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                                  VidaMed, Inc.
                (Name of Registrant as Specified in Its Charter)

             _______________________________________________________
    (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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[LOGO] VIDAMED

                            [LETTER HEAD OF VIDAMED]


                   VIDAMED RESPONDS TO SHAREHOLDER COMPLAINTS

FREMONT, Calif. (December 7, 2001) - VidaMed, Inc. (NASDAQ: VIDA) announced
today that three complaints were filed yesterday in the Court of Chancery for
the State of Delaware against it, its directors and Medtronic, Inc. alleging,
among other things, breach of fiduciary duty by VidaMed's directors in
connection with VidaMed's recently announced merger with a subsidiary of
Medtronic, Inc. The complaints, which purport to be filed by stockholders of
VidaMed and include requests for declarations that the actions be maintained as
class actions, seek, among other things, injunctive relief and unspecified
damages and fees of attorneys and experts.

As previously announced, under the terms of the merger agreement with Medtronic
and Medtronic's merger subsidiary, VidaMed's stockholders will receive $7.91 per
share in cash, which represents a 40% premium to the closing sale price of
VidaMed's stock on the day prior to the public announcement of the transaction.
VidaMed believes the terms of the proposed merger are fair, from a financial
point of view, to VidaMed and its stockholders and believes that the complaints
are without merit. VidaMed plans to vigorously defend its position.

About VidaMed

VidaMed's TUNA system offers safe and durable non-surgical treatment for the
symptoms associated with benign prostatic hyperplasia, or BPH. These important
quality-of-life symptoms include frequent and urgent urination, interruption of
stream and nocturia (excessive urination at night), which may lead to sleep
deprivation and related problems, such as loss of libido and impairment of
sexual function. The TUNA procedure is an ideal alternative to drug therapy or
invasive surgery.

VidaMed designs, develops and markets technologically and clinically advanced
cost-effective systems for the treatment of urological conditions. For investor
information, please call (800) 363-2994 or visit the Company's Web site at
www.vidamed.com.
---------------

This press release contains forward-looking statements, as defined by the
Private Securities Litigation Reform Act of 1995. These statements are based on
current expectations, forecasts and assumptions and are subject to the risks and
uncertainties including risks relating to VidaMed's business, the risk that the
acquisition will not be consummated and the risk that the stockholder litigation
could result in delay or increased expense associated with the transaction. When
used in this release and documents referenced, the words "anticipate,"
"believe," "estimate," and "expect" and similar expressions, as they relate to



VidaMed or its management are intended to identify such forward-looking
statements, but are not the exclusive means of identifying these statements.
Descriptions of the risks, uncertainties and other factors that could affect
VidaMed's future operations and results can be found in VidaMed's prior filings
with the Securities and Exchange Commission. In particular, readers are referred
to VidaMed's Form 10-K for the year ended December 31, 2000 and Form 10-Q for
the quarter ended September 30, 2001.

This press release does not constitute a solicitation by VidaMed or its board of
directors or executive officers or any approval or action of its stockholders.
VidaMed will file a proxy statement and other relevant documents concerning the
proposed transaction with the Securities and Exchange Commission, or SEC.
Stockholders are urged to read the proxy statement, and any other relevant
documents filed with the SEC, carefully when they become available because they
will contain important information about VidaMed and the proposed transaction.
VidaMed's officers and directors may be deemed to be participants in the
solicitation of proxies from the stockholders of VidaMed with respect to the
transactions contemplated by the merger agreement. Information regarding
VidaMed's officers and directors is included in its definitive proxy statement
prepared in connection with VidaMed's 2001 annual meeting of stockholders filed
with the SEC on April 16, 2001. You will be able to obtain free copies of these
documents at the website maintained by the SEC at http://www.sec.gov. In
addition, stockholders may obtain free copies of documents filed with the SEC by
contacting VidaMed's investor relations department, 46107 Landing Parkway,
Fremont, California 94538, (800) 363-2994.

The following individuals, each of whom is a director or an executive officer of
VidaMed, may be deemed to be participants in the solicitation of proxies from
the stockholders of VidaMed with respect to the transactions contemplated by the
merger agreement. As of December 5, 2001, each such person beneficially owned
the number of outstanding shares of VidaMed common stock indicated: Randy D.
Lindholm, 28,827 shares; John F. Howe, 21,000 shares; Stephen J. Williams, 4,243
shares; Lewis P. Chapman, no shares; Elizabeth H. Davila, 10,000 shares; Michael
D. Ellwein, 6,100,000 shares (which number includes 6,100,000 shares
beneficially owned by affiliated entities of Medtronic); Robert J. Erra, 2,766
shares; Paulita M. LaPlante, no shares; and Kurt C. Wheeler, no shares.

The directors and executive officers of VidaMed have interests in the merger,
some of which may differ from, or may be in addition to, those of the
stockholders of VidaMed generally. Those interests include:

     .    Medtronic has agreed to provide indemnification and director and
          officer liability insurance coverage to the directors and executive
          officers of VidaMed following the merger;

     .    certain officers and directors hold options to purchase shares of
          VidaMed common stock which will be cancelled in exchange for cash
          payments by VidaMed (along with all other outstanding options) in
          anticipation of the merger. The number of options eligible for cashout
          which are held by each officer and director, and the total amount of
          each individual's potential cashout payment, is as follows: Randy D.
          Lindholm, 2,147,554 options for a potential payment of $11,895,800;
          John F. Howe, 471,496 options for a potential payment of $2,639,056;
          Stephen J. Williams, 451,250 options for a potential payment of
          $2,099,145; Lewis P. Chapman, 300,000 options for a potential payment
          of $1,229,100; Elizabeth H. Davila, 30,000 options for a potential
          payment of $167,925; Michael D. Ellwein, 25,000 options for a
          potential payment of $95,875; Robert J. Erra, 21,668 options for a
          potential payment of $87,847; Paulita M. LaPlante, 30,000 options



          for a potential payment of $179,805; and Kurt C. Wheeler, 30,000
          options for a potential payment of $179,805;

     .    under their individual severance agreements, Randy D. Lindholm, John
          F. Howe, Stephen J. Williams and Lewis P. Chapman, who are all
          executive officers of VidaMed, are each entitled to certain cash
          payments and other benefits if they terminate their employment or
          their employment is terminated without cause after the completion of
          the merger; and

     .    in connection with the merger, certain executive officers of VidaMed
          may enter into employment or consulting agreements with Medtronic. It
          is not certain at this time which, if any, of VidaMed's officers will
          enter into these agreements.