Kirby, McInerney & Squire LLP Announces Class Action Lawsuit on Behalf of Pediatrix Investors -- PDX


NEW YORK, July 21, 2003 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of Florida, Miami Division, on behalf of all purchasers of Pediatrix Medical Group, Inc. (``Pediatrix'' or the ``Company'') (NYSE:PDX) common stock during the period from February 7, 2002 through June 23, 2003, inclusive (the ``Class Period'').

Please visit our website, which offers summary and detailed information concerning the suit at http://www.kmslaw.com/new_cases/Pediatrix/Pediatrix.htm or contact us by phone at (888) 529-4787 or by email at emui@kmslaw.com for more information.

The action charges Pediatrix and certain of its senior officers with violations of Sections 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The alleged violations stem from the dissemination of false and misleading statements, which had the effect -- during the Class Period -- of artificially inflating the price of Pediatrix's shares.

Pediatrix issued a series of material misrepresentations to the market concerning the Company's financial condition during the Class Period. Specifically, Pediatrix failed to disclose and misrepresented the following adverse facts, among others: (1) that the defendants engaged in fraudulent "upcoding" in its billing practices while telling the investing public that its billing practices were legitimate; (2) that by virtue of having improperly received and recorded as revenue payments to which Pediatrix was not entitled, Pediatrix materially inflated several key indicators, including operating income, net inpatient revenue per admission, EBITDA and EBITDA margins; (3) that these unsafe and unsound business practices materially misrepresented the Company's business operations and financial performance by enabling the defendants to post better financial results; and (4) that as a result, the Company's stock price was artificially inflated.

On June 24, 2003, the Company issued a press release with the headline: "Pediatrix Notified of Billing Inquiry." Therein, the Company announced that it had been advised by the U.S. Attorney's Office that it was conducting a civil investigation into Pediatrix's Medicaid billing practices nationwide. Additionally, the Company announced that the U.S. Attorney's Office intended to make a document and information request, informally or by subpoena, within the next few weeks. Market reaction to the news was swift. Pediatrix's shares fell 24% or $9.90 per share, on unusually high trading volume, to close at $32.20 per share.

Kirby McInerney & Squire, LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at http://www.kmslaw.com.

If you are a member of the class described above, you may, no later than August 29, 2003, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the ``PSLRA''), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, you can contact:


 Ira M. Press, Esq.
 Elaine Mui
 KIRBY McINERNEY & SQUIRE, LLP
 830 Third Avenue, 10th Floor
 New York, New York  10022
 Telephone:  (212) 317-2300
 or Toll Free (888) 529-4787
 E-Mail: emui@kmslaw.com

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca