Alliance Semi To Be Delisted From Nasdaq

The action takes place tomorrow, resulting from the stock exchange's decision that Alliance is no longer engaged in active business operations.
MANHASSET, N.Y. — Alliance Semiconductor Corp. has been informed by Nasdaq it will be delisted from the exchange effective Sept. 13.

This action was a result of the panel's agreement with a previous Nasdaq staff determination that Alliance is no longer engaged in active business operations and is therefore a public shell, which in Nasdaq's estimation raises public interest concerns under Marketplace Rule 4300.

Alliance (Santa Clara, Calif.) expects that its modified Dutch auction tender offer, which commenced on Aug. 25, 2006 and is scheduled to expire Sept. 22, 2006, will not be affected by the delisting of the company's securities from Nasdaq.

As explained in tender offer materials sent to investors and filed with the Securities and Exchange Commission Aug. 25, 2006, Alliance intends to spend up to $30 million to repurchase up to 10,909,090 shares of common stock, or up to 30.7 percent of the outstanding shares, at a price per share not greater than $3 and not less than $2.75.

The move is the latest by Alliance to right its ship. On May 1, the company agreed to sell its analog and mixed-signal business unit to a group of investors led by Shah Capital Partners LP for $9.25 million in cash.

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