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<SEC-DOCUMENT>0001157523-08-008856.txt : 20081105
<SEC-HEADER>0001157523-08-008856.hdr.sgml : 20081105
<ACCEPTANCE-DATETIME>20081105084219
ACCESSION NUMBER:		0001157523-08-008856
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20081104
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20081105
DATE AS OF CHANGE:		20081105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEDIATRIX MEDICAL GROUP INC
		CENTRAL INDEX KEY:			0000893949
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HOSPITALS [8060]
		IRS NUMBER:				650271219
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26762
		FILM NUMBER:		081162462

	BUSINESS ADDRESS:	
		STREET 1:		1301 CONCORD TERRACE
		CITY:			SUNRISE
		STATE:			FL
		ZIP:			33323
		BUSINESS PHONE:		9543840175

	MAIL ADDRESS:	
		STREET 1:		1301 CONCORD TERRACE
		CITY:			SUNRISE
		STATE:			FL
		ZIP:			33323
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5822506.htm
<DESCRIPTION>PEDIATRIX MEDICAL GROUP, INC.  8-K
<TEXT>
<html>
  <head>
    <title></title>
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  <body style="font-size: 10pt; font-family: Times New Roman">
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 12pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>FORM
      8-K</b></font><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>CURRENT
      REPORT</b></font><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>
      Pursuant to Section 13 or 15(d) of the</b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Securities
      Exchange Act of 1934</b></font><br><br><font style="font-family: Times New Roman; font-size: 10pt"><b>Date
      of Report (date of earliest event reported): November 4, 2008</b></font><br><br><u><font style="font-family: Times New Roman; font-size: 12pt"><b>PEDIATRIX
      MEDICAL GROUP, INC.</b></font></u><br><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      Name of Registrant as Specified in Its Charter)</font><br><br>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td style="padding-left: 0.0px; width: 32%; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Florida</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 32%; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>001-12111</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 32%; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>65-0271219</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 32%; text-align: center" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>(State or Other Jurisdiction of</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Incorporation)</b>
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; width: 32%; text-align: center" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>(Commission File</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Number)</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; width: 32%; text-align: center" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>(IRS Employer Identification No.)</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td style="width: 25%">
          &#160;
        </td>
        <td style="padding-left: 0.0px; width: 50%; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>1301 Concord Terrace</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Sunrise, Florida 33323</b>
          </p>
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 25%; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 25%">

        </td>
        <td style="padding-left: 0.0px; width: 50%; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-family: Times New Roman; font-size: 10pt"><b>(Address
            of principal executive offices) (zip code)</b></font>
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 25%; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">
      <br>
      <font style="font-family: Times New Roman; font-size: 10pt"><b>Registrant&#8217;s
      telephone number, including area code</b></font><font style="font-family: Times New Roman; font-size: 10pt">
      </font><u><b>(954) 384-0175 </b></u>
    </p>
    <hr style="color: #000000; width: 100%; height: 1.0 pt; text-align: center">
    <hr style="color: #000000; width: 100%; height: 1.0 pt; text-align: center">


    <p>

    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 2.02&#160;&#160;&#160;&#160;&#160;Results of Operations and Financial Condition.</b>
    </p>
    <p>
      On November 5, 2008, Pediatrix Medical Group, Inc. (the &#8220;Company&#8221;)
      issued a press release announcing the results of its operations for the
      three months ended September 30, 2008 (the &#8220;Release&#8221;).&#160;&#160;A copy of the
      Release is attached hereto as Exhibit 99.1 and is hereby incorporated in
      this Current Report by reference.&#160;&#160;The information contained in this
      Item 2.02, including Exhibit 99.1, shall not be deemed &#8220;filed&#8221; with the
      Securities and Exchange Commission nor incorporated by reference in any
      registration statement or other document filed by the Company under the
      Securities Act of 1933, as amended, except as shall be expressly set
      forth by specific reference in such filing.&#160;&#160;
    </p>
    <p>
      <b>Item 5.02&#160;&#160;&#160;&#160;&#160;Departure of Directors or Certain Officers; Election of
      Directors; Appointment of Certain Officers; Compensatory Arrangements of
      Certain Officers</b>
    </p>
    <p>
      On November 4, 2008, the Board of Directors of the Company increased the
      size of the Company&#8217;s Board of directors to 10 members and appointed
      Dany Garcia to serve as a Director of the Company.&#160;&#160;No arrangements or
      understandings exist between Ms. Garcia and any other person pursuant to
      which Ms. Garcia was elected as a Director.&#160;&#160;Ms. Garcia has not been
      named to any committees of the Board of Directors.&#160;&#160;
    </p>
    <p>
      Since the beginning of the Company&#8217;s last fiscal year, the Company and
      its subsidiaries have not engaged in any transactions, and there are no
      proposed transactions, or series of similar transactions, in which Ms.
      Garcia had or will have a direct or indirect material interest other
      than the Company&#8217;s compensation arrangements and plans for non-employee
      Directors and other policies and procedures which are generally
      applicable to all Directors and more fully described below.
    </p>
    <p>
      Upon her appointment and in accordance with the Company&#8217;s policy, Ms.
      Garcia was granted an option, vesting over a three year period, to
      purchase 13,334 shares of Company common stock&#160;&#160;at an exercise price
      equal to the closing price of such stock on the New York Stock Exchange
      on the date of grant.&#160;&#160;In addition, it is the Company&#8217;s policy to award
      annually (on the date of each annual shareholders&#8217; meeting) to each
      non-employee Director options vesting in three equal annual installments
      over a three year period commencing on the anniversary of the date of
      grant to purchase 5,334 shares of Company common stock at an exercise
      price equal to the closing price of a share of such stock on the New
      York Stock Exchange on the date of grant.
    </p>
    <p>
      Under the Company&#8217;s current policies, all non-employee Directors also
      receive the following: (i)&#160;an annual retainer fee of $50,000, payable
      quarterly and (ii)&#160;an annual fee of $7,500 for attendance at meetings,
      payable quarterly.&#160;&#160;The Company also reimburses all of its Directors for
      out-of-pocket expenses incurred in connection with the rendering of
      services as a Director.
    </p>
    <p style="white-space: nowrap">

    </p>
    <p style="white-space: nowrap">
      <b>Item 9.01&#160;&#160;&#160;&#160;&#160;Financial Statements and Exhibits.</b>
    </p>
    <p style="white-space: nowrap">
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<b> (d)
      &#160;&#160;&#160;&#160;Exhibits.</b>
    </p>
    <p style="white-space: nowrap">
      &#160;<b>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</b>
      99.1&#8212;Press Release of Pediatrix Medical Group, Inc. dated November 5,
      2008.
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt; font-family: Times New Roman">
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>PEDIATRIX MEDICAL GROUP, INC.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 5%; text-align: left" valign="top">
          Date:
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 45%; text-align: left" valign="top">
          November 5, 2008
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 3%; text-align: left" valign="top">
          By:
        </td>
        <td style="padding-left: 0.0px; width: 47%; border-bottom: solid black 1.0pt; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Karl B. Wagner
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; width: 47%; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Name: Karl B. Wagner
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; width: 47%; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Title: Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <b>EXHIBIT INDEX</b>
    </p>
    <p>

    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td style="padding-left: 0.0px; width: 15%; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Exhibit No.</b></u>
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Description</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 15%; text-align: left" valign="middle">

        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: left" valign="middle">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 15%; text-align: center" valign="top">
          99.1
        </td>
        <td style="padding-left: 0.0px; width: 85%; text-align: left" valign="top">
          Press Release of Pediatrix Medical Group, Inc. dated November 5,
          2008.
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
  </body>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5822506ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Pediatrix
      Reports 2008 Third Quarter EPS of 81 Cents</b></font>
    </p>
    <p style="text-align: center">
      <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Expects
      2008 Fourth Quarter EPS of 77 to 81 Cents</b></font></i>
    </p>
    <p style="text-align: center">
      <i><font style="font-family: Times New Roman; font-size: 12pt"><b>Comments
      on 2009 Outlook</b></font></i>
    </p>
    <p>
      FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--November 5, 2008--Pediatrix
      Medical Group, Inc. (NYSE:PDX) today reported results from operations
      for the three months and nine months ended September 30, 2008, that
      reflects growth from acquisitions, and the Company&#8217;s office-based
      practices, offset by continued lower same-unit patient volume and an
      increase in the percentage of patient services reimbursed by government
      payors that occurred during the 2008 third quarter. The Company also
      issued guidance for the 2008 fourth quarter.
    </p>
    <p>
      &#8220;Our success this year in attracting physician groups, both within our
      core practices as well as our rapidly expanding presence in anesthesia,
      affirms the long-term viability of a model that offers physicians an
      environment to focus on patient care and improved patient outcomes,&#8221;
      said Roger J. Medel, M.D., Chief Executive Officer of Pediatrix. &#8220;While
      we are currently facing a challenging environment, we remain committed
      to a growth strategy that we believe will continue to create value for
      our physicians, for our patients and for our shareholders, over an
      extended time period.&#8221;
    </p>
    <p>
      For the three months ended September 30, 2008, Pediatrix reported net
      patient service revenue of $267.2 million, up 15 percent from $233.1
      million for the comparable 2007 period.
    </p>
    <p>
      Revenue growth was driven principally from acquisitions completed during
      the prior 12 months. For the 2008 third quarter, overall same-unit
      revenue increased by 1.2 percent as a result of increased reimbursement
      from third-party commercial payors, as well as higher volume at the
      Company&#8217;s office-based practices. Patient volume at neonatal intensive
      care units (NICUs) staffed by the Company&#8217;s physicians declined by 3.4
      percent for the 2008 third quarter, as compared to the prior-year
      period. In addition, an increase in the percentage of patient services
      reimbursed by government payors that occurred starting in August 2008
      resulted in a 2.2 percent decline of same-unit revenue for the 2008
      third quarter.
    </p>
    <p>
      Income from operations for the 2008 third quarter was $62.2 million,
      down 2 percent from $63.7 million for the comparable prior-year period
      on a non-GAAP basis. The 2007 non-GAAP third quarter results exclude
      general and administrative expenses of $1.9 million that were associated
      with a stock option review.
    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Operating margin was 23.3 percent for the 2008 third quarter, down from
      27.3 percent, non-GAAP, for the comparable 2007 period. The decline in
      operating margin is largely attributable to lower NICU patient volume
      and a higher percentage of services reimbursed under government programs
      for the 2008 period, when compared with the 2007 third quarter. In
      addition, the Company&#8217;s entry into anesthesia services and its expansion
      of office-based maternal-fetal and pediatric cardiology practices
      through acquisition has resulted in lower operating margins, as
      expected. General and administrative expenses as a percent of revenue
      were 11.5 percent for the 2008 third quarter, a decline of 25 basis
      points when compared to non-GAAP results for the 2007 third quarter.
    </p>
    <p>
      Pediatrix earned income from continuing operations and net income of
      $37.4 million, or 81 cents per share for the three months ended
      September 30, 2008, based on a weighted average 46.2 million shares
      outstanding. This compares with income from continuing operations, which
      excludes results from the sale of the metabolic screening laboratory in
      early 2008, of $40.0 million, non-GAAP, or 79 cents per share, for the
      2007 third quarter, based on a weighted average 50.3 million shares
      outstanding. For the 2007 third quarter, Pediatrix had income from
      discontinued operations, net of income taxes, of $759,000, or two cents
      per share, resulting in net income of $40.7 million, or 81 cents per
      share, for that period.
    </p>
    <p>
      The Company generated cash flow from operations of $83.1 million during
      the 2008 third quarter. During that period, Pediatrix invested $188.7
      million of its cash and amounts available under its revolving credit
      facility to complete five physician group practice acquisitions. Those
      acquisitions included anesthesia group practices based in Atlanta,
      Georgia, and Raleigh, North Carolina; maternal-fetal medicine group
      practices in Atlanta and Nashville, Tennessee; and a neonatal group
      practice in Alexandria, Louisiana. Two of those acquisitions &#8211; the
      Raleigh anesthesia group and the Nashville maternal-fetal group &#8211; were
      completed on the last day of the 2008 third quarter, and had no impact
      on the Company&#8217;s results from operations for that period.
    </p>
    <p>
      At September 30, 2008, Pediatrix had cash and cash equivalents of $12.1
      million and accounts receivable were $151.4 million. The Company had
      $171.0 million outstanding on its revolving credit facility at the end
      of the 2008 third quarter.
    </p>
    <p>
      For the nine months ended September 30, 2008, Pediatrix&#8217;s net patient
      service revenue was $770.5 million, up 15 percent from $667.3 million
      for the comparable 2007 period. Operating income was $176.6 million, and
      income from continuing operations, which excludes results from the
      metabolic screening laboratory that was sold in early 2008, was $107.7
      million. Earnings per share from continuing operations were $2.26 for
      the first nine months of 2008 based on a weighted average 47.6 million
      shares outstanding. This compares with operating income of $156.5
      million, and income from continuing operations of $99.5 million, or
      $1.99 per share from continuing operations based on 50.1 million shares
      outstanding, for the nine months of 2007.
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      The Company has used $236.4 million of its cash and amounts available
      under its revolving credit facility to complete 10 physician group
      practices during the first nine months of 2008. In addition, Pediatrix
      completed the acquisition of neonatal physician group practices based in
      Akron, Ohio, and Hammond, Louisiana, during the 2008 fourth quarter.
    </p>
    <p>
      Outlook
    </p>
    <p>
      Pediatrix expects that it will earn between 77 cents and 81 cents per
      share for the fourth quarter of 2008. This guidance assumes continued
      contributions from recent acquisitions as well as practice acquisitions
      that are expected to be completed throughout the remainder of the year;
      a full-quarter impact of the payor mix shift that occurred starting in
      August 2008; and same-unit NICU patient volume with no change or a
      decline of up to 2 percent when compared to the prior-year period.
    </p>
    <p>
      During 2009, the Company expects that it will invest between $70 and $75
      million of its capital to acquire physician group practices in neonatal,
      maternal fetal and pediatric cardiology subspecialties, and that it will
      complete two or three anesthesia group practice acquisitions. The
      Company expects to provide more information about its outlook for 2009
      when it reports results for the three months and 12 months ended
      December 31, 2008, in February 2009.
    </p>
    <p>
      Reconciliation of Non-GAAP Information
    </p>
    <p>
      This press release contains non-GAAP information for the three months
      ended September 30, 2007, related to operating income, operating margin,
      net income and earnings per share, which is adjusted for certain items
      as set forth below. Pediatrix believes that this non-GAAP information is
      useful to management and investors reviewing financial and business
      trends related to its results of operations and that when non-GAAP
      information is viewed with GAAP information, investors are provided with
      a meaningful understanding of Pediatrix&#8217;s ongoing operating financial
      performance. This information is not intended to be considered in
      isolation, or as a substitute of GAAP financial information. The
      following tables reconcile non-GAAP financial information to net income
      per common share, which Pediatrix believes are the most comparable GAAP
      measures:
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="12" style="padding-left: 0.0px; text-align: center" valign="bottom">
          Non-GAAP Adjustments
        </td>
      </tr>
      <tr>
        <td colspan="12" style="padding-left: 0.0px; text-align: center" valign="bottom">
          (Unaudited)
        </td>
      </tr>
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="10" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="bottom">
          Three Months Ended September 30, 2007
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="bottom">
          GAAP
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="bottom">
          Adjustments
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="bottom">
          Non-GAAP
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="10" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="bottom">
          (in thousands, except for per share data)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Net patient service revenue
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          233,102
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          233,102
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Operating expenses:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Practice salaries and benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          131,326
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          131,326
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Practice supplies and operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          8,262
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          8,262
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          General and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          29,316
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          (1,900
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          27,416
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          2,366
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          2,366
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Total operating expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          171,270
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          169,370
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          61,832
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          63,732
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 20.0px; text-align: left" valign="bottom">
          <i>Operating margin</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          26.5
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          27.3
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Investment income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,121
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,121
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Interest expense
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (147
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (147
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Income from continuing operations before income taxes
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          63,806
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          65,706
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Income tax provision
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (25,007
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (746
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (25,753
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Income from continuing operations
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          38,799
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          39,953
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Income from discontinued operations, net of income taxes
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          759
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          759
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          39,558
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (1,154
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          40,712
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Per common and common equivalent share data (diluted):
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Net income from continuing operations
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.77
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.02
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.79
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Net income from discontinued operations
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.02
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.02
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.79
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.02
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.81
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Weighted average shares used in computing net income per common
            and common equivalent share (diluted)
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          50,264
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          50,264
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Earnings conference call
    </p>
    <p>
      Pediatrix Medical Group, Inc. will host an investor conference call at
      10 a.m. (EST) today to discuss the quarterly results and near-term
      outlook. The conference call Webcast may be accessed from the Company&#8217;s
      Website, <u>www.pediatrix.com</u>. A telephone replay of the conference
      call will be available from noon (EST) today through midnight (EST)
      November 20, 2008, by dialing 800-475-6701, access code 965839. The
      replay will also be available at <u>www.pediatrix.com</u>.
    </p>
    <p>
      About Pediatrix
    </p>
    <p>
      Pediatrix Medical Group, Inc. is the nation&#8217;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 1,200 physicians in 32 states and Puerto Rico. Pediatrix is
      also the nation&#8217;s largest provider of newborn hearing screens.
      Additional information is available at <u>www.pediatrix.com</u>.
    </p>
    <p>
      <i>Certain statements and information in this press release may be
      deemed to be &#8220;forward-looking statements&#8221; within the meaning of the
      Federal Private Securities Litigation Reform Act of 1995.</i> <i>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 &#8220;believe&#8221;,
      &#8220;hope&#8221;, &#8220;may&#8221;, &#8220;anticipate&#8221;, &#8220;should&#8221;, &#8220;intend&#8221;, &#8220;plan&#8221;, &#8220;will&#8221;,
      &#8220;expect&#8221;, &#8220;estimate&#8221;, &#8220;project&#8221;, &#8220;positioned&#8221;, &#8220;strategy&#8221; and similar
      expressions, and are based on assumptions and assessments made by
      Pediatrix&#8217;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</i> <i>cause
      actual results, developments, and business decisions to differ
      materially from forward-looking statements are described in Pediatrix&#8217;s
      most recent Annual Report on Form 10-K, including the section entitled
      &#8220;Risk Factors&#8221;.</i>
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="17" style="padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Pediatrix Medical Group, Inc.
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="17" style="padding-left: 0.0px; text-align: center" valign="bottom">
          Consolidated Statements of Income
        </td>
      </tr>
      <tr>
        <td colspan="17" style="padding-left: 0.0px; text-align: center" valign="bottom">
          (Unaudited)
        </td>
      </tr>
      <tr>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="bottom">
          Three Months Ended
        </td>
        <td>
          &#160;
        </td>
        <td colspan="7" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="bottom">
          Nine Months Ended
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="bottom">
          September 30,
        </td>
        <td>

        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="bottom">
          September 30,
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          2008
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          2007
        </td>
        <td>

        </td>
        <td colspan="3" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          2008
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          2007
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="15" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          (in thousands, except for per share data)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Net patient service revenue
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          267,185
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          233,102
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          770,462
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          667,288
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Operating expenses:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Practice salaries and benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          159,799
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          131,326
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          461,855
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          387,741
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Practice supplies and operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          11,145
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          8,262
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          31,388
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          24,616
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          General and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          30,749
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          29,316
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          91,521
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          91,647
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          3,296
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          2,366
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          9,051
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          6,764
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Total operating expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          204,989
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          171,270
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          593,815
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          510,768
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          62,196
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          61,832
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          176,647
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          156,520
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Investment income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          487
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,121
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,445
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          5,646
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Interest expense
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (1,126
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (147
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (1,846
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (490
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Income from continuing operations before taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          61,557
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          63,806
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          177,246
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          161,676
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Income tax provision
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (24,161
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (25,007
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (69,549
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (62,181
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          Income from continuing operations
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          37,396
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          38,799
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          107,697
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          99,495
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Income from discontinued operations, net of income taxes
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          759
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          22,519
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          1,960
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          37,396
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          39,558
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          130,216
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          101,455
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Per common and common equivalent share data (diluted):
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Net income from continuing operations
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.81
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.77
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2.26
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1.99
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Net income from discontinued operations
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.02
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.48
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.03
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.81
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          0.79
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2.74
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2.02
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Weighted average shares used in computing net income per common
            and common equivalent share (diluted)
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          46,178
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          50,264
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          47,584
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          50,102
        </td>
        <td>

        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td colspan="7">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="bottom">
          Balance Sheet Highlights
        </td>
      </tr>
      <tr>
        <td colspan="7" style="padding-left: 0.0px; text-align: center" valign="bottom">
          (Unaudited)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="bottom">
          As of
        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="bottom">
          As of
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Sep. 30, 2008
          </p>
        </td>
        <td>

        </td>
        <td colspan="2" style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          Dec. 31, 2007
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="5" style="padding-left: 0.0px; text-align: center" valign="bottom">
          (in thousands)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>Assets:</b>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          12,136
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          102,843
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Short-term investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          24,712
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          18,042
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          151,410
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          145,504
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          63,301
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          97,737
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Other assets, property and equipment
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          1,183,466
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          938,676
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Total assets
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          1,435,025
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          1,302,802
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          <b>Liabilities and shareholder's equity:</b>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Accounts payable &amp; accrued expenses
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          243,160
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          243,120
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Total debt
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          171,625
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          924
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Other liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          101,107
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          99,706
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="bottom">
          Total liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          515,892
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          343,750
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          Shareholders' equity
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          919,133
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          959,052
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          Total liabilities and shareholders' equity
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          1,435,025
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          1,302,802
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br>Pediatrix Medical Group, Inc., Fort Lauderdale<br>Bob
      Kneeley, Director, Investor Relations<br>954-384-0175, x-5300<br><u>bob_kneeley@pediatrix.com</u>
    </p>
    <p>

    </p>
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