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Wright Express Reports First-Quarter 2005 Results

Revenues Grow 20 Percent; Average Number of Vehicles Serviced Rises 8 Percent;
                  Company Pays Down $20 Million of Term Debt

SOUTH PORTLAND, MAINE, April 26 /PRNewswire-FirstCall/ -- Wright Express Corporation (NYSE: WXS), a leading provider of payment processing and information management services to the U.S. commercial and government fleet industry, today reported financial results for the first quarter ended March 31, 2005.

Revenues for the first quarter of 2005 increased 20 percent to $52.2 million from $43.6 million for the first quarter of 2004. Net loss on a GAAP basis for the first quarter was $18.5 million, or $0.46 per diluted share, compared with net income of $10.4 million, or $0.25 per diluted share, for the same period last year. On a non-GAAP basis, the Company's adjusted net income was $11.3 million, or $0.28 per diluted share.

The first quarters of 2005 and 2004 are not directly comparable due to factors related to the Company's initial public offering in February 2005 and the non-cash earnings fluctuations associated with its fuel price derivative instruments, which run through December 2006. The GAAP financial results for the first quarter of 2005 include the following items:

    * A $34.4 million pre-tax, non-cash, mark-to-market loss on the fuel price
      derivative instruments;
    * An $8.5 million pre-tax, non-cash charge associated with the termination
      of an out of the money fuel price derivative while the Company was
      still a subsidiary of Cendant, which was paid by Cendant on the
      Company's behalf; and
    * A $5.7 million pre-tax, non-recurring charge for the conversion of
      Cendant common stock and vested stock options held by Company employees
      to Wright Express common stock, options and cash.

Excluding these items and their related tax impact, adjusted net income for the first quarter of 2005 was $11.3 million. Exhibit 1 reconciles adjusted net income, which has not been determined in accordance with GAAP, to net loss as determined in accordance with GAAP.

In addition, GAAP net loss and adjusted net income for the first quarter of 2005 include the effect of certain costs related to the Company's operating for the first time as an independent public company, as well as financing costs related to the indebtedness incurred to pay a $305.9 million dividend to Cendant prior to the initial public offering as well as the loss of interest income. None of these costs affected actual 2004 results. If these costs also had been present in 2004, non-GAAP net income for the first quarter of 2004 would have been $8.8 million. The Company's adjusted net income for the first quarter of 2005 of $11.3 million would have represented a 29 percent increase over this amount. Exhibit 2 reconciles non-GAAP net income for the first quarter of 2004 to net income determined in accordance with GAAP.

Management uses the non-GAAP measures presented within this news release to evaluate the Company's performance on a comparable basis and to eliminate the volatility associated with its derivative instruments. Management believes that investors may find these measures useful for the same purposes, but cautions that they should not be considered a substitute for disclosure in accordance with GAAP.

    First-Quarter 2005 Performance Metrics
    * Wright Express prepaid $20 million on its term debt.  The Company
      expects to continue using available cash to prepay debt.
    * Average number of vehicles serviced increased 8 percent from the first
      quarter of 2004 to 3.9 million.
    * Total transactions processed increased 7 percent from the first quarter
      of 2004 to 52.5 million.  Payment processing transactions increased 8
      percent to 37.4 million, and transaction processing transactions
      increased 5 percent to 15.1 million.
    * Average expenditure per payment processing transaction grew to $39.04,
      an increase of 22 percent from the same period last year.
    * Average retail fuel price was $1.97 per gallon, compared with $1.64 per
      gallon for the first quarter a year ago, an increase of 20 percent.
    * Total MasterCard purchase volume grew to $255.4 million, an increase of
      37 percent from the comparable period a year ago.

    Comments on the First Quarter

"Wright Express opened a new chapter in its history in the first quarter by completing its initial public offering and extending its 22 year record of growth," said Michael Dubyak, president and chief executive officer. "The Company's first-quarter revenue performance continued to demonstrate the broad reach of our sales and marketing engine and the power of our recurring revenue model."

"We continue to compete aggressively and successfully in the large and medium fleet markets," Dubyak said. "At the same time, we are making excellent progress toward our goal of gaining increased share in the relatively under-penetrated small-fleet market. One of our small-fleet growth strategies is to continue developing value-added programs for the distributor market. In the private carrier heavy-truck segment, our marketing and sales initiatives are producing strong growth in both diesel fuel sales and new vehicles added to the program. And we continue to expand the number of sites on the Wright Express Service Network, which targets vehicle maintenance expenditures."

Fuel Price and Interest Rate Derivative Instruments

In January 2005, Wright Express elected to purchase derivative instruments representing approximately 90 percent of the Company's projected exposure to retail fuel prices through December 2006. These instruments are designed to reduce the volatility of the Company's cash flows resulting solely from changes in fuel prices and mitigate the impact if prices fall below approximately $1.88 per gallon or rise above approximately $1.95 per gallon.

Any unrealized gains or losses that result from these changes are reflected in the Company's results of operations as unrealized gains or losses from derivatives. As a result of these non-cash, mark-to-market adjustments, the Company's quarterly net income may be prone to significant fluctuation and may not necessarily correlate to operating results for that particular quarter. Wright Express believes that the cash flow stability provided by these contracts will be a significant benefit while the Company pays down its bank debt. The Company further believes that, over the life of the contracts, the realized gains and losses on these derivatives will be largely offset by the changes in revenues resulting from changes in fuel prices.

During the first quarter of 2005, the Company incurred a realized loss on its derivative instruments of $1.4 million before taxes. This cash loss was offset by higher revenue of $700,000, resulting in a pre-tax cash loss of $700,000. The realized loss resulted from an increase in wholesale fuel prices, on which the Company's derivatives are based, that occurred prior to the associated increase in retail prices, from which the Company's revenues are derived.

In April 2005, Wright Express entered into an interest rate swap agreement to fix the interest rate on approximately 60 percent of its variable-rate financing debt for the next 24 months. Changes in the market value of this instrument will be recorded on the Company's balance sheet in other comprehensive income.

Financial Guidance

Wright Express Corporation's financial guidance for the second quarter and full year 2005 excludes the impact of non-cash, mark-to-market adjustments on the Company's fuel price related derivative instruments. The fuel prices referenced below are based on the applicable NYMEX futures price:

    * For the second quarter of 2005, revenue in the range of $55 million to
      $58 million.  This is based on an assumed average retail fuel price of
      $2.25 per gallon.
    * Second-quarter 2005 net income before unrealized gain or loss on
      derivative contracts in the range of $10 million to $11 million, or
      $0.25 to $0.27 per diluted share, based on approximately 41 million
      shares outstanding.
    * For the full year 2005, revenue in the range of $220 million to $225
      million.  This is based on an assumed average retail fuel price of
      $2.15 per gallon.
    * For the full year 2005, net income before unrealized gain or loss on
      derivative contracts and non-recurring charges from the first quarter
      of 2005 in the range of $44 million to $46 million, or $1.08 to $1.13
      per diluted share, based on approximately 41 million shares
      outstanding.

    Conference Call Details

In conjunction with this announcement, Wright Express will host a conference call today at 4:30 p.m. (ET) to discuss the Company's financial results, first-quarter highlights, business strategy and business outlook. To access this call by telephone, dial 800.475.3716 or 719.457.2728. A telephone replay will be available through midnight on Monday, May 2 at 719.457.0820 or 888.203.1112. Please indicate passcode 8964764 to access the replay. A live webcast of this conference call will be available at the "Investor Relations" section of the Company's website (http://www.wrightexpress.com), and a webcast archive will be posted on the website for approximately three months.

About Wright Express

Wright Express is a leading provider of payment processing and information management services to the U.S. commercial and government vehicle fleet industry. Wright Express provides these services for over 285,000 commercial and government fleets containing more than 3.9 million vehicles. Wright Express markets these services directly as well as through its over 80 strategic relationships, and offers a MasterCard-branded corporate card. The Company employs more than 640 people and maintains its headquarters in South Portland, Maine.

This press release contains forward looking statements, including statements regarding Wright Express Corporation's financial guidance for the second quarter and full year 2005 and the long term economic effect of its fuel-price related derivative instruments. These forward looking statements include a number of risks and uncertainties that could cause actual results to differ materially. These results include (i) volatility in fuel prices, (ii) the effect of the Company's fuel-price related derivative instruments, (iii) effects of competition, (iv) the potential loss of key strategic relationships, (v) decreased demand for fuel and other vehicle products and services and the effects of general economic conditions on the commercial activity of fleets, (vi) the Company's ability to rapidly implement new technology and systems, (vii) changes in interest rates and the other risks and uncertainties included from time to time in the Company's filings with the Securities and Exchange Commission, including the final prospectus filed with the SEC on February 16, 2005. Wright Express Corporation undertakes no obligation to update these forward looking statements at any future date or dates.



                          WRIGHT EXPRESS CORPORATION
                   CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
                      (in thousands, except per share data)
                                   (unaudited)

                                                         Three months ended
                                                              March 31,
                                                         2005           2004
    Revenues

     Payment processing revenue                        $34,809        $28,196
     Transaction processing revenue(1)                   4,107          5,317
     Account servicing revenue                           5,619          5,085
     Finance fees                                        3,195          2,154
     Other(1)                                            4,472          2,846

      Total revenues                                    52,202         43,598

    Expenses
     Salary and other personnel                         18,717         12,076
     Service fees                                        3,542          3,125
     Provision for credit losses                         2,937          2,629
     Technology leasing and support                      2,077          1,664
     Occupancy and equipment                             1,442          1,177
     Depreciation and amortization                       1,972          2,112
     Operating interest expense                          2,261          1,085
     Operating interest income                              --           (611)
     Other                                               3,919          3,275

      Total expenses                                    36,867         26,532

    Operating income                                    15,335         17,066

    Financing interest expense                          (1,386)            --
    Realized and unrealized losses on derivative
     instruments                                       (44,202)            --

    Income (loss) before income taxes                  (30,253)        17,066
    Provision (benefit) for income taxes               (11,780)         6,639

    Net income (loss)                                 $(18,473)       $10,427

    Earnings (loss) per share
     (on a pro forma basis for 2004):
     Basic                                              $(0.46)         $0.26
     Diluted                                            $(0.46)         $0.25

    Weighted average common shares outstanding
     (on a pro forma basis for 2004):
     Basic                                              40,185         40,185
     Diluted                                            40,185         41,111


    (1) In 2004, transaction processing revenue included $1,586 related to the
        Company's stored value program.  Due to a change in pricing in 2005,
        the majority of revenue for this program is now classified as other
        revenue.



                          WRIGHT EXPRESS CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except share and per share data)

                                                     March 31,    December 31,
                                                        2005          2004
                                                    (unaudited)

    Assets
     Cash and cash equivalents                        $21,261        $31,806
     Accounts receivable (less reserve for
      credit losses of $4,919 in 2005 and $4,212
      in 2004)                                        517,351        447,169
     Due from related parties                              --        134,182
     Property, equipment and capitalized software,
      net                                              38,224         37,474
     Deferred income taxes, net                       495,111            502
     Goodwill                                         135,047        135,047
     All other assets                                  31,075         26,509

    Total assets                                   $1,238,069       $812,689

    Liabilities and Stockholders' or Member's Equity
     Accounts payable                                $244,708       $197,647
     Accrued expenses                                  17,016         17,410
     Deposits                                         217,426        194,360
     Borrowed federal funds                            20,369         27,097
     Revolving line-of-credit facility                 50,000             --
     Term loan                                        197,128             --
     Derivative instruments, at fair value             34,374             --
     Other liabilities                                    482            459
     Due to related parties                                --         91,466
     Amounts due to Cendant under tax receivable
      agreement                                       415,411             --
     Preferred stock: 10,000,000 shares authorized;
     Series A non-voting convertible preferred stock:
      100 shares authorized, issued and outstanding    10,000             --

    Total liabilities                               1,206,914        528,439

    Commitments and contingencies

    Stockholders' or Member's Equity
     Member's contribution                                 --        182,379
     Common stock $0.01 par value: 175,000,000 shares
      authorized; 40,186,188 shares issued and
      outstanding                                         402             --
     Additional paid-in capital                        49,279             --
     Retained earnings (accumulated deficit)          (18,473)       101,869
     Other comprehensive income (loss), net of tax:
      Net unrealized gain (loss) on available-for-sale
       securities                                         (53)             2

     Accumulated other comprehensive income (loss)        (53)             2
     Total stockholders' or member's equity            31,155        284,250

    Total liabilities and stockholders' or
     member's equity                               $1,238,069       $812,689



                          WRIGHT EXPRESS CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)
                                 (unaudited)

                                                         Three months ended
                                                              March 31,
                                                         2005           2004

    Cash flows from operating activities
     Net income (loss)                                $(18,473)       $10,427
     Adjustments to reconcile net income (loss)
      to net cash provided by operating activities:
      Net unrealized loss on derivative instruments     34,374             --
      Non-cash charge for stock-based compensation       5,677             --
      Depreciation and amortization                      2,016          2,112
      Deferred taxes                                    (5,860)           (63)
      Provision for credit losses                        2,937          2,629
      Loss on disposal of property and equipment             5             46
      Changes in operating assets and liabilities:
       Accounts receivable                             (73,119)       (69,931)
       Other assets                                     (1,907)        (1,359)
       Accounts payable                                 47,061         53,899
       Accrued expenses                                   (394)        (1,761)
       Deposits                                         23,066          9,355
       Borrowed federal funds                           (6,728)        24,684
       Other liabilities                                    23           (746)
       Due to/from related parties                      45,051        (25,312)
    Net cash provided by operating activities           53,729          3,980


    Cash flows from investing activities
     Purchases of property and equipment                (2,727)        (2,147)
     Sales of property and equipment                        --             23
     Purchases of available-for-sale securities         (1,091)            --
     Maturities of available-for-sale securities            19            207

     Net cash used for investing activities             (3,799)        (1,917)

    Cash flows from financing activities
     Dividends paid                                   (305,887)        (5,208)
     Borrowings on revolving line of credit             50,000             --
     Loan origination fees paid for revolving
      line of credit                                    (1,704)            --
     Borrowings on term loan, net of loan
      origination fees                                 217,116             --

     Repayments on term loan                           (20,000)            --

     Net cash used for financing activities            (60,475)        (5,208)

    Net change in cash and cash equivalents            (10,545)        (3,145)
    Cash and cash equivalents, beginning of period      31,806         22,134

    Cash and cash equivalents, end of period           $21,261        $18,989


    Supplemental cash flow information:
     Interest paid                                      $2,674         $1,270
     Income taxes paid                                  $   --         $   --

During the three months ended March 31, 2005 the following non-cash transactions occurred:

    * The Company's tax basis of its assets increased resulting in a deferred
      tax asset of $488,719.  The Company entered into a tax receivable
      agreement with its former parent company, Cendant Corporation, which
      provides that the Company will make payments currently estimated at
      $415,411 over the next 15 years.  The difference between the asset
      recorded and the liability payable to Cendant Corporation was recorded
      as $73,308 of stockholders' equity.
    * The Company issued 40,000 shares of common stock upon the completion of
      its initial public offering and as part of the conversion of the
      Company from a Delaware limited liability company to a Delaware
      corporation.  The Company did not receive any proceeds from this
      offering as Cendant received all common stock proceeds from the
      offering concurrent with their sale of 100 percent of their interest in
      the Company.
    * The Company issued one hundred shares of preferred stock as part of the
      conversion of the Company from a Delaware limited liability company to
      a Delaware corporation.  The Company did not receive any proceeds from
      this offering as Cendant received all preferred stock proceeds from
      this conversion.

                                  Exhibit 1
                          Wright Express Corporation
            Reconciliation of Adjusted Net Income to GAAP Net Loss
                              First Quarter 2005

                                (in thousands)
                                 (unaudited)

                                                    Three months ended
                                                     March 31, 2005

    Adjusted net income(2)                                $11,342
    Non-cash, mark-to-market adjustments on
     derivative instruments                               (34,374)
    Termination of derivative instruments                  (8,450)
    Conversion of restricted stock units
     and stock options                                     (5,723)
    Tax impact                                             18,732
    GAAP net loss                                        $(18,473)

Although adjusted net income is not calculated in accordance with generally accepted accounting principles (GAAP), this measure is integral to the Company's reporting and planning processes. The Company considers this measure integral because it eliminates the non-cash volatility associated with the derivative instruments as well as certain non-recurring items. Specifically, in addition to evaluating the Company's performance on a GAAP basis, management evaluates the Company's performance on a basis that excludes the above items because:

    * Exclusion of the non-cash, mark-to-market adjustments on derivative
      instruments helps management identify and assess trends in the
      Company's underlying business that might otherwise be obscured due to
      quarterly non-cash earnings fluctuations associated with fuel-price
      derivative contracts;
    * The non-cash, mark-to-market adjustments on derivative instruments are
      difficult to forecast accurately, making comparisons across historical
      and future quarters difficult to evaluate;
    * The termination of derivative instruments during the first quarter of
      2005 was a non-recurring event effected by the Company's former parent
      company as part of the process of preparing the Company for its initial
      public offering; and
    * The conversion of restricted stock units and stock options was a non-
      recurring event resulting from the need to convert the equity
      incentives held by the Company's employees so that they were
      exercisable following the initial public offering for Company common
      stock instead of for common stock of the Company's former parent.

For the same reasons, Wright Express believes that adjusted net income may also be useful to investors as one means of evaluating the Company's performance. However, because adjusted net income is a non-GAAP measure, it should not be considered as a substitute for, or superior to, net income, operating income or cash flows from operating activities as determined in accordance with GAAP. In addition, adjusted net income as used by Wright Express may not be comparable to similarly titled measures employed by other companies.

    (2) The number of fully diluted shares for adjusted net income is 41,099.



                                  Exhibit 2
                          Wright Express Corporation
           Reconciliation of Non-GAAP Net Income to GAAP Net Income
                              First Quarter 2004

                                (in thousands)
                                 (unaudited)

                                                         Three months
                                                        ended March 31,
                                                             2004

    Non-GAAP net income                                      $8,816
    Loss of interest income on cash balances                    611
    Incremental public company expenses                         769
    Founders grant vesting expense recognized in 2005           133
    Savings from vesting Cendant restricted stock units        (126)
    Additional interest on operating debt balances
     used to pay a dividend to Cendant                           78
    Interest expense on financing debt balances               1,125
    Tax impact                                                 (979)
    GAAP net income                                         $10,427

Although non-GAAP net income is not calculated in accordance with generally accepted accounting principles, this measure is integral to the Company's internal reporting. Management considers this an important measure because it includes the effect of new costs related to the Company's operating for the first time as an independent public company, as well as financing costs related to the indebtedness incurred to pay a $306 million dividend to Cendant prior to the initial public offering. However, because non-GAAP net income has not been determined in accordance with generally accepted accounting principles, it should not be considered as a substitute for net income, operating income or cash flows from operating activities as determined in accordance with GAAP. In addition, non-GAAP net income as used by Wright Express may not be comparable to similarly titled measures employed by other companies. The non-GAAP adjustments are based upon available information the Company believes to be reasonable as of today. The non-GAAP results are not necessarily indicative of the future results of operations.

CONTACT: Jessica Roy, News media contact,
+1-207-523-6763,
Jessica_Roy@wrightexpress.com, or
Steve Elder, Investor contact,
+1-207-523-7769,
Steve_Elder@wrightexpress.com,
both of Wright Express
/Web site: http://www.wrightexpress.com
(WXS)