FORT LAUDERDALE, Fla., July 29 /PRNewswire/ -- Pediatrix Medical Group,
Inc. (NYSE: PDX) continues to generate consistent revenue and earnings growth
with record financial results for the three months and six months ended June
30, 1997.
    Net patient service revenue for the second quarter of 1997 was $30.6
million, up 72 percent from $17.8 million for the same period of 1996.  Net
income for the three months ended June 30, 1997, increased by 57 percent to
$4.8 million, compared with $3.0 million for the previous year.  For the 1997
second quarter, net income per share increased to 30 cents, based on a
weighted average of 15.8 million shares outstanding, compared to 22 cents on a
weighted average of 13.9 million shares outstanding in the previous year.
    Through the first half of 1997, Pediatrix has posted net patient service
revenue of $57.6 million, up 70 percent from $33.9 million for the six months
ended June 30, 1996.  Net income of $9.1 million is up 61 percent from $5.6
million reported a year ago.  On a per share basis, Pediatrix has earned 58
cents on a weighted average of 15.7 million shares outstanding for the first
half of 1997, which compares with per share earnings of 41 cents, on a
weighted average of 13.8 million shares outstanding for the first six months
of 1996.
    "Through the eight consecutive reporting quarters since our initial public
offering, Pediatrix has consistently rewarded its shareholders with higher
revenues, net income and earnings per share," said Roger J. Medel, M.D.,
President and Chief Executive Officer of Pediatrix Medical Group, Inc.  "Our
pipeline remains robust as our acquisition program continues to attract the
largest neonatal groups to our nationwide single-specialty practice."
    Pediatrix Medical Group, Inc., is the nation's largest provider of
neonatal physician management services.  It has grown through a combination of
acquiring existing practice groups and internal marketing efforts.
    During July 1997, Pediatrix completed the acquisition of one of the
nation's largest neonatal practice groups, Fort Worth Neonatal Associates,
P.A., which generates approximately 25,000 patient days at eight neonatal
intensive care units (NICUs) located in the Fort Worth, Texas, metropolitan
area.  Pediatrix also acquired the assets from three neonatal physicians who
practice at five San Jose, California NICUs.
    Since January 1, 1997, Pediatrix has added a total of 27 NICUs through a
combination of internal marketing efforts and acquisitions. During 1996, these
units generated approximately 109,000 patient days.  For all of 1996,
Pediatrix recorded approximately 186,000 patient days. The NICUs to which
Pediatrix currently provides services had approximately 350,000 patient days
during 1996.
    Pediatrix Medical Group, Inc., is the nation's largest provider of
physician management services to hospital-based NICUs.  The company provides
services to 95 NICUs, eight pediatric intensive care units, and three
pediatrics departments in 20 states and Puerto Rico and employs or contracts
with approximately 245 physicians.
    Additional information is available on the Internet:
http://www.pediatrix.com .
                        Pediatrix Medical Group, Inc.

                            Operations Highlights
                            Three months ended            Six months ended
                                  June 30                     June 30
    (In thousands except for
     per share data)         1997          1996         1997          1996
    Net patient service
      revenue              $30,599       $17,808      $57,612       $33,935
    Operating expenses      23,140        13,145       43,634        25,387
    Income from operations   7,459         4,663       13,978         8,548
    Income before taxes      7,947         5,059       15,127         9,408
    Net income               4,768         3,035        9,076         5,647
    Net income per share       .30           .22          .58           .41
    Weighted average common
    shares outstanding      15,837        13,873       15,691        13,799

                           Balance Sheet Highlights

                                   As of                    As of
    (In thousands)             June 30, 1997          December 31, 1996
    Assets:
    Cash & marketable securities  $55,124                 $75,653
    Other current assets           32,059                  25,256
    Other assets                   86,582                  58,117
    Total assets                  173,765                 159,026

    Liabilities:
    Accounts payable & accrued
     expenses                      12,549                  13,423
    Other liabilities              11,643                   9,282
    Total liabilities              24,192                  22,705

    Stockholders' equity          149,573                 136,321
    Total liabilities and
     stockholders equity          173,765                 159,026

                             Other Operating Data
                             Three months ended          Six months ended
                                  June 30                     June 30
                             1997          1996          1997         1996
    Number of:
    Births                  46,604        30,012       85,389        55,349
    NICU Admissions          4,907         3,206        9,275         6,004
    NICU Patient days       76,892        39,518      140,646        72,942

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