American Medical Systems Signs Patent Cross-Licensing Agreement with ETHICON; Agreement Covers Technology Related to Women's Pelvic Health

Business Wire, July 1, 2004

MINNEAPOLIS -- American Medical Systems Holdings, Inc. (Nasdaq:AMMD) announced today that it has entered into a patent cross-licensing agreement with ETHICON Inc., through its GYNECARE Worldwide Division.

Under the agreement, both companies are cross-licensing patents related to the field of female pelvic health. This agreement will permit both companies to concentrate their efforts on innovation that will benefit both physicians and their patients.

"American Medical Systems sees this arrangement as a testament to both companies' interest in bringing innovative treatments to the field of female pelvic health. This arrangement will also allow us to focus more resources on the development of curative treatments needed by millions of women each year," said Ross Longhini, Chief Technology Officer of American Medical Systems.

Although financial terms were not disclosed, the agreement will not be material to American Medical Systems' current operations.

American Medical Systems

American Medical Systems, headquartered in Minnetonka, Minnesota, is the world leader in medical devices and procedures to cure incontinence, abnormal uterine bleeding, erectile dysfunction and urinary obstructions caused primarily by benign prostatic hyperplasia or strictures. Although not life threatening, 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.

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.

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 2003 and its other SEC filings.