Pediatrix Enters Tucson With Perinatal and Neonatal Services.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--July 1, 1998--Obstetrix Medical Group Inc., a subsidiary of Pediatrix Medical Group Inc. (NYSE:PDX), has acquired a perinatal physician group practice serving the greater Tucson metropolitan area.

Pediatrix has also signed employment agreements with three neonatologists serving neonatal intensive care units (NICUs) at two Tucson hospitals.

The acquisition of Tucson Perinatal Services, P.C., adds five perinatologists to Obstetrix's growing national practice specializing in perinatal care.

Obstetrix Medical Group is the nation's largest perinatology group practice, with 25 perinatologists practicing in six states. Perinatology complements Pediatrix's neonatology practice since many high-risk pregnancies result in admissions to a NICU.

Based on historical patient volumes, Pediatrix expects the new neonatology group practice to generate in excess of 10,000 patient days annually. Pediatrix's existing operations in Arizona recorded approximately 20,000 patient days in 1997.

Pediatrix Medical Group Inc. is the nation's largest provider of physician management services to hospital-based NICUs. Pediatrix has added 16 NICUs this year through a combination of acquisitions and internal marketing efforts. Through Obstetrix, Pediatrix has acquired five perinatology practices during 1998. Pediatrix provides services to more than 100 NICUs nationwide and employs or contracts with approximately 300 physicians. Additional information is available on the Internet: 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 in its filings with the U.S. Securities and Exchange Commission.

    CONTACT:  Pediatrix Medical Group Inc., Fort Lauderdale
               Janice Giaconia, Investor Relations Representative
               954/384-0175
               or
               RKC Communications, Fort Lauderdale
               Bob Kneeley, 954/351-1976