The neonatal literature disagrees about the true relationship between air leak (pneumothorax or pulmonary interstitital emphysema) which occurs in mechanically ventilated very low birth weight infants (VLBW, 501-1500 grams) and chronic lung disease (CLD, need for supplemental oxygen at 28 days of age). A data set collected from a prospective cohort of VLBW infants born in three central Illinois hospitals was analyzed to define the strength of this relationship more precisely. Infants ventilated from the first day of life comprised the study group. Some develop air leak while being ventilated. The purpose of this study was to assess the incremental risk of adverse outcome (death or development of CLD) associated with development on an air leak in the first twenty-seven days of life. Secondary purposes were to assess the impact of air leak on late outcome (defined as status at 90 days of age) and on measures of morbidity, such as duration of mechanical ventilation and supplemental oxygen administration.