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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 first quarter of 2015.

On September 20, 2013, the Company purchased instruments to cover a portion of its anticipated domestic fuel-price-related earnings exposure for the third and fourth quarters of 2014 and the first quarter of 2015. At this time, WEX has hedged approximately: 60% of its third-quarter 2014 exposure, 40% of its fourth-quarter 2014 exposure and 20% of its first-quarter 2015 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 September purchase locked in a fuel price range of approximately $3.30 to $3.36 per gallon. The following table states the approximate range of the collar and percentage of fuel-price-related earnings exposure:

      Q3     Q4     Q1     Q2     Q3     Q4     Q1
2013 2013 2014 2014 2014 2014 2015
 
Average low end of range $3.47 $3.36 $3.38 $3.36 $3.37 $3.34 $3.30
Average top end of range $3.53 $3.42 $3.44 $3.42 $3.43 $3.40 $3.36
Approximate % locked in 60%* 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).

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