Tier Appoints T. Jack Williams as New Senior Vice President of Strategic Programs; Payment Card Visionary Tapped to Leverage Tie

Tier Technologies, Inc. (Nasdaq: TIER), a leading
provider of transaction processing and packaged software and systems
integration solutions for public sector clients, today announced the
appointment of T. Jack Williams to Senior Vice President of Strategic
Programs. In this newly created position, Williams will report to
James R. Weaver, Chairman and Chief Executive Officer, and will be
responsible for identifying and executing on new ways to leverage
Tier's core transaction processing assets.
   Mr. Williams brings over 20 years of payment processing industry
experience to Tier, and an exemplary track record of identifying and
capitalizing on new market opportunities. Mr. Williams is credited
with the creation and implementation of the first giftcard program
while at Blockbuster Enterprises, for which he earned Credit Card
Management's 1999 Debit Executive of the Year award. He was also
instrumental in the first live smart card transaction, Visa's POS
Check, and other innovative payment concepts.
   Mr. Williams was most recently Senior Vice President, Product
Management of National Processing Inc. (NPC), a leading publicly
traded electronic payment processor that was recently acquired by Bank
of America, as well as other senior management positions within NPC.
Prior to NPC, Mr. Williams was Senior Vice President, Marketing for
Stored Value Systems, where he created and implemented numerous
giftcards for companies such as Kroger, K-Mart and Exxon-Mobil. During
his tenure with Blockbuster, Mr. Williams was also responsible for the
launch and administration of the Blockbuster Visa Card. He has
received numerous industry accolades, and is a multi-year appointee to
the Federal Reserve's Payment Card Industry Advisors Committee.
   "This appointment underscores our commitment to maximizing Tier's
current transaction processing assets, and we're honored to have
someone of Jack's stature onboard to lead the initiative," said
Weaver. "Jack has repeatedly demonstrated his ability to spot and
develop new high growth opportunities, build strong teams and achieve
excellent operational results. Jack will play a critical role in
Tier's future strategic direction."
   "I'm thrilled to be joining an innovative payment processing
industry leader at such a key time in its growth path," said Mr.
Williams. "I look forward to using my extensive industry experience to
assist in delivering new products to Tier's large customer base, as
well as in expanding into untapped markets. I am excited to become
part of the Tier team, and I am enthusiastic about Tier's prospects."

   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 the
potential loss of funding by clients, including due to government
budget shortfalls or revisions to mandated statutes; failure to
achieve anticipated gross margin levels with respect to individual
projects, including due to unanticipated costs incurred in fixed-price
or transaction-based projects; 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 achieve cost savings from its restructuring
activities; 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.