TIER Tier Reit, Inc.

Strategically Significant Expansion Opens OPC's Second Largest Market Opportunity; More States Offering Electronic Business Tax Payment Options through OPC Official Payments Corp.(R) (OPC), a wholly owned subsidiary of Tier Technologies, Inc. (Nasdaq: TIER), today announced a major expansion of its services in the state of California to process electronic employer payroll tax deposits, which includes unemployment insurance, disability insurance, and withholding taxes. This service is an alternate method of payment to the paper DE88, Payroll Tax Deposit coupon, made to the California Employment Development Department (EDD). Since 1999, Official Payments has processed a variety of business and individual electronic tax payments for the California Board of Equalization, Department of Transportation, Franchise Tax Board and the EDD. With this expansion, currently expected to begin early in calendar year 2006, California businesses will have the fast, convenient and secure new way of making payroll tax deposit (DE88) payments to the EDD with a VISA(R), American Express(R), Discover(R) or MasterCard(R) by visiting www.officialpayments.com, or by calling 1-800-2PAY-TAX(SM). The EDD works with over one million California employers to collect payroll taxes and employment records for more than 17 million California workers. The EDD also offers a wide variety of services to millions of Californians under the State's Job Service, Unemployment Insurance, Disability Insurance, Workforce Investment, and Labor Market Information programs. "We're very pleased to expand our relationship with the EDD to provide our secure and reliable electronic payment processing services for the benefit of California employers," said James R. Weaver, Tier's Chief Executive Officer. "Official Payments has been given the opportunity to support approximately $27 billion in employer tax payments as reported in EDD's last fiscal year. This is clearly a strategically significant expansion. The potential market size makes EDD OPC's second largest market opportunity in relation to our federal tax payment processing work." Weaver continued, "This expansion is indicative of a growing trend of state agencies to make electronic payment options available to businesses. Official Payments currently processes electronic business tax and fee payments made with debit and credit cards for 19 states and the District of Columbia. Our expectation is that this positive trend will persist as U.S. businesses and consumer payment preferences continue the shift to paperless options." Official Payments provides electronic payment services for the Internal Revenue Service, 25 states, the District of Columbia and more than 1,800 local government clients nationwide. Official Payments' principal business is processing electronic payments on behalf of government entities via its Web site, www.officialpayments.com, and its toll-free telephone number, 1-800-2PAY-TAX(SM). Official Payments charges citizens a convenience fee for the service. Citizens using credit or debit cards with bonus rewards programs may, depending on their card's program, earn reward points, airline frequent flyer miles or cash back for paying their taxes and fees. 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. The Company 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 failure by end consumers to make payments with credit or debit cards or electronic checks through Official Payments Corporation; impact of lower transaction volumes than anticipated; 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 June 30, 2005, as well as other filings with the SEC.