SAN MATEO, Calif. – January 13, 2005 – WageWorks®, the leading provider of consumer-driven tax-advantaged spending accounts for health care, dependent care and commuting announced today that the United States Postal Service (USPS) is working with WageWorks to provide a commuter program to its entire career workforce. The WageWorks Commuter Program saves employees up to 40 percent on commuting costs by giving them a convenient way to pay for public transportation, parking and vanpool expenses with pre-tax income. Over 700,000 USPS career employees across the country will be eligible to participate in the program when the phased implementation is completed.

The WageWorks Commuter Program is the only complete solution in the market. It's convenient and easy-to-use for employees and employers alike. Employees place their orders online or by telephone and receive passes delivered to their homes by mail, eliminating the need to visit specific locations or wait in line to purchase tickets.

Postal Service Vice President of Employee Resource Management DeWitt Harris said "One of the strategies of our Transformation Plan is to build a highly effective and motivated workforce. The Commuter Program will help retain employees who have been considering other agencies because they offer incentives for using public transportation and it also will appeal to potential candidates when they compare the Postal Service with other public and private sector organizations."

The Postal Service is one of the largest employers in the United States, operating at the center of the $900 billion mailing industry. It had $69 billion in revenue in Fiscal Year 2004.

"We are excited to work with the Postal Service to help their employees save money on public transportation and parking by offering affordable, time-saving commuter benefits," said Scott Halstead, WageWorks' chief executive officer. "Public sector clients need to distinguish themselves in today's competitive job market, and WageWorks provides consumer-friendly programs that help agencies attract employees."

The WageWorks program will be provided through an interagency agreement with the United States Department of Transportation. The Postal Service joins WageWorks' significant roster of government clients, which includes the City of Philadelphia, the Smithsonian Institution, the State of New York, the State of Ohio and the State of Illinois. WageWorks is, and always has been, a customer of the Postal Service for transit pass home-delivery.

ABOUT WAGEWORKS

WageWorks Inc. is the leading provider of consumer-driven tax-advantaged spending accounts for health and dependent care and commuting. Products include flexible spending (FSA), health reimbursement (HRA), health savings (HSA), COBRA, and commuter accounts. WageWorks is the only company to deliver a completely integrated spending account solution. It offers products on a single platform with a built-in debit card for health care and convenient account management tools such as electronic-bill payment and transit pass home-delivery. This reduces the cost of plan administration, while maximizing plan participation and value for employees.

Clients include Pitney Bowes and VeriSign among many others. WageWorks is headquartered in San Mateo, California, with offices in Chicago, Dallas, New York, Phoenix, Washington D.C. and Troy, Michigan. For more information, please visit the web site at www.wageworks.com, email WageWorks at info@wageworks.com, or call 866-602-3887.

ABOUT USPS

Since 1775, the U.S. Postal Service has connected friends, families, neighbors and businesses by mail. It is an independent federal agency that visits 142 million homes and businesses every day and is the only service provider delivering to every address in the nation. The Postal Service receives no taxpayer dollars for routine operations, but derives its operating revenues solely from the sale of postage, products and services. With annual revenues of more than $69 billion, it is the world's leading provider of mailing and delivery services, offering some of the most affordable postage rates in the world. The U.S. Postal Service delivers more than 46 percent of the world's mail volume of 206 billion letters, advertisements, periodicals and packages a year—and serves seven million customers each day at its 37,000 retail locations nationwide. For information about the USPS Transformation Plan go to www.usps.com/strategicplanning.