Tundra Announces Share Repurchase Program

27th March 2007

ES Admin

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Tundra Semiconductor Corporation announced today that the Toronto Stock Exchange (TSX) has accepted the Company's notice of intention to make a normal course issuer bid. The Tundra Board of Directors has approved Tundra's purchase of up to 1,722,000 common shares (representing approximately 10% of Tundra's public float). The normal course issuer bid will commence on March 29, 2007 and will terminate on March 28, 2008 or on such earlier date as Tundra has purchased the maximum number of shares permitted under the bid. Tundra currently has 19,996,429 common shares outstanding and its public float is 17,224,412 common shares.

Tundra expects to use cash, short term investments and future operating cash flows to fund the repurchase of shares. Purchases under the bid will be made on the open market by Tundra through the facilities of the TSX at the prevailing market price at the time of the transaction. Purchases under the bid may be made at any time during the twelve month period subject to the rules and regulations of the TSX. All shares acquired by Tundra under the bid will be cancelled. Tundra has not previously entered into a normal course issuer bid.

Management and the Board of Directors of Tundra believe that the market price of Tundra's common shares, from time to time, may not reflect the inherent value of the Corporation. The share repurchase program reflects the Company's confidence in the fundamentals of Tundra's business and opportunity.

In addition to our on-going strategic plans for investments in mergers and acquisitions and in research and development to build organic growth, we anticipate that initiating a share repurchase program at this time will be an effective use of the Company's financial resources, said Daniel Hoste, President and Chief Executive Officer of Tundra.