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Pediatrix Management Completes Stock Sales; Reaffirms Earnings Guidance

    FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 3, 2002--Pediatrix Medical Group, Inc., (NYSE:PDX) today announced that members of its senior management team have sold a portion of their Company stock and stock options in two separate transactions that occurred over the past two days.
    The sales were completed to achieve personal financial diversification and were executed as block transactions that were intended to minimize market disruption. Senior management currently has no intention of selling additional shares.
    The members of the management team who sold Pediatrix stock include Roger J. Medel, M.D., Chairman and Chief Executive Officer, and Kris Bratberg, President. Dr. Medel sold shares, and exercised options and sold the underlying shares, totaling approximately 1 million shares, and Mr. Bratberg exercised options and sold approximately 267,000 underlying shares.
    Earlier this week Pediatrix announced a succession plan that will transfer the CEO duties from Dr. Medel to Mr. Bratberg effective January 1, 2003. Dr. Medel, who will remain Chairman, founded Pediatrix in 1979 and had not sold shares of Pediatrix since 1996. Mr. Bratberg, who joined Pediatrix in 1995, had never sold any shares.
    Other members of the management team, including Joseph M. Calabro, Chief Operating Officer, Brian T. Gillon, Executive Vice President, Corporate Development, and General Counsel, and Karl B. Wagner, Chief Financial Officer, sold approximately 310,000 shares combined.
    Collectively, members of Pediatrix's senior management team continue to own stock and vested and unvested options totaling approximately 1.4 million shares, or approximately 5 percent of total shares outstanding.
    Pediatrix management reiterates its confidence in the fundamental strength of Pediatrix's business model and in the Company's ability to achieve results consistent with the most recent earnings guidance. As previously stated, Pediatrix expects to earn between 58 and 60 cents per share for the second quarter of 2002; 64 and 66 cents per share for the 2002 third quarter; and 65 and 67 cents for the 2002 fourth quarter.
    Pediatrix has completed four physician group practice acquisitions this year, including three during the month of April. In addition, Pediatrix recently announced the settlement of a three-year billing investigation by the Colorado Medicaid program that removed considerable investor uncertainty about Pediatrix.

    About Pediatrix

    Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 190 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 600 physicians in 29 states and Puerto Rico. Additional information is available on the Internet:

    Except for historical information, matters discussed in this release include forward-looking statements that involve risks and uncertainties including, but not limited to, business, financial and integration risks. In addition, Pediatrix details other risk factors in its Annual Report on Form 10-K for the year ended December 31, 2001, filed with the U.S. Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from those projected or anticipated in the forward-looking statements.
    The forward-looking statements in this press release are made as of the date hereof based on management's current beliefs and expectations, and the Company undertakes no obligation to update or revise any such statements, whether as a result of new developments, new information or otherwise.


    CONTACT:  Pediatrix Medical Group, Fort Lauderdale
              Bob Kneeley, 954/384-0175, Ext. 5300
    SOURCE:  Pediatrix Medical Group