FORT LAUDERDALE, Fla. - -(BUSINESS WIRE)- -Feb. 12, 1999- -Pediatrix Medical
Group, Inc., (NYSE: PDX) was informed yesterday afternoon by KPMG LLP, that the
Company needs to provide additional analyses regarding Pediatrix's accounts
receivable in order for KPMG to complete the audit. Pediatrix believes that its
accounts receivable are fairly stated.

KPMG has also informed the Company that its accounting policy regarding the
capitalization of certain acquisition-related costs would not be acceptable to
the Securities and Exchange Commission. The total after-tax amount of the
acquisition related-costs is $1.3 million for 1998.

Pending resolution of these issues, and completion of the 1998 audit of the
Company's financial statements, the possibility exists that Pediatrix will be
required to restate previously reported earnings.

In a press release dated February 10, 1999, the Company announced that it
expected to report earnings per share in excess of consensus analysts' estimates
for 1998 and the fourth quarter, and that KPMG's audit work would be completed
in approximately one week. Given the status of the audit process, Pediatrix can
no longer express confidence to comment on the consensus analysts' estimates for
1998, or when KPMG will be able to complete its work associated with the 1998
audit.

Pediatrix was founded in 1979 and has evolved as a national physician group
specializing in neonatal and perinatal care. The Company provides services to
more than 125 neonatal intensive care units, eight pediatric intensive care
units and three pediatrics departments.

Combined, Pediatrix and its subsidiaries employ approximately 350 physicians.
Additional information is available on the Internet: http://www.pediatrix.com.

Except for historical information, this press release contains certain
forward-looking statements that involve risk and uncertainties that may cause
actual results to differ materially from the statements made. Such factors
include, but are not limited to, changing market conditions, the ability to
successfully identify suitable acquisition candidates and to complete those
acquisitions on favorable terms and other risks detailed from time to time by
the Company or in its filings with the U.S. Securities and Exchange Commission.