Tier Names David Fountain as New Chief Financial Officer

Tier Technologies, Inc. (Nasdaq:TIER), a leading
provider of transaction processing and packaged software and systems
integration solutions for public sector clients, today announced that
it has appointed David E. Fountain as Senior Vice President and Chief
Financial Officer beginning May 9, 2005. Mr. Fountain brings extensive
electronic payment processing experience to Tier, most recently
serving as Chief Financial Officer of National Processing, Inc., a
leading publicly traded electronic payment processor that was recently
acquired by Bank of America.
   "It gives me great pleasure to welcome David to Tier's management
team," said James R. Weaver, Tier's Chairman and Chief Executive
Officer. "David is a seasoned finance executive with a proven record
of success in Tier's core transaction processing services market. Tier
is very fortunate to have David join at this important time in the
Company's history, and we are confident that his deep experience in
card payment operations, and in corporate finance will contribute to
Tier's continuing success."
   While at National Processing, Mr. Fountain served as the Chief
Financial Officer and Treasurer, responsible for managing financial
and accounting operations, investor relations, developing and managing
the annual expense budget and managing facilities and purchasing
operations. Prior to being named CFO, Mr. Fountain served in a number
of other positions at National Processing, Inc., including Senior Vice
President--Chief Accounting Officer, Vice President--Finance and Vice
President--Settlement Accounting. He has also served in financial
management positions with Total System Services, Inc., MBNA
Corporation, and Associates First Capital Corporation. He is a
certified public accountant, received an undergraduate degree in
finance and economics from Stephen F. Austin University and received
his MBA from the University of Dallas.
   "I am very excited to join the Tier team," Mr. Fountain said.
"Tier's financial strength, combined with its leadership position in
growing transaction processing markets, position Tier extremely well
for continued growth and future success."

   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. Tier is included in the Russell 3000(R) Index. 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.
   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 risk
of delay of negotiating and signing the contract as result of a
protest by an unsuccessful bidder, 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 December 31, 2004, as well as other filings with the
SEC.