Benefitfocus Files Registration Statement for Secondary Offering, 2.875M Shares, Company Will Not Receive Offering Proceeds

Benefitfocus, Inc.

, a leading provider of cloud-based benefits software solutions, today announced that it has filed a registration statement with the Securities and Exchange Commission relating to a proposed secondary offering of up to 2,875,000 shares (which includes shares subject to the underwriter's option to purchase additional shares) of its common stock by the Goldman Sachs funds that have been stockholders of the Company since 2007. Benefitfocus will not receive any of the proceeds from the sale of the shares. Goldman, Sachs & Co. will act as book-running manager for the offering. A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The registration statement Benefitfocus has filed with the SEC can be obtained by visiting EDGAR on the SEC website at www.sec.gov. The offering will be made only by means of a prospectus. Copies of the preliminary prospectus related to the offering may be obtained, when available, from Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 866-471-2526, email: prospectus-ny@ny.email.gs.com.