American Medical Systems (AMMD) 8-K American Medical Systems Reports Second Quarter Revenue of $129.8 Million

Exhibit 99.1

DATE: July 29, 2008

FOR IMMEDIATE RELEASE

AMERICAN MEDICAL SYSTEMS REPORTS SECOND QUARTER REVENUE OF $129.8 MILLION

• Male Continence becomes largest product line with 43.2% growth

• Earnings Per Share of $0.19 represents 90% growth over same quarter last year

• Increased profitability and working capital management drives $39.1 Million in cash flow from operations; a seven fold increase over the prior year

MINNEAPOLIS, July 29, 2008 — American Medical Systems Holdings, Inc. (NASDAQ: AMMD) reported revenues of $129.8 million for the second quarter of 2008, an 11.5 percent increase over sales of $116.5 million in the comparable quarter of 2007. Currency translation had a positive impact of $3.9 million in the second quarter. The Company reported 2008 second quarter net income of $14.0 million, or $0.19 per share, compared to net income in the same period last year of $7.3 million, or $0.10 per share. The Company also reported a strong cash EPS performance in the second quarter of 2008 of $0.26 per share compared to $0.17 per share in the comparable period last year. 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.

The men’s health business grew 8.5 percent during the quarter, to $84.9 million resulting from strong growth in male continence and erectile restoration, partially offset by a shortfall in laser therapy revenue. Male continence continued its strong performance with another record growth rate of 43.2% over the same quarter last year. Strong performance in male continence was driven by the continued success of the Advance™ Male Sling System and the sustained strength of the artificial urinary sphincter product family. Erectile restoration growth was driven by the strength of the MS700™product family. Significant growth from these product lines was partially offset by an 11.4 percent decline in laser therapy revenue compared to a strong 2007 second quarter.

The women’s health business returned to double digit growth, posting 17.5 percent revenue growth over the prior year, to $44.9 million. This performance was led by the female continence business which continues to benefit from last year’s introduction of theMiniArc™single incision sling system used for treating female stress incontinence. The uterine health product line rebounded from the disappointing first quarter performance, however remained below our expectations. Prolapse revenue growth also improved over the first quarter, in line with expectations, and we look forward to the launch of our Elevate™product family for prolapse repair in the second half of this year.

“As a leading provider of a full range of solutions in pelvic health, we are pleased with the performance of our implantable businesses,” commented Tony Bihl, Chief Executive Officer. “The challenges we identified earlier in the year in growing the laser therapy business are again evident this quarter. This is a significant area of focus and we remain confident in the treatment modality, recognizing the need to make fundamental changes in our approach, to return to growth in this business.”

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Mr. Bihl also commented, “The general health and progress of the overall business is reflected in impressive cash flow from operations, balance sheet management, and increased leveraging of our operating expenses. We are confident in our ability to meet the revenue and earnings expectations we established for 2008, despite the soft performance in our laser therapy business.”

Outlook

The Company reiterates its full year 2008 revenue guidance in the range of $500 million to $520 million. Reflecting the strong earnings performance experienced in the first half of the year the Company has updated its 2008 earnings per share guidance to be in the range of $0.62 to $0.72, an increase to the low end of the range from its original guidance of $0.57 to $0.72. Similarly, the Company has updated its 2008 cash earnings per share guidance to be in the range of $0.89 to $0.99, an increase from its original guidance in the range of $0.84 to $0.99. This guidance excludes the impact of any unusual non-recurring charges that could occur in 2008, such as in-process research and development (IPR&D) charges recognized on milestone payments related to prior acquisitions. The Company expects to make a milestone payment related to the 2006 acquisition of BioControl, during the third quarter of 2008, of approximately $7 million, which will be recorded as an IPR&D charge.

Third quarter 2008 revenue guidance is in the range of $114 million to $120 million, and earnings per share guidance is in the range of $0.11 to $0.14. Again, this guidance does not include the anticipated milestone payment of approximately $7 million which will be accounted for as IPR&D.

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

	Guided Year 2008
Guided earnings per share	$0.62 - $0.72
Adjustments to guided earnings per share, net of tax:
Amortization of intangibles	0.14
Amortization of financing costs	0.03
Stock based compensation	0.10
Total tax effected adjustments to guided earnings per share	0.27
Guided non-GAAP cash earnings per share	$0.89 - $0.99

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 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

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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 today, July 29, 2008, at 5:00 p.m. eastern time to discuss its second quarter 2008 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 atwww.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, 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

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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 websitewww.AmericanMedicalSystems.com and in the Company’s Annual Report on Form 10-K for 2007 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

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July 29, 2008
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American Medical Systems Holdings, Inc.
Statements of Operations
(Unaudited)
(In thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 28, 2008			June 30, 2007			June 28, 2008			June 30, 2007
Net sales	$	129,797		$	116,453		$	250,159		$	224,838
Cost of sales		29,185			27,129			58,175			53,484
Gross profit		100,612			89,324			191,984			171,354
Operating expenses
Marketing and selling		46,301			41,694			91,382			81,124
Research and development		11,366			10,979			22,666			22,129
General and administrative		10,552			10,587			20,707			21,576
Integration costs		—			92			—			1,103
Amortization of intangibles		4,300			4,749			8,647			9,453
Total operating expenses		72,519			68,101			143,402			135,385
Operating income		28,093			21,223			48,582			35,969
Other (expense) income
Royalty income		2,476			503			2,831			1,182
Interest income		157			293			352			629
Interest expense		(6,819	)		(9,588	)		(14,876	)		(19,221	)
Amortization of financing costs		(1,429	)		(755	)		(2,139	)		(1,537	)
Other income		585			351			1,930			1,974
Total other (expense) income		(5,030	)		(9,196	)		(11,902	)		(16,973	)
Income from continuing operations before income taxes		23,063			12,027			36,680			18,996
Provision for income taxes		9,069			4,701			14,475			7,287
Net income from continuing operations		13,994			7,326			22,205			11,709
Loss from discontinued operations, net of tax		—			—			—			(691	)
Net income	$	13,994		$	7,326		$	22,205		$	11,018
Net income (loss) per share
Basic net income from continuing operations	$	0.19		$	0.10		$	0.31		$	0.16
Discontinued operations, net of tax		—			—			—			(0.01	)
Basic net income	$	0.19		$	0.10		$	0.31		$	0.15
Diluted net income from continuing operations	$	0.19		$	0.10		$	0.30		$	0.16
Discontinued operations, net of tax		—			—			—			(0.01	)
Diluted net income	$	0.19		$	0.10		$	0.30		$	0.15
Weighted average common shares used in calculation
Basic		72,814			72,061			72,645			71,921
Diluted		73,928			73,593			73,718			73,536

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July 29, 2008
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American Medical Systems Holdings, Inc.
Condensed Balance Sheets
(In thousands)

	June 28, 2008		December 29, 2007
	(Unaudited)
Assets
Current assets
Cash and short-term investments	$	42,376	$	35,181
Accounts receivable, net		105,326		106,457
Inventories, net		47,335		60,707
Other current assets		17,382		23,040
Total current assets		212,419		225,385
Property, plant and equipment, net		51,560		53,126
Goodwill and intangibles, net		826,877		834,267
Deferred taxes and other assets		1,898		3,655
Total assets	$	1,092,754	$	1,116,433
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	9,788	$	13,364
Accrued liabilities and taxes		49,482		68,723
Total current liabilities		59,270		82,087
Debt and other long term liabilities		670,923		706,156
Total liabilities		730,193		788,243
Stockholders’ equity		362,561		328,190
Total liabilities and stockholders’ equity	$	1,092,754	$	1,116,433

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

	Six Months Ended
	June 28, 2008			June 30, 2007
Cash flows from operating activities
Net income from continuing operations	$	22,205		$	11,709
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including financing costs		15,603			14,941
Other adjustments, including changes in operating assets and liabilities		8,693			(13,079	)
Net cash provided by operating activities		46,501			13,571
Cash flows from investing activities
Purchase of property, plant and equipment		(3,148	)		(12,456	)
Acquisition or divestiture of business, net of cash acquired		3,330			20,895
Other cash flows from investing activities		(16,160	)		(390	)
Net cash (used in) provided by investing activities		(15,978	)		8,049
Cash flows from financing activities
Payments on long term debt		(41,718	)		(28,123	)
Other cash flows from financing activities		4,793			9,091
Net cash used in financing activities		(36,925	)		(19,032	)
Cash used in discontinued operations		—			(691	)
Effect of currency exchange rates on cash		(1,447	)		(152	)
Net (decrease) increase in cash and cash equivalents		(7,849	)		1,745
Cash and cash equivalents at beginning of period		34,044			29,051
Cash and cash equivalents at end of period	$	26,195		$	30,796

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

	Three Months Ended						Six Months Ended
	June 28, 2008			June 30, 2007			June 28, 2008			June 30, 2007
Sales
Men’s health	$	84,932		$	78,267		$	168,540		$	151,938
Women’s health		44,865			38,186			81,619			72,900
Total	$	129,797		$	116,453		$	250,159		$	224,838
Geography
United States	$	89,818		$	85,136		$	174,211		$	164,076
International		39,979			31,317			75,948			60,762
Total	$	129,797		$	116,453		$	250,159		$	224,838
Percent of total sales
Men’s health		65	%		67	%		67	%		68	%
Women’s health		35	%		33	%		33	%		32	%
Total		100	%		100	%		100	%		100	%
Geography
United States		69	%		73	%		70	%		73	%
International		31	%		27	%		30	%		27	%
Total		100	%		100	%		100	%		100	%

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

	Three Months Ended						Six Months Ended
	June 28, 2008			June 30, 2007			June 28, 2008			June 30, 2007
Net income from continuing operations, as reported	$	13,994		$	7,326		$	22,205		$	11,709
Adjustments to net income from continuing operations:
Amortization of intangibles (a)		4,300			4,749			8,647			9,453
Amortization of financing costs (b)		1,429			755			2,139			1,537
Stock based compensation (c)		2,486			2,730			4,611			5,766
Adjustments to net income from continuing operations		8,215			8,234			15,397			16,756
Tax effect of adjustments to net income from continuing operations (d)		(3,228	)		(3,219	)		(6,082	)		(6,434	)
Total tax effected adjustments to net income from continuing operations		4,987			5,015			9,315			10,322
Cash earnings	$	18,981		$	12,341		$	31,520		$	22,031
Cash earnings per share
Basic	$	0.26		$	0.17		$	0.43		$	0.31
Diluted	$	0.26		$	0.17		$	0.43		$	0.30
Weighted average common shares used in calculation:
Basic		72,814			72,061			72,645			71,921
Diluted		73,928			73,593			73,718			73,536

(a)	Consists of amortization of intangible assets, primarily developed and core technology.
(b)	Consists of amortization of financing costs on long-term debt.
(c)	Consists of stock based compensation, in accordance with SFAS 123(R).
(d)	Includes the tax effect of each of the above items.