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WEX Extends Its Existing Fuel-Price Risk Management Program

WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, announced today that it has extended its existing fuel-price risk management program through the fourth quarter of 2014.

On June 7, 2013, the Company purchased instruments to cover a portion of its anticipated domestic fuel-price-related earnings exposure for the second, third and fourth quarters of 2014. At this time, WEX has hedged approximately: 60% of its second-quarter 2014 exposure, 40% of its third-quarter 2014 exposure and 20% of its fourth-quarter 2014 exposure. Going forward, the Company intends to hedge approximately 60% of its domestic fuel-price-related earnings exposure in every quarter on a rolling basis.

The instruments are designed to enhance the visibility and predictability of the Company's future earnings. The program uses instruments that create a "costless collar" based upon both the U.S. Department of Energy's weekly diesel fuel price index and NYMEX unleaded gasoline contracts. The June purchase locked in a fuel price range of approximately $3.37 to $3.43 per gallon. The following table states the approximate range of the collar and percentage of fuel-price-related earnings exposure:
      Q2     Q3     Q4     Q1     Q2     Q3     Q4
2013 2013 2013 2014 2014 2014 2014
Average low end of range $3.44 $3.47 $3.36 $3.38 $3.36 $3.40 $3.37
Average top end of range $3.50 $3.53 $3.42 $3.44 $3.42 $3.46 $3.43
Approximate % locked in 80%* 60%* 60%* 60%** 60%** 40%** 20%**

*At the time of execution, 2013 hedges were established without consideration of Fleet One volumes (WEX acquired Fleet One in October 2012).**2014 hedges have been established with consideration of Fleet One volumes.

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