Alliance Semiconductor Increases Amount of Share Repurchase Authorization.

Business/Technology Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 8, 2000

Alliance Semiconductor Corporation (Nasdaq: ALSC) today announced that its Board of Directors approved increasing the authorized share repurchase amount from 2 million up to 4 million shares of common stock. After the current quarter share repurchases, the Company has approximately 41.7 million shares outstanding as of today.

The repurchase program which was originally announced in June 1998, permits the Company to repurchase its shares from time to time in the open market or in block purchases, in compliance with Rule 10b-18. Under the original program, the Company has repurchased approximately 500,000 shares of Alliance stock, all in the current quarter.

N.D. Reddy, Chairman, President and CEO of Alliance said, &uot;We are increasing the amount of our repurchase authorization because we believe that our stock is trading at a substantial discount to its fundamental value. The Company is generating an operating profit again, business appears to be good, and its underlying investments in United Microelectronics Corporation (Taiwan: UMC), Chartered Semiconductor (Nasdaq: CHRT) and Broadcom Corporation (Nasdaq: BRCM) have an estimated market value today of approximately $1.3 billion. This represents approximately $30 per share on a pretax basis and $17 per share on an after-tax basis.&uot;

Company Information

Alliance Semiconductor Corporation is a leading worldwide supplier of high performance memory and memory intensive logic products. Alliance's product lines include Static Random Access Memory (SRAM), Dynamic Random Access Memory (DRAM), Flash memory and embedded memory and logic products.

Alliance designs, develops and markets its products to the desktop and portable computing, networking, telecommunication, instrumentation, and consumer markets. Alliance manufactures its products through independent and joint venture manufacturing facilities, using advanced CMOS process technologies with line widths as narrow as 0.25 microns.

The Company, through its venture arm Alliance Venture Management, LLC, invests in three venture funds. Alliance Ventures I, LP focuses on investing in networking and communication start-up companies, Alliance Ventures II, LP focuses on investing in internet start-up ventures, and Alliance Ventures III, LP, focuses on emerging companies in the networking and communication market areas.

Alliance was founded in 1985. Additional Company information can be found on our home page: http://www.alsc.com.

Forward Looking Statements

Except for historical information, the above statements of this press release (including, without limitation, expressions of expectation, belief, anticipation or estimation of the Company or its management) are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. These risks and uncertainties include such factors, among others, as the potential for price erosion of the Company's products; decreased demand or increased competitive environment for the Company's products, including, without limitation, changes in the status of the SRAM, DRAM, Flash, networking and embedded memory and logic markets and the demand for the Company's SRAM, DRAM, Flash, networking and embedded memory and logic products; inability of the Company to obtain necessary capacity, timely delivery or acceptable yields from the entities that provide wafer fabrication, wafer sort, assembly and/or test services to the Company; increases in prices such entities charge the Company for wafer fabrication, wafer sort, assembly and/or test services; obsolescence of the Company's products; accumulation of excess inventory or price erosion or obsolescence of existing inventory, any of which may result in charges against the Company's earnings; inability to timely ramp up production of and deliver new or enhanced SRAM or DRAM products; inability to successfully develop and introduce Flash or networking and embedded memory and logic products; inability to successfully recruit and retain qualified technical and other personnel; year 2000 issues of the Company, its suppliers, and its customers; adverse developments in current or future litigation or administrative proceedings, including; as well as liquidation of antidumping duties imposed on the Company's importation of Taiwan-manufactured SRAMs; changes in stock price of Broadcom Corporation, Chartered Semiconductor and UMC; adverse changes in value of investments made by Alliance Venture Management, LLC; and the risk factors listed under Item 1: Business and Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Form 10-K for the fiscal year ended April 3, 1999, and subsequent 10-Qs, which have been filed with the Securities and Exchange Commission, which is available through the Company's home page, http://www.alsc.com. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statement is based, in whole or in part.