Pulmonary mechanics, chest X-ray and the incidence of clinical lung disease were studied in 41 low birth weight infants treated with intermittent positive pressure ventilation (IPPV) in the neonatal period. Shortly after IPPV most patients, irrespective of X-ray findings, had signs of lung damage reflected in low dynamic compliance or high pulmonary resistance. Both parameters, however, had a strong tendency towards normalization during the first year of life. Overdistention on chest X-ray was common at 6--12 months of age. Pneumonia and bronchitis were common during the first two years of life but subsided later on. Development of BPD or later respiratory disease were not correlated to treatment with high inspired oxygen concentrations but commonest in patients with hyaline membrane disease. The combined findings of pulmonary mechanics and chest X-ray shortly after IPPV were correlated to later clinical lung disease.