Tier Announces Addition of T. Michael Scott to Board of Directors

WALNUT CREEK, Calif.--Feb. 1, 20042, 2004--Tier Technologies, Inc. , a leading provider of financial transaction processing and packaged software and systems integration solutions for government clients, today announced the addition of T. Michael Scott to its Board of Directors. Mr. Scott is Vice Chairman and President of Cambridge Holdings, Inc., a developer, owner and manager of office buildings. Mr. Scott was elected to Tier's board by a majority of shareholders at the Company's Annual Meeting of Shareholders held on January 28, 2004.

Mr. Scott's comprehensive business experience includes real estate asset management, leasing, financing, and asset disposition. Mr. Scott is an honor graduate of Cornell University where he obtained a degree with distinction in Operations Research Engineering. He earned his Masters degree at the Harvard Graduate School of Business Administration. He serves on the Board of Trustees of American Community Properties Trust, a publicly traded partnership, listed on the American and Pacific Stock Exchanges. Additionally, he has been selected as a member of Who's Who Among Outstanding Business Executives.

"Mike Scott is an outstanding business leader with a great breadth of experience, and I am delighted that he has joined our board," said James R. Weaver, Tier's President and Chief Executive Officer. "Tier's board is committed to maintaining the highest standards of corporate governance, and Mike's appointment is in keeping with this commitment. His standing as an independent director, as well as his strong business background, make him an ideal addition to the board. We're excited to welcome Mike to the Tier team."

About Tier

Tier is a provider of transaction payment processing and packaged software and systems integration services primarily for federal, state and local government 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 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, 2003 as well as other filings with the SEC.