Tier Implementing IMATS Application for City of Richmond Sheriff's Office.

Business Editors/High-Tech Writers

WALNUT CREEK, Calif.--(BUSINESS WIRE)--July 8, 2003

Tier Technologies, Inc. (Nasdaq: TIER) announced today that it is implementing its Inmate Management and Tracking System(SM) (IMATS(SM)) for the Sheriff's Office of the City of Richmond, Virginia. The Iris Recognition Positive Identification System (SecurePass(SM)) is a module of the IMATS application that is designed to create increased efficiencies and safety for the Sheriff's Office. The contract is worth approximately $500,000.

SecurePass, which has been installed as a pilot program in Boston's Logan International Airport and is utilized in the daily operations of multiple correctional facilities, uses iris recognition biometrics to capture a high-resolution digital photograph of an individual's iris for identification purposes. The technology is non-intrusive - the individual does not need to touch anything to use the system. According to a study conducted by Britain's National Physical Laboratory (NPL), iris recognition technology decisively outperformed five other biometrics systems in accurately matching individuals to an existing database.

Tier's IMATS application provides tools intended to ensure information is complete, accurate, easily accessible and systematically managed so that data can be disseminated to additional Virginia agencies. Tier is customizing the IMATS application to interface directly with the Commonwealth's Local Inmate Data System (LIDS), to allow the Sheriff's Office to transfer critical data with increased accuracy as well as efficiency.

"As the largest jail in the Commonwealth of Virginia we are pleased to be working with Tier Technologies. The installation of the IMATS application and the SecurePass module will help the Sheriff's Office create a safer, more efficient environment," stated Sheriff Michelle B. Mitchell.

"We believe our IMATS and SecurePass products will increase efficiencies in processing inmates at the jail, which in turn should create a safer environment not only in the corrections facility but for the general public in the Richmond area," stated James R. Weaver, President of Tier. "In addition to the City of Richmond and Roanoke County, Virginia, Tier has installed the IMATS solution for multiple other government entities in the U.S."

ABOUT TIER

Tier is a vertically-focused consulting firm that provides business and information technology consulting, systems design and integration, transaction processing, business process outsourcing and business process reengineering for its clients primarily in the state and local government, healthcare, insurance and utilities markets. Tier brings specific industry knowledge, proven delivery capability and proprietary applications to its client relationships. The combination of domain expertise and technical capability allow Tier to provide solutions that link increased operating efficiencies with systems and technology improvements. Tier serves Fortune 1000 companies and government entities and is included in the Russell 3000(R) Index, issued by Frank Russell Company and was ranked by Forbes Magazine as one of the "200 Best Small Companies" in America for 2002.

This press release contains forward-looking statements, including statements regarding services to be provided under the contract award described that have been made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. This press release also contains statements regarding product design objectives and study results that should not be read as guarantees or predictions of future performance of the application described in the press release. The press release also contains an estimate of the value of the contract award described. Each of these statements is based on current information and expectations and is subject to change and, as a result, involves risks and uncertainties. Actual results and events may differ materially from those expressed or implied by any of such statements. Factors that could affect actual results and events include risks associated with the impact of budget shortfalls in the federal, state and local government sectors; the loss of funding or the possible termination of a project by a client; the ability to obtain contract renewals or extensions; reliance on technology providers and subcontractors to complete client engagements; unanticipated claims as a result of project performance; variations in the timing, initiation or completion of client assignments; unanticipated costs incurred in fixed-price or transaction-based projects and warranty periods; rapid technological advances; the protection of intellectual property; the Company's ability to recruit, train and retain consultants and key personnel; the Company's ability to effectively manage growth and acquisitions; and other risk factors listed from time to time in the Company's filings and reports with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K for the year ended September 30, 2002 and most recent Quarterly Report on Form 10-Q.