Alliance Semiconductor Agrees to Sell Land Near Hyderabad, India; Alliance Announces Sale of Memory Business Unit Assets

In addition, Alliance has recently entered into two separate assetpurchase agreements for the sale of assets relating to its memorybusiness units. On May 11, 2006, Alliance completed the sale ofcertain assets related to its Asynchronous Static Random Access Memory("SRAM") and Dynamic Random Access Memory ("DRAM") products anddevices, including intellectual property, other proprietary rights andinventory. On June 10, 2006, Alliance agreed to sell certain assetsrelated to its Synchronous SRAM products and devices, includingproduct rights, intellectual property, proprietary information andinventory. Alliance expects to complete the sale of Synchronous SRAMassets on or around June 16, 2006.

Alliance also announced yesterday that it had completed the saleof its Analog and Mixed Signal business unit in a transaction valuedat $9.25 million in the aggregate, pursuant to an Asset PurchaseAgreement that was signed with PulseCore Holdings (Cayman) Inc. andits affiliates on May 1, 2006.

Mel Keating, President and Chief Executive Officer of Alliance,commented, "We are pleased that we have completed the final stepstoward our goal of exiting all semiconductor businesses, stemming theprevious losses and drastically reducing costs while creating realvalue for Alliance stockholders."

Forward-Looking Statements

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