Benefitfocus, Inc. (BNFT), a leading provider of cloud-based benefits software solutions, today announced that it has filed a registration statement with the Securities and Exchange Commission for a proposed secondary offering of approximately $100 million worth of shares of common stock. All of the shares to be sold in the offering will be sold 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., Deutsche Bank Securities Inc. and Jefferies LLC will act as the book-running managers for the offering. Canaccord Genuity Inc., Piper Jaffray & Co. and Raymond James & Associates, Inc. will act as co-managers.

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, Deutsche Bank Securities Inc., Attn: Prospectus Group, 60 Wall Street, New York, NY 10005, telephone: 800-503-4611, email: prospectus.CPDG@db.comor Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, telephone: 877-547-6340, email:Prospectus_Department@Jefferies.com.