Alliance Semiconductor’s management and Board of Directors believe that good corporate governance practices and ethical conduct are essential to the Company’s long-term success. To be truly effective, sound governance practices and ethical conduct must be embedded in the culture and operations of the Company. Written policies and procedures, however, can play an important role in assuring that we maintain our standards. Accordingly, the Board has adopted a number of policies and procedures that are intended to assist it and the management to carry out their responsibilities effectively.