Tundra Semiconductor Completes Acquisition of System Solutions Business from Alliance Semiconductor

Ottawa, Ontario - May 8, 2006 -- Tundra Semiconductor Corporation (TSX:TUN), the leader in System Interconnect, today announced it has completed the acquisition of the Systems Solutions Business Unit of Alliance Semiconductor Corporation ("Alliance SSBU"). Tundra entered into a definitive agreement on April 19, 2006 to acquire the assets of the Alliance SSBU. The acquisition includes intellectual property and several products both in production and under development. Tundra also has hired over fifty former-Alliance SSBU employees as a result of the acquisition.

In addition to the immediate benefit of a broader product offering by adding PCI Express®, HyperTransportTM and PCI bridge products, Tundra gains Alliance SSBU's world-class intellectual property and two highly experienced and innovative teams in Santa Clara, CA and Hyderabad, India. Tundra's leading portfolio of System Interconnect products combined with Alliance SSBU's design expertise uniquely positions Tundra to develop a market-leading PCI Express product portfolio and fuels growth for the Company's communications customers.

"We are very pleased to have Alliance SSBU join the Tundra family. The addition of their unique talent and technology will allow us to better serve our customers through stronger roadmaps for next-generation products," said Jim Roche, President and CEO of Tundra. "Overall, with the synergy between the products and technologies combined with Tundra's proven channels, design support and engineering capabilities, customers can expect improvements in the quality and support offered to them."

About Tundra

Tundra Semiconductor Corporation (TSX:TUN) is the global leader in System Interconnect providing world-class support and leading edge semiconductor solutions to the world's foremost communications, networking, storage system, and information technology vendors. Consistently delivering on system level performance promises that reduce time to market, Tundra System Interconnect ensures market advantage in wireless infrastructure, storage networking, network access, military, industrial automation, and information technology applications. For more information, please visit www.tundra.com.

Comment respecting any Forward Looking Statement in this release -

Tundra Semiconductor Corporation is a public company with common shares listed for trading on the Toronto Stock Exchange (TSX:TUN) in Canada. All figures, unless otherwise noted, are stated in Canadian dollars in accordance with accounting principles generally accepted in Canada. The Company cautions that the forward-looking information in this release is based on certain assumptions made by the Company that may prove to be inaccurate. Assumptions made include customer demand for the acquired products, the Company's ability to maintain and enhance existing customer relationships, as well as the Company's ability to bring to market the products currently under development. Furthermore, the Company cautions that the forward-looking statements in this release are based on current expectations that are subject to risks and uncertainties. Actual results may differ due to factors such as customer demand, customer relationships, new product development, product shipping schedules, product mix, competitive products, pricing pressure, and changes in the embedded systems market specifically. Additional information identifying risks and uncertainties is contained in the Company's filings with the various provincial securities commissions.

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