Alliance Receives Nasdaq Delisting Notice; Alliance Announces Investor Teleconference for August 18, 2006

On August 11, 2006, Alliance Semiconductor Corporation(Nasdaq:ALSC) (the "Company") received a Nasdaq Stock Market, Inc.("Nasdaq") additional Staff determination letter (the "DeterminationLetter") indicating that the Nasdaq Staff believes the Company is nolonger engaged in active business operations and is therefore a"public shell," and that as a result the Company's securities aresubject to delisting from The Nasdaq Stock Market pursuant toMarketplace Rule 4300. Marketplace Rule 4300 provides Nasdaq withdiscretionary authority to apply more stringent criteria for continuedlisting and terminate the inclusion of particular securities based onany event that occurs that makes inclusion of the securities in Nasdaqinadvisable or unwarranted, even though the securities meet allenumerated criteria for continued inclusion in Nasdaq, or becauseNasdaq deems it necessary to protect investors and the publicinterest.

The Company intends to appeal the Staff's determination to delistthe Company's securities to a Nasdaq Listing Qualifications Panel (the"Panel") at a hearing calendared for August 17, 2006. The Company'scommon stock will continue to trade on the Nasdaq Stock Market pendingthe Panel's decision. There can be no assurance that the Panel willgrant the Company's request for continued listing.

Also, on August 11, 2006, the Company received confirmation fromNasdaq that the Company had regained compliance with Marketplace Rule4310(c)(14), after filing its Annual Report on Form 10-K for thefiscal year ended March 31, 2006 with the Securities and ExchangeCommission on August 9, 2006. In the Form 10-K, the Company disclosedthat, subsequent to the fiscal year ended March 31, 2006, the Companyhad sold substantially all of the assets and certain of theliabilities of the Company's Systems Solutions business unit, Analogand Mixed Signal business unit and Memory business unit.

Separately, on August 15, 2006, the Company announced that it willhold a conference call and webcast to discuss significant recentevents affecting the Company, including receipt of the notice fromNasdaq described above, and to discuss the direction of the Company.The conference call will be held on Friday, August 18, 2006 at 8:30a.m. Eastern Time. To participate, please dial (800) 901-5213, and usepasscode 36708290. International participants should dial in at (617)786-2962 and use the same passscode.

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," "could" or similar expressions identifyforward-looking statements. Forward-looking statements involve risksand uncertainties, which could cause actual results or outcomes todiffer materially from those expressed. We caution that while we makesuch statements in good faith and we believe such statements are basedon reasonable assumptions, including without limitation, management'sexamination of historical operating trends, data contained in records,and other data available from third parties, we cannot assure you thatour projections will be achieved. In addition to other factors andmatters discussed from time to time in our filings with the U.S.Securities and Exchange Commission, or the SEC, some important factorsthat could cause actual results or outcomes for the Company or oursubsidiaries to differ materially from those discussed inforward-looking statements include: changes in general economicconditions in the markets in which we may compete and fluctuations indemand in the semiconductor and communications industries; our abilityto sustain historical margins; increased competition; increased costs;increases in our cost of borrowings or unavailability of additionaldebt or equity capital on terms considered reasonable by management;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.