SAN MATEO, CA – July 13, 2006 –WageWorks®, a provider of consumer-driven tax-advantaged spending accounts for health care, dependent care and commuter benefits, today announced the appointment of Kathleen McElwee as chief financial officer, effective immediately. McElwee oversees WageWorks' financial operations and supports the company's strategy of sustained, profitable growth.

McElwee has more than 25 years of financial experience in the software and consumer-product industries, including experience managing high-volume transaction processing environments. She joins WageWorks from VA Software, a publicly-held online media, software and e-commerce leader based in Fremont, CA, where she served as chief financial officer since 2002. While at VA Software, McElwee lead a team responsible for accounting, investor relations, financial planning, human resources, legal and information technology.

McElwee also served as chief financial officer at 3DO Company in Redwood City, CA, Lightspan, Inc. in San Diego, CA, Galoob Toys, Inc. in South San Francisco, CA, and Canteen Corporation in Spartanburg, SC. She has also held finance positions at Nissan Motor Corporation, Dun & Bradstreet and IBM Corporation.

"Kathy brings an impressive range of expertise to WageWorks, including acquisition integration, raising investment capital, and streamlining financial operations," said Jon Kessler, chairman and chief executive officer of WageWorks. "This addition to our team reflects WageWorks' ability to attract top talent, and we are delighted to have her here."

McElwee received her MBA from the Wharton School of Business at the University of Pennsylvania and her Bachelor of Arts in Accounting from Penn State University.

About WageWorks
Founded in 2000, WageWorks provides tax-advantaged health, wellness, child care, commuting, and education benefits. More than 100 of America's Fortune 500 employers and millions of their benefits-eligible employees use WageWorks' programs. As the cost of living continues to rise and more health care costs are pushed to employees, WageWorks seeks to eliminate barriers to benefit participation so working families can save money and improve their overall well-being.

WageWorks provides easy-to-use benefits programs that help save time, and educational tools and resources to increase employees' knowledge and understanding of their family's health care and financial needs.

WageWorks is headquartered in San Mateo, CA., with offices in New York, Chicago, Washington, D.C., Phoenix, Ariz., Mequon, WI., and Troy, MI. For more information, please visit www.wageworks.com.