Tier Announces Sale of Government Business Process Outsourcing Business Unit

  
    
  
  
    
      As previously announced, Tier Technologies, Inc. (Nasdaq:TIER) is in the 
      process of the divestment of a number of business units and operations. 
      On June 30, 2008, Tier completed the sale of its Government Business 
      Process Outsourcing business unit. In addition, Tier recently completed 
      the sale of its State Systems Integration business unit, Health and 
      Human Services business unit, and Virginia Call Center and Independent 
      Validation and Verification operations.
    
    
      Tier has two additional business units currently under review by 
      potential acquirers. With closure on these last transactions, Tier will 
      have completed its divestiture plan as part of its strategy to focus on 
      electronic payment processing going forward.
    
    
      About Tier
    
    
      Tier Technologies, Inc. primarily provides federal, state and local 
      government and other public sector clients primarily with electronic 
      payment processing and other transaction processing services. Tier 
      Technologies is headquartered in Reston, Virginia. Its electronic 
      payment processing clients include over 3,000 federal, state, and local 
      governments, educational institutions, utilities and commercial clients 
      throughout the U.S. Through its subsidiary, Official Payments Corp., 
      Tier delivers payment processing solutions for a wide range of markets. 
      For more information, see www.tier.com 
      and www.officialpayments.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 Private 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: the 
      impact of governmental investigations; 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; 
      the timing and completion of the divestment of the Company’s 
      non-core assets; 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 fiscal year ended September 30, 2007 filed 
      with the SEC.