( BW)(FL-PEDIATRIX-3)(PDX) Pediatrix Reports Record Quarterly Revenue, Net Income; Same Unit Revenue Growth Exceeds 14 Percent

    Business Editors/Health & Medical Writers

    FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 30, 2002--Pediatrix Medical Group, Inc. (NYSE:PDX) today reported strong financial results for the three months ended March 31, 2002, including record same-unit revenue growth of 14.3 percent.
    For the three months ended March 31, 2002, Pediatrix had net patient service revenue of $107.3 million, which included the contribution of a significant merger transaction completed last May, additional practice acquisitions, and strong same-unit revenue growth. First quarter 2002 revenue increased by 68 percent from $63.9 million for the three months ended March 31, 2001.
    Net income for the 2002 first quarter was $13.5 million and included the impact of a $1.3 million pre-tax expense to settle a three-year-old investigation by the State of Colorado's Medicaid program. For the three months ended March 31, 2002, Pediatrix earned 51 cents per share, based on 26.6 million weighted average shares outstanding. Excluding the settlement expenses, Pediatrix would have earned 54 cents per share.
    For the comparable three-month period, Pediatrix earned $3.6 million, or 22 cents per share based on 16.7 million weighted average shares outstanding. Pediatrix's results for the 2002 first quarter include a positive impact from the change in accounting for goodwill amortization. Had the new accounting treatment been in effect during the three months ended March 31, 2001, Pediatrix's earnings would have been approximately 34 cents per share for that period.
    Same unit revenue growth for the 2002 first quarter of 14.3 percent was the result of a combination of increased patient volume as well as improved pricing that includes better collections' experience and improved reimbursement, principally from private third-party payors.
    Profit margin after practice expenses increased 290 basis points, to 38.5 percent of net patient service revenue for the three months ended March 31, 2002, from 35.6 percent for the comparable period. EBITDA margins - earnings before interest, taxes, depreciation and amortization - increased to 22.1 percent during the 2002 first quarter, from 16.6 percent for the 2001 first quarter.
    Days sales outstanding at March 31, 2002 remained virtually unchanged, and at record low levels when compared with the fourth quarter of 2001.
    "These numbers reflect the operational improvements made over the past several years," said Roger J. Medel, M.D., Chairman and Chief Executive Officer of Pediatrix. "As important, with the favorable conclusion of the Colorado Medicaid billing investigation we have removed considerable investor uncertainty. In addition, recent business development activities provide us with further confidence in our ability to achieve our growth targets."
    During 2002, Pediatrix has acquired four neonatal physician group practices and added a neonatal intensive care unit (NICU) contract through internal growth. The practices acquired are located in Memphis, TN, Columbia, SC, Charlotte, NC, and Lexington, KY. Pediatrix was awarded a contract to manage an NICU in San Angelo, TX, that will be integrated into its San Antonio practice.

    Investor Conference Call

    Pediatrix Medical Group, Inc., will host an investor conference call to discuss the quarterly results at 10 a.m. (EDT) today. Future performance of the Company may be discussed. The conference call will be available through simultaneous Web cast at http://www.companyboardroom.com. A telephone replay of the conference call will also be available from 1:30 p.m. (EDT) today through midnight (EDT) May 7, 2002 by dialing (800) 475-6701, access code: 636011. The replay will also be available at http://www.companyboardroom.com.

    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: http://www.pediatrix.com.

    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 result of new developments, new information or otherwise.

                   Pediatrix Medical Group, Inc.
                   Consolidated Statements of Income
                              (Unaudited)

                                      Three months ended
                                           March 31,
                                    2002              2001
                                    ----              ----
                                 (in thousands, except for 
                                      per share data)
                                  
Net patient service revenue       $107,282           $63,920
                                 ---------           -------
Operating expenses:
 Practice salaries and benefits     62,534            38,249
 Practice supplies and other 
  operating expenses                 3,489             2,897
 General and administrative 
  expenses(1)                       17,572            12,191
 Depreciation and amortization       1,465             3,578
                                     -----             -----

  Total operating expenses          85,060            56,915
                                   -------            ------

Income from operations              22,222             7,005
                                    ------             -----

Investment income                      153                73
Interest expense                      (283)             (525)
                                     -----             -----

  Income before income taxes        22,092             6,553
Income tax provision                (8,616)           (2,949)
                                   -------           -------

Net income                        $ 13,476           $ 3,604
                                  ========           =======

Per share data:
  Net income per common 
   and common equivalent 
   share (diluted)                 $  0.51           $  0.22

  Weighted average shares 
   used in computing net 
   income per common and 
   common equivalent share 
   (diluted)                        26,607            16,692

	   (1) General and administrative expenses include approximately $1.3
million in settlement expenses related to the Colorado Medicaid
investigation.


                       Balance Sheet Highlights

                                       As of              As of
                                   Mar. 31, 2002      Dec. 31, 2001
                                   -------------      -------------
                                    (unaudited)
                                             (in thousands)
Assets:
Cash and cash equivalents              $ 36,599          $ 27,557
Accounts receivable, net                 67,520            63,851
Other current assets                     19,290            21,550
Other assets                            462,192           460,141
                                        -------           -------
Total assets                          $ 585,601         $ 573,099
                                      =========         =========

Liabilities and shareholders' equity:
Accounts payable & 
 accrued expenses                      $ 61,075          $ 73,203
Total debt                                3,153             3,206
Other liabilities                        17,565            17,838
                                         ------            ------
Total liabilities                        81,793            94,247
Shareholders' equity                    503,808           478,852
                                        -------           -------
Total liabilities and shareholders'
   equity                             $ 585,601         $ 573,099
                                      =========         =========

    --30--eg/mi*

    CONTACT:  Pediatrix Medical Group, Fort Lauderdale
              Bob Kneeley, 954/384-0175, Ext. 5300
              bob_kneeley@pediatrix.com
              http://www.pediatrix.com
                 
    KEYWORD:  FLORIDA 
    INDUSTRY KEYWORD:  MEDICAL EARNINGS CONFERENCE CALLS
    SOURCE:  Pediatrix Medical Group