The neonatal EEG was studied in 19 preterm infants with peri- and intraventricular hemorrhage (IVH) verified by CT scan. The background EEG showed an increasing discontinuity with increasing severity of brain damage. The EEG was of little diagnostic value but provided a good prognostic tool. The degree of brain damage classified by background EEG was significantly correlated with clinical outcome, but the degree of hemorrhage graded by CT scan was of less prognostic value. Positive rolandic sharp waves were seen in only 2 of 19 infants and were of little diagnostic significance. The EEG was also useful to detect subtle seizures including apneic ones in very low-birthweight infants with IVH.