MINNEAPOLIS, Apr 23, 2003 (BUSINESS WIRE) -- American Medical Systems Holdings Inc. (Nasdaq:AMMD) reported record sales in the first quarter of 2003 of $39.3 million, a 13 percent increase over sales of $34.7 million in the comparable quarter of 2002 (11 percent before gain from foreign currency changes). Net income in the quarter was $5.5 million, or $0.16 per share, up slightly from $5.4 million, or $0.16 per share, in the comparable quarter of 2002. Net income in 2002 benefited from the company's pension fund termination, without which 2002 net income would have been $5.0 million, or $.15 per share; net income in 2003 was net of after-tax losses from the newly acquired CyroGen operations, without which net income would have increased 34 percent to $6.7 million, or $.20 per share. A summary of the adjustments is attached.

Douglas W. Kohrs, president and CEO, commented, "We are proud of our first-quarter performance and the early progress we have made with the CryoGen acquisition. Revenues from our major product groups continue to show strong growth, with revenue from women's health products leading the way at 48 percent growth over the first quarter of 2002. Included in this record growth in women's health were net revenues from the sale of CryoGen's Her Option disposables of $0.7 million, in line with our expectations for the quarter. Male continence revenues grew 14 percent for the quarter and erectile restoration revenues grew 3 percent. We again demonstrated strong expense controls, resulting in operating margins for the non-CryoGen business expanding to 27 percent of sales from 22 percent of sales in 2002."

Commenting further on the sales growth, Mr. Kohrs noted, "We are very pleased with the growth from women's health products, including both the SPARC and the Monarc sling systems for stress urinary incontinence. As we said in our April 14 Monarc announcement, this new subfascial hammock system was released in several European countries during the first quarter, and we are looking forward to having U.S. availability in the second half of 2003. The company also reached a significant milestone in the first quarter as total company continence revenues exceeded erectile restoration revenues for the first time in our 30 year history."

Outlook
Looking forward, Mr. Kohrs said AMS still expects full year sales to increase 17 to 22 percent over 2002 sales, including the increase from the sales of Her Option products and full-year operating margin for 2003 to show improvement over the full year 2002 operation margin. Operating margins in the first half of 2003 are expected to be adversely affected by significant start-up expenses of the CyroGen acquisition.

In the second quarter of 2003, AMS expects total revenues to be in the range of $41 to $43 million dollars. Operating margin as a percent of sales for the second quarter of 2003 is expected to be slightly better than the first quarter of 2003 and slightly lower than the second quarter of 2002.

Earnings Call Information
American Medical Systems will host a conference call today at 5:00 p.m. eastern time to discuss its first quarter 2003 results. A live web cast of the call is available from the Company's corporate website at www.AmericanMedicalSystems.com and via replay two hours after the completion of the call.

About American Medical Systems
American Medical Systems, headquartered in Minnetonka, Minnesota, is a world leader in medical devices and procedures to treat erectile dysfunction (ED); other men's health problems, (including incontinence, BPH, and stricture); and women's health problems, including, menorrhagia, incontinence, and other pelvic floor defects. Although not often 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 life expectancy, higher quality-of-life expectations, and greater awareness of new treatment alternatives. Physicians use American Medical Systems' products to reduce or eliminate the incapacitating effects of these diseases, often through minimally invasive surgery. The company believes its products were used to treat over 70,000 patients in 54 countries during the last 12 months. 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, sales, and financial results are forward-looking statements subject to risks and uncertainties including the timing and success of new product introductions, continued physician endorsement and use of the company's products, competitor activities, changes in reimbursement rates, potential product recalls, and the integration of acquired businesses and product lines. These risks and uncertainties are more fully described in the company's Annual Report on Form 10-K for the year ended December 28, 2002, and its other filings. Actual results may differ materially from anticipated results. AMS 700, Her Option, InhibiZone, Monarc, and SPARC are AMS trademarks.

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

American Medical Systems Holdings Inc.Consolidated Balance Sheet(In thousands)

Note: The Cryogen purchase price has been allocated to goodwillpending completion of the acquisition valuation study.

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

Note: Changes in operating assets and liabilities includeapproximately 3.8 million in CryoGen accrued acquisition liabilities

American Medical Systems Holdings Inc.Selected Sales Information(In Thousands)

American Medical Systems Holdings Inc.Adjustments to Operating Income, Net Income,and Earnings Per Share for ConsistentPresentation from 2002 to 2003(In thousands, except per share data)