Alliance Semiconductor Completes Sale of Systems Solutions Business to Tundra Semiconductor

Alliance Semiconductor Corporation(Nasdaq:ALSC)("Alliance") today announced that it had completed thesale of its Systems Solutions business unit to Tundra SemiconductorCorporation (TSX:TUN)("Tundra") for $5.8 million in cash. On April 19,2006, Alliance announced that it had entered into a definitiveagreement with Tundra for the sale of substantially all of the assetsof the Systems Solutions business unit.

Mel Keating, President and Chief Executive Officer of Alliance,commented, "We are very pleased with the fit presented by thetransaction, that fact that over fifty of our employees have found ahome with Tundra and the value that the transaction delivers for theAlliance stockholders."

As previously announced on May 1, 2006, Alliance has also enteredinto a definitive agreement for the sale of its Analog and MixedSignal Business Unit to a group of investors led by Shah CapitalPartners, LP and continues to explore the possible disposition of itsremaining memory chip operations.

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