Each of thesestatements is made as of the date hereof based only on current information andexpectations that are inherently subject to change and involve a number of risksand uncertainties. Actual events or results may differ materially from thoseprojected in any of such statements due to various factors, including, but notlimited to: the impact of governmental investigations; the potential loss offunding by clients, including due to government budget shortfalls or revisionsto mandated statutes; the timing, initiation, completion, renewal, extension orearly termination of client projects; the Company`s ability to realize revenuesfrom its business development opportunities; the timing and completion of thedivestment of the Company`s non-core assets; and unanticipated claims as aresult of project performance, including due to the failure of softwareproviders or subcontractors to satisfactorily complete engagements. Tier has no short-term or long-term debt.About Tier Technologies, Inc.Tier Technologies, Inc. provides federal, state and local government and otherpublic sector clients with electronic payments solutions and other transactionprocessing services.

Headquartered in Reston, Virginia, Tier Technologies servesover 3,300 electronic payments clients throughout the United States, includingfederal, state, and local governments, educational institutions, utilities andcommercial clients. Through its subsidiary, Official Payments Corp., Tierdelivers payments solutions for a wide range of markets. Tier`s Discontinued Operations reported revenues of $0.3 million for thequarter, compared to $14.1 million last year. Net loss from DiscontinuedOperations was $2.4 million for the quarter.

LiquidityAs of March 31, 2009, Tier had $71.1 million in cash and marketable securities,and $7.4 million in restricted investments. Tier currently holds $31.2 millionin auction rate securities as long-term investments. These investments arerevenue bonds and asset-backed notes issued by state agencies. The investmentsare AAA-rated and collateralized with student loans and guaranteed under theFederal Family Education Loan Program. We completed the sale of our remaining held-for-sale business unit in February,2009. Our general, administrative, selling and marketing expenses, whichsupport our Continuing Operations, were $7.5 million, down $0.6 million over thesame period last year.