Pediatrix Revises Earnings Guidance Reflecting Lower NICU Patient Volume

  
    
  
  
    
      Pediatrix Medical Group, Inc., (NYSE:PDX) today announced that it is 
      revising its earnings guidance for the three months ended June 30, 2008, 
      and for the full year based on lower neonatal intensive care unit 
      patient volume.
    
    
      During the Company’s 2008 first quarter 
      earnings call, Pediatrix mentioned that same-unit NICU volume for April 
      2008 was below 2007 levels. Through the first six weeks of the 2008 
      second quarter Pediatrix’s same-unit NICU 
      volume declined by approximately 2 percent when compared to the same 
      period of 2007.
    
    
      Pediatrix now expects to earn 77 cents to 80 cents for the 2008 second 
      quarter if NICU patient volume remains at current levels for the rest of 
      the period.
    
    
      In addition, at this time Pediatrix does not expect to meet its 
      previously issued earnings guidance for the 12 months ended December 31, 
      2008, as a result of lower NICU patient volume during 2008 to date. 
      Pediatrix’s earnings guidance is based on 
      assumptions for same-unit growth from patient volume and reimbursement, 
      as well as contributions from acquisitions. Pediatrix’s 
      ability to achieve its previously issued earnings guidance for the 2008 
      third and fourth quarters will be based on NICU patient volume growth 
      reverting to historical levels of 3 to 5 percent. Pediatrix expects that 
      it will update its guidance for the second half of 2008 when it issues 
      its 2008 second quarter results and that it will discuss guidance during 
      the related quarterly earnings conference call.
    
    
      Separately, Pediatrix’s Board of Directors has 
      authorized the Company to repurchase up to $100 million of its common 
      stock through open market transactions.
    
    
      The share repurchase program is effective immediately and permits the 
      Company to make open market purchases from time-to-time based on price, 
      general market and economic conditions as well as trading restrictions.
    
    
      About Pediatrix
    
    
      Pediatrix Medical Group, Inc. is the nation’s 
      leading provider of neonatal, maternal-fetal and pediatric physician 
      subspecialty services and recently expanded to include anesthesiology 
      services. Pediatrix physicians and advanced practitioners are reshaping 
      the delivery of care within the maternal-fetal, neonatal intensive care 
      and pediatric cardiology subspecialties, using evidence-based tools, 
      continuous quality initiatives and clinical research to enhance patient 
      outcomes and provide high-quality, cost-effective care. Founded in 1979, 
      its neonatal physicians provide services at more than 250 neonatal 
      intensive care units, and in many markets they collaborate with 
      affiliated maternal-fetal medicine, pediatric cardiology physician 
      subspecialists and pediatric intensivists to provide a clinical care 
      continuum. Combined, Pediatrix and its affiliated professional 
      corporations employ more than 1,100 physicians in 32 states and Puerto 
      Rico. Pediatrix is also the nation’s largest 
      provider of newborn hearing screens. Additional information is available 
      at 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 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 are 
      forward-looking statements. 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”.