Louisiana Signs Contract with Official Payments Corp. to Provide Electronic Tax Payment Processing Services; Represents 26th Off

Official Payments Corp.(R), a wholly owned subsidiary of
Tier Technologies, Inc. (Nasdaq: TIER), today announced that the
Louisiana Department of Revenue has awarded it a contract to provide
electronic tax payment processing services to the citizens and
businesses of Louisiana.
   This new contract will enable Louisiana taxpayers to experience
the convenience of making secure electronic payments for their
individual income taxes and certain business taxes using an American
Express(R), Discover(R), MasterCard(R) or VISA(R) debit or credit card
via the Web at www.officialpayments.com, or through the phone by
calling 1-800-2PAY-TAX(SM).
   Louisiana, the 22nd largest state in terms of population,
collected approximately $2.2 billion in individual income taxes, and
approximately $2.6 billion in sales, corporation income and franchise
business taxes, in its last fiscal year.
   "Consistent with our goal of being more responsive to taxpayers by
finding ways to make the tax compliance process simple, we are pleased
to offer Louisiana taxpayers another convenient, secure way to make
electronic tax payments," said Cynthia Bridges, Secretary of Revenue,
Louisiana Department of Revenue.
   "We are delighted that Louisiana has selected Official Payments to
provide our flexible electronic tax payment services to Louisiana
taxpayers," said James R. Weaver, Tier's Chairman and Chief Executive
Officer. "Louisiana is a recognized leader in electronic government
initiatives, and we believe that by offering this service, the state
is again demonstrating its willingness to embrace technology to
provide the best possible customer service to its constituents."
   Official Payments provides electronic payment services for the
Internal Revenue Service, 26 states, the District of Columbia and
2,000 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, including statements regarding expectations for future
revenues, earnings, and expenses, are forward-looking statements that
are made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. Tier 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.