Tier Wins $2.2 Million Competitive Rebid to Operate Minnesota Child Support Payment Processing Center

Business Wire, April 24, 2003

Business Editors

WALNUT CREEK, Calif.--(BUSINESS WIRE)--April 24, 2003

Tier Technologies, Inc. (Nasdaq:TIER) announced today that the Company has again been selected by the Minnesota Department of Human Services to operate the Minnesota State Disbursement Unit.

The unit is responsible for processing most child support payments in the State of Minnesota. Tier won the contract through a competitive procurement process. The contract, to run two years beginning June 1, 2003, is a transaction-based contract valued at $2.2 million, based on anticipated transaction volume, with the option for three additional one-year extensions.

Tier has been providing child support payment processing services to Minnesota since 1998.

The contract award authorizes Tier to continue to provide child support payment processing at its centralized collection site for the state's Child Support Division. Tier will staff the payment processing center and will be responsible for incoming mail processing, payment processing and exception processing.

During Tier's fiscal year ended September 30, 2002, the Company processed more than $479 million in child support payments for the Child Support Division.

"We have been providing payment processing services for the state of Minnesota, both as Tier and through a predecessor acquisition, since 1998," stated James R. Weaver, Tier's President and Chief Operating Officer. "It's extremely gratifying when an existing client affirms the success of our partnership by choosing to continue to work with us under a new contract."

In addition to Minnesota, Tier Technologies provides similar child support payment processing for the states of Alabama, Idaho, Kansas, Kentucky, Maryland, New Jersey, and Tennessee. Tier has similar agreements to work with ACS to provide child support related services to the states of Ohio, New York and Illinois.

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 and has been ranked by Forbes Magazine as one of the "200 Best Small Companies" in America for 2002.

Statements made in this press release, such as statements concerning awarded projects and their estimated contract value, 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 and events may differ materially from those expressed or implied thereby. Factors that could affect actual results include risks associated with the failure to obtain contract renewals or extensions; risks associated with the impact of budget shortfalls in federal or state government sectors; impact on revenue and profitability that would result by lower transaction volumes that anticipated; 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, 2002, 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.

Tier...Expect A Lot(sm)