Alliance Announces New Chairman Appointment and Management Appointment; Update on Potential Transactions

Alliance Semiconductor Corporation (Nasdaq:ALSC) (the"Company") today announced that the Board of Directors of the Companyappointed Bryant R. Riley as an unsalaried Chairman of the Board,effective today, following the resignation of N. Damodar Reddy asChairman of the Board. Mr. Reddy, whose resignation was tendered onMarch 7, 2006 and accepted by the Board on March 8, 2006, continues toserve as a member of the Board of Directors.

In addition, the Company announced that on March 2, 2006, theBoard appointed Melvin L. Keating as the President and Chief ExecutiveOfficer of the Company, effective immediately. Prior to thisappointment, Mr. Keating had been serving as Interim President andChief Executive Officer of the Company since December 1, 2005. Inaddition, Mr. Keating served as Interim Chief Financial Officer of theCompany from December 1, 2005 until January 13, 2006.

In addition, the Company announced that on March 8, 2006, theCompany adopted March 31 as its new fiscal year end.

Update on Potential Transactions

On March 3, 2006, the Company announced that it had made progresswith respect to several separate potential asset sales involving itsoperating business units, including receiving a number of indicationsof interest from third parties and becoming party to one non-bindingletter of intent. Since that time, the Company has become party to anadditional non-binding letter of intent relating to the potential saleof an additional business unit.

Forward-Looking Statements

Except for historical information contained in this release,statements in this release may constitute forward-looking statementsregarding our assumptions, projections, expectations, targets,intentions or beliefs about future events. Words or phrases such as"anticipates," "believes," "estimates," "expects," "intends," "plans,""predicts," "projects," "targets," "will likely result," "willcontinue," "may," "becoming," "receiving" or similar expressionsidentify forward-looking statements. Forward-looking statementsinvolve risks and uncertainties, which could cause actual results oroutcomes to differ materially from those expressed. We caution thatwhile we make such statements in good faith and we believe suchstatements are based on reasonable assumptions, including withoutlimitation, management's examination of historical operating trends,data contained in records, and other data available from thirdparties, we cannot assure you that our projections will be achieved.In addition to other factors and matters discussed from time to timein our filings with the U.S. Securities and Exchange Commission, orthe SEC, some important factors that could cause actual results oroutcomes for the Company or our subsidiaries to differ materially fromthose discussed in forward-looking statements include: changes ingeneral economic conditions in the markets in which we may compete andfluctuations in demand in the semiconductor and communicationsindustries; our ability to sustain historical margins; increasedcompetition; increased costs; increases in our cost of borrowings orunavailability of debt or equity capital on terms consideredreasonable by management if the need for financing arises; litigation;and adverse state, federal or foreign legislation or regulation oradverse determinations by regulators. Any forward-looking statementspeaks only as of the date on which such statement is made, and,except as required by law, we undertake no obligation to update anyforward-looking statement to reflect events or circumstances after thedate on which such statement is made or to reflect the occurrence ofunanticipated events. New factors emerge from time to time, and it isnot possible for management to predict all such factors.