Alliance Semiconductor Completes Sale of Analog and Mixed Signal Business Unit

Alliance Semiconductor Corporation (Nasdaq:ALSC)("Alliance") today announced that it had completed the sale of itsAnalog and Mixed Signal business unit to PulseCore Holdings (Cayman)Inc. and affiliates, entities funded by a group of investors led byShah Capital Partners, LP. The aggregate purchase price for thetransaction is $9.25 million, including the subsequent transfer ofcertain assets located in Bangalore, India, pending the clearance ofsuch assets from customs bonding.

Mel Keating, President and Chief Executive Officer of Alliance,commented, "This sale represents further significant progress as wecontinue to execute on our plan to exit the manufacture and sale ofsemiconductor products, reduce headcount and expenses and return valueto our stockholders."

Forward-Looking Statements

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