This is the 4th annual audit of the Australian and New Zealand Neonatal Network and presents information on the network's 1998 audit of high risk neonates. The Australian and New Zealand Neonatal Network is a voluntary collaboration of all 29 level III Neonatal Intensive Care Units (NICUs) in both countries. This network continues to conduct an ongoing prospective audit of the most at-risk babies admitted to a NICU. The audit looks at factors that may affect outcomes that can be measured while the baby is in hospital. In 1998, a total of 6,408 babies met the criteria of ANZNN's audit of high-risk infants and were admitted to a level III NICU throughout Australia and New Zealand. This represents 2.1% of the total births for the two countries. All babies born at less than 32 weeks' gestation (very preterm) are audited; there were 3,084 of these babies admitted to a level III NICU in 1998.