Electroencepholographs (EEGs) of neonatal seizures differ from those of children and adults. This study evaluated whether wavelet transform analysis, a nonstationary frequency analysis of EEG, can recognize and characterize neonatal seizures. Twenty-second segments were analyzed from 69 EEG seizures in 15 neonatal patients whose seizures lasted 10 seconds or longer. The wavelet transform results were examined, as were EEG seizure durations and dominant frequencies. The wavelet transform results were correlated with the occurrence, after an 18-month follow-up, of postneonatal seizures. Wavelet transform analysis identified 40 seizures (58%) with a "sustained dominant frequency component" that lasted 10 seconds or longer and 29 seizures without a sustained dominant frequency component. The mean seizure duration of the 40 seizures with sustained dominant frequency components was 63.3 seconds, longer than the mean duration (33.6 seconds) of the seizures without sustained dominant frequency components, P < 0.01. Eleven patients manifested postneonatal epileptic seizures. Fifty-two EEG seizures in these 11 patients revealed more sustained dominant frequency components (74%) than 17 seizures in the 4 patients without postneonatal seizures (only 12%), P < 0.05. Wavelet transform analysis can identify neonatal EEG seizures and characterize their epileptic components. The presence of sustained dominant frequency components may predict postneonatal epileptic seizures.