Commuter Check Benefits Now Save Transit Riders Up to $480 Annually; Tax-free Monthly Benefit Cap Increases From $65 to $100.

Business/News Editors

OAKLAND, Calif.--(BUSINESS WIRE)--Dec. 18, 2001

Commuter Check Services Corp., which provides the Commuter Check transit benefit program serving the Bay Area, today announced that due to changes in federal law taking effect Jan. 1, 2002, commuters will be able to save up to $480 annually by participating in the Commuter Check program. This change also enables enrolled employers to increase the savings they enjoy from the Commuter Check program through a reduction in payroll-related expenses.

The change affects all commuters by greatly increasing the benefit that Commuter Check offers, and will provide employers with an even higher incentive to enroll in the program. Approximately 80,000 commuters who already participate in the Commuter Check program at the more than 3,000 Bay Area employers that have enrolled since 1991 will immediately be affected by this change in federal tax law on Jan. 1, 2002.

Beginning Jan. 1, the maximum individual benefit for tax-free transit increases from $65 to $100 per month. Commuter Check is considered a "Qualified Transportation Fringe Benefit" governed by IRS Section 132(f). The law currently allows employers to give employees up to $780 per year in Commuter Checks as a pre-tax payroll deduction or a free, tax-free employee benefit. The maximum benefit increase to $100 allows employers to give employees up to $1,200 per year as a tax-free benefit and increases their annual per employee savings to approximately $120.

"After informing our employees about the new cap increase, people in the office were very excited, frankly. We think it's wonderful and only wished that the cap was raised sooner," said Ruth Soderback of Trinity Capital Corp. in San Francisco. "Commuter Checks now offer an even larger savings to our employees, and they're not paying taxes on it. The news is especially exciting for those who commute in from the East Bay and the Peninsula, because it means a huge savings for them. Commuter Check allows us to help reduce emissions and assists in saving our environment."

Commuter Checks are vouchers redeemed for mass transit fares, which are sold to employers in many U.S. cities and offered to employees either as a supplemental employee benefit or as a substitute for salary. Commuter Check vouchers are accepted by 29 transit operators throughout the Bay Area and adjacent communities, as well as vanpools.

"Commuter Check has caused a steady increase in the share of BART riders receiving employer discounts, and has helped us add and retain riders," said Mike Healey, BART's public affairs manager.

Commuter Checks can be distributed by employers in any one or a combination of three ways: 1) provided as a pre-tax payroll deduction; 2) provided as a cost-effective means to offer a bonus or a supplemental employee benefit; or 3) by "share the fare," where a portion is paid by the employer and a portion is paid by the employee.

"Commuter Check was created to help employers and their employees take full advantage of transit benefits. Our company is dedicated to providing cost-effective services that promote the use of public transit, save commuters and their employers money and help protect the environment," said Richard Oram, president and CEO of Commuter Check Services Corp. "The transit benefit cap increase gives us the opportunity to save commuters and their employers even more money through Commuter Check than before."

About Commuter Check

Commuter Check Services Corp., based in Englewood, N.J., is committed to making employer-provided transit fare subsidies a widespread employee benefit by providing cost-effective services, working in close partnership with local public agencies, and providing a high level of customer service to the employers who purchase Commuter Checks. Commuter Checks are vouchers redeemed for mass transit fares, which are sold to employers in many U.S. cities and offered to employees as either a supplemental bonus, employee benefit or a substitute for salary. Commuter Check was formed in 1990 to operate transit fare discount programs in coordination with local public transit operators, metropolitan planning agencies and State transportation departments. In addition to the Bay Area, Commuter Check also serves Philadelphia, Boston, Minneapolis, Denver and other metropolitan areas across the United States. For more information about Commuter Check, call 800/559-7909 or visit the Web site at www.commutercheck.com.