We derive exact formulae for the partition function and the expectation values of Wilson/'t Hooft loops, thus directly checking their S-duality transformations. We focus on a special class of N=2 gauge theories on S^4 with fundamental matter. In particular we show that, for a specific choice of the masses, the matrix model integral defining the gauge theory partition function localizes around a finite set of critical points where it can be explicitly evaluated and written in terms of

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... hypergeometric functions. From the AGT perspective the gauge theory partition function, evaluated with this choice of masses, is viewed as a four point correlator involving the insertion of a degenerated field. The well known simplicity of the degenerated correlator reflects the fact that for these choices of masses only a very restrictive type of instanton configurations contributes to the gauge theory partition function.