City of Virginia Beach Authorizes Official Payments Corp. to Provide Electronic Payment Processing Services; City Residents Can

Official Payments Corp.(R), a wholly owned subsidiary of
Tier Technologies, Inc. (Nasdaq:TIER), today announced that it has
been authorized by the City of Virginia Beach to process electronic
credit and debit card payments for personal property tax, real estate
property tax, utilities and parking ticket obligations.
   City of Virginia Beach residents may now make any of these
payments online by visiting www.officialpayments.com, or
www.vbgov.com. City residents wishing to make payments via phone for
personal property tax, real estate property tax and parking ticket
obligations may dial 866-515-8162. City residents wishing to make
payments via phone for utilities bills may dial 800-874-3384.
   "We are pleased that the City of Virginia Beach selected Official
Payments to deliver these trusted, secure electronic payment
processing services to its residents," stated James R. Weaver,
Chairman and Chief Executive Officer of Tier. "Virginia Beach is one
of the fastest growing cities on the East Coast, and is the largest in
the Commonwealth of Virginia with nearly half a million residents. The
City collected approximately $447 million in these payment types last
year."
   "This office is charged with collecting revenues and tax receipts
due the City in the most efficient and effective manner, and we
believe that making these convenient electronic debit and credit card
payment options available to our residents will assist us in carrying
out this important responsibility," said John T. Atkinson, City
Treasurer. "Our residents have asked for this payment alternative, and
after carefully evaluating alternatives, we are pleased to partner
with Official Payments Corp. in meeting the needs of our residents by
providing these safe and reliable payment options."
   Official Payments provides electronic payment services for the
Internal Revenue Service, 25 states, the District of Columbia and more
than 1,800 local government clients nationwide. Official Payments'
principal business is processing electronic payments on behalf of
government entities via its Web site, www.officialpayments.com, and
its toll-free telephone number, 1-800-2PAY-TAX(SM).
   Official Payments charges citizens a convenience fee for the
service. Citizens using credit or debit cards with bonus rewards
programs may, depending on their card's program, earn reward points,
airline frequent flyer miles or cash back for paying their taxes and
fees.

   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. 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. The Company undertakes no obligation to update any such forward
looking statements.
   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
failure by end consumers to make payments with credit or debit cards
or electronic checks through Official Payments Corporation; impact of
lower transaction volumes than anticipated; 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 quarterly report on Form 10-Q for the
quarter ended June 30, 2005, as well as other filings with the SEC.