In order to further evaluate both the maturation as well as the prognostic value of the somatosensory evoked potentials (SEPs) with regard to neurodevelopmental outcome, SEPs were performed after the first week of life in 56 small-for-gestational age (SGA) preterm neonates. Twenty-five had a prolonged N1 latency while 30 had a normal N1 latency around discharge. One child had an accelerated N1 latency. No correlation was found between the severity of intrauterine growth retardation in relation to birthweight, head circumference or birthweight ratio. None of the children developed cerebral palsy (CP) at follow-up. Developmental quotient (DQ) was calculated in 42 children. The mean DQ of the 21 neonates with an abnormal SEP at discharge was 79.24 +/- 18.56 while the mean DQ of the 21 children with a normal SEP at discharge was 92.52 +/- 11.31. Among the children with a normal N1 latency at discharge the number of breast-fed children was significantly higher than the number of formula-fed neonates (P < 0.05). We conclude that an abnormal SEP around term age in SGA preterm neonates does not imply an increased risk of developing CP. Breast-milk appears to have a beneficial effect on the development of the SEPs in children with intrauterine growth retardation.