Tier Receives Recommendation of Award of Financial Institution Data Match Multi-State Alliance Contracts

Tier Technologies, Inc. (Nasdaq:TIER), a leading
provider of transaction processing and packaged software and systems
integration solutions for public sector clients, announced today that
it has received a recommendation of award to continue providing
Financial Institution Data Match (FIDM) services for the Multi-State
Alliance for five years, following a competitive contract re-bid
process.
   The Multi-State Alliance is a coalition of approximately 15 states
formed to cooperatively develop, issue, and oversee outsourced FIDM
programs. Tier has been the sole provider of FIDM services to the
Multi-State Alliance since its inception in 2000, locating over $6.6
billion in financial assets for the Alliance states in that time.
   Tier may now enter into contract negotiations with the Alliance
States. In the event all Alliance States decide to enter into
contracts with Tier, the total dollar amount of the award for all
Alliance States combined would be approximately $13.4 million over the
five year contract period.
   Upon successful contract negotiations with the Alliance States,
Tier will continue to operate state FIDM programs matching delinquent
child support obligors against account records with financial
institutions conducting business in the Alliance states.
   Federal law requires all states to develop and operate a FIDM
program under which all financial institutions within the state will
conduct a quarterly electronic match to identify and locate the
financial assets of non-custodial parent account holders who are
delinquent on child support payments. Once a match is identified, each
state has the opportunity to seize financial assets of the delinquent
obligor for collection of past due child support payments.
   "We are very pleased that Tier has again been recommended to
provide these important child support services to the Alliance," said
James R. Weaver, Tier's Chairman and Chief Executive Officer. "Tier
has a vested interest in the overall success of the Multi-State FIDM
Alliance and the positive impact it has on children and families in
each state. We plan to leverage Tier's experience in all areas of
child support, and specifically our in-depth FIDM experience and
proprietary FundFinder(R) and FundCollector solutions, to ensure the
continued success of the Multi-State Alliance FIDM program."
   Tier's proprietary FundFinder and FundCollector solutions are
built to help states increase child support collections, facilitate
interstate case processing, and simplify the matching process, among
other child support-related services.
   As the leading provider of FIDM services, Tier has located
financial assets of more than $10.1 billion since 2000.

   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. 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, 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 March 31, 2005, as well as other filings with the SEC.