Exhibit 99.1**AUDIT COMMITTEE CHARTER****Adopted by the Board of Directors of Laserscope on December 21, 2005*****Purpose***     The purpose of the Audit Committee (the “Committee”) of the board of directors (the“Board”) of Laserscope (the “Company”) is to oversee the accounting and financialreporting processes of the Company and audits of its financial statements and the effectiveness ofthe Company’s internal control over financial reporting. Notwithstanding the foregoing, however,the Committee is not responsible for planning or conducting audits, or determining whether theCompany’s financial statements are complete and accurate or in accordance with generally acceptedaccounting principles.***Composition***     The Committee shall be composed of three or more directors, as determined by the Board. Thecomposition of the Committee shall satisfy the applicable SEC and Nasdaq requirements. At leastone member of the Committee shall be an “audit committee financial expert,” as that term is definedby applicable SEC rules.***Responsibilities***     The Committee is charged by the Board with the responsibility to:     1. Appoint and provide for the compensation of an independent registered public accountingfirm to serve as the Company’s independent auditor, oversee the work of the independent auditor(including resolution of any disagreements between management and the independent auditor regardingfinancial reporting), evaluate the performance of the independent auditor and, if so determined bythe Committee, replace the independent auditor; it being acknowledged that the independent auditoris ultimately accountable to the Board and the Committee, as representatives of the shareholders.     2. Ensure the receipt of, and evaluate the written disclosures and the letter that theindependent auditor submits to the Committee regarding the auditor’s independence in accordancewith Independence Standards Board Standard No. 1, discuss such reports with the auditor, overseethe independence of the independent auditor and, if so determined by the Committee in response tosuch reports, take appropriate action to address issues raised by such evaluation.     3. Discuss with the independent auditor the matters required to be discussed by SAS 61, asit may be modified or supplemented.     4. Instruct management and the independent auditor that the Committee expects to be informedif there are any subjects that require special attention or if any significant deficiencies ormaterial weaknesses to the system of internal control over financial reporting are identified.
1

 
Review with management and the independent auditor any material changes to the system ofinternal control over financial reporting.     5. Instruct the independent auditor to report to the Committee on all critical accountingpolicies of the Company, all alternative treatments of financial information within generallyaccepted accounting principles that have been discussed with management, ramifications of the useof such alternative disclosures and treatments and the treatment preferred by the independentauditor, and other material written communication between the independent auditor and management,and discuss these matters with the independent auditor and management.     6. Meet with management and the independent auditor, together and separately, to discuss theannual financial statements and the report of the independent auditor thereon, and to discusssignificant issues encountered in the course of the audit work, including: restrictions on thescope of activities; access to required information; the adequacy of internal controls, and theadequacy of the disclosure of off-balance sheet transactions, arrangements, obligations andrelationships in reports filed with the SEC; and the appropriateness of the presentation of anynon-GAAP financial measures included in any report filed with the SEC or in any public disclosureor release.     7. Review and discuss with management and the independent auditor management’s report oninternal control over financial reporting, and the independent auditor’s audit of the effectivenessof the Company’s internal control over financial reporting and its attestation report, prior to thefiling of the Form 10-K.     8. Review the management letter delivered by the independent auditor in connection with theaudit.     9. Following such review and discussions, if so determined by the Committee, recommend to theBoard that the annual financial statements be included in the Company’s annual report on Form 10-K.     10. Meet quarterly with management and the independent auditor to discuss the quarterlyfinancial statements prior to the filing of the Form 10-Q; provided that this responsibility may bedelegated to the chairman of the Committee or a member of the Committee who is a financial expert.     11. Meet at least once each year in separate executive sessions with management and theindependent auditor to discuss matters that any of them or the Committee believes couldsignificantly affect the financial statements and should be discussed privately.     12. Have such direct and independent interaction with members of management, including theCompany’s chief financial officer and chief accounting officer, as the Committee believesappropriate.     13. Review significant changes to the Company’s accounting principles and practices proposedby the independent auditor or management.
2

 
     14. Conduct or authorize such inquiries into matters within the Committee’s scope ofresponsibility as the Committee deems appropriate.     15. Provide minutes of Committee meetings to the Board, and report to the Board on anysignificant matters arising from the Committee’s work.     16. At least annually, review and reassess this Charter and, if appropriate, recommendchanges to the Board.     17. Prepare the Committee report required to be included in the Company’s annual proxystatement.     18. Establish a procedure for receipt, retention and treatment of any complaints received bythe Company about its accounting, internal accounting controls or auditing matters and for theconfidential and anonymous submission by employees of concerns regarding questionable accounting orauditing matters.     19. Approve, in accordance with Sections 10A(h) and (i) of the Exchange Act, the Regulationsand the Auditing Standards of the Public Company Accounting Oversight Board, all professionalservices, to be provided to the Company by its independent auditor, provided that the Committeeshall not approve any non-audit services proscribed by Section 10A(g) of the Exchange Act in theabsence of an applicable exemption. The Committee may adopt policies and procedures for theapproval of such services which may include delegation of authority to a designated member ormembers of the Committee to approve such services so long as any such approvals are disclosed tothe full Committee at its next scheduled meeting.     20. Review and approve all related party transactions.     21. Review policies and procedures with respect to officers’ expense accounts andperquisites, including their use of assets of the Company, and consider the results of any of thereview of these areas by the independent auditor.***Authority***     By adopting this Charter, the Board delegates to the Committee full authority in itsdiscretion to:     1. Perform each of the responsibilities of the Committee described above.     2. Appoint a chair of the Committee, unless a chair is designated by the Board.     3. Engage and oversee independent counsel and other advisers as the Committee determinesnecessary to carry out its responsibilities.     4. Cause the officers of the corporation to provide such funding as the Committee shalldetermine to be appropriate for payment of compensation to the Company’s independent auditor andany legal counsel or other advisers engaged by the Committee, and payment of ordinaryadministrative expenses of the audit committee that are necessary or appropriate in carryingout its duties.
3