from continuing operations		6,925			(57,932	)		18,634			(54,555	)
Loss from discontinued operations, net of tax		—			(672	)		(691	)		(672	)
Net income (loss)	$	6,925		$	(58,604	)	$	17,943		$	(55,227	)
Net income (loss) per share
Basic net income (loss) from continuing operations	$	0.10		$	(0.83	)	$	0.26		$	(0.78	)
Discontinued operations, net of tax		—			(0.01	)		(0.01	)		(0.01	)
Basic net income (loss)	$	0.10		$	(0.84	)	$	0.25		$	(0.79	)
Diluted net income (loss) from continuing operations	$	0.09		$	(0.83	)	$	0.25		$	(0.78	)
Discontinued operations, net of tax		—			(0.01	)		(0.01	)		(0.01	)
Diluted net income (loss)	$	0.09		$	(0.84	)	$	0.24		$	(0.79	)
Weighted average common shares used in calculation
Basic		72,166			70,122			72,001			69,877
Diluted		73,740			70,122			73,605			69,877

American Medical Systems
October 29, 2007
Page 5 of 8

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

	September 29, 2007		December 30, 2006
	(Unaudited)
Assets
Current assets
Cash and short-term investments	$	24,251	$	29,541
Accounts receivable, net		99,268		91,938
Inventories, net		59,884		37,974
Other current assets		20,835		78,715
Total current assets		204,238		238,168
Property, plant and equipment, net		55,513		47,035
Goodwill and intangibles, net		849,713		837,709
Deferred taxes and other assets		4,376		4,179
Total assets	$	1,113,840	$	1,127,091
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	18,286	$	15,430
Accrued liabilities and taxes		55,967		87,103
Total current liabilities		74,253		102,533
Debt and other long term liabilities		710,167		743,396
Total liabilities		784,420		845,929
Stockholders’ equity		329,420		281,162
Total liabilities and stockholders’ equity	$	1,113,840	$	1,127,091

American Medical Systems
October 29, 2007
Page 6 of 8

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

	Nine Months Ended
	September 29, 2007			September 30, 2006
Cash flows from operating activities
Net income (loss) from continuing operations	$	18,634		$	(54,555	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including deferred financing costs		22,850			20,606
Non-operating in-process research and development		—			89,575
Other adjustments, including changes in operating assets and liabilities		(13,680	)		9,048
Net cash provided by operating activities		27,804			64,674
Cash flows from investing activities
Purchase of property, plant and equipment		(13,930	)		(13,484	)
Purchase or divestiture of business, net of cash acquired		20,894			(750,853	)
Purchase of investments in technology		(379	)		(28,075	)
Other cash flows from investing activities		(127	)		14,030
Net cash provided by (used in) investing activities		6,458			(778,382	)
Cash flows from financing activities
Payments on long term debt		(48,919	)		—
Proceeds from issuance of convertible notes, net of issuance costs		—			361,218
Proceeds from senior secured credit facility, net of issuance costs		—			352,754
Other cash flows from financing activities		10,272			2,881
Net cash (used in) provided by financing activities		(38,647	)		716,853
Cash used in discontinued operations		(691	)		(672	)
Effect of currency exchange rates on cash		(363	)		719
Net (decrease) increase in cash and cash equivalents		(5,439	)		3,192
Cash and cash equivalents at beginning of period		29,051			30,885
Cash and cash equivalents at end of period	$	23,612		$	34,077

American Medical Systems
October 29, 2007
Page 7 of 8

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

	Three Months Ended						Nine Months Ended
	September 29, 2007			September 30, 2006			September 29, 2007			September 30, 2006
Sales
Men’s health	$	73,916		$	60,446		$	225,854		$	151,016
Women’s health		35,125			30,054			108,025			91,890
Total	$	109,041		$	90,500		$	333,879		$	242,906
Geography
United States	$	78,992		$	70,466		$	243,068		$	187,489
International		30,049			20,034			90,811			55,417
Total	$	109,041		$	90,500		$	333,879		$	242,906
Percent of total sales
Men’s health		68	%		67	%		68	%		62	%
Women’s health		32	%		33	%		32	%		38	%
Total		100	%		100	%		100	%		100	%
Geography
United States		72	%		78	%		73	%		77	%
International		28	%		22	%		27	%		23	%
Total		100	%		100	%		100	%		100	%

American Medical Systems
October 29, 2007
Page 8 of 8

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

	Three Months Ended					Nine Months Ended
	September 29, 2007		September 30, 2006			September 29, 2007		September 30, 2006
Net income (loss) from continuing operations, as reported	$	6.9	$	(57.9	)	$	18.6	$	(54.6	)
Adjustments to net income (loss):
In-process research and development (a)		—		61.5			—		89.6
Commitment fees on bridge financing (b)		—		—			—		7.0
Adjustments to net income from continuing operations		—		61.5			—		96.6
Tax effect of adjustments to net income from continuing operations and other tax items		—		1.6			—		(10.7	)
Total tax affected adjustments to net income from continuing operations		—		63.1			—		85.9
Net income from continuing operations, as adjusted	$	6.9	$	5.2		$	18.6	$	31.3
Net income from continuing operations, as adjusted per share
Basic	$	0.10	$	0.07		$	0.26	$	0.45
Diluted	$	0.09	$	0.07		$	0.25	$	0.44
Weighted average common shares used in calculation:
Basic		72,166		70,122			72,001		69,877
Diluted		73,740		72,035			73,605		72,001

(a)	Consists of the initial charge related to the acquisitions of BioControl Medical, Ltd. Solarant Medical, Inc. and Laserscope.
(b)	Consists of fees incurred for bridge financing commitments related to the acquisition of Laserscope.