ACS Awarded Ohio Child Support Contract; Tier to Enter Into Subcontract With ACS Valued at $59 Million

Business Wire, Sept 5, 2002

Business Editors

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Sept. 5, 2002

Tier Technologies, Inc. (Nasdaq: TIER) announced today that its teaming partner, ACS, has been selected by the Ohio Department of Administrative Services and the Department of Job and Family Services to operate the Ohio child support central collection and disbursement unit.

The contract is valued at $234 million including option renewal years. The contract runs through the remainder of the State's fiscal year ending June 30, 2003, with the option to renew every two years through June 30, 2009.

Under the terms of its contract, ACS is the prime contractor and will provide receipt processing services and overall project management. Tier will be the subcontractor responsible for providing a range of services including training and start-up services, the processing of outgoing payments, direct deposit enrollment, exception processing, and significant reimbursable expenses such as postage. The total expected subcontract value to Tier is approximately $59 million including option renewal years and the subcontract is expected to be signed with ACS within the next two weeks. Fifth Third Bank of Cincinnati is the banking partner providing depository and other banking services.

"We are pleased that, in teaming with ACS, we can bring our mutual best practices and child support payment processing operating expertise to the State of Ohio," said James L. Bildner, Tier's Chairman and Chief Executive Officer. "ACS is a highly respected provider of services and I am delighted to be able to team with them on this important contract."

"We are pleased to join with Tier, as well as the State of Ohio, to use our experience in this area to deliver greater efficiencies and better value to the Ohio program," said John Brophy, Group President of ACS State and Local Solutions. "We are ready to work with our partners and the State to deliver the best services to Ohio and its children and families."

ACS and its subcontractors expect to begin work to transition the service in September of 2002.

ABOUT TIER

Tier is a vertically-focused consulting firm that provides business and information technology consulting, systems design and integration, transaction processing, business process outsourcing and business process reengineering for its clients primarily in the state and local government, healthcare, insurance and utilities markets. Tier brings specific industry knowledge, proven delivery capability and proprietary applications to its client relationships. The combination of domain expertise and technical capability allow Tier to provide solutions that link increased operating efficiencies with systems and technology improvements. Tier serves Fortune 1000 companies and government entities and is included in the Russell 3000(R) Index, issued by Frank Russell Company.

Statements made in this press release, including those relating to the timing and completion of the ACS subcontract, the award and renewal of contracts and estimated contract values are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995.

Such forward-looking statements involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could affect actual results include risks associated with the failure to obtain executed contracts or contract renewals or extensions; failure to achieve anticipated gross margin levels with respect to individual contracts; revisions to mandated statutes including changes to the timing of required compliance; the possible termination of projects by clients; the loss of funding by a client; unanticipated claims as a result of project performance; variations in the timing, initiation or completion of client assignments; unanticipated costs incurred in fixed-price or transaction-based projects and warranty periods; the Company's ability to recruit, train and retain consultants and key personnel; the Company's ability to effectively manage growth and acquisitions; risks associated with rapid technological advances and other risk factors listed from time to time in the Company's filings and reports with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K for the year ended September 30, 2001 and most recent Quarterly Report on Form 10-Q. The forward-looking statements contained in this press release are made as of the date hereof, and the Company does not assume any obligation to update these statements or the reasons why actual results could differ materially from those projected in these statements.