Tier Awarded Alabama Child Support Payment Center Contract

Business Wire, March 14, 2005

RESTON, Va. -- Tier Technologies, Inc. (Nasdaq:TIER), a leading provider of transaction processing and packaged software and systems integration solutions for public sector clients, today announced that it has been selected to receive a contract from the Alabama Department of Human Resources to operate the state's Child Support Payment Center.

The period of this contract is for three years, beginning August 1, 2005, and ending July 31, 2008, with an option to extend the contract for an additional two years.

"As we continue our work in child support enforcement, we look forward to a continued successful working experience with Tier Technologies," said Tom Bernier, Director, Child Support Enforcement, Alabama Department of Human Resources. "Together we will make a difference in the lives of children and families in Alabama."

Tier began operating the Alabama Child Support Payment Center in 2000, and has since processed more than $1.2 billion in child support payments owed to Alabama families. As part of the initial contract, Tier led the statewide centralization, implementation and operation of Alabama's Child Support Payment Center using the company's proprietary Kids1st(TM) remittance processing software.

"We are excited to be awarded this re-compete contract to continue as a partner with the state in its mission of making a positive impact on Alabama's children," said James R. Weaver, Tier's Chairman and Chief Executive Officer. "Tier is a nationally recognized expert in the field of child support payment processing, and we bring a comprehensive understanding of best practices. Tier will continue to leverage this experience for the benefit of the families of Alabama."

Tier operates and partners in operating child support payment centers in nine states, processing more than 31 million child support payments valued at over $3.8 billion annually.

About Tier

Tier is a leading provider of transaction processing and packaged software and systems integration services for public sector clients. We combine our understanding of enterprise-wide systems with domain knowledge enabling our clients to rapidly channel emerging technologies into their operations. We focus on sectors that we believe are driven by forces that make demand for our services less discretionary and are likely to provide us with recurring long-term revenue streams. Tier is included in the Russell 3000(R) Index. More information about the Company is available at www.Tier.com.

Statements made in this press release that are not historical facts are forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995.

Each of these statements is made as of the date hereof based only on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including but not limited to risk of delay of negotiating and signing the contract as result of a protest by an unsuccessful bidder, the potential loss of funding by clients, including due to government budget shortfalls or revisions to mandated statutes; the timing, initiation, completion, renewal, extension or early termination of client projects; the Company's ability to realize revenues from its business development opportunities; and unanticipated claims as a result of project performance, including due to the failure of software providers or subcontractors to satisfactorily complete engagements.

For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to the Company's annual report on Form 10-K for the year ended Sept. 30, 2004, our most recent Form 10-Q, as well as other filings with the SEC.