WageWorks Acquires Benefit Concepts to Further Its Leadership Position in Consumer-Directed Benefits

  WageWorks Acquires Benefit Concepts to Further Its Leadership Position in
  Consumer-Directed Benefits

Business Wire

SAN MATEO, Calif. -- January 7, 2013

WageWorks, Inc. (NYSE: WAGE), a leading provider of Consumer-Directed Benefits
(CDBs), such as pre-tax accounts for health, commuter and other employee
benefits, today announced that it has acquired Benefit Concepts, Inc., a
leading provider of outsourced benefit solutions, based in East Providence,
RI. This transaction further strengthens WageWorks' position in the
Consumer-Directed Benefits market.

Benefit Concepts serves the needs of hundreds of mid-sized and large employers
by providing their employees and families with a range of Consumer-Directed
Benefits, including health care, such as Flexible Spending Accounts (FSAs) and
Health Reimbursement Arrangements (HRAs), COBRA benefits continuation, and
active benefits enrollment, designed to make access to healthcare easier and
more affordable.

"We are very pleased to welcome Benefit Concepts to the WageWorks family,"
said Joe Jackson, CEO, WageWorks. "The quality of their customer and broker
relationships, their talented management team, and the expertise they have in
COBRA administration and active benefits enrollment make them a natural fit
for WageWorks as we continue to expand our comprehensive suite of
Consumer-Directed Benefits.”

''At Benefit Concepts, our mission has been to simplify benefit administration
and make it as efficient and as effective as possible. Being part of WageWorks
offers us access to the extensive expertise, technology, and service resources
of a leading national administrator that will make our offerings even
stronger," said Jay Hoder, Chairman, Benefit Concepts.

Benefit Concepts will continue to service its customers out of its Rhode
Island offices, supported by additional capabilities, products and
technologies provided by WageWorks. The company will now operate as "Benefit
Concepts, Inc., a division of WageWorks, Inc.".

WageWorks will host a conference call today, January 7, 2013, at 5:00 p.m. ET
to further discuss the acquisition of Benefit Concepts and the expected
financial impact.

The live webcast of the conference call can be accessed under “Investor
Relations” section of the Company’s website at www.wageworks.com. Those
wishing to participate in the live call should dial 866-271-5140 (toll-free)
or 617-213-8893, and enter pass code 90572912. Following the call, an archived
webcast will be available in the “Investor Relations” section of the Company’s
website at www.wageworks.com. A replay will be available at 888-286-8010
(toll-free) or 617-801-6888 using the pass code 52228494.

Forward-Looking Statements

Statements in the press release and certain matters to be discussed on the
conference call regarding WageWorks’ acquisition of Benefit Concepts, Inc.,
which are not historical facts, are “forward- looking statements” within the
meaning the Private Securities Litigation Reform Act of 1995. These forward
looking statements may be identified by terms such as believe, expect, may,
will, provide, could and should and the negative of these terms or other
similar expressions. These statements, including statements relating to
continuing to provide value to their and our employer clients through
consumer-directed benefits solutions, the expected benefits of this
acquisition and the potential impact on our future operating results are based
on current expectations and assumptions that are subject to risks and
uncertainties. Our actual results could differ materially from those we
anticipate as a result of various factors, including the continued
availability of tax-advantaged consumer-directed benefits to employers and
employees, our ability to successfully integrate this acquisition, our ability
to acquire and retain new employer clients and to cross-sell our products to
existing employer clients, the participation of employees in our employer
clients’ Consumer-Directed Benefits, our ability to compete effectively with
current and future competitors, our ability to provide high quality service in
a cost efficient manner and our ability to enhance our product functionality.
For a discussion of these and other related risks, please refer to “Risk
Factors” and elsewhere in our most recent quarterly report on Form 10-Q, which
is available on the SEC’s website at www.sec.gov. You should review our SEC
filings carefully and with the understanding that our actual future results
may be materially different from what we expect. Given these uncertainties,
you should not place undue reliance on these forward-looking statements. Also,
forward-looking statements represent our management’s beliefs and assumptions
only as of the date made. We disclaim any obligation to update information
contained in these forward-looking statements whether as a result of new
information, future events, or otherwise.

About WageWorks

WageWorks (NYSE:WAGE) is a leading provider of Consumer-Directed Benefits
(CDBs) in the United States. WageWorks administers and operates a broad array
of CDBs, including pre-tax spending accounts, such as health and dependent
care Flexible Spending Accounts (FSAs), as well as Commuter Benefit Services,
including transit and parking programs, Health Savings Accounts (HSAs), Health
Reimbursement Arrangements (HRAs), and other employee benefits.

WageWorks is headquartered in San Mateo, California, with offices in major
locations throughout the United States. For more information, please visit the
website atwww.wageworks.com.

Contact:

Investor Contact
ICR
Staci Mortenson, 203-682-8273
Staci.mortenson@icrinc.com
or
Media Contact
WageWorks, Inc.
Britta Meyer, 650-577-5208
Chief Marketing Officer
Britta.Meyer@WageWorks.com
 
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