This is the 2nd annual report of the Australian and New Zealand Neonatal Network and presents information on the network's 1995 audit of high risk neonates. In 1995, all 29 level III Neonatal Intensive Care Units (NICUs) in Australia and New Zealand participated in and contributed data to the Australian and New Zealand Neonatal Network (ANZNN). One part of the network's function is an audit of infants admitted to NICUs who are thought to be most at risk of poor outcome. These infants include those born at less than 32 weeks' gestation, those born weighing less than 1500 grams, those who received assisted ventilation or those who have major surgery. A total of 5,771 infants who met the ANZNN criteria were born in 1995. Of these infants, 2,863 were born at less than 32 weeks' gestation and 2,543 were born weighing less than 1500 grams. A total of 4,856 infants received assisted ventilation and 775 had major surgery.