Official Payments Corp. and Datatel Sign Partnership Agreement; Colleges and Universities Will Have Expanded Payment Processing

Official Payments Corp.(R), a wholly-owned subsidiary of
Tier Technologies, Inc. (Nasdaq:TIER), and Datatel(R), Inc., a leading
provider of technology solutions and professional services for higher
education, announced today that they have entered into a partnership
agreement to provide payment processing services as an integrated part
of the Datatel Colleague(R) enterprise resource planning (ERP) system.
   This agreement provides Datatel client institutions with an
additional choice when selecting a payment processing partner.
Official Payments Corp. will provide Datatel clients with e-commerce
capabilities that include credit card payments, pin-less debit card
payments, electronic check payments, and the ability to charge
convenience fees. These payments can be made via the Web or
face-to-face using Datatel Colleague.
   This agreement extends the existing Integrated Voice Response
(IVR) relationship with EPOS. EPOS Corp., a sister company of Official
Payments and a Tier subsidiary, has had an agreement with Datatel
since 1991 to provide IVR systems to Datatel clients.
   "We are pleased to offer our clients expanded payment processing
services so that they can meet the evolving e-commerce demands of the
higher education industry," said H. Russell Griffith, Datatel Chairman
of the Board, president, and CEO.
   "We look forward to expanding our long-standing, successful
relationship with Datatel," said James R. Weaver, Tier's Chairman and
CEO. "This agreement will enable Datatel's customers to seamlessly
experience the ease and convenience of making secure electronic
payments through trusted Tier systems without leaving Datatel
applications."

   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.

   About Datatel, Inc.

   Datatel is a leading provider of fully integrated enterprise
information management solutions for higher education. Headquartered
in Fairfax, VA, the company has over 650 client institutions
throughout North America. For more than 25 years, Datatel has
exclusively focused on meeting the needs of colleges and universities,
helping institutions operate more efficiently so they may better serve
their constituents. For more information, please visit
www.datatel.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 March 31, 2005, as well as other filings with the SEC.