Alliance Semiconductor Completes Sale of Systems Solutions Business to Tundra Semiconductor.

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

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

As previously announced on May 1, 2006, Alliance has also entered into a definitive agreement for the sale of its Analog and Mixed Signal Business Unit to a group of investors led by Shah Capital Partners, LP and continues to explore the possible disposition of its remaining memory chip operations.

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