SANTA CLARA, California - July 9, 2001 - In a press release dated, July 2, 2001, Adaptec, Inc. ("Adaptec" - NASDAQ: ADPT), the leader in IP Storage connectivity, announced the acquisition of Platys Communications, Inc. of Santa Clara, Calif. The acquisition accelerates Adaptec's ability to provide IP Storage connectivity for three key high-growth IP Storage markets, namely: SAN (iSCSI end-to-end connectivity); Switches (Fibre Channel extension and routing); and NAS (iSCSI and TCP/IP connectivity).

Platys, founded in 1997, develops and markets advanced storage networking products, including highly differentiated iSCSI ASICs, scalable to 10Gbit. Adaptec has led the market in providing iSCSI interoperability, with software expertise in both host and target side devices.  

In connection with the proposed merger, Alliance Semiconductor Corporation ("Alliance" - NASDAQ: ALSC), through it's venture arm, Alliance Venture Management, LLC, will receive approximately $35 million in cash and shares of Adaptec for its 23.2% interest in Platys. Based on the closing share price of Adaptec on July 2, 2001, the estimated pretax gain from this transaction is approximately $30 million.  

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 networking, telecommunication, instrumentation, consumer and computing markets. Alliance manufactures its products through independent manufacturing facilities, using advanced CMOS process technologies with line widths as narrow as 0.18 um. 

The Company, through its venture arm Alliance Venture Management, LLC, invests in five 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, Alliance Ventures III, LP, focuses on emerging companies in the networking and communication market areas, Alliance Ventures IV, LP, focuses on semiconductor companies and Alliance Ventures V, LP, focuses on infrastructure companies.

Alliance was founded in 1985. Additional Company information can be found on its 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, potential problems in Adaptec's acquisition of Platys, changes in stock price of Vitesse; adverse changes in value of other 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 March 31, 2001 which has been filed with the Securities and Exchange Commission, which are 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.