Alliance Semiconductor Announces Nasdaq Delisting

On September 11, 2006, Alliance SemiconductorCorporation (Nasdaq:ALSC) (the "Company") received notification fromthe Nasdaq Stock Market, Inc. ("Nasdaq") that a Nasdaq ListingQualifications Panel has determined to delist the Company's securitiesand accordingly, will suspend trading of the Company's shares onNasdaq at the open of business on September 13, 2006. This action wasa result of the Nasdaq panel's agreement with a previous Nasdaq staffdetermination that the Company is no longer engaged in active businessoperations and is therefore a "public shell," which in Nasdaq'sestimation raises public interest concerns under Marketplace Rule4300.

The Company expects that its modified Dutch auction tender offer,which commenced on August 25, 2006 and is scheduled to expire onSeptember 22, 2006, will not be affected by the delisting of theCompany's securities from Nasdaq. As explained in tender offermaterials sent to investors and filed with the Securities and ExchangeCommission on August 25, 2006, the Company intends to spend up to $30million to repurchase up to 10,909,090 shares of common stock, or upto 30.7% of the outstanding shares, at a price per share not greaterthan $3.00 and not less than $2.75. Stockholders are encouraged toread the Offer to Purchase and related materials, which explain theterms and conditions of the tender offer and provide instructions fortendering shares. These materials are available without charge fromthe Company's website at www.alsc.com and from the Commission'sinternet address at www.sec.gov.

The Company has received assurances that several market makersintend to file applications with the National Association ofSecurities Dealers to quote the Company's common stock on the OTCBulletin Board. Quotations for the Company's common stock are alsoexpected to appear in the "Pink Sheets" under the trading symbol"ALSC." The Company will disclose further trading venue informationfor its common stock when such information becomes available.

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.