Tier Reit Inc. (NYSE:TIER)
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Strategically Significant Expansion Opens OPC's Second Largest Market
Opportunity; More States Offering Electronic Business Tax Payment
Options through OPC
Official Payments Corp.(R) (OPC), a wholly owned subsidiary of
Tier Technologies, Inc. (Nasdaq: TIER), today announced a major
expansion of its services in the state of California to process
electronic employer payroll tax deposits, which includes unemployment
insurance, disability insurance, and withholding taxes. This service
is an alternate method of payment to the paper DE88, Payroll Tax
Deposit coupon, made to the California Employment Development
Department (EDD).
Since 1999, Official Payments has processed a variety of business
and individual electronic tax payments for the California Board of
Equalization, Department of Transportation, Franchise Tax Board and
the EDD. With this expansion, currently expected to begin early in
calendar year 2006, California businesses will have the fast,
convenient and secure new way of making payroll tax deposit (DE88)
payments to the EDD with a VISA(R), American Express(R), Discover(R)
or MasterCard(R) by visiting www.officialpayments.com, or by calling
1-800-2PAY-TAX(SM).
The EDD works with over one million California employers to
collect payroll taxes and employment records for more than 17 million
California workers. The EDD also offers a wide variety of services to
millions of Californians under the State's Job Service, Unemployment
Insurance, Disability Insurance, Workforce Investment, and Labor
Market Information programs.
"We're very pleased to expand our relationship with the EDD to
provide our secure and reliable electronic payment processing services
for the benefit of California employers," said James R. Weaver, Tier's
Chief Executive Officer. "Official Payments has been given the
opportunity to support approximately $27 billion in employer tax
payments as reported in EDD's last fiscal year. This is clearly a
strategically significant expansion. The potential market size makes
EDD OPC's second largest market opportunity in relation to our federal
tax payment processing work."
Weaver continued, "This expansion is indicative of a growing trend
of state agencies to make electronic payment options available to
businesses. Official Payments currently processes electronic business
tax and fee payments made with debit and credit cards for 19 states
and the District of Columbia. Our expectation is that this positive
trend will persist as U.S. businesses and consumer payment preferences
continue the shift to paperless 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.