FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Dec. 1, 2005--Pediatrix Medical Group, Inc. (NYSE:PDX) today announced that it expects to earn $5.35 to $5.45 per share for the 12 months ending December 31, 2006, when presented on a non-GAAP basis that excludes estimated equity-based compensation expense of $23.5 million. On a GAAP basis, Pediatrix expects to earn $4.76 to $4.86 per share during 2006. Pediatrix will adopt the Statement of Financial Accounting Standards No. 123R, "Share-Based Payment," beginning in 2006.

Pediatrix, the nation's leading provider of newborn, maternal-fetal and pediatric physician subspecialty services, makes several key assumptions in its earnings guidance, including:

• Projected same-unit patient volume growth of 3 to 5 percent at neonatal intensive care units staffed by its physicians; and
• Estimated contributions from cash investments of $90 million to $100 million to acquire physician group practices within its core neonatal, maternal-fetal and pediatric subspecialty care throughout 2006, as well as contributions from acquisitions completed during 2005.

Pediatrix's 2006 guidance does not include any impact from the $50 million share repurchase program it announced in November 2005 and it does not include any potential changes to reserves related to the national Medicaid and TRICARE investigation.

Pediatrix expects to provide detailed quarterly earnings guidance and guidance on cash flow from operations for 2006 when it reports its 2005 fourth quarter results early next year.

Reconciliation of Non-GAAP Information

This press release contains non-GAAP information for estimated earnings per share for the 12 months ending December 31, 2006, which is adjusted to exclude the after-tax impact of equity-based compensation expense. Pediatrix believes that the presentation of non-GAAP guidance provides useful information to management and investors regarding financial and business trends related to its results of operations and that when non-GAAP information is viewed with GAAP information, investors are provided with a meaningful understanding of Pediatrix's ongoing operating financial performance. This information is not intended to be considered in isolation, or as a substitute for GAAP financial information. The following table reconciles this non-GAAP guidance to estimated earnings per common share in accordance with GAAP:

                                       12 Months Ended
                                      December 31, 2006
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                             GAAP       Adjustments     Adjusted
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 Estimated Earnings
  Per Share             $4.76 to $4.86     $0.59     $5.35 to $5.45
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About Pediatrix

Pediatrix was founded in 1979. Pediatrix physicians and advanced nurse practitioners are reshaping the delivery of maternal-fetal and newborn care, identifying best demonstrated processes and participating in clinical research to enhance patient outcomes and provide high-quality, cost-effective care. Its neonatal physicians provide services at more than 220 NICUs and, through Obstetrix, its perinatal physicians provide services in many markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 800 physicians in 32 states and Puerto Rico. Pediatrix is also the nation's largest provider of newborn hearing screens and newborn metabolic screening. Additional information is available at http://www.pediatrix.com.

Certain statements and information in this press release may be deemed to be "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our results of operations, objectives, plans and strategies, and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. These statements are often characterized by terminology such as "believe," "hope," "may," "anticipate," "should," "intend," "plan," "will," "expect," "estimate," "project," "positioned," "strategy" and similar expressions, and are based on assumptions and assessments made by Pediatrix's management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and Pediatrix undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in Pediatrix's most recent Annual Report on Form 10-K, including the section entitled "Risk Factors."

CONTACT: Pediatrix Medical Group, Inc., Fort Lauderdale
Bob Kneeley, 954-384-0175, x-5300
bob_kneeley@pediatrix.com

SOURCE: Pediatrix Medical Group, Inc.