In a previous paper (1) we noted that premature infants developing hydrocephalus due to intraventricular haemorrhage performed considerably worse than their full term hydrocephalic, and non-hydrocephalic premature peers. Although this was an extremely small sample it was noted that some children had more handicap than others and could be roughly divided into two groups according to development outcome. 43 subjects born between 26-36 weeks gestation are now available for study. In order to determine whether there were any factors which could predict how well these children would perform developmentally, data were collected on birth history, medical problems experienced, development and treatment of the hydrocephalus. Developmental assessment was carried out at 18 months or less on all subjects and, for some, at or around 36 months and again at 60+ months. These data were statistically analysed to determine those factors which could be elicited would determine the children likely to suffer developmental or motor problems. The only significant factors which distinguished good outcome from bad outcome in these cases were when the haemorrhage took place after birth, later haemorrhage leading to poorer outcome, and an inverse relationship according to duration of ventilation. The results were discussed with relevance to future handling of similar infants.