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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549








FORM 10-K/A








Amendment No. 1





|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2004                                                 
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to                                             

Commission file number: 000-30241





DDi CORP.


(Exact name of registrant as specified in its charter)


|                                                                                   |  |                                         
|---------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                           |  | 06-1576013                              
|(State or other jurisdiction of
    incorporation or organization)                 |  | (I.R.S. Employer
    Identification No.)
|                                                                                  
|1220 Simon Circle,
    Anaheim, California(Address of principal executive offices) |  | 92806(Zip Code)                         

(714) 688-7200


(Registrants telephone number, including area code)





Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, par value $0.001 per share


(Title of class)





þ o


o


þ o




þ o












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TABLE OF CONTENTS



|                                                                               |                                                                                                |  |  |  |  |  |  | 
|------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|                                                                               | Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations.
|                                                                               | Item 8. Financial Statements and Supplementary Data.                                          
|                                                                               | Item 15. Exhibits and Financial Statement Schedules.                                          
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                       
|CONSOLIDATED BALANCE SHEETS                                                   
|CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
|CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)                        
|CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT)                     
|CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)                          
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                    
|EXHIBIT 23.1                                                                  
|EXHIBIT 31.1                                                                  
|EXHIBIT 31.2                                                                  
|EXHBIIT 32.1                                                                  
|EXHIBIT 32.2                                                                  



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EXPLANATORY NOTE







































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##### Table of Contents






PART II










|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations.

Overview




Bankruptcy and Reorganization












| |   |                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Treatment of Our Pre-Bankruptcy Equity. All of our
    pre-bankruptcy equity securities were cancelled.                                                                     
|
| |  | Treatment of Our Pre-Bankruptcy Debt. All of our
    pre-bankruptcy documents evidencing or creating any indebtedness
    were canceled or satisfied in full and discharged.

1



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| |   |                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Issuance of Common Stock. We issued an aggregate of
    23,500,000 shares of our common stock to the holders of our
    old convertible subordinated notes. We issued
    249,926 shares of common stock to the holders of our
    pre-bankruptcy common stock.
|
| |  | Issuance of Series A Preferred Stock. We issued an
    aggregate of 1,000,000 shares of our Series A
    preferred stock to the holders of our old convertible
    subordinated notes.                                                                         
|
| |  | Issuance of Warrants. We issued warrants to purchase an
    aggregate of 3,814,383 shares of our common stock to the
    lenders under our new senior credit facility and to holders of
    our old senior discount notes.                                     
|
| |  | Management and Director Stock Options. We granted options
    to purchase an aggregate of 2,620,434 shares of our common
    stock under our 2003 Management Equity Incentive Plan.                                                                            
|
| |  | Senior Accreting Notes. DDi Capital issued
    $17.7 million of its 16% senior accreting notes due
    2009.                                                                                                                                                   
|
| |  | New Senior Credit Facility. The rights of the lenders
    under Dynamic Details $65.9 million senior credit facility
    were modified, exchanged and restated as provided in a
    $72.9 million senior credit facility.                                      

Fresh-Start Accounting




Discontinuation of European Business




2



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Key Financial Indicators








Critical Accounting Policies and Estimates








| |   |                                 
| | - | --------------------------------
| |  | fresh-start accounting;         
|
| |  | valuation of long-lived assets; 
|
| |  | goodwill impairment;            
|
| |  | inventory obsolescence;         
|
| |  | allowance for doubtful accounts;
|
| |  | income taxes;                   

3



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| |   |                                        
| | - | ---------------------------------------
| |  | litigation and other contingencies; and
|
| |  | discontinued operation.                

Fresh-start accounting




Valuation of long-lived assets


Goodwill impairment


Inventory obsolescence


Receivables and Allowance for Doubtful
Accounts


Income taxes


4



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Litigation and other contingencies


Discontinued operation


Results of Operations and Other Financial Data




5



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|                                            |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |       | 
|------------------------------------------- | ----------------------------------------------------- | --------------------- | ------ | ------------- | ----------- | - | ------------ | ----- | ------------ |  | ------------ | ---- | ---- | - | - | ----- | ----- |  | - | ----- | ----- | 
|                                            |                                                       |                       |        |               |             |   |              |       | Combined     |  |             
|                                            |                                                       |                       |        |               |             |   |              |       | Predecessor  |  |             
|                                            |                                                       |                       |        |               |             |   |              |       | DDi Corp. &  |  |             
|                                            |                                                       |                       |        |               | Reorganized |   | Reorganized  |       | Reorganized 
|                                            |                                                       | Predecessor DDi Corp. |        |               | DDi Corp.   |   | DDi Corp.    |       | DDi Corp.   
|                                            |                                                       |                       |        |               |             |   |              |       |             
|                                            |                                                       |                       |        | Eleven Months |             |   | One Month    |       |              |  |             
|                                            |                                                       | Year Ended            |        | Ended         |             |   | Ended        |       | Year Ended   |  | Year Ended  
|                                            |                                                       |                       |        |               |             |   |              |       |              |  |             
|                                            |                                                       | December 31,          |        | November 30,  |             |   | December 31, |       | December 31, |  | December 31,
|                                            |                                                       | 2002                  |        | 2003          |             |   | 2003         |       | 2003         |  | 2004        
|                                            |                                                       |                       |        |               |             |   |              |       |              |  |             
|Consolidated Statements of Operations Data: |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|Net sales                                   |                                                       | $                     | 185.6  |               |             | $ | 145.0        |       |              |  | $            | 14.6 |      |   | $ | 159.6 |       |  | $ | 189.0 |      
|                                            | Cost of goods sold                                    |                       |        | 171.0         |             |   |              | 128.3 |              |  |              |      | 11.3 |   |   |       | 139.6 |  |   |       | 151.5 | 
|                                            | Non-cash compensation and amortization of intangibles |                       |        |              |             |   |              |      |              |  |              |      | 6.9  |   |   |       | 6.9   |  |   |       | 12.6  | 
|                                            | Restructuring related inventory impairment            |                       |        | 3.4           |             |   |              | 1.7   |              |  |              |      |     |   |   |       | 1.7   |  |   |       |      | 
|                                            |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|Total cost of goods sold                    |                                                       |                       | 174.4  |               |             |   | 130.0        |       |              |  |              | 18.2 |      |   |   | 148.2 |       |  |   | 164.1 |      
|                                            | Gross profit (loss)                                   |                       |        | 11.2          |             |   |              | 15.0  |              |  |              |      | (3.6 | ) |   |       | 11.4  |  |   |       | 24.9  | 
|Operating expenses:                         |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|Sales and Marketing:                        |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|                                            | Sales and marketing                                   |                       |        | 19.7          |             |   |              | 13.5  |              |  |              |      | 1.1  |   |   |       | 14.6  |  |   |       | 14.6  | 
|                                            | Non-cash compensation                                 |                       |        |              |             |   |              |      |              |  |              |      | 1.0  |   |   |       | 1.0   |  |   |       | 2.4   | 
|                                            |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|Total sales and marketing                   |                                                       |                       | 19.7   |               |             |   | 13.5         |       |              |  |              | 2.1  |      |   |   | 15.6  |       |  |   | 17.0  |      
|General and Administration:                 |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|                                            | General and administration                            |                       |        | 10.5          |             |   |              | 8.5   |              |  |              |      | 0.6  |   |   |       | 9.1   |  |   |       | 12.4  | 
|                                            | Non-cash compensation                                 |                       |        |              |             |   |              |      |              |  |              |      | 1.5  |   |   |       | 1.5   |  |   |       | 4.1   | 
|                                            | Officers severance                                   |                       |        |              |             |   |              |      |              |  |              |      |     |   |   |       |       |  |   |       | 0.7   | 
|                                            |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|Total general and administration            |                                                       |                       | 10.5   |               |             |   | 8.5          |       |              |  |              | 2.1  |      |   |   | 10.6  |       |  |   | 17.2  |      
|                                            | Amortization of intangibles                           |                       |        |              |             |   |              |      |              |  |              |      | 0.4  |   |   |       | 0.4   |  |   |       | 4.6   | 
|                                            | Goodwill impairment                                   |                       |        | 128.7         |             |   |              | 2.0   |              |  |              |      |     |   |   |       | 2.0   |  |   |       |      | 
|                                            | Restructuring and related charges                     |                       |        | 25.3          |             |   |              | 3.9   |              |  |              |      | 0.4  |   |   |       | 4.3   |  |   |       | 0.9   | 
|                                            | Reorganization expenses                               |                       |        | 2.1           |             |   |              | 7.4   |              |  |              |      | 0.5  |   |   |       | 7.9   |  |   |       | 0.8   | 
|                                            |                                                       |                       |        |               |             |   |              |       |              |  |              |      |      |   |   |       |       |  |   |       |      
|Operating loss                              |                                                       |                       | (175.1 | )             |             |   | (20.3        | )     |              |  |              | (9.1 | )    |   |   | (29.4 | )     |  |   | (15.6 | )    
|                                            | Interest rate swap valuation                          |                       |        |              |             |   |              |      |              |  |              |      |     |   |   |       |      |  |   |       |      | 
|                                            | Loss on interest rate swap termination                |                       |        |              |             |   |              | 5.6   |              |  |              |      |     |   |   |       | 5.6   |  |   |       |      | 
|                                            | Interest expense and other expense, net               |                       |        | 19.9          |             |   |              | 16.3  |              |  |              |      | 0.8  |   |   |       | 17.1  |  |   |       | 7.6   | 

6



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|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |       |   | 
|------------------------------------------------------------ | ------------------------------------------------- | ---------------------------------- | ------ | ------------- | ----------- | - | ------------ | ----- | ------------ | - | ------------ | ----- | ----- | --- | - | ----- | ----- | ------ | - | ----- | ----- | - | 
|                                                             |                                                   |                                    |        |               |             |   |              |       | Combined     |   |             
|                                                             |                                                   |                                    |        |               |             |   |              |       | Predecessor  |   |             
|                                                             |                                                   |                                    |        |               |             |   |              |       | DDi Corp. &  |   |             
|                                                             |                                                   |                                    |        |               | Reorganized |   | Reorganized  |       | Reorganized 
|                                                             |                                                   | Predecessor DDi Corp.              |        |               | DDi Corp.   |   | DDi Corp.    |       | DDi Corp.   
|                                                             |                                                   |                                    |        |               |             |   |              |       |             
|                                                             |                                                   |                                    |        | Eleven Months |             |   | One Month    |       |              |   |             
|                                                             |                                                   | Year Ended                         |        | Ended         |             |   | Ended        |       | Year Ended   |   | Year Ended  
|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |             
|                                                             |                                                   | December 31,                       |        | November 30,  |             |   | December 31, |       | December 31, |   | December 31,
|                                                             |                                                   | 2002                               |        | 2003          |             |   | 2003         |       | 2003         |   | 2004        
|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |             
|                                                             | Reorganization items:                             |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |       |  
|                                                             |                                                   | Gain on extinguishment of debt     |        |               |            |   |              |       | (120.4       | ) |              |       |       |    |   |       |       | (120.4 | ) |       |       |  | 
|                                                             |                                                   | Fresh start accounting adjustments |        |               |            |   |              |       | (115.2       | ) |              |       |       |    |   |       |       | (115.2 | ) |       |       |  | 
|                                                             |                                                   | Reorganization proceeding expenses |        |               |            |   |              |       | 14.0         |   |              |       |       | 1.1 |   |       |       | 15.1   |   |       |       |  | 
|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |      
|Income (loss) from continuing operations before income taxes |                                                   |                                    | (195.0 | )             |             |   | 179.4        |       |              |   |              | (11.0 | )     |     |   | 168.4 |       |        |   | (23.2 | )    
|                                                             | Income tax expense                                |                                    |        | (17.0         | )           |   |              | (0.1  | )            |   |              |       |      |     |   |       | (0.1  | )      |   |       | (2.0  | )
|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |      
|                                                             | Income (loss) from continuing operations          |                                    |        | (212.0        | )           |   |              | 179.3 |              |   |              |       | (11.0 | )   |   |       | 168.3 |        |   |       | (25.2 | )
|                                                             | Net loss from discontinued operations, net of tax |                                    |        | (76.1         | )           |   |              | (14.9 | )            |   |              |       | (3.0  | )   |   |       | (17.9 | )      |   |       | (20.7 | )
|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |      
|Net income (loss)                                            |                                                   |                                    | (288.1 | )             |             |   | 164.4        |       |              |   |              | (14.0 | )     |     |   | 150.4 |       |        |   | (45.9 | )    
|Series B preferred stock dividend and accretion              |                                                   |                                    |       |               |             |   |             |       |              |   |              |      |       |     |   |      |       |        |   | (4.0  | )    
|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |      
|Net income (loss) available to common stockholders           |                                                   | $                                  | (288.1 | )             |             | $ | 164.4        |       |              |   | $            | (14.0 | )     |     | $ | 150.4 |       |        | $ | (49.9 | )    
|                                                             |                                                   |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |      
|Other Financial Data:                                        |                                                   |                                    |        |               |             |   |              |       |              |   |              |       |       |     |   |       |       |        |   |       |      
|Depreciation                                                 |                                                   | $                                  | 16.1   |               |             | $ | 12.4         |       |              |   | $            | 0.9   |       |     | $ | 13.3  |       |        | $ | 9.9   |      
|Capital expenditures                                         |                                                   | $                                  | 8.0    |               |             | $ | 3.9          |       |              |   | $            | 0.1   |       |     | $ | 4.1   |       |        | $ | 4.4   |      



|                                           |                                                       |                       |       |               |             |  |              |      |              |  |              |       |       |   |  |       |      |  |  |       |      | 
|------------------------------------------ | ----------------------------------------------------- | --------------------- | ----- | ------------- | ----------- |  | ------------ | ---- | ------------ |  | ------------ | ----- | ----- | - |  | ----- | ---- |  |  | ----- | ---- | 
|                                           |                                                       |                       |       |               |             |  |              |      | Combined     |  |             
|                                           |                                                       |                       |       |               |             |  |              |      | Predecessor  |  |             
|                                           |                                                       |                       |       |               |             |  |              |      | DDi Corp. &  |  |             
|                                           |                                                       |                       |       |               | Reorganized |  | Reorganized  |      | Reorganized 
|                                           |                                                       | Predecessor DDi Corp. |       |               | DDi Corp.   |  | DDi Corp.    |      | DDi Corp.   
|                                           |                                                       |                       |       |               |             |  |              |      |             
|                                           |                                                       |                       |       | Eleven Months |             |  | One Month    |      |              |  |             
|                                           |                                                       | Year Ended            |       | Ended         |             |  | Ended        |      | Year Ended   |  | Year Ended  
|                                           |                                                       |                       |       |               |             |  |              |      |              |  |             
|                                           |                                                       | December 31,          |       | November 30,  |             |  | December 31, |      | December 31, |  | December 31,
|                                           |                                                       | 2002                  |       | 2003          |             |  | 2003         |      | 2003         |  | 2004        
|                                           |                                                       |                       |       |               |             |  |              |      |              |  |             
|Consolidated Statement of Operations Data: |                                                       |                       |       |               |             |  |              |      |              |  |              |       |       |   |  |       |      |  |  |       |     
|Net sales                                  |                                                       |                       | 100.0 | %             |             |  | 100.0        | %    |              |  |              | 100.0 | %     |   |  | 100.0 | %    |  |  | 100.0 | %   
|                                           | Cost of goods sold                                    |                       |       | 92.1          |             |  |              | 88.4 |              |  |              |       | 77.4  |   |  |       | 87.5 |  |  |       | 80.1 | 
|                                           | Non-cash compensation and amortization of intangibles |                       |       |              |             |  |              |     |              |  |              |       | 47.3  |   |  |       | 4.3  |  |  |       | 6.7  | 
|                                           | Restructuring related inventory impairment            |                       |       | 1.9           |             |  |              | 1.2  |              |  |              |       |      |   |  |       | 1.1  |  |  |       |     | 
|                                           |                                                       |                       |       |               |             |  |              |      |              |  |              |       |       |   |  |       |      |  |  |       |     
|Total cost of goods sold                   |                                                       |                       | 94.0  |               |             |  | 89.6         |      |              |  |              | 124.7 |       |   |  | 92.9  |      |  |  | 86.8  |     
|                                           | Gross profit (loss)                                   |                       |       | 6.0           |             |  |              | 10.4 |              |  |              |       | (24.7 | ) |  |       | 7.1  |  |  |       | 13.2 | 
|Operating expenses:                        |                                                       |                       |       |               |             |  |              |      |              |  |              |       |       |   |  |       |      |  |  |       |     
|Sales and Marketing:                       |                                                       |                       |       |               |             |  |              |      |              |  |              |       |       |   |  |       |      |  |  |       |     
|                                           | Sales and marketing                                   |                       |       | 10.6          |             |  |              | 9.3  |              |  |              |       | 7.6   |   |  |       | 9.1  |  |  |       | 7.6  | 
|                                           | Non-cash compensation                                 |                       |       |              |             |  |              |     |              |  |              |       | 6.8   |   |  |       | 0.6  |  |  |       | 1.3  | 
|                                           |                                                       |                       |       |               |             |  |              |      |              |  |              |       |       |   |  |       |      |  |  |       |     
|Total sales and marketing                  |                                                       |                       | 10.6  |               |             |  | 9.3          |      |              |  |              | 14.4  |       |   |  | 9.7   |      |  |  | 8.9   |     

7



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|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |       |   | 
|------------------------------------------------------------ | ------------------------------------------------- | ---------------------------------- | ------ | ------------- | ----------- |  | ------------ | ----- | ------------ | - | ------------ | ----- | ----- | --- |  | ----- | ----- | ----- | - | ----- | ----- | - | 
|                                                             |                                                   |                                    |        |               |             |  |              |       | Combined     |   |             
|                                                             |                                                   |                                    |        |               |             |  |              |       | Predecessor  |   |             
|                                                             |                                                   |                                    |        |               |             |  |              |       | DDi Corp. &  |   |             
|                                                             |                                                   |                                    |        |               | Reorganized |  | Reorganized  |       | Reorganized 
|                                                             |                                                   | Predecessor DDi Corp.              |        |               | DDi Corp.   |  | DDi Corp.    |       | DDi Corp.   
|                                                             |                                                   |                                    |        |               |             |  |              |       |             
|                                                             |                                                   |                                    |        | Eleven Months |             |  | One Month    |       |              |   |             
|                                                             |                                                   | Year Ended                         |        | Ended         |             |  | Ended        |       | Year Ended   |   | Year Ended  
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |             
|                                                             |                                                   | December 31,                       |        | November 30,  |             |  | December 31, |       | December 31, |   | December 31,
|                                                             |                                                   | 2002                               |        | 2003          |             |  | 2003         |       | 2003         |   | 2004        
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |             
|General and Administration:                                  |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|                                                             | General and administration                        |                                    |        | 5.7           |             |  |              | 5.9   |              |   |              |       | 4.1   |     |  |       | 5.7   |       |   |       | 6.6   |  
|                                                             | Non-cash compensation                             |                                    |        |              |             |  |              |      |              |   |              |       | 10.3  |     |  |       | 0.9   |       |   |       | 2.2   |  
|                                                             | Officers severance                               |                                    |        |              |             |  |              |      |              |   |              |       |      |     |  |       |      |       |   |       | 0.4   |  
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Total general and administration                             |                                                   |                                    | 5.7    |               |             |  | 5.9          |       |              |   |              | 14.4  |       |     |  | 6.6   |       |       |   | 9.2   |      
|                                                             | Amortization of intangibles                       |                                    |        |              |             |  |              |      |              |   |              |       | 2.7   |     |  |       | 0.3   |       |   |       | 2.4   |  
|                                                             | Goodwill impairment                               |                                    |        | 69.3          |             |  |              | 1.4   |              |   |              |       |      |     |  |       | 1.3   |       |   |       |      |  
|                                                             | Restructuring and related charges                 |                                    |        | 13.6          |             |  |              | 2.7   |              |   |              |       | 2.7   |     |  |       | 2.7   |       |   |       | 0.5   |  
|                                                             | Reorganization expenses                           |                                    |        | 1.1           |             |  |              | 5.1   |              |   |              |       | 3.4   |     |  |       | 4.9   |       |   |       | 0.4   |  
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Operating loss                                               |                                                   |                                    | (94.3  | )             |             |  | (14.0        | )     |              |   |              | (62.3 | )     |     |  | (18.4 | )     |       |   | (8.2  | )    
|                                                             | Loss on interest rate swap termination            |                                    |        |              |             |  |              | 3.9   |              |   |              |       |      |     |  |       | 3.5   |       |   |       |      |  
|                                                             | Interest expense and other expense, net           |                                    |        | 10.7          |             |  |              | 11.2  |              |   |              |       | 5.5   |     |  |       | 10.7  |       |   |       | 4.0   |  
|                                                             | Reorganization items:                             |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |       |  
|                                                             |                                                   | Gain on extinguishment of debt     |        |               |            |  |              |       | (83.0        | ) |              |       |       |    |  |       |       | (75.4 | ) |       |       |  | 
|                                                             |                                                   | Fresh start accounting adjustments |        |               |            |  |              |       | (79.5        | ) |              |       |       |    |  |       |       | (72.2 | ) |       |       |  | 
|                                                             |                                                   | Reorganization proceeding expenses |        |               |            |  |              |       | 9.6          |   |              |       |       | 7.5 |  |       |       | 9.5   |   |       |       |  | 
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Income (loss) from continuing operations before income taxes |                                                   |                                    | (105.0 | )             |             |  | 123.8        |       |              |   |              | (75.3 | )     |     |  | 105.5 |       |       |   | (12.2 | )    
|                                                             | Income tax expense                                |                                    |        | (9.2          | )           |  |              | (0.1  | )            |   |              |       |      |     |  |       | (0.1  | )     |   |       | (1.1  | )
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Income (loss) from continuing operations                     |                                                   |                                    | (114.2 | )             |             |  | 123.7        |       |              |   |              | (75.3 | )     |     |  | 105.4 |       |       |   | (13.3 | )    
|                                                             | Net loss from discontinued operations, net of tax |                                    |        | (41.0         | )           |  |              | (10.3 | )            |   |              |       | (20.6 | )   |  |       | (11.2 | )     |   |       | (11.0 | )
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Net income (loss)                                            |                                                   |                                    | (155.2 | )             |             |  | (113.4       | )     |              |   |              | (95.9 | )     |     |  | 94.2  |       |       |   | (24.3 | )    
|Series B preferred stock dividend and accretion              |                                                   |                                    |       |               |             |  |             |       |              |   |              |      |       |     |  |      |       |       |   | (2.1  | )    
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Net income (loss) available to common stockholders           |                                                   |                                    | (155.2 | )%            |             |  | (113.4       | )%    |              |   |              | (95.9 | )%    |     |  | 94.2  | %     |       |   | (26.4 | )%   
|                                                             |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Other Financial Data:                                        |                                                   |                                    |        |               |             |  |              |       |              |   |              |       |       |     |  |       |       |       |   |       |      
|Depreciation                                                 |                                                   |                                    | 8.7    | %             |             |  | 8.6          | %     |              |   |              | 6.2   | %     |     |  | 8.3   | %     |       |   | 5.2   | %    
|Capital expenditures                                         |                                                   |                                    | 4.3    | %             |             |  | 2.7          | %     |              |   |              | 0.7   | %     |     |  | 2.6   | %     |       |   | 2.3   | %    

Year Ended December 31, 2004 Compared to the Year Ended
December 31, 2003






8



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9



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Summary of 2003 Results






Year Ended December 31, 2003 Compared to the Year Ended
December 31, 2002




10



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11



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Quarterly Financial Information




|                                                      |  |                       |      |        |                       |       |       |      |  |      |      |      |  |       |      |          |  |   |          |  |      |   |      |  |       |   |      |  |  |   |      |  |  |  |   |      |   |  |   |      |  |  |   |      |  |  |   |      |  |  |   |      | 
|----------------------------------------------------- |  | --------------------- | ---- | ------ | --------------------- | ----- | ----- | ---- |  | ---- | ---- | ---- |  | ----- | ---- | -------- |  | - | -------- |  | ---- | - | ---- |  | ----- | - | ---- |  |  | - | ---- |  |  |  | - | ---- | - |  | - | ---- |  |  | - | ---- |  |  | - | ---- |  |  | - | ---- | 
|                                                      |  | Predecessor DDi Corp. |      |        | Reorganized DDi Corp.
|                                                      |  |                       |      |        |                      
|                                                      |  | Three Months Ended    |      | Two    |                       |       | One   |      | 
|                                                      |  |                       |      | Months |                       |       | Month |      | 
|                                                      |  | Mar.                  |      | June   |                       | Sept. |       | Dec. |  | Mar. |      | June |  | Sept. |      | Ended    |  |   | Ended    |  | Mar. |   | June |  | Sept. |   | Dec.
|                                                      |  | 31,                   |      | 30,    |                       | 30,   |       | 31,  |  | 31,  |      | 30,  |  | 30,   |      | Nov. 30, |  |   | Dec. 31, |  | 31,  |   | 30,  |  | 30,   |   | 31, 
|                                                      |  | 2002                  |      | 2002   |                       | 2002  |       | 2002 |  | 2003 |      | 2003 |  | 2003  |      | 2003     |  |   | 2003     |  | 2004 |   | 2004 |  | 2004  |   | 2004
|                                                      |  |                       |      |        |                       |       |       |      |  |      |      |      |  |       |      |          |  |   |          |  |      |   |      |  |       |   |     
|                                                      |  | (In millions)        
|Net sales                                             |  | $                     | 47.0 |        |                       | $     | 47.3  |      |  | $    | 44.9 |      |  | $     | 46.4 |          |  | $ | 41.1     |  |      | $ | 35.8 |  |       | $ | 38.2 |  |  | $ | 29.8 |  |  |  | $ | 14.6 |   |  | $ | 48.1 |  |  | $ | 49.9 |  |  | $ | 47.1 |  |  | $ | 44.0 | 
|Other cost of goods sold                              |  |                       | 42.9 |        |                       |       | 42.3  |      |  |      | 39.2 |      |  |       | 46.6 |          |  |   | 38.0     |  |      |   | 33.6 |  |       |   | 33.4 |  |  |   | 23.2 |  |  |  |   | 11.3 |   |  |   | 36.7 |  |  |   | 37.5 |  |  |   | 40.6 |  |  |   | 36.7 | 
|Non-cash compensation and amortization of intangibles |  |                       |     |        |                       |       |      |      |  |      |     |      |  |       |     |          |  |   |         |  |      |   |     |  |       |   |     |  |  |   |     |  |  |  |   | 6.9  |   |  |   | 5.7  |  |  |   | 2.5  |  |  |   | 2.3  |  |  |   | 2.1  | 
|Restructuring-related inventory impairment            |  |                       |     |        |                       |       | 3.4   |      |  |      |     |      |  |       |     |          |  |   |         |  |      |   | 1.7  |  |       |   |     |  |  |   |     |  |  |  |   |     |   |  |   |     |  |  |   |     |  |  |   |     |  |  |   |     | 
|                                                      |  |                       |      |        |                       |       |       |      |  |      |      |      |  |       |      |          |  |   |          |  |      |   |      |  |       |   |      |  |  |   |      |  |  |  |   |      |   |  |   |      |  |  |   |      |  |  |   |      |  |  |   |      | 
|Total cost of goods sold                              |  |                       | 42.9 |        |                       |       | 45.7  |      |  |      | 39.2 |      |  |       | 46.6 |          |  |   | 38.0     |  |      |   | 35.3 |  |       |   | 33.4 |  |  |   | 23.2 |  |  |  |   | 18.2 |   |  |   | 42.4 |  |  |   | 40.0 |  |  |   | 42.9 |  |  |   | 38.8 | 
|                                                      |  |                       |      |        |                       |       |       |      |  |      |      |      |  |       |      |          |  |   |          |  |      |   |      |  |       |   |      |  |  |   |      |  |  |  |   |      |   |  |   |      |  |  |   |      |  |  |   |      |  |  |   |      | 
|Gross profit (loss)                                   |  | $                     | 4.1  |        |                       | $     | 1.6   |      |  | $    | 5.7  |      |  | $     | (0.2 | )        |  | $ | 3.1      |  |      | $ | .5   |  |       | $ | 4.8  |  |  | $ | 6.6  |  |  |  | $ | (3.6 | ) |  | $ | 5.7  |  |  | $ | 9.9  |  |  | $ | 4.2  |  |  | $ | 5.2  | 
|                                                      |  |                       |      |        |                       |       |       |      |  |      |      |      |  |       |      |          |  |   |          |  |      |   |      |  |       |   |      |  |  |   |      |  |  |  |   |      |   |  |   |      |  |  |   |      |  |  |   |      |  |  |   |      | 



Liquidity and Capital Resources




| |        
| | -------
| | General





| |                                                                    
| | -------------------------------------------------------------------
| | Consolidated Cash and Cash Equivalents and Available
    Borrowings



12



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| |                                     
| | ------------------------------------
| | Capital Raising Transactions in 2004







| |                        
| | -----------------------
| | Consolidated Cash Flows









| |                     
| | --------------------
| | Capital Expenditures



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Contractual
Obligations




Payments Due by Period


|                                          |                   |                          |       |        |  |      |       |        |  |      |       |            |  |       |       |       |  |   |        |        |  |   |       |       |  |   |        |         | 
|----------------------------------------- | ----------------- | ------------------------ | ----- | ------ |  | ---- | ----- | ------ |  | ---- | ----- | ---------- |  | ----- | ----- | ----- |  | - | ------ | ------ |  | - | ----- | ----- |  | - | ------ | ------- | 
|                                          |                   | Year Ending December 31,
|                                          |                   |                         
|Commitments                               |                   | 2005                     |       | 2006   |  | 2007 |       | 2008   |  | 2009 |       | Thereafter |  | Total
|                                          |                   |                          |       |        |  |      |       |        |  |      |       |            |  |      
|                                          |                   | (In thousands)          
|DDi Capital Accreting Notes               |                   | $                        |      |        |  | $    |      |        |  | $    |      |            |  | $     |      |       |  | $ | 18,394 |        |  | $ |      |       |  | $ | 18,394 |        
|Interest-Capital Accreting Notes          |                   |                          | 2,575 |        |  |      | 2,575 |        |  |      | 2,575 |            |  |       | 2,575 |       |  |   | 644    |        |  |   |      |       |  |   | 10,944 |        
|Mandatorily redeemable preferred stock(1) |                   |                          |       |        |  |      |       |        |  |      |       |            |  |       |       |       |  |   |        |        |  |   |       |       |  |   |        |        
|                                          |  Series B        |                          |       | 20,333 |  |      |       | 40,667 |  |      |       |           |  |       |       |      |  |   |        |       |  |   |       |      |  |   |        | 61,000  | 
|                                          |  Dividends       |                          |       | 6,120  |  |      |       | 1,220  |  |      |       |           |  |       |       |      |  |   |        |       |  |   |       |      |  |   |        | 7,340   | 
|Capital Lease Obligations                 |                   |                          | 1,077 |        |  |      | 58    |        |  |      |      |            |  |       |      |       |  |   |       |        |  |   |      |       |  |   | 1,135  |        
|Note Payable                              |                   |                          | 350   |        |  |      | 300   |        |  |      |      |            |  |       |      |       |  |   |       |        |  |   |      |       |  |   | 650    |        
|Operating Leases                          |                   |                          | 5,773 |        |  |      | 5,149 |        |  |      | 4,412 |            |  |       | 3,633 |       |  |   | 2,991  |        |  |   | 3,386 |       |  |   | 25,344 |        
|                                          |                   |                          |       |        |  |      |       |        |  |      |       |            |  |       |       |       |  |   |        |        |  |   |       |       |  |   |        |        
|                                          | Total Commitments |                          | $     | 36,228 |  |      | $     | 49,969 |  |      | $     | 6,987      |  |       | $     | 6,208 |  |   | $      | 22,029 |  |   | $     | 3,386 |  |   | $      | 124,807 | 
|                                          |                   |                          |       |        |  |      |       |        |  |      |       |            |  |       |       |       |  |   |        |        |  |   |       |       |  |   |        |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Series B preferred stock is due to be repaid no later
    than January 1, 2009. Holders have the option to require
    the Company to redeem the shares earlier in three equal
    installments in 18 months, 24 months, and
    30 months from issuance. This presentation assumes that the
    holders of the Series B preferred stock will exercise their
    option to require the Company to redeem the shares. To the
    extent shares of Series B preferred stock are not redeemed at
    the option of the holders, interest shall accrue on the notes at
    6% per annum on any unredeemed shares until maturity in 2009.
    Both the redemption amounts and the 6% dividends may be paid in
    shares of common stock of the Company or in cash, at the
    election of the Company. The shares of common stock of the
    Company available to be utilized for redemption are limited to
    10 million shares.

Current Indebtedness and Outstanding Preferred Stock of the
Company


Dynamic Details Asset-based
Credit Facility




14



---



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| |                            
| | ---------------------------
| | DDi Capital Accreting Notes







Series B Preferred
Stock




15



---



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Recently Issued Accounting Standards






Participating Securities and the
Two  Class Method Under FASB Statement
No. 128, Earnings Per Share.






16



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##### Table of Contents







Factors That May Affect Our Future Results


The terms of our lending arrangements and outstanding
Series B Preferred Stock may restrict our financial and
operational flexibility.




We may need additional capital in the future and it may not
be available on acceptable terms, or at all.






| |   |                                                                                   
| | - | ----------------------------------------------------------------------------------
| |  | to fund our operations beyond 2005;                                               
|
| |  | to fund working capital requirements for future growth that we
    may experience;

17



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| |   |                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------
| |  | to enhance or expand the range of services we offer;                                                                                           
|
| |  | to increase our sales and marketing activities; or                                                                                             
|
| |  | to respond to competitive pressures or perceived opportunities,
    such as investment, acquisition and international expansion
    activities.



The holders of our Series B Preferred Stock might become
entitled to demand that we redeem the preferred stock. If we are
unable to comply with that demand, the redemption price and
dividends on the preferred stock may increase.




Holders of our Series B Preferred Stock have the right
to convert their preferred stock into shares of the
Companys common stock and to receive dividends payable in
the Companys common stock causing substantial dilution to
common shareholders.




18



---



##### Table of Contents



If the demand for our customers products decline,
demand for our products will be similarly affected and our
revenues, gross margins and operating performance will be
adversely affected.






Unless we are able to respond to technological change at
least as quickly as our competitors, our services could be
rendered obsolete, which would reduce our revenue and operating
margins.






We may experience significant fluctuation in our revenue
because we sell primarily on a purchase order basis, rather than
pursuant to long-term contracts.




We rely on a core group of significant customers for a
substantial portion of our net sales, and a reduction in demand,
or an inability to pay, from this core group could adversely
affect our total revenue.




19



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##### Table of Contents





If we experience excess capacity due to variability in
customer demand, our gross margins may decline.




We are subject to intense competition, and our business may
be adversely affected by these competitive pressures.






If Asian based production capabilities increase in
sophistication, we may lose market share and our gross margins
may be adversely affected by increased pricing pressure.




We rely on suppliers for the timely delivery of raw materials
used in manufacturing our printed circuit boards, and an
increase in industry demand or the presence of a shortage for
these raw materials may increase the price of these raw
materials and reduce our gross margins.




20



---



##### Table of Contents





Defects in our products could result in financial or other
damages to our customers, which could result in reduced demand
for our services and liability claims against us.




If we are unable to protect our intellectual property or
infringe or are alleged to infringe others intellectual
property, our operating results may be adversely affected.








| |   |                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | stop producing products that use the intellectual property in
    question;                                                                                                  
|
| |  | obtain an intellectual property license to sell the relevant
    technology at an additional cost, which license may not be
    available on reasonable terms, or at all; and
|
| |  | redesign those products or services that use the technology in
    question.                                                                                                 



Complying with applicable environmental laws requires
significant resources and if we fail to comply, we could be
subject to substantial liability.




21



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##### Table of Contents







Several of our officers and directors are named defendants in
several securities class action complaints and other litigation,
which could divert management attention and result in
substantial indemnification costs.


Business  Legal
Proceedings.


We depend on our key personnel and may have difficulty
attracting and retaining skilled employees.




Our manufacturing processes depend on the collective industry
experience of our employees. If these employees were to leave
and take this knowledge with them, our manufacturing processes
may suffer, and we may not be able to compete effectively.




22



---



##### Table of Contents



Sales of large amounts of our common stock or the perception
that sales could occur may depress our stock price.






The trading price of our common stock may continue to be
volatile.




The trading price of our common stock may be affected by the
future trading volume.




We may in the future seek to raise funds through equity
offerings, or there may be other events which could have a
dilutive effect on our common stock.




Capitalization Description of Capital Stock.


23



---



##### Table of Contents








|        |                                             
|------- | --------------------------------------------
|Item 8. | Financial Statements and Supplementary Data.












24






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##### Table of Contents



PART IV







|         |                                            
|-------- | -------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules.

Financial Statements


Index to Financial Statements


|                                                                                                                                                                                                                                                                         |  |      |      | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---- | ---- | 
|                                                                                                                                                                                                                                                                         |  | Page
|                                                                                                                                                                                                                                                                         |  |     
|Reports of Independent Registered Public
    Accounting Firm                                                                                                                                                                                                             |  |      | F-1  | 
|Consolidated Balance Sheets as of
    December 31, 2003 and 2004                                                                                                                                                                                                         |  |      | F-4  | 
|Consolidated Statements of Operations for
    the Year Ended December 31, 2002, Eleven Months Ended
    November 30, 2003 (Predecessor DDi Corp.), One Month Ended
    December 31, 2003 and the Year Ended December 31, 2004
    (Reorganized DDi Corp)                 |  |      | F-5  | 
|Consolidated Statements of Comprehensive
    Income (Loss) for the Year Ended December 31, 2002, Eleven
    Months Ended November 30, 2003 (Predecessor DDi Corp.), One
    Month Ended December 31, 2003 and Year Ended
    December 31, 2004 (Reorganized DDi Corp)    |  |      | F-6  | 
|Consolidated Statements of
    Stockholders Equity (Deficit) for the Year Ended
    December 31, 2002, Eleven Months Ended November 30,
    2003 (Predecessor DDi Corp.), One Month Ended December 31,
    2003 and Year Ended December 31, 2004 (Reorganized DDi Corp) |  |      | F-7  | 
|Consolidated Statements of Cash Flows for
    the Year Ended December 31, 2002, Eleven Months Ended
    November 30, 2003 (Predecessor DDi Corp.), One Month Ended
    December 31, 2003 and Year Ended December 31, 2004
    (Reorganized DDi Corp)                     |  |      | F-9  | 
|Notes to Consolidated Financial
    Statements                                                                                                                                                                                                                           |  |      | F-12 | 

Financial Statement Schedules.






Exhibits.







|                                                                                 |    |             |  |                                                                                                                  
|-------------------------------------------------------------------------------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------
|Exhibit                                                                          |    | Description
|                                                                                 |    |            
|                                                                                 | 2  | .1          |  | Modified First Amended Joint Plan of Reorganization Dated As Of
    August 30, 2003.(1)                          
|                                                                                
|                                                                                 | 2  | .2          |  | Order Confirming Debtors Modified First Amended Joint Plan
    of Reorganization Dated as of August 30, 2003.(1)
|                                                                                
|                                                                                 | 3  | .1          |  | Amended and Restated Certificate of Incorporation of DDi Corp.(1)                                                
|                                                                                
|                                                                                 | 3  | .2          |  | Certificate of Designation of DDi Corp.(1)                                                                       
|                                                                                
|                                                                                 | 3  | .3          |  | Certificate of Designation of Series B Preferred Stock of DDi
    Corp.(2)                                       
|                                                                                
|                                                                                 | 3  | .4          |  | Amended and Restated Bylaws of DDi Corp.(3)                                                                      
|                                                                                
|Material Contracts Relating to Management Compensation Plans
    or Arrangements
|                                                                                
|                                                                                 | 10 | .1          |  | Dynamic Details Incorporated Senior Management Bonus Program.(19)                                                
|                                                                                
|                                                                                 | 10 | .2          |  | Dynamic Details, Inc. Key Employee Retention Plan.(4)                                                            




25



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|                         |    |             |  |                                                                                                                                                                                                                                                                                                                                                                          
|------------------------ | -- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit                  |    | Description
|                         |    |            
|                         | 10 | .3          |  | Dynamic Details, Inc. Severance Plan for Key Employees and
    Summary Plan Description Effective December 19, 2002.(4)                                                                                                                                                                                                                                                  
|                        
|                         | 10 | .4          |  | DDi Corp. Amended and Restated Severance Plan for Key
    Employees Effective December 19, 2004.(5)                                                                                                                                                                                                                                                                      
|                        
|                         | 10 | .5          |  | 2003 Directors Equity Incentive Plan.(6)                                                                                                                                                                                                                                                                                                                                 
|                        
|                         | 10 | .6          |  | Form of Stock Option Agreement (2003 Directors Equity
    Incentive Plan).(6)                                                                                                                                                                                                                                                                                            
|                        
|                         | 10 | .7          |  | DDi Corp. 2003 Management Incentive Plan.(7)                                                                                                                                                                                                                                                                                                                             
|                        
|                         | 10 | .8          |  | Form of Restricted Stock Agreement (2003 Management Equity
    Incentive Plan)(8)                                                                                                                                                                                                                                                                                        
|                        
|                         | 10 | .9          |  | Form of Stock Option Agreement (2003 Management Equity
    Incentive Plan)(8)                                                                                                                                                                                                                                                                                            
|                        
|                         | 10 | .10         |  | Form of Amendment to Restricted Stock Agreement (with schedule
    of parties attached).(9)                                                                                                                                                                                                                                                                              
|                        
|                         | 10 | .11         |  | Severance Agreement and General Release dated November 17,
    2004 between DDi Corp. and Joseph P. Gisch.(10)                                                                                                                                                                                                                                                           
|                        
|                         | 10 | .12         |  | Employment Letter dated November 1, 2004 between
    DDi Corp. and Mikel Williams.(5)                                                                                                                                                                                                                                                                                    
|                        
|                         | 10 | .13         |  | Non-Solicitation Agreement dated December 12, 2003 by and
    between Bruce McMaster and Dynamic Details, Inc.(7)                                                                                                                                                                                                                                                        
|                        
|Other Material Contracts
|                        
|                         | 10 | .14         |  | Indenture dated as of December 12, 2003 with respect to DDi
    Capital Senior Accreting Notes due 2009.(1)                                                                                                                                                                                                                                                              
|                        
|                         | 10 | .15         |  | Senior Discount Warrant Agreement, dated as of December 12,
    2003.(1)                                                                                                                                                                                                                                                                                                 
|                        
|                         | 10 | .16         |  | Senior Discount Warrant Escrow Agreement, dated as of
    December 12, 2003.(1)                                                                                                                                                                                                                                                                                          
|                        
|                         | 10 | .17         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to DDi Corp. Secured Lender Warrants.(1)                                                                                                                                                                                                                                                      
|                        
|                         | 10 | .18         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to DDi Corp. Senior Discount Warrants.(1)                                                                                                                                                                                                                                                     
|                        
|                         | 10 | .19         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to Series A Preferred Stock of
    DDi Corp.(1)                                                                                                                                                                                                                                               
|                        
|                         | 10 | .20         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to Preferred Stock of DDi Europe.(1)                                                                                                                                                                                                                                                          
|                        
|                         | 10 | .21         |  | Amendment and Restatement Deed, dated November 15, 2001,
    relating to a Facilities Agreement dated 27 May 1999,
    among(i) DDi Europe Limited, formerly known as
    MCM Electronics Limited, (ii) the additional borrowers
    named therein, (iii) the other charging parties named
    therein and (iv) the Governor and Company of the Bank of
    Scotland.(11)
|                        
|                         | 10 | .22         |  | Working Capital Letter, dated November 15, 2001,
    among(i) DDi Europe Limited, (ii) the additional
    borrowers named therein and (iii) the Governor and Company
    of the Bank of Scotland.(11)                                                                                                                                                                    
|                        
|                         | 10 | .23         |  | Composite Guarantee and Debenture, dated November 15, 2001,
    among(i) DDi Europe Limited and the additional charging
    companies named herein and (ii) the Governor and Company of
    the Bank of Scotland.(11)                                                                                                                                                    
|                        
|                         | 10 | .24         |  | Real Property Master Lease Agreement dated January 1, 1996
    between James I. Swenson and Susan G. Swenson, as Trustees of
    the Swenson Family Trust, and Details, Inc.(12)                                                                                                                                                                                         
|                        
|                         | 10 | .25         |  | Personal Property Master Lease Agreement dated January 1,
    1996 between James I. Swenson and Susan G. Swenson, as Trustees
    of the Swenson Family Trust, and Details, Inc.(12)                                                                                                                                                                                     
|                        
|                         | 10 | .26         |  | Amendment Number One to Real Property Master Lease Agreement
    dated January 1, 1997 between James I. Swenson and Susan G.
    Swenson, as trustees of the Swenson Family Trust and Details,
    Inc.(13)                                                                                                                                                              
|                        
|                         | 10 | .27         |  | Lease dated June 15, 1994, by and between Michael J. Irvin,
    Trustee of the Davila Living Trust dated March 13, 1989 and
    Colorado Springs Circuits, Inc., regarding 6031-6035 Galley
    Road, Colorado Springs, Colorado(14)                                                                                                                                     

26



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##### Table of Contents



|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 10 | .28         |  | Lease dated June 15, 1994, by and between Michael J. Irvin,
    Trustee of the Davila Living Trust dated March 13, 1989 and
    Colorado Springs Circuits, Inc., regarding 2115 Victor Place,
    Colorado Springs, Colorado(14)                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10 | .29         |  | Lease dated June 15, 1994, by and between Michael J. Irvin,
    Trustee of the Davila Living Trust dated March 13, 1989 and
    Colorado Springs Circuits, Inc., regarding 980 Technology Court,
    Colorado Springs, Colorado.(14)                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .30         |  | Lease Agreement dated July 22, 1991 between Geomax and
    Dynamic Circuits, Inc.(16)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 10 | .31         |  | Lease dated March 20, 1997 by and between Mercury
    Partners 30, Inc. and Dynamic Circuits, Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 10 | .32         |  | Amendment to Lease Agreement, dated as of November 9, 2001
    by and between D & D Tarob Properties, LLC and Dynamic
    Details Incorporated Silicon Valley.(16)                                                                                                                                                                                                                                                                                                                                                                                                                    
|       
|        | 10 | .33         |  | Lease dated November 12, 1997 by and between Miller and
    Associates and Dynamic Circuits Inc.(13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .34         |  | Lease dated August 18, 1998, by and between
    Mrs. Alberta M. Talley, Trustee and Dynamic Circuits,
    Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       
|        | 10 | .35         |  | Lease Agreement dated April 14, 1998 by and between
    Continental Electric Contractors and Cuplex, Inc.(9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 10 | .36         |  | Lease Agreement dated as of May 13, 1996, as amended by a
    First Lease Amendment dated August 7, 1996, between 410
    Forest Street Realty Trust and Cuplex, Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 10 | .37         |  | Lease Agreement dated as of November 2, 1995, between
    Trammell Crow International Partners and Cuplex, Inc.(13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 10 | .38         |  | Share Purchase Agreement dated October 24, 2002 by and
    between H.N. Goff, G.P. Harvey and H.L. Williams and DDi Europe
    Limited.(4)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | 10 | .39         |  | Tax Deed dated October 24, 2002 by and between H.N. Goff,
    G.P. Harvey and H.L. Williams and DDi Europe Limited.(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 10 | .40         |  | Minority Share Purchase Agreement dated October 24, 2002 by
    and between Jamie Fuller and others and DDi Europe Limited.(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10 | .41         |  | Stock Purchase Agreement dated January 21, 2004 by and
    among DDi Corp. and the purchasers identified on the schedule of
    investors attached thereto.(7)                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10 | .42         |  | Registration Rights Agreement dated January 21, 2004 by and
    among DDi Corp. and certain purchasers of DDi Corp.s
    capital stock listed on the signature pages thereof.(7)                                                                                                                                                                                                                                                                                                                                                                                                     
|       
|        | 10 | .42         |  | Purchase Agreement dated as of March 29, 2004, by and
    between DDi Corp. and each of the purchasers whose names and
    addresses are set forth on the signature page thereof.(2)                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .42         |  | Credit Agreement dated as of March 30, 2004, among Dynamic
    Details, Incorporated, Dynamic Details, Incorporated, Virginia,
    Dynamic Details Incorporated, Silicon Valley, and Laminate
    Technology Corp.; the other Credit Parties signatory thereto;
    General Electric Capital Corporation, for itself, as Lender, and
    as Agent for Lenders, and the other Lenders signatory thereto
    from time to time.(2)                                                                                                                                                      
|       
|        | 10 | .42         |  | Security Agreement, dated as of March 30, 2004, made by
    Dynamic Details, Incorporated, Dynamic Details Incorporated,
    Virginia, Dynamic Details Incorporated, Silicon Valley, Laminate
    Technology Corp., Dynamic Details Incorporated, Colorado
    Springs, DDi Sales Corp., Dynamic Details Texas, LLC, DDi-Texas
    Intermediate Partners II, L.L.C., DDi-Texas Intermediate
    Holdings II, L.L.C., and Dynamic Details, L.P., in favor of
    General Electric Capital Corporation, as agent for the lenders
    from time to time party to the Credit Agreement.(2)
|       
|        | 10 | .42         |  | Guaranty dated as of March 30, 2004, made by DDi Corp., DDi
    Intermediate Holdings Corp., DDi Capital Corp., Dynamic Details
    Incorporated, Colorado Springs, DDi Sales Corp., Dynamic Details
    Texas, LLC, DDi-Texas Intermediate Partners II, L.L.C.,
    DDi-Texas Intermediate Holdings II, L.L.C., Dynamic
    Details, L.P., in favor of General Electric Capital Corporation,
    as agent for the lenders from time to time party to the Credit
    Agreement.(2)                                                                                                    

27



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##### Table of Contents






|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 10 | .42         |  | Pledge Agreement dated as of March 30, 2004, made by
    Dynamic Details, Incorporated, Dynamic Details, Incorporated,
    Virginia, Dynamic Details Incorporated, Silicon Valley, Laminate
    Technology Corp., DDi Corp., DDi Intermediate Holdings Corp.,
    DDi Capital Corp., Dynamic Details Incorporated, Colorado
    Springs, DDi Sales Corp., Dynamic Details Texas, LLC, DDi-Texas
    Intermediate Partners II, L.L.C., DDi-Texas Intermediate
    Holdings II, L.L.C., Dynamic Details, L.P., in favor of General
    Electric Capital Corporation, as agent for the lenders from time
    to time party to the Credit Agreement.(2)                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .42         |  | Patent, Trademark and Copyright Security Agreement dated as of
    March 30, 2004, made by Dynamic Details, Incorporated,
    Dynamic Details Incorporated, Virginia, Dynamic Details
    Incorporated, Silicon Valley, Laminate Technology Corp., Dynamic
    Details Incorporated, Colorado Springs, DDi Sales Corp., Dynamic
    Details Texas, LLC, DDi-Texas Intermediate Partners II,
    L.L.C., DDi-Texas Intermediate Holdings II, L.L.C., and
    Dynamic Details, L.P., in favor of General Electric Capital
    Corporation, as agent for the lenders from time to time party to
    the Credit Agreement.(2)                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | 10 | .42         |  | Master Agreement for Documentary Letters of Credit, dated as of
    March 30, 2004.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       
|        | 10 | .42         |  | Master Agreement for Standby Letters of Credit, dated as of
    March 30, 2004.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 10 | .42         |  | First Supplemental Indenture, dated as of February 24,
    2004, between DDi Capital Corp. and Wilmington
    Trust Company, as trustee.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 10 | .42         |  | Credit Agreement dated as of June 30, 2004 among Dynamic
    Details Canada, Corp., and DDi Canada Acquisition Corp., as
    Borrowers, the Other Credit Parties Signatory Thereto, as Credit
    Parties, the Lenders Signatory Thereto from Time to Time, as
    Lenders, and GE Canada Finance Holding Company, as Agent and
    Lender.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10 | .42         |  | Guaranty, dated as of June 30, 2004, made by DDi Corp., a
    Delaware corporation, DDi Intermediate Holdings Corp., a
    California corporation, DDi Capital Corp., a California
    corporation, Dynamic Details, Incorporated, a California
    corporation, Dynamic Details Incorporated, Virginia, a Delaware
    corporation, Dynamic Details Incorporated, Silicon Valley, a
    Delaware corporation, Laminate Technology Corp., a Delaware
    corporation, Dynamic Details Incorporated, Colorado Springs, a
    Colorado corporation, DDi Sales Corp., a Delaware corporation,
    Dynamic Details Texas, LLC, a Delaware limited liability
    company, DDi-Texas Intermediate Partners II, L.L.C., a
    Delaware limited liability company, DDi-Texas Intermediate
    Holdings II, L.L.C., a Delaware limited liability company,
    and Dynamic Details, L.P., a Delaware limited partnership, in
    favor of GE Canada Finance Holding Company, a Nova Scotia
    unlimited liability company.(17)
|       
|        | 10 | .42         |  | Intercreditor Agreement dated as of June 30, 2004, between
    GE Capital Finance Holding Company, a Nova Scotia unlimited
    liability company, and General Electric Capital Corporation, a
    New York corporation.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 10 | .42         |  | Master Agreement for Documentary Letters of Credit, dated as of
    June 30, 2004.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       
|        | 10 | .42         |  | Master Agreement for Standby Letters of Credit, dated as of
    June 30, 2004.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 10 | .42         |  | Security Agreement dated as of June 30, 2004, made by
    Dynamic Details Canada, Corp., and DDi Canada Acquisition Corp.
    in favor of GE Canada Finance Holding Company.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       
|        | 10 | .42         |  | Pledge Agreement dated as of June 30, 2004, made by Dynamic
    Details, Incorporated, DDi Canada Acquisition Corp. in favor of
    GE Canada Finance Holding Company.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       
|        | 10 | .42         |  | Amendment No. 1 to Credit Agreement dated as of
    June 30, 2004, by and among Dynamic Details, Incorporated,
    Dynamic Details, Incorporated, Virginia, Dynamic Details
    Incorporated, Silicon Valley and Laminate Technology Corp., the
    other Credit Parties signatory thereto; and General Electric
    Capital Corporation.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 14 | .1          |  | Code of Business Conduct and Ethics.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 21 | .1          |  | Subsidiaries of DDi Corp.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 23 | .1*         |  | Consent of PricewaterhouseCoopers LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 31 | .1*         |  | Certification of Chief Executive Officer of DDi Corp., Pursuant
    to Rule 13a-14 of the Securities Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   




28



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|        |    |             |  |                                                                                                                      
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 31 | .2*         |  | Certification of Chief Financial Officer of DDi Corp.,
    Pursuant to Rule 13a-14 of the Securities Exchange Act.   
|       
|        | 32 | .1*         |  | Certification of Chief Executive Officer of DDi Corp.,
    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|       
|        | 32 | .2*         |  | Certification of Chief Financial Officer of DDi Corp.,
    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.






| |   |                
| | - | ---------------
| | * | Filed herewith.



| |     |                                                                                                                                                                
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Previously filed with the Commission on December 17, 2003
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                     
|
| | (2) | Previously filed with the Commission on April 7, 2004 as an
    exhibit to DDi Corp.s Current Report on Form 8-K.                                             
|
| | (3) | Previously filed with the Commission on January 20, 2004 as
    an exhibit to DDi Corp.s Registration Statement on
    Form 8-A/ A.                           
|
| | (4) | Previously filed with the Commission on March 31, 2003 as
    an exhibit to DDi Corp.s Annual Report on
    Form 10-K.                                        
|
| | (5) | Previously filed with the Commission on December 23, 2004
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                     
|
| | (6) | Previously filed with the Commission on June 14, 2004 as an
    exhibit to DDi Corp.s Registration Statement on
    Form S-8, Registration No. 333-116418.    
|
| | (7) | Previously filed with the Commission on February 12, 2004
    as an exhibit to DDi Corp.s Registration Statement on
    Form S-1, Registration No. 333-112786.
|
| | (8) | Previously filed with the Commission on February 13, 2004
    as an exhibit to DDi Corp.s Registration Statement on
    Form S-8, Registration No. 333-112853.
|
| | (9) | Previously filed with the Commission on January 12, 2005 as
    an exhibit to DDi Corp.s Current Report on Form 8-K.                                          



|     |                                                                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Previously filed with the Commission on November 19, 2004
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                            
|    
|(11) | Previously filed with the Commission on March 25, 2002 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|    
|(12) | Previously filed with the Commission on November 26, 1997
    as an exhibit to DDi Capitals Registration Statement on
    Form S-4, Registration No. 333-41187.                      
|    
|(13) | Previously filed with the Commission on March 30, 2001 as
    an exhibit to DDi Corp.s, DDi Capitals and Dynamic
    Details combined Annual Report on Form 10-K.                  
|    
|(14) | Previously filed with the Commission on January 20, 1998 as
    an exhibit to Amendment No. 1 to DDi Capitals
    Registration Statement on Form S-4, Registration
    No. 333-41187.
|    
|(15) | Previously filed with the Commission on March 31, 1999 as
    an exhibit to DDi Capitals and Dynamic Details
    combined Annual Report on Form 10-K.                               
|    
|(16) | Previously filed with the Commission on March 25, 2002 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|    
|(17) | Previously filed with the Commission on August 16, 2004 as
    an exhibit to DDi Corp.s Quarterly Report on
    Form 10-Q.                                                           
|    
|(18) | Previously filed with the Commission on March 30, 2004 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|    
|    
|(19) | Previously filed with the Commission on March 16, 2005 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|    

29



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##### Table of Contents



SIGNATURES












| |          
| | ---------
| | DDi CORP.



| |     |                      
| | --- | ---------------------
| | By: | /s/ MIKEL H. WILLIAMS

| |                                                  
| | -------------------------------------------------
| |                                                  
| | Mikel H. Williams                                
| | Senior Vice President and Chief Financial Officer

30



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##### Table of Contents









REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Consolidated Financial Statements and Financial Statement
Schedule






Internal Control Over Financial Reporting


Report of Management on Internal Control Over Financial
Reporting Internal Control  Integrated Framework Internal Control 
Integrated Framework


F-1



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##### Table of Contents











| |                               
| | ------------------------------
| | /s/ PricewaterhouseCoopers LLP





F-2



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












| |                               
| | ------------------------------
| | /s/ PricewaterhouseCoopers LLP





F-3



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##### Table of Contents



DDi CORP.








CONSOLIDATED BALANCE SHEETS


(In thousands, except share and per share amounts)


|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |         |         |         | 
|-------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------- | -------------------------- | ------- | ------- | ------ | ------- | ------- | ------- | ------- | 
|                                                                                 |                                                                                                                                                                                | Reorganized DDi Corp.                                                 
|                                                                                 |                                                                                                                                                                                | December 31,                                                          
|                                                                                 |                                                                                                                                                                                |                                                                       
|                                                                                 |                                                                                                                                                                                | 2003                                                                   |                            | 2004   
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |        
|                                                                                 |                                                                                                                                                                                | (See Note 21)                                                          |                            |        
|ASSETS                                                                          
|Current assets:                                                                  |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 |                                                                                                                                                                                | Cash and cash equivalents                                              |                            | $       | 11,202  |        |         | $       | 23,526  |        
|                                                                                 |                                                                                                                                                                                | Cash and cash equivalents  restricted (see
    Note 8)                |                            |         | 7,500   |        |         |         |        |        
|                                                                                 |                                                                                                                                                                                | Accounts receivable, net                                               |                            |         | 23,861  |        |         |         | 26,564  |        
|                                                                                 |                                                                                                                                                                                | Inventories                                                            |                            |         | 16,610  |        |         |         | 17,996  |        
|                                                                                 |                                                                                                                                                                                | Prepaid expenses and other                                             |                            |         | 1,357   |        |         |         | 1,713   |        
|                                                                                 |                                                                                                                                                                                | Current assets held for disposal                                       |                            |         | 26,311  |        |         |         | 33,016  |        
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 |                                                                                                                                                                                |                                                                        | Total current assets       |         |         | 86,841 |         |         |         | 102,815 | 
|Property, plant and equipment, net                                               |                                                                                                                                                                                |                                                                        | 43,666                     |         |         |        | 36,376  |        
|Debt issuance costs, net                                                         |                                                                                                                                                                                |                                                                        |                           |         |         |        | 1,780   |        
|Goodwill                                                                         |                                                                                                                                                                                |                                                                        | 99,829                     |         |         |        | 99,375  |        
|Other intangibles, net                                                           |                                                                                                                                                                                |                                                                        | 23,376                     |         |         |        | 18,009  |        
|Deferred income tax asset                                                        |                                                                                                                                                                                |                                                                        | 663                        |         |         |        | 541     |        
|Assets held for disposal                                                         |                                                                                                                                                                                |                                                                        | 36,969                     |         |         |        | 26,245  |        
|Other                                                                            |                                                                                                                                                                                |                                                                        | 722                        |         |         |        | 810     |        
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 | Total assets                                                                                                                                                                   |                                                                        | $                          | 292,066 |         |        | $       | 285,951 |        
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                
|LIABILITIES, MANDATORILY REDEEMABLE PREFERRED STOCK
    AND STOCKHOLDERS EQUITY
|Current liabilities:                                                             |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 |                                                                                                                                                                                | Current maturities of long-term debt and capital lease
    obligations |                            | $       | 1,186   |        |         | $       | 916     |        
|                                                                                 |                                                                                                                                                                                | Revolving credit facilities                                            |                            |         |        |        |         |         | 15,948  |        
|                                                                                 |                                                                                                                                                                                | Accounts payable                                                       |                            |         | 13,371  |        |         |         | 16,389  |        
|                                                                                 |                                                                                                                                                                                | Accrued expenses and other liabilities                                 |                            |         | 18,827  |        |         |         | 14,527  |        
|                                                                                 |                                                                                                                                                                                | Income tax payable                                                     |                            |         | 998     |        |         |         | 1,099   |        
|                                                                                 |                                                                                                                                                                                | Note payable                                                           |                            |         | 500     |        |         |         |        |        
|                                                                                 |                                                                                                                                                                                | Current liabilities held for disposal                                  |                            |         | 34,889  |        |         |         | 67,853  |        
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 |                                                                                                                                                                                |                                                                        | Total current liabilities  |         |         | 69,771 |         |         |         | 116,732 | 
|Long-term debt and capital lease obligations                                     |                                                                                                                                                                                |                                                                        | 89,338                     |         |         |        | 18,252  |        
|Notes payable and other                                                          |                                                                                                                                                                                |                                                                        | 11,758                     |         |         |        | 8,602   |        
|Liabilities held for disposal                                                    |                                                                                                                                                                                |                                                                        | 27,697                     |         |         |        | 3,725   |        
|Series A mandatorily redeemable preferred stock                                  |                                                                                                                                                                                |                                                                        | 2,066                      |         |         |        |        |        
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 | Total liabilities                                                                                                                                                              |                                                                        |                            | 200,630 |         |        |         | 147,311 |        
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|Commitments and contingencies (Note 17)                                          |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|Series B mandatorily redeemable preferred stock                                  |                                                                                                                                                                                |                                                                        |                           |         |         |        | 61,557  |        
|Stockholders equity:                                                            |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 | Common stock  $0.001 par value,
    75,000,000 shares authorized, 23,749,926 and
    25,513,522 shares issued and outstanding at
    December 31, 2003 and 2004, respectively |                                                                        |                            | 24      |         |        |         | 26      |        
|                                                                                 |                                                                                                                                                                                | Additional paid-in capital                                             |                            |         | 138,661 |        |         |         | 147,739 |        
|                                                                                 |                                                                                                                                                                                | Deferred compensation                                                  |                            |         | (32,454 | )      |         |         | (9,445  | )      
|                                                                                 |                                                                                                                                                                                | Accumulated other comprehensive loss                                   |                            |         | (152    | )      |         |         | (712    | )      
|                                                                                 |                                                                                                                                                                                | Stockholder receivables                                                |                            |         | (635    | )      |         |         | (652    | )      
|                                                                                 |                                                                                                                                                                                | Accumulated deficit                                                    |                            |         | (14,008 | )      |         |         | (59,873 | )      
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 |                                                                                                                                                                                |                                                                        | Total stockholders equity |         |         | 91,436 |         |         |         | 77,083  | 
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        
|                                                                                 |                                                                                                                                                                                | $                                                                      | 292,066                    |         |         | $      | 285,951 |        
|                                                                                 |                                                                                                                                                                                |                                                                        |                            |         |         |        |         |        



F-4



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##### Table of Contents



DDi CORP.








CONSOLIDATED STATEMENTS OF OPERATIONS


(In thousands, except per share amounts)


|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |   |         |        | 
|-------------------------------------------------------------------------------- | ---------------------------------- | ------------------------------------------------------------ | -------------------------------- | ------------- | --------------------- | ------ | ------------- | -------- | ------------ | ------ | - | ------- | ----- | ------- | ------ | ------- | - | ------- | ------ | 
|                                                                                 |                                    | Predecessor DDi Corp.                                        |                                  |               | Reorganized DDi Corp.
|                                                                                 |                                    |                                                              |                                  |               |                      
|                                                                                 |                                    |                                                              |                                  | Eleven Months |                       |        | One Month     |          |             
|                                                                                 |                                    | Year Ended                                                   |                                  | Ended         |                       |        | Ended         |          | Year Ended  
|                                                                                 |                                    | December 31,                                                 |                                  | November 30,  |                       |        | December 31,  |          | December 31,
|                                                                                 |                                    | 2002                                                         |                                  | 2003          |                       |        | 2003          |          | 2004        
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |             
|                                                                                 |                                    | (See Note 21)                                                |                                  | (See Note 21) |                       |        | (See Note 21) |          |             
|Net sales                                                                        |                                    | $                                                            | 185,612                          |               |                       | $      | 144,950       |          |              |        | $ | 14,613  |       |         | $      | 189,007 |  
|                                                                                 | Cost of Goods Sold:                |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |   |        
|                                                                                 |                                    | Cost of goods sold                                           |                                  |               | 171,006               |        |               |          | 128,232      |        |   |         |       | 11,339  |        |         |   | 151,520 |       
|                                                                                 |                                    | Restructuring-related inventory impairment                   |                                  |               | 3,397                 |        |               |          | 1,736        |        |   |         |       |        |        |         |   |        |       
|                                                                                 |                                    | Non-cash compensation and amortization of intangibles        |                                  |               |                      |        |               |          |             |        |   |         |       | 6,855   |        |         |   | 12,556  |       
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|                                                                                 |                                    | Total cost of goods sold                                     |                                  |               | 174,403               |        |               |          | 129,968      |        |   |         |       | 18,194  |        |         |   | 164,076 |       
|                                                                                 |                                    |                                                              | Gross profit (loss)              |               |                       | 11,209 |               |          |              | 14,982 |   |         |       |         | (3,581 | )       |   |         | 24,931 | 
|                                                                                 | Operating expenses:                |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |   |        
|                                                                                 |                                    | Sales and Marketing:                                         |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |   |         |       
|                                                                                 |                                    |                                                              | Sales and marketing              |               |                       | 19,695 |               |          |              | 13,521 |   |         |       |         | 1,123  |         |   |         | 14,531 | 
|                                                                                 |                                    |                                                              | Non-cash compensation            |               |                       |       |               |          |              |       |   |         |       |         | 1,021  |         |   |         | 2,402  | 
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|                                                                                 |                                    |                                                              | Total sales and marketing        |               |                       | 19,695 |               |          |              | 13,521 |   |         |       |         | 2,144  |         |   |         | 16,933 | 
|                                                                                 |                                    | General and Administration:                                  |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |   |         |       
|                                                                                 |                                    |                                                              | General and administration       |               |                       | 10,535 |               |          |              | 8,533  |   |         |       |         | 535    |         |   |         | 12,368 | 
|                                                                                 |                                    |                                                              | Non-cash compensation            |               |                       |       |               |          |              |       |   |         |       |         | 1,533  |         |   |         | 4,155  | 
|                                                                                 |                                    |                                                              | Officers severance              |               |                       |       |               |          |              |       |   |         |       |         |       |         |   |         | 676    | 
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|                                                                                 |                                    |                                                              | Total general and administration |               |                       | 10,535 |               |          |              | 8,533  |   |         |       |         | 2,068  |         |   |         | 17,199 | 
|                                                                                 |                                    | Amortization of intangibles                                  |                                  |               |                      |        |               |          |             |        |   |         |       | 383     |        |         |   | 4,598   |       
|                                                                                 |                                    | Goodwill impairment                                          |                                  |               | 128,700               |        |               |          | 2,000        |        |   |         |       |        |        |         |   |        |       
|                                                                                 |                                    | Restructuring and other related charges                      |                                  |               | 25,268                |        |               |          | 3,823        |        |   |         |       | 439     |        |         |   | 903     |       
|                                                                                 |                                    | Reorganization expenses                                      |                                  |               | 2,092                 |        |               |          | 7,378        |        |   |         |       | 471     |        |         |   | 829     |       
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|                                                                                 |                                    | Operating loss                                               |                                  |               | (175,081              | )      |               |          | (20,273      | )      |   |         |       | (9,086  | )      |         |   | (15,531 | )     
|Loss on interest rate swap termination                                           |                                    |                                                              |                                 |               |                       |        | 5,621         |          |              |        |   |        |       |         |        |        |  
|Interest expense and other expense, net                                          |                                    |                                                              | 19,923                           |               |                       |        | 16,316        |          |              |        |   | 788     |       |         |        | 7,637   |  
|Reorganization items:                                                            |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|                                                                                 | Gain on extinguishment of debt     |                                                              |                                  |              |                       |        |               | (120,444 | )            |        |   |         |      |         |        |         |  |        
|                                                                                 | Fresh start accounting adjustments |                                                              |                                  |              |                       |        |               | (115,167 | )            |        |   |         |      |         |        |         |  |        
|                                                                                 | Reorganization proceeding expenses |                                                              |                                  |              |                       |        |               | 14,034   |              |        |   |         | 1,138 |         |        |         |  |        
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|                                                                                 |                                    | Income (loss) from continuing operations before income taxes |                                  |               | (195,004              | )      |               |          | 179,367      |        |   |         |       | (11,012 | )      |         |   | (23,168 | )     
|Income tax benefit (expense)                                                     |                                    |                                                              | (16,969                          | )             |                       |        | (60           | )        |              |        |   | 39      |       |         |        | (1,984  | )
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|Income (loss) from continuing operations                                         |                                    |                                                              | (211,973                         | )             |                       |        | 179,307       |          |              |        |   | (10,973 | )     |         |        | (25,152 | )
|Net loss from discontinued operations, net of tax                                |                                    |                                                              | (76,120                          | )             |                       |        | (14,885       | )        |              |        |   | (3,035  | )     |         |        | (20,713 | )
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|Net income (loss)                                                                |                                    |                                                              | (288,093                         | )             |                       |        | 164,422       |          |              |        |   | (14,008 | )     |         |        | (45,865 | )
|Less: Series B preferred stock dividends and accretion                           |                                    |                                                              |                                 |               |                       |        |              |          |              |        |   |        |       |         |        | (4,044  | )
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|Net income (loss) available to common stockholders                               |                                    | $                                                            | (288,093                         | )             |                       | $      | 164,422       |          |              |        | $ | (14,008 | )     |         | $      | (49,909 | )
|                                                                                 |                                    |                                                              |                                  |               |                       |        |               |          |              |        |   |         |       |         |        |         |  
|Income (loss) per share of common stock from continuing
    operations  basic   |                                    | $                                                            | (4.40                            | )             |                       | $      | 3.63          |          |              |        | $ | (0.46   | )     |         | $      | (1.15   | )
|Income (loss) per share of common stock from continuing
    operations  diluted |                                    | $                                                            | (4.40                            | )             |                       | $      | 3.02          |          |              |        | $ | (0.46   | )     |         | $      | (1.15   | )
|Net income (loss) per share of common stock  basic                              |                                    | $                                                            | (5.98                            | )             |                       | $      | 3.33          |          |              |        | $ | (0.59   | )     |         | $      | (1.97   | )
|Net income (loss) per share of common stock  diluted                            |                                    | $                                                            | (5.98                            | )             |                       | $      | 2.78          |          |              |        | $ | (0.59   | )     |         | $      | (1.97   | )



F-5



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##### Table of Contents



DDi CORP.








CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


(In thousands)


|                                   |                                                                                |                       |          |               |                       |   |               |        |              |  |   |         |      |   |   |         |      |  
|---------------------------------- | ------------------------------------------------------------------------------ | --------------------- | -------- | ------------- | --------------------- | - | ------------- | ------ | ------------ |  | - | ------- | ---- | - | - | ------- | ---- | -
|                                   |                                                                                | Predecessor DDi Corp. |          |               | Reorganized DDi Corp.
|                                   |                                                                                |                       |          |               |                      
|                                   |                                                                                |                       |          | Eleven Months |                       |   | One Month     |        |             
|                                   |                                                                                | Year Ended            |          | Ended         |                       |   | Ended         |        | Year Ended  
|                                   |                                                                                | December 31,          |          | November 30,  |                       |   | December 31,  |        | December 31,
|                                   |                                                                                | 2002                  |          | 2003          |                       |   | 2003          |        | 2004        
|                                   |                                                                                |                       |          |               |                       |   |               |        |             
|                                   |                                                                                | (See Note 21)         |          | (See Note 21) |                       |   | (See Note 21) |        |             
|Net income (loss)                  |                                                                                | $                     | (288,093 | )             |                       | $ | 164,422       |        |              |  | $ | (14,008 | )    |   | $ | (45,865 | )   
|Other comprehensive income (loss): |                                                                                |                       |          |               |                       |   |               |        |              |  |   |         |      |   |   |         |     
|                                   | Foreign currency translation adjustments                                       |                       |          | 7,257         |                       |   |               | 783    |              |  |   |         | (152 | ) |   |         | (560 | )
|                                   | Unrealized loss on interest rate swap agreements, net of income
    tax effect |                       |          | (6,115        | )                     |   |               | (165   | )            |  |   |         |     |   |   |         |     |  
|                                   | Reclassification adjustment for loss on interest rate swap
    termination     |                       |          |              |                       |   |               | 5,621  |              |  |   |         |     |   |   |         |     |  
|                                   | Unrealized holding loss on marketable securities 
    available for sale      |                       |          | (46           | )                     |   |               | (4     | )            |  |   |         |     |   |   |         |     |  
|                                   | Effect of fresh start accounting adjustments                                   |                       |          |              |                       |   |               | (3,020 | )            |  |   |         |     |   |   |         |     |  
|                                   |                                                                                |                       |          |               |                       |   |               |        |              |  |   |         |      |   |   |         |     
|Comprehensive income (loss)        |                                                                                | $                     | (286,997 | )             |                       | $ | 167,637       |        |              |  | $ | (14,160 | )    |   | $ | (46,425 | )   
|                                   |                                                                                |                       |          |               |                       |   |               |        |              |  |   |         |      |   |   |         |     



F-6



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##### Table of Contents



DDi CORP.








CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
(DEFICIT)


|                                                   |                                                                                |              |            |             |   |                                      |     |              |   |             |         |               |   |      |   |       |  |   |      |     |   |   |          |          |   |   |        |        |   |   |          |          |  
|-------------------------------------------------- | ------------------------------------------------------------------------------ | ------------ | ---------- | ----------- | - | ------------------------------------ | --- | ------------ | - | ----------- | ------- | ------------- | - | ---- | - | ----- |  | - | ---- | --- | - | - | -------- | -------- | - | - | ------ | ------ | - | - | -------- | -------- | -
|                                                   |                                                                                | Common Stock |            | Additional  |   |                                      |     |              |   |             |         | Other         |   |     
|                                                   |                                                                                |              |            | Paid-In     |   | Deferred                             |     | Stockholder  |   | Accumulated |         | Comprehensive |   |     
|                                                   |                                                                                | Shares       |            | Amount      |   | Capital                              |     | Compensation |   | Receivables |         | Deficit       |   | Loss |   | Total
|                                                   |                                                                                |              |            |             |   |                                      |     |              |   |             |         |               |   |      |   |      
|                                                   |                                                                                |              |            |             |   | (In thousands, except share amounts) |     |              |   |             |         |              
|Balance, December 31, 2001 (Predecessor DDi Corp.) |                                                                                |              | 47,950,886 |             |   | $                                    | 480 |              |   | $           | 541,215 |               |   | $    |  |       |  | $ | (712 | )   |   | $ | (414,200 | )        |   | $ | (4,311 | )      |   | $ | 122,472  |         
|                                                   | Issuance of common stock upon exercise of stock options                        |              |            | 206,222     |   |                                      |     | 2            |   |             |         | 149           |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          | 151      |  
|                                                   | Issuance of common stock through Employee Stock Purchase Plan                  |              |            | 975,907     |   |                                      |     | 9            |   |             |         | 329           |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          | 338      |  
|                                                   | Foreign currency translation adjustment                                        |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        | 7,257  |   |   |          | 7,257    |  
|                                                   | Accrued interest on stockholder receivables                                    |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      | (16 | ) |   |          |         |   |   |        |       |   |   |          | (16      | )
|                                                   | Repayment of stockholder receivables                                           |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      | 110 |   |   |          |         |   |   |        |       |   |   |          | 110      |  
|                                                   | Unrealized loss on interest rate swap agreements, net of income
    tax effect |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        | (6,115 | ) |   |          | (6,115   | )
|                                                   | Unrealized holding loss on marketable securities                               |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        | (46    | ) |   |          | (46      | )
|                                                   | Compensation charge for stock option modification                              |              |            |            |   |                                      |     |             |   |             |         | 82            |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          | 82       |  
|                                                   | Net loss                                                                       |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          | (288,093 | ) |   |        |       |   |   |          | (288,093 | )
|                                                   |                                                                                |              |            |             |   |                                      |     |              |   |             |         |               |   |      |   |       |  |   |      |     |   |   |          |          |   |   |        |        |   |   |          |         
|Balance, December 31, 2002 (Predecessor DDi Corp.) |                                                                                |              | 49,133,015 |             |   |                                      | 491 |              |   |             | 541,775 |               |   |      |  |       |  |   | (618 | )   |   |   | (702,293 | )        |   |   | (3,215 | )      |   |   | (163,860 | )       
|                                                   | Issuance of common stock upon exercise of stock options                        |              |            | 79,465      |   |                                      |     | 1            |   |             |         | 3             |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          | 4        |  
|                                                   | Issuance of common stock through Employee Stock Purchase Plan                  |              |            | 313,656     |   |                                      |     | 3            |   |             |         | 15            |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          | 18       |  
|                                                   | Foreign currency translation adjustment                                        |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        | 783    |   |   |          | 783      |  
|                                                   | Accrued interest on stockholder receivables                                    |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      | (15 | ) |   |          |         |   |   |        |       |   |   |          | (15      | )
|                                                   | Unrealized loss on interest rate swap agreements, net of income
    tax        |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        | (165   | ) |   |          | (165     | )
|                                                   | Reclassification adjustment for loss on interest rate swap
    termination     |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        | 5,621  |   |   |          | 5,621    |  
|                                                   | Unrealized holding loss on marketable securities                               |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        | (4     | ) |   |          | (4       | )
|                                                   | Net income                                                                     |              |            |            |   |                                      |     |             |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          | 164,422  |   |   |        |       |   |   |          | 164,422  |  
|                                                   | Cancellation of common stock                                                   |              |            | (49,526,136 | ) |                                      |     | (495         | ) |             |         | 495           |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          |         |  
|                                                   | Issuance of new common stock                                                   |              |            | 249,926     |   |                                      |     | 1            |   |             |         |              |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          | 1        |  
|                                                   | Debt discharge                                                                 |              |            | 23,500,000  |   |                                      |     | 23           |   |             |         | 88,172        |   |      |   |      |  |   |      |    |   |   |          |         |   |   |        |       |   |   |          | 88,195   |  
|                                                   | Fresh start accounting adjustments                                             |              |            |            |   |                                      |     |             |   |             |         | (534,851      | ) |      |   |      |  |   |      |    |   |   |          | 537,871  |   |   |        | (3,020 | ) |   |          |         |  
|                                                   |                                                                                |              |            |             |   |                                      |     |              |   |             |         |               |   |      |   |       |  |   |      |     |   |   |          |          |   |   |        |        |   |   |          |         

F-7



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##### Table of Contents



DDi CORP.


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
(DEFICIT)  (Continued)


|                                                   |                                                                               |              |            |            |  |                                      |    |              |  |             |         |               |   |      |         |         |   |   |      |     |   |   |         |         |   |   |      |      |   |   |        |         |  
|-------------------------------------------------- | ----------------------------------------------------------------------------- | ------------ | ---------- | ---------- |  | ------------------------------------ | -- | ------------ |  | ----------- | ------- | ------------- | - | ---- | ------- | ------- | - | - | ---- | --- | - | - | ------- | ------- | - | - | ---- | ---- | - | - | ------ | ------- | -
|                                                   |                                                                               | Common Stock |            | Additional |  |                                      |    |              |  |             |         | Other         |   |     
|                                                   |                                                                               |              |            | Paid-In    |  | Deferred                             |    | Stockholder  |  | Accumulated |         | Comprehensive |   |     
|                                                   |                                                                               | Shares       |            | Amount     |  | Capital                              |    | Compensation |  | Receivables |         | Deficit       |   | Loss |         | Total  
|                                                   |                                                                               |              |            |            |  |                                      |    |              |  |             |         |               |   |      |         |        
|                                                   |                                                                               |              |            |            |  | (In thousands, except share amounts) |    |              |  |             |         |              
|Balance, November 30, 2003 (Predecessor DDi Corp.) |                                                                               |              | 23,749,926 |            |  |                                      | 24 |              |  |             | 95,609  |               |   |      |        |         |   |   | (633 | )   |   |   |        |         |   |   |     |      |   |   | 95,000 |        
|                                                   |                                                                               |              |            |            |  |                                      |    |              |  |             |         |               |   |      |         |         |   |   |      |     |   |   |         |         |   |   |      |      |   |   |        |        
|                                                  
|Balance, December 1, 2003 (Reorganized DDi Corp.)  |                                                                               |              | 23,749,926 |            |  |                                      | 24 |              |  |             | 95,609  |               |   |      |        |         |   |   | (633 | )   |   |   |        |         |   |   |     |      |   |   | 95,000 |        
|                                                   | Deferred compensation                                                         |              |            |           |  |                                      |    |             |  |             |         | 43,052        |   |      |         | (43,052 | ) |   |      |    |   |   |         |        |   |   |      |     |   |   |        |        |  
|                                                   | Amortization of deferred compensation included in continuing
    operations   |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         | 8,255   |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | 8,255   |  
|                                                   | Amortization of deferred compensation included in discontinued
    operations |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         | 2,343   |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | 2,343   |  
|                                                   | Foreign currency translation adjustment                                       |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         |        |   |   |      |    |   |   |         |        |   |   |      | (152 | ) |   |        | (152    | )
|                                                   | Accrued interest on stockholder receivables                                   |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         |        |   |   |      | (2  | ) |   |         |        |   |   |      |     |   |   |        | (2      | )
|                                                   | Net loss                                                                      |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         |        |   |   |      |    |   |   |         | (14,008 | ) |   |      |     |   |   |        | (14,008 | )
|                                                   |                                                                               |              |            |            |  |                                      |    |              |  |             |         |               |   |      |         |         |   |   |      |     |   |   |         |         |   |   |      |      |   |   |        |        
|Balance, December 31, 2003 (Reorganized DDi Corp.) |                                                                               |              | 23,749,926 |            |  |                                      | 24 |              |  |             | 138,661 |               |   |      | (32,454 | )       |   |   | (635 | )   |   |   | (14,008 | )       |   |   | (152 | )    |   |   | 91,436 |        
|                                                   | Deferred compensation adjustments                                             |              |            |           |  |                                      |    |             |  |             |         | (2,027        | ) |      |         | 2,027   |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        |        |  
|                                                   | Amortization of deferred compensation included in continuing
    operations   |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         | 18,345  |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | 18,345  |  
|                                                   | Amortization of deferred compensation included in discontinued
    operations |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         | 2,637   |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | 2,637   |  
|                                                   | Issuance of new common stock in private placement, net of
    offering costs  |              |            | 1,000,000  |  |                                      |    | 2            |  |             |         | 14,765        |   |      |         |        |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | 14,767  |  
|                                                   | Issuance of common stock upon exercise of stock options                       |              |            | 94,846     |  |                                      |    |             |  |             |         | 383           |   |      |         |        |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | 383     |  
|                                                   | Issuance of restricted common stock                                           |              |            | 668,750    |  |                                      |    |             |  |             |         | 1             |   |      |         |        |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | 1       |  
|                                                   | Foreign currency translation adjustment                                       |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         |        |   |   |      |    |   |   |         |        |   |   |      | (560 | ) |   |        | (560    | )
|                                                   | Accrued interest on shareholder receivables                                   |              |            |           |  |                                      |    |             |  |             |         |              |   |      |         |        |   |   |      | (17 | ) |   |         |        |   |   |      |     |   |   |        | (17     | )
|                                                   | Dividends payable on Series B preferred stock                                 |              |            |           |  |                                      |    |             |  |             |         | (2,765        | ) |      |         |        |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | (2,765  | )
|                                                   | Accretion on Series B Preferred Stock                                         |              |            |           |  |                                      |    |             |  |             |         | (1,279        | ) |      |         |        |   |   |      |    |   |   |         |        |   |   |      |     |   |   |        | (1,279  | )
|                                                   | Net loss                                                                      |              |            |            |  |                                      |    |              |  |             |         |               |   |      |         |         |   |   |      |     |   |   |         | (45,865 | ) |   |      |     |   |   |        | (45,865 | )
|                                                   |                                                                               |              |            |            |  |                                      |    |              |  |             |         |               |   |      |         |         |   |   |      |     |   |   |         |         |   |   |      |      |   |   |        |        
|Balance, December 31, 2004 (Reorganized DDi Corp.) |                                                                               |              | 25,513,522 |            |  | $                                    | 26 |              |  | $           | 147,739 |               |   | $    | (9,445  | )       |   | $ | (652 | )   |   | $ | (59,873 | )       |   | $ | (712 | )    |   | $ | 77,083 |        
|                                                   |                                                                               |              |            |            |  |                                      |    |              |  |             |         |               |   |      |         |         |   |   |      |     |   |   |         |         |   |   |      |      |   |   |        |        



F-8



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##### Table of Contents



DDi CORP.








CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)


|                                      |                                                                                                                                   |                                                                           |                                                     |               |                       |         |               |         |              |         |   |   |         |        |       |   |         |        |        |  
|------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------- | --------------------------------------------------- | ------------- | --------------------- | ------- | ------------- | ------- | ------------ | ------- | - | - | ------- | ------ | ----- | - | ------- | ------ | ------ | -
|                                      |                                                                                                                                   | Predecessor DDi Corp.                                                     |                                                     |               | Reorganized DDi Corp.
|                                      |                                                                                                                                   |                                                                           |                                                     |               |                      
|                                      |                                                                                                                                   |                                                                           |                                                     | Eleven Months |                       |         | One Month     |         |             
|                                      |                                                                                                                                   | Year Ended                                                                |                                                     | Ended         |                       |         | Ended         |         | Year Ended  
|                                      |                                                                                                                                   | December 31,                                                              |                                                     | November 30,  |                       |         | December 31,  |         | December 31,
|                                      |                                                                                                                                   | 2002                                                                      |                                                     | 2003          |                       |         | 2003          |         | 2004        
|                                      |                                                                                                                                   |                                                                           |                                                     |               |                       |         |               |         |             
|                                      |                                                                                                                                   | (See Note 21)                                                             |                                                     | (See Note 21) |                       |         | (See Note 21) |         |             
|CASH FLOWS FROM OPERATING ACTIVITIES: |                                                                                                                                   |                                                                           |                                                     |               |                       |         |               |         |              |         |   |   |         |        |       |   |        
|                                      | Income (loss) from continuing operations                                                                                          |                                                                           | $                                                   | (211,973      | )                     |         | $             | 179,307 |              |         |   | $ | (10,973 | )      |       | $ | (25,152 | )     
|                                      | Adjustments to reconcile income (loss) from continuing
    operations to net cash provided by (used in) operating
    activities: |                                                                           |                                                     |               |                       |         |               |         |              |         |   |   |         |        |       |   |         |       
|                                      |                                                                                                                                   | Non-cash and accrued restructuring and other related charges              |                                                     |               | 26,114                |         |               |         | 6,899        |         |   |   |         | 570    |       |   |         | 757    |       
|                                      |                                                                                                                                   | Accrued reorganization proceeding charges                                 |                                                     |               |                      |         |               |         | 3,170        |         |   |   |         | 40     |       |   |         |       |       
|                                      |                                                                                                                                   | Restructuring related inventory impairment                                |                                                     |               | 3,347                 |         |               |         | 1,736        |         |   |   |         |       |       |   |         |       |       
|                                      |                                                                                                                                   | Depreciation                                                              |                                                     |               | 16,147                |         |               |         | 12,399       |         |   |   |         | 923    |       |   |         | 9,856  |       
|                                      |                                                                                                                                   | Provision for doubtful accounts                                           |                                                     |               | 690                   |         |               |         | 413          |         |   |   |         | 2      |       |   |         | 426    |       
|                                      |                                                                                                                                   | Amortization of debt issuance costs and discount                          |                                                     |               | 4,650                 |         |               |         | 2,439        |         |   |   |         | 47     |       |   |         | 1,496  |       
|                                      |                                                                                                                                   | Capital senior note accretion                                             |                                                     |               |                      |         |               |         |             |         |   |   |         | 157    |       |   |         | 581    |       
|                                      |                                                                                                                                   | Amortization of intangible assets                                         |                                                     |               |                      |         |               |         |             |         |   |   |         | 1,537  |       |   |         | 5,367  |       
|                                      |                                                                                                                                   | Goodwill impairment                                                       |                                                     |               | 128,700               |         |               |         | 2,000        |         |   |   |         |       |       |   |         |        |       
|                                      |                                                                                                                                   | Amortization of deferred interest rate swap (income) loss                 |                                                     |               | (5,946                | )       |               |         | 5,054        |         |   |   |         |       |       |   |         |       |       
|                                      |                                                                                                                                   | Write-off of debt issuance costs                                          |                                                     |               | 2,014                 |         |               |         | 6,162        |         |   |   |         |       |       |   |         |        |       
|                                      |                                                                                                                                   | Deferred income taxes                                                     |                                                     |               | 31,096                |         |               |         |             |         |   |   |         |       |       |   |         | (24    | )     
|                                      |                                                                                                                                   | Interest income on stockholder receivables                                |                                                     |               | (16                   | )       |               |         | (15          | )       |   |   |         | (2     | )     |   |         | (17    | )     
|                                      |                                                                                                                                   | Loss (gain) on sale of fixed assets                                       |                                                     |               | (57                   | )       |               |         | 65           |         |   |   |         | (48    | )     |   |         | 164    |       
|                                      |                                                                                                                                   | Gain on extinguishment of debt                                            |                                                     |               |                      |         |               |         | (120,444     | )       |   |   |         |       |       |   |         |        |       
|                                      |                                                                                                                                   | Fresh start accounting adjustments                                        |                                                     |               |                      |         |               |         | (115,167     | )       |   |   |         |       |       |   |         |        |       
|                                      |                                                                                                                                   | Non cash compensation                                                     |                                                     |               |                      |         |               |         |             |         |   |   |         | 8,255  |       |   |         | 18,345 |       
|                                      | Change in operating assets and liabilities, net of acquisitions:                                                                  |                                                                           |                                                     |               |                       |         |               |         |              |         |   |   |         |        |       |   |         |       
|                                      |                                                                                                                                   | (Increase) decrease in accounts receivable                                |                                                     |               | 1,706                 |         |               |         | 1,274        |         |   |   |         | 2,795  |       |   |         | (2,832 | )     
|                                      |                                                                                                                                   | Increase in inventories                                                   |                                                     |               | (8,467                | )       |               |         | (1,879       | )       |   |   |         | (1,230 | )     |   |         | (1,195 | )     
|                                      |                                                                                                                                   | (Increase) decrease in prepaid expenses and other                         |                                                     |               | (24                   | )       |               |         | 2,030        |         |   |   |         | 208    |       |   |         | (427   | )     
|                                      |                                                                                                                                   | Increase in current income taxes                                          |                                                     |               | 9,040                 |         |               |         | 1,926        |         |   |   |         | 145    |       |   |         | 281    |       
|                                      |                                                                                                                                   | Increase (decrease) in accounts payable                                   |                                                     |               | (424                  | )       |               |         | (4,811       | )       |   |   |         | 3,883  |       |   |         | 2,337  |       
|                                      |                                                                                                                                   | Increase (decrease) in accrued expenses and other accrued
    liabilities |                                                     |               | (4,237                | )       |               |         | 5,248        |         |   |   |         | (751   | )     |   |         | (6,327 | )     
|                                      |                                                                                                                                   |                                                                           |                                                     |               |                       |         |               |         |              |         |   |   |         |        |       |   |        
|                                      | Net cash provided by (used in) continuing operations                                                                              |                                                                           |                                                     | (7,640        | )                     |         |               | (12,194 | )            |         |   |   | 5,558   |        |       |   | 3,636   |       
|                                      | Net cash provided by (used in) discontinued operations                                                                            |                                                                           |                                                     | (3,228        | )                     |         |               | (6,970  | )            |         |   |   | 1,091   |        |       |   | (4,700  | )     
|                                      |                                                                                                                                   |                                                                           |                                                     |               |                       |         |               |         |              |         |   |   |         |        |       |   |        
|                                      |                                                                                                                                   |                                                                           | Net cash provided by (used in) operating activities |               |                       | (10,868 | )             |         |              | (19,164 | ) |   |         |        | 6,649 |   |         |        | (1,064 | )
|                                      |                                                                                                                                   |                                                                           |                                                     |               |                       |         |               |         |              |         |   |   |         |        |       |   |        

(continued on next page)


F-9



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##### Table of Contents



DDi CORP.


CONSOLIDATED STATEMENTS OF CASH
FLOWS  (Continued)


|                                      |                                                                        |                                                     |  |               |                       |   |               |        |              |   |  |  |      |     |  |  |        |     | 
|------------------------------------- | ---------------------------------------------------------------------- | --------------------------------------------------- |  | ------------- | --------------------- | - | ------------- | ------ | ------------ | - |  |  | ---- | --- |  |  | ------ | --- | 
|                                      |                                                                        | Predecessor DDi Corp.                               |  |               | Reorganized DDi Corp.
|                                      |                                                                        |                                                     |  |               |                      
|                                      |                                                                        | Year Ended                                          |  | Eleven Months |                       |   | One Month     |        |             
|                                      |                                                                        | December 31,                                        |  | Ended         |                       |   | Ended         |        | Year Ended  
|                                      |                                                                        |                                                     |  | November 30,  |                       |   | December 31,  |        | December 31,
|                                      |                                                                        | 2002                                                |  | 2003          |                       |   | 2003          |        | 2004        
|                                      |                                                                        |                                                     |  |               |                       |   |               |        |             
|                                      |                                                                        | (See Note 21)                                       |  | (See Note 21) |                       |   | (See Note 21) |        |             
|                                      |                                                                        | (In thousands)                                     
|CASH FLOWS FROM INVESTING ACTIVITIES: |                                                                        |                                                     |  |               |                       |   |               |        |              |   |  |  |      |     |  |  |       
|                                      | Purchases of equipment and leasehold improvements                      |                                                     |  | (7,997        | )                     |   |               | (3,897 | )            |   |  |  | (132 | )   |  |  | (4,378 | )  
|                                      | Proceeds from sale of fixed assets                                     |                                                     |  | 199           |                       |   |               | 70     |              |   |  |  | 800  |     |  |  | 1,510  |    
|                                      | Purchase of marketable securities  available for sale                 |                                                     |  | (18,912       | )                     |   |               | (64    | )            |   |  |  |     |     |  |  |       |    
|                                      | Proceeds from sale of marketable securities 
    available for sale   |                                                     |  | 40,725        |                       |   |               | 175    |              |   |  |  |     |     |  |  |       |    
|                                      | Proceeds from (investment in) restricted assets                        |                                                     |  | (12,500       | )                     |   |               | 1,892  |              |   |  |  |     |     |  |  | 7,500  |    
|                                      | Merger and acquisition related expenditures                            |                                                     |  | (516          | )                     |   |               | (750   | )            |   |  |  |     |     |  |  | (475   | )  
|                                      | Net cash used in investing activities from discontinued
    operations |                                                     |  | (6,225        | )                     |   |               | (1,418 | )            |   |  |  | (278 | )   |  |  | (3,354 | )  
|                                      |                                                                        |                                                     |  |               |                       |   |               |        |              |   |  |  |      |     |  |  |       
|                                      |                                                                        | Net cash provided by (used in) investing activities |  |               | (5,226                | ) |               |        | (3,992       | ) |  |  |      | 390 |  |  |        | 803 | 
|                                      |                                                                        |                                                     |  |               |                       |   |               |        |              |   |  |  |      |     |  |  |       

(continued on next page)


F-10



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##### Table of Contents



DDi CORP.


CONSOLIDATED STATEMENTS OF CASH
FLOWS  (Continued)


|                                               |                                                                                      |                                                      |        |               |                       |   |               |        |              |   |   |        |      |       |   |        |         |        | 
|---------------------------------------------- | ------------------------------------------------------------------------------------ | ---------------------------------------------------- | ------ | ------------- | --------------------- | - | ------------- | ------ | ------------ | - | - | ------ | ---- | ----- | - | ------ | ------- | ------ | 
|                                               |                                                                                      | Predecessor DDi Corp.                                |        |               | Reorganized DDi Corp.
|                                               |                                                                                      |                                                      |        |               |                      
|                                               |                                                                                      | Year Ended                                           |        | Eleven Months |                       |   | One Month     |        |             
|                                               |                                                                                      | December 31,                                         |        | Ended         |                       |   | Ended         |        | Year Ended  
|                                               |                                                                                      |                                                      |        | November 30,  |                       |   | December 31,  |        | December 31,
|                                               |                                                                                      | 2002                                                 |        | 2003          |                       |   | 2003          |        | 2004        
|                                               |                                                                                      |                                                      |        |               |                       |   |               |        |             
|                                               |                                                                                      | (See Note 21)                                        |        | (See Note 21) |                       |   | (See Note 21) |        |             
|                                               |                                                                                      | (In thousands)                                      
|CASH FLOWS FROM FINANCING ACTIVITIES:          |                                                                                      |                                                      |        |               |                       |   |               |        |              |   |   |        |      |       |   |        |        
|                                               | Proceeds from issuance of long-term debt                                             |                                                      |        | 100,000       |                       |   |               |       |              |   |   |        |     |       |   |        |        |       
|                                               | Payments on long-term debt                                                           |                                                      |        | (67,274       | )                     |   |               | (2,621 | )            |   |   |        |     |       |   |        | (71,695 | )     
|                                               | Net borrowings (payments) on revolving credit facilities                             |                                                      |        |              |                       |   |               |       |              |   |   |        |     |       |   |        | 15,948  |       
|                                               | Payments of debt issuance costs                                                      |                                                      |        | (5,471        | )                     |   |               | (1,715 | )            |   |   |        |     |       |   |        | (2,350  | )     
|                                               | Payments of other notes payable                                                      |                                                      |        | (461          | )                     |   |               |       |              |   |   |        |     |       |   |        | (500    | )     
|                                               | Principal payments on capital lease obligations                                      |                                                      |        | (1,604        | )                     |   |               | (1,879 | )            |   |   |        | (83  | )     |   |        | (1,330  | )     
|                                               | Payment of pro-rata portion of deferred swap liability                               |                                                      |        | (3,761        | )                     |   |               |       |              |   |   |        |     |       |   |        |        |       
|                                               | Repayment of stockholder receivables                                                 |                                                      |        | 110           |                       |   |               |       |              |   |   |        |     |       |   |        |        |       
|                                               | Proceeds from issuance of Series B preferred stock                                   |                                                      |        |              |                       |   |               |       |              |   |   |        |     |       |   |        | 61,000  |       
|                                               | Costs incurred in connection with the issuance of Series B
    preferred stock       |                                                      |        |              |                       |   |               |       |              |   |   |        |     |       |   |        | (3,488  | )     
|                                               | Proceeds from issuance of common stock                                               |                                                      |        |              |                       |   |               |       |              |   |   |        |     |       |   |        | 15,980  |       
|                                               | Costs incurred in connection with the issuance of common stock                       |                                                      |        |              |                       |   |               |       |              |   |   |        |     |       |   |        | (1,213  | )     
|                                               | Issuance of common stock through Employee Stock Purchase Plan                        |                                                      |        | 338           |                       |   |               | 18     |              |   |   |        |     |       |   |        |        |       
|                                               | Proceeds from exercise of stock options                                              |                                                      |        | 151           |                       |   |               | 4      |              |   |   |        |     |       |   |        | 383     |       
|                                               | Net cash provided by (used in) financing activities from
    discontinued operations |                                                      |        | (662          | )                     |   |               | 5,737  |              |   |   |        | (726 | )     |   |        | 308     |       
|                                               |                                                                                      |                                                      |        |               |                       |   |               |        |              |   |   |        |      |       |   |        |        
|                                               |                                                                                      | Net cash provided by (used in) financing activities  |        |               | 21,366                |   |               |        | (456         | ) |   |        |      | (809  | ) |        |         | 13,043 | 
|                                               |                                                                                      |                                                      |        |               |                       |   |               |        |              |   |   |        |      |       |   |        |        
|                                               | Effect of exchange rate changes on cash                                              |                                                      |        | 33            |                       |   |               | (282   | )            |   |   |        | (68  | )     |   |        | (458    | )     
|                                               |                                                                                      |                                                      |        |               |                       |   |               |        |              |   |   |        |      |       |   |        |        
|                                               |                                                                                      | Net increase (decrease) in cash and cash equivalents |        |               | 5,305                 |   |               |        | (23,894      | ) |   |        |      | 6,162 |   |        |         | 12,324 | 
|Cash and cash equivalents, beginning of period |                                                                                      |                                                      | 23,629 |               |                       |   | 28,934        |        |              |   |   | 5,040  |      |       |   | 11,202 |        
|                                               |                                                                                      |                                                      |        |               |                       |   |               |        |              |   |   |        |      |       |   |        |        
|Cash and cash equivalents, end of period       |                                                                                      | $                                                    | 28,934 |               |                       | $ | 5,040         |        |              |   | $ | 11,202 |      |       | $ | 23,526 |        
|                                               |                                                                                      |                                                      |        |               |                       |   |               |        |              |   |   |        |      |       |   |        |        



F-11



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##### Table of Contents



DDi CORP.








NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |                                                  
|-- | -------------------------------------------------
|1. | BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS

Basis of Presentation












Fresh Start Accounting




F-12



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Nature of Business






|   |                                
|-- | -------------------------------
|2. | SIGNIFICANT ACCOUNTING POLICIES



Cash and cash equivalents


Cash and cash equivalents 
restricted


Receivables and Allowances for Doubtful
Accounts


F-13



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


Inventories





Property, plant and equipment





Debt issuance costs and debt discounts






Business combinations


Revenue recognition


Product warranty


F-14



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                              |  |                   |     |   |                   |             |      |   |                   |  |   |                   |   |  |   |     | 
|----------------------------- |  | ----------------- | --- | - | ----------------- | ----------- | ---- | - | ----------------- |  | - | ----------------- | - |  | - | --- | 
|                              |  | Predecessor       |     |   |                   | Reorganized |     
|                              |  | DDi Corp.         |     |   |                   | DDi Corp.   |     
|                              |  |                   |     |   |                   |             |     
|                              |  | Year              |     |   | Eleven Months     |             |      |   | One Month         |  |   | Year              |  
|                              |  | Ended             |     |   | Ended             |             |      |   | Ended             |  |   | Ended             |  
|                              |  | December 31, 2002 |     |   | November 30, 2003 |             |      |   | December 31, 2003 |  |   | December 31, 2004 |  
|                              |  |                   |     |   |                   |             |      |   |                   |  |   |                   |  
|Beginning balance             |  | $                 | 596 |   |                   | $           | 659  |   |                   |  | $ | 547               |   |  | $ | 522 | 
|Current year warranty charges |  |                   | 65  |   |                   |             | 38   |   |                   |  |   |                  |   |  |   | 134 | 
|Net utilization               |  |                   | (2  | ) |                   |             | (150 | ) |                   |  |   | (25               | ) |  |   |    | 
|                              |  |                   |     |   |                   |             |      |   |                   |  |   |                   |  
|Ending Balance                |  | $                 | 659 |   |                   | $           | 547  |   |                   |  | $ | 522               |   |  | $ | 656 | 
|                              |  |                   |     |   |                   |             |      |   |                   |  |   |                   |  

Shipping costs


Comprehensive income


Concentration of credit risk


Environmental matters


Income taxes


Long-lived assets


Goodwill and identifiable intangibles


F-15



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|                         |  |             |       | 
|------------------------ |  | ----------- | ----- | 
|                         |  | Reorganized
|Year Ending December 31, |  | DDi Corp.  
|                         |  |            
|2005                     |  | $           | 4,598 | 
|2006                     |  |             | 4,598 | 
|2007                     |  |             | 4,598 | 
|2008                     |  |             | 4,215 | 
|2009                     |  |             |      | 

Deferred lease liability


Foreign currency translation


Derivative financial instruments




Stock options


F-16



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|                                                                                |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |       |  
|------------------------------------------------------------------------------- | ------------------------------------------------------------------ | --------------------- | - | ------------- | --------------------- |  | ------------ | ----- | ------------ |  |  | - | ----- | - |  | - | ----- | -
|                                                                                |                                                                    | Predecessor DDi Corp. |   |               | Reorganized DDi Corp.
|                                                                                |                                                                    |                       |   |               |                      
|                                                                                |                                                                    |                       |   | Eleven Months |                       |  | One Month    |       |             
|                                                                                |                                                                    | Year Ended            |   | Ended         |                       |  | Ended        |       | Year Ended  
|                                                                                |                                                                    | December 31,          |   | November 30,  |                       |  | December 31, |       | December 31,
|                                                                                |                                                                    | 2002                  |   | 2003          |                       |  | 2003         |       | 2004        
|                                                                                |                                                                    |                       |   |               |                       |  |              |       |             
|Net income (loss) available to holders of common stock:                         |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |      
|                                                                                | As reported basic                                                  |                       | $ | (288.1        | )                     |  | $            | 164.4 |              |  |  | $ | (14.0 | ) |  | $ | (49.9 | )
|                                                                                | Less: non-cash compensation expenses under FAS 123, net of
    tax |                       |   | (6.2          | )                     |  |              | (7.4  | )            |  |  |   | (10.4 | ) |  |   | (23.8 | )
|                                                                                | Add: non-cash compensation expenses under APB 25, net of tax       |                       |   |              |                       |  |              |      |              |  |  |   | 10.0  |   |  |   | 21.0  |  
|                                                                                |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |      
|                                                                                | Pro forma basic                                                    |                       | $ | (294.3        | )                     |  | $            | 157.0 |              |  |  | $ | (14.4 | ) |  | $ | (52.7 | )
|                                                                                |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |      
|                                                                                | As reported diluted                                                |                       | $ | (288.1        | )                     |  | $            | 171.7 |              |  |  | $ | (14.0 | ) |  | $ | (49.9 | )
|                                                                                | Less: non-cash compensation expenses under FAS 123, net of
    tax |                       |   | (6.2          | )                     |  |              | (7.4  | )            |  |  |   | (10.4 | ) |  |   | (23.8 | )
|                                                                                | Add: non-cash compensation expenses under APB 25, net of tax       |                       |   |              |                       |  |              |      |              |  |  |   | 10.0  |   |  |   | 21.0  |  
|                                                                                |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |      
|                                                                                | Pro forma diluted                                                  |                       | $ | (294.3        | )                     |  | $            | 164.3 |              |  |  | $ | (14.4 | ) |  | $ | (52.7 | )
|                                                                                |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |      
|Net income (loss) per share available to holders of common
    stock  basic:   |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |      
|                                                                                | As reported                                                        |                       | $ | (5.98         | )                     |  | $            | 3.33  |              |  |  | $ | (0.59 | ) |  | $ | (1.97 | )
|                                                                                | Pro forma                                                          |                       | $ | (6.11         | )                     |  | $            | 3.18  |              |  |  | $ | (0.61 | ) |  | $ | (2.08 | )
|Net income (loss) per share available to holders of common
    stock  diluted: |                                                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |   |  |   |      
|                                                                                | As reported                                                        |                       | $ | (5.98         | )                     |  | $            | 2.78  |              |  |  | $ | (0.59 | ) |  | $ | (1.97 | )
|                                                                                | Pro forma                                                          |                       | $ | (6.11         | )                     |  | $            | 2.66  |              |  |  | $ | (0.61 | ) |  | $ | (2.08 | )

Accounting for Stock Appreciation
Rights and Other Variable Stock Option or Award Plans


F-17



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Basic and diluted earnings per share






|                                                                 |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |   | 
|---------------------------------------------------------------- | -------------------------------------------- | --------------------- | ---------- | ------------- | --------------------- | - | ------------ | ---------- | ------------ |  | - | ---------- | - |  | - | ---------- | - | 
|                                                                 |                                              | Predecessor DDi Corp. |            |               | Reorganized DDi Corp.
|                                                                 |                                              |                       |            |               |                      
|                                                                 |                                              |                       |            | Eleven Months |                       |   | One Month    |            |             
|                                                                 |                                              | Year Ended            |            | Ended         |                       |   | Ended        |            | Year Ended  
|                                                                 |                                              | December 31,          |            | November 30,  |                       |   | December 31, |            | December 31,
|                                                                 |                                              | 2002                  |            | 2003          |                       |   | 2003         |            | 2004        
|                                                                 |                                              |                       |            |               |                       |   |              |            |             
|Numerator:                                                       |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |  
|Net income (loss) available to holders of common stock (basic)   |                                              | $                     | (288,093   | )             |                       | $ | 164,422      |            |              |  | $ | (14,008    | ) |  | $ | (49,909    | )
|Add: income impact of assumed conversions of convertible debt    |                                              |                       |           |               |                       |   | 7,327        |            |              |  |   |           |   |  |   |           |  
|                                                                 |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |  
|Net income (loss) available to holders of common stock (diluted) |                                              | $                     | (288,093   | )             |                       | $ | 171,749      |            |              |  | $ | (14,008    | ) |  | $ | (49,909    | )
|                                                                 |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |  
|Denominator:                                                     |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |  
|Weighted average shares of common stock outstanding (basic)      |                                              |                       | 48,175,353 |               |                       |   | 49,357,100   |            |              |  |   | 23,749,926 |   |  |   | 25,287,763 |  
|Dilutive potential common shares:                                |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |  
|                                                                 | Convertible debt, stock options and warrants |                       |            |              |                       |   |              | 12,434,571 |              |  |   |            |  |  |   |            |  | 
|                                                                 |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |  
|Shares used in computing diluted income (loss) per share         |                                              |                       | 48,175,353 |               |                       |   | 61,791,671   |            |              |  |   | 23,749,926 |   |  |   | 25,287,763 |  
|                                                                 |                                              |                       |            |               |                       |   |              |            |              |  |   |            |   |  |   |            |  

F-18



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|-------------------------------------------------------------------------------------- |  | --------------------- | ---------- | ------------- | --------------------- | - | ------------ | - | ------------ |  | - | ---------- | - |  | - | ---------- | -
|                                                                                       |  | Predecessor DDi Corp. |            |               | Reorganized DDi Corp.
|                                                                                       |  |                       |            |               |                      
|                                                                                       |  |                       |            | Eleven Months |                       |   | One Month    |   |             
|                                                                                       |  | Year Ended            |            | Ended         |                       |   | Ended        |   | Year Ended  
|                                                                                       |  | December 31,          |            | November 30,  |                       |   | December 31, |   | December 31,
|                                                                                       |  | 2002                  |            | 2003          |                       |   | 2003         |   | 2004        
|                                                                                       |  |                       |            |               |                       |   |              |   |             
|Income (loss) from continuing operations                                               |  | $                     | (211,973   | )             |                       | $ | 179,307      |   |              |  | $ | (10,973    | ) |  | $ | (25,152    | )
|Less: Series B preferred stock dividends and accretion                                 |  |                       |           |               |                       |   |             |   |              |  |   |           |   |  |   | (4,044     | )
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Income (loss) from continuing operations available to
    common stockholders (basic)  |  |                       | (211,973   | )             |                       |   | 179,307      |   |              |  |   | (10,973    | ) |  |   | (29,196    | )
|Add: income impact of assumed conversions of convertible debt                          |  |                       |           |               |                       |   | 7,327        |   |              |  |   |           |   |  |   |           |  
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Income (loss) from continuing operations allocable to
    common stock (diluted)       |  | $                     | (211,973   | )             |                       | $ | 186,634      |   |              |  | $ | (10,973    | ) |  | $ | (29,196    | )
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Net loss from discontinued operations, net of tax (basic and
    diluted)              |  | $                     | (76,120    | )             |                       | $ | (14,885      | ) |              |  | $ | (3,035     | ) |  | $ | (20,713    | )
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Weighted average shares of common stock outstanding (basic)                            |  |                       | 48,175,353 |               |                       |   | 49,357,100   |   |              |  |   | 23,749,926 |   |  |   | 25,287,763 |  
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Weighted average shares of common stock outstanding (diluted)                          |  |                       | 48,175,353 |               |                       |   | 61,791,671   |   |              |  |   | 23,749,926 |   |  |   | 25,287,763 |  
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Income (loss) per share of common stock from continuing
    operations  basic         |  | $                     | (4.40      | )             |                       | $ | 3.63         |   |              |  | $ | (0.46      | ) |  | $ | (1.15      | )
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Income (loss) per share of common stock from continuing
    operations  diluted       |  | $                     | (4.40      | )             |                       | $ | 3.02         |   |              |  | $ | (0.46      | ) |  | $ | (1.15      | )
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Net income (loss) per share of common stock from
    discontinued operations  basic   |  | $                     | (1.58      | )             |                       | $ | (0.30        | ) |              |  | $ | (0.13      | ) |  | $ | (0.82      | )
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  
|Net income (loss) per share of common stock from
    discontinued operations  diluted |  | $                     | (1.58      | )             |                       | $ | (0.24        | ) |              |  | $ | (0.13      | ) |  | $ | (0.82      | )
|                                                                                       |  |                       |            |               |                       |   |              |   |              |  |   |            |   |  |   |            |  



Segment reporting


F-19



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|           |                  |                       |   |               |                       |  |              |         |              |  |  |   |        |        |  |   |         |         | 
|---------- | ---------------- | --------------------- | - | ------------- | --------------------- |  | ------------ | ------- | ------------ |  |  | - | ------ | ------ |  | - | ------- | ------- | 
|           |                  | Predecessor DDi Corp. |   |               | Reorganized DDi Corp.
|           |                  |                       |   |               |                      
|           |                  |                       |   | Eleven Months |                       |  | One Month    |         |             
|           |                  | Year Ended            |   | Ended         |                       |  | Ended        |         | Year Ended  
|           |                  | December 31,          |   | November 30,  |                       |  | December 31, |         | December 31,
|           |                  | 2002                  |   | 2003          |                       |  | 2003         |         | 2004        
|           |                  |                       |   |               |                       |  |              |         |             
|Net sales: |                  |                       |   |               |                       |  |              |         |              |  |  |   |        |        |  |   |        
|           | North America(1) |                       | $ | 182,827       |                       |  | $            | 135,882 |              |  |  | $ | 13,608 |        |  | $ | 180,817 |        
|           | Asia             |                       |   | 2,423         |                       |  |              | 5,264   |              |  |  |   | 624    |        |  |   | 5,826   |        
|           | Other            |                       |   | 362           |                       |  |              | 3,804   |              |  |  |   | 381    |        |  |   | 2,364   |        
|           |                  |                       |   |               |                       |  |              |         |              |  |  |   |        |        |  |   |        
|           |                  | Total                 |   | $             | 185,612               |  |              | $       | 144,950      |  |  |   | $      | 14,613 |  |   | $       | 189,007 | 
|           |                  |                       |   |               |                       |  |              |         |              |  |  |   |        |        |  |   |        






|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|(1) | Sales to the United States represent the majority of sales to
    North America.

Reclassifications


Recently issued accounting standards




Participating Securities and the Two-Class
Method Under FASB Statement No. 128, Earnings Per
Share


F-20



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)










F-21



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)








|   |                                          
|-- | -----------------------------------------
|3. | VOLUNTARY REORGANIZATION UNDER CHAPTER 11

Bankruptcy and Reorganization






Current Equity


Pre-Bankruptcy Common Equity


F-22



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




5.25% Convertible Subordinated Notes


6.25% Convertible Subordinated Notes


DDi Capital Senior Discount Notes


Management Equity Incentive Plan and 2003 Directors
Equity Incentive Plan


New Senior Credit Facility


F-23



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)








|   |                       
|-- | ----------------------
|4. | FRESH-START ACCOUNTING





















F-24



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                                                                                |  |   |         |  
|------------------------------------------------------------------------------- |  | - | ------- | -
|Carrying value of 5.25% Convertible Subordinated Notes                          |  | $ | 100,000 |  
|Carrying value of 6.25% Convertible Subordinated Notes                          |  |   | 100,000 |  
|Carrying value of related accrued interest                                      |  |   | 10,639  |  
|94% equity of the Reorganized DDi Corp. (23,500,000 shares
    of common stock) |  |   | (88,195 | )
|Fair value of 1,000,000 shares of DDi Series A
    preferred stock              |  |   | (2,000  | )
|                                                                                |  |   |         |  
|Gain on extinguishment debt                                                     |  | $ | 120,444 |  
|                                                                                |  |   |         |  





DDi Corp.


Fresh Start Consolidated Balance Sheets at November 30,
2003


|                                               |                                                                        |                      |        |             |         |             |   |   |              |  |              |         |              |  |  |         |        |         |  |         |         |     |  |        |        |         | 
|---------------------------------------------- | ---------------------------------------------------------------------- | -------------------- | ------ | ----------- | ------- | ----------- | - | - | ------------ |  | ------------ | ------- | ------------ |  |  | ------- | ------ | ------- |  | ------- | ------- | --- |  | ------ | ------ | ------- | 
|                                               |                                                                        |                      |        |             |         |             |   |   |              |  |              |         | Reclassed   
|                                               |                                                                        | Predecessor          |        |             |         |             |   |   | Reorganized  |  |              |         | Reorganized 
|                                               |                                                                        | DDi Corp.            |        |             |         |             |   |   | DDi Corp.    |  |              |         | DDi Corp.   
|                                               |                                                                        |                      |        |             |         |             |   |   |              |  | Reclass for  |         |             
|                                               |                                                                        | November 30,         |        | Debt        |         | Fresh-Start |   |   | November 30, |  | Discontinued |         | November 30,
|                                               |                                                                        | 2003                 |        | Restructure |         | Adjustments |   |   | 2003         |  | Operations   |         | 2003        
|                                               |                                                                        |                      |        |             |         |             |   |   |              |  |              |         |             
|                                               |                                                                        | (In thousands)       |        |             |         |            
|ASSETS                                        
|Current assets:                                |                                                                        |                      |        |             |         |             |   |   |              |  |              |         |              |  |  |         |        |         |  |         |         |     |  |        |       
|                                               | Cash and cash equivalents                                              |                      | $      | 5,040       |         |             | $ |  |              |  | $            |        |              |  |  | $       | 5,040  |         |  | $       |        |     |  | $      | 5,040  |        
|                                               | Cash and cash equivalents  restricted                                 |                      |        |            |         |             |   |  |              |  |              | 7,500   | (i)          |  |  |         | 7,500  |         |  |         |        |     |  |        | 7,500  |        
|                                               | Accounts receivable, net                                               |                      |        | 43,757      |         |             |   |  |              |  |              |        |              |  |  |         | 43,757 |         |  |         | (17,030 | )   |  |        | 26,727 |        
|                                               | Inventories                                                            |                      |        | 25,626      |         |             |   |  |              |  |              |        |              |  |  |         | 25,626 |         |  |         | (10,268 | )   |  |        | 15,358 |        
|                                               | Prepaid expenses and other                                             |                      |        | 2,876       |         |             |   |  |              |  |              |        |              |  |  |         | 2,876  |         |  |         | (1,316  | )   |  |        | 1,560  |        
|                                               | Current assets held for disposal                                       |                      |        |            |         |             |   |  |              |  |              |        |              |  |  |         |       |         |  |         | 28,614  |     |  |        | 28,614 |        
|                                               |                                                                        |                      |        |             |         |             |   |   |              |  |              |         |              |  |  |         |        |         |  |         |         |     |  |        |       
|                                               |                                                                        | Total current assets |        |             | 77,299  |             |   |   |             |  |              |         | 7,500        |  |  |         |        | 84,799  |  |         |         |    |  |        |        | 84,799  | 
|Property, plant and equipment, net             |                                                                        |                      | 71,432 |             |         |             |  |   |              |  | 4,036        | (c)     |              |  |  | 75,468  |        |         |  | (30,262 | )       |     |  | 45,206 |       
|Debt issuance costs, net                       |                                                                        |                      | 3,256  |             |         |             |  |   |              |  | (3,256       | )(c)    |              |  |  |        |        |         |  |        |         |     |  |       |       
|Goodwill, net                                  |                                                                        |                      | 5,565  |             |         |             |  |   |              |  | 99,829       | (c)     |              |  |  | 105,394 |        |         |  | (5,565  | )       |     |  | 99,829 |       
|Other intangibles, net                         |                                                                        |                      |       |             |         |             |  |   |              |  | 24,913       | (c)     |              |  |  | 24,913  |        |         |  |        |         |     |  | 24,913 |       
|Cash and cash equivalents  restricted         |                                                                        |                      | 7,500  |             |         |             |  |   |              |  | (7,500       | )(i)    |              |  |  |        |        |         |  |        |         |     |  |       |       
|Deferred income tax asset                      |                                                                        |                      |       |             |         |             |  |   |              |  |             |         |              |  |  |        |        |         |  | 663     |         |     |  | 663    |       
|Assets held for disposal                       |                                                                        |                      |       |             |         |             |  |   |              |  |             |         |              |  |  |        |        |         |  | 35,899  |         |     |  | 35,899 |       
|Other                                          |                                                                        |                      | 798    |             |         |             |  |   |              |  |             |         |              |  |  | 798     |        |         |  | (72     | )       |     |  | 726    |       
|                                               |                                                                        |                      |        |             |         |             |   |   |              |  |              |         |              |  |  |         |        |         |  |         |         |     |  |        |       
|                                               |                                                                        | Total assets         |        | $           | 165,850 |             |   | $ |             |  |              | $       | 125,522      |  |  |         | $      | 291,372 |  |         | $       | 663 |  |        | $      | 292,035 | 
|                                               |                                                                        |                      |        |             |         |             |   |   |              |  |              |         |              |  |  |         |        |         |  |         |         |     |  |        |       
|                                               |                                                                       
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
|Current liabilities:                           |                                                                        |                      |        |             |         |             |   |   |              |  |              |         |              |  |  |         |        |         |  |         |         |     |  |        |       
|                                               | Current maturities of long-term debt and capital lease
    obligations |                      | $      | 91,649      |         |             | $ |  |              |  | $            | (90,248 | )(e)         |  |  | $       | 1,401  |         |  |         | (240    | )   |  | $      | 1,161  |        
|                                               | Revolving credit facilities                                            |                      |        | 12,073      |         |             |   |  |              |  |              |        |              |  |  |         | 12,073 |         |  |         | (12,073 | )   |  |        |       |        

F-25



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |        |         | 
|----------------------------------------- | ----------------------------------------------- | ------------------------------------ | ------- | ----------- | -------- | ----------- | - | -------- | ------------ | - | ------------ | -------- | ------------ | - | - | ------- | ------- | ------- | - | --- | ------- | --- | - | ------- | ------ | ------- | 
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          | Reclassed   
|                                          |                                                 | Predecessor                          |         |             |          |             |   |          | Reorganized  |   |              |          | Reorganized 
|                                          |                                                 | DDi Corp.                            |         |             |          |             |   |          | DDi Corp.    |   |              |          | DDi Corp.   
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   | Reclass for  |          |             
|                                          |                                                 | November 30,                         |         | Debt        |          | Fresh-Start |   |          | November 30, |   | Discontinued |          | November 30,
|                                          |                                                 | 2003                                 |         | Restructure |          | Adjustments |   |          | 2003         |   | Operations   |          | 2003        
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |             
|                                          |                                                 | (In thousands)                       |         |             |          |            
|                                          | Accounts payable                                |                                      |         | 24,412      |          |             |   |         |              |   |              |         |              |   |   |         | 24,412  |         |   |     | (14,928 | )   |   |         | 9,484  |        
|                                          | Accrued expenses and other                      |                                      |         | 25,032      |          |             |   |         |              |   |              | 2,343    | (d)          |   |   |         | 27,375  |         |   |     | (8,114  | )   |   |         | 19,261 |        
|                                          | Income tax payable                              |                                      |         | 822         |          |             |   |         |              |   |              | 200      | (c)          |   |   |         | 1,022   |         |   |     | (1,006  | )   |   |         | 16     |        
|                                          | Note payable                                    |                                      |         | 500         |          |             |   |         |              |   |              |         |              |   |   |         | 500     |         |   |     |        |     |   |         | 500    |        
|                                          | Interest rate swap valuation                    |                                      |         | 5,770       |          |             |   |         |              |   |              | (5,770   | )(e)         |   |   |         |        |         |   |     |        |     |   |         |       |        
|                                          | Current liability held for disposal             |                                      |         |            |          |             |   |         |              |   |              |         |              |   |   |         |        |         |   |     | 36,361  |     |   |         | 36,361 |        
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |       
|                                          |                                                 | Total current liabilities            |         |             | 160,258  |             |   |          |             |   |              |          | (93,475      | ) |   |         |         | 66,783  |   |     |         |    |   |         |        | 66,783  | 
|                                          | Long term debt and capital lease obligations    |                                      |         | 19,112      |          |             |   |          |              |   |              | 94,847   | (e)(f)       |   |   |         | 113,959 |         |   |     | (24,555 | )   |   |         | 89,404 |        
|                                          | Deferred income tax liability                   |                                      |         | 1,101       |          |             |   |         |              |   |              | 62       | (c)          |   |   |         | 1,163   |         |   |     | (1,163  | )   |   |         |       |        
|                                          | Notes payable and other                         |                                      |         | 6,747       |          |             |   |         |              |   |              | 5,720    | (d)          |   |   |         | 12,467  |         |   |     |        |     |   |         | 12,467 |        
|                                          | Liabilities held for disposal                   |                                      |         |            |          |             |   |         |              |   |              |         |              |   |   |         |        |         |   |     | 26,381  |     |   |         | 26,381 |        
|                                          | Mandatorily redeemable preferred stock Series A |                                      |         |            |          |             |   | 2,000    | (a)          |   |              |         |              |   |   |         | 2,000   |         |   |     |        |     |   |         | 2,000  |        
|Liabilities subject to compromise:        |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |       
|                                          | Long-term debt and capital lease obligations    |                                      |         | 200,000     |          |             |   | (200,000 | )(a)         |   |              |         |              |   |   |         |        |         |   |     |        |     |   |         |       |        
|                                          | Notes payable and other                         |                                      |         | 10,639      |          |             |   | (10,639  | )(a)         |   |              |         |              |   |   |         |        |         |   |     |        |     |   |         |       |        
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |       
|                                          |                                                 | Total liabilities                    |         |             | 397,857  |             |   |          | (208,639     | ) |              |          | 7,154        |   |   |         |         | 196,372 |   |     |         | 663 |   |         |        | 197,035 | 
|Stockholders equity (deficit): vr,cg5;TB |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |       
|                                          | Common stock for Predecessor DDi Corp.          |                                      |         | 495         |          |             |   | (495     | )(b)         |   |              |         |              |   |   |         |        |         |   |     |        |     |   |         |       |        
|                                          | Common stock for Reorganized DDi Corp.          |                                      |         |            |          |             |   | 24       | (a)(b)       |   |              |         |              |   |   |         | 24      |         |   |     |        |     |   |         | 24     |        
|                                          | Additional paid-in-capital                      |                                      |         | 541,794     |          |             |   | 88,666   | (a)(b)       |   |              | (534,851 | )(c)         |   |   |         | 95,609  |         |   |     |        |     |   |         | 95,609 |        
|                                          | Accumulated other comprehensive income          |                                      |         | 3,020       |          |             |   |         |              |   |              | (3,020   | )(g)         |   |   |         |        |         |   |     |        |     |   |         |       |        
|                                          | Stockholder receivables                         |                                      |         | (633        | )        |             |   |         |              |   |              |         |              |   |   |         | (633    | )       |   |     |        |     |   |         | (633   | )      
|                                          | Accumulated deficit                             |                                      |         | (776,683    | )        |             |   | 120,444  | (a)          |   |              | 656,239  | (h)          |   |   |         |        |         |   |     |        |     |   |         |       |        
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |       
|                                          |                                                 | Total stockholders equity (deficit) |         |             | (232,007 | )           |   |          | 208,639      |   |              |          | 118,368      |   |   |         |         | 95,000  |   |     |         |    |   |         |        | 95,000  | 
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |       
|                                          |                                                 | $                                    | 165,850 |             |          | $           |  |          |              | $ | 125,522      |          |              |   | $ | 291,372 |         |         | $ | 663 |         |     | $ | 292,035 |       
|                                          |                                                 |                                      |         |             |          |             |   |          |              |   |              |          |              |   |   |         |         |         |   |     |         |     |   |         |       






|    |                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | To record the discharge of indebtedness, including accrued
    interest, in accordance with the plan of reorganization
    ($210.6 million), Reorganized DDi Corp. issued common stock
    ($88.2 million) and Series A Preferred stock
    ($2 million) to holders of the convertible subordinated
    notes.



|    |  |                                                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | To eliminate Predecessor DDi Corp. common stock and record the
    issuance of the Reorganized DDi Corp. common stock.                                                                         
|   
|(c) |  | To adjust the carrying value of assets and liabilities to fair
    value.                                                                                                                      
|   
|(d) |  | To record deferred lease liability.                                                                                                                                                            
|   
|(e) |  | To reclassify long term portion of the new Senior Credit
    Facility to long term debt.                                                                                                       
|   
|(f) |  | To record the fair value of common stock warrants issued to the
    holders of the new Senior Credit Facility and the Senior
    Accreting Notes in accordance with the plan of reorganization.
|   
|(g) |  | To reclassify foreign currency translation adjustments as part
    of fresh start accounting.                                                                                                  
|   
|(h) |  | To eliminate accumulated deficit as part of fresh start
    accounting.                                                                                                                        
|   
|(i) |  | To reclassify noncurrent restricted cash to current restricted
    cash.                                                                                                                       

F-26



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|   |                    
|-- | -------------------
|5. | ACCOUNTS RECEIVABLE



|                                      |  |                       |        |      |  |   |        |  
|------------------------------------- |  | --------------------- | ------ | ---- |  | - | ------ | -
|                                      |  | Reorganized DDi Corp.
|                                      |  |                      
|                                      |  | December 31,         
|                                      |  |                      
|                                      |  | 2003                  |        | 2004
|                                      |  |                       |        |     
|Accounts receivable                   |  | $                     | 24,937 |      |  | $ | 28,143 |  
|Less: Allowance for doubtful accounts |  |                       | (1,076 | )    |  |   | (1,579 | )
|                                      |  |                       |        |      |  |   |        |  
|                                      |  | $                     | 23,861 |      |  | $ | 26,564 |  
|                                      |  |                       |        |      |  |   |        |  



|   |            
|-- | -----------
|6. | INVENTORIES



|                |  |                       |        |      |  |   |        | 
|--------------- |  | --------------------- | ------ | ---- |  | - | ------ | 
|                |  | Reorganized DDi Corp.
|                |  |                      
|                |  | December 31,         
|                |  |                      
|                |  | 2003                  |        | 2004
|                |  |                       |        |     
|Raw materials   |  | $                     | 7,307  |      |  | $ | 8,094  | 
|Work-in-process |  |                       | 7,048  |      |  |   | 7,020  | 
|Finished goods  |  |                       | 2,255  |      |  |   | 2,882  | 
|                |  |                       |        |      |  |   |        | 
|                |  | $                     | 16,610 |      |  | $ | 17,996 | 
|                |  |                       |        |      |  |   |        | 



|   |                              
|-- | -----------------------------
|7. | PROPERTY, PLANT AND EQUIPMENT



|                                                 |  |                       |        |      |  |   |         |  
|------------------------------------------------ |  | --------------------- | ------ | ---- |  | - | ------- | -
|                                                 |  | Reorganized DDi Corp.
|                                                 |  |                      
|                                                 |  | December 31,         
|                                                 |  |                      
|                                                 |  | 2003                  |        | 2004
|                                                 |  |                       |        |     
|Buildings and leasehold improvements             |  | $                     | 9,794  |      |  | $ | 9,864   |  
|Machinery and equipment                          |  |                       | 29,884 |      |  |   | 32,427  |  
|Office furniture and equipment                   |  |                       | 2,880  |      |  |   | 3,836   |  
|Vehicles                                         |  |                       | 72     |      |  |   | 58      |  
|Land and building held for sale (Garland, Texas) |  |                       | 1,500  |      |  |   |        |  
|Deposits on equipment                            |  |                       | 451    |      |  |   | 962     |  
|                                                 |  |                       |        |      |  |   |         |  
|                                                 |  |                       | 44,581 |      |  |   | 47,147  |  
|Less: Accumulated depreciation                   |  |                       | (915   | )    |  |   | (10,771 | )
|                                                 |  |                       |        |      |  |   |         |  
|                                                 |  | $                     | 43,666 |      |  | $ | 36,376  |  
|                                                 |  |                       |        |      |  |   |         |  





F-27



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|   |                                                                            
|-- | ---------------------------------------------------------------------------
|8. | REVOLVING CREDIT FACILITY, LONG-TERM DEBT AND CAPITAL LEASE
    OBLIGATIONS



|                                                                                                                                                                                                                                                         |           |                       |        |        |  |   |         |        | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------------------- | ------ | ------ |  | - | ------- | ------ | 
|                                                                                                                                                                                                                                                         |           | Reorganized DDi Corp.
|                                                                                                                                                                                                                                                         |           |                      
|                                                                                                                                                                                                                                                         |           | December 31,         
|                                                                                                                                                                                                                                                         |           |                      
|                                                                                                                                                                                                                                                         |           | 2003                  |        | 2004  
|                                                                                                                                                                                                                                                         |           |                       |        |       
|Senior Credit Facility, net of unamortized discount of $895 at
    December 31, 2003                                                                                                                                                                     |           | $                     | 70,799 |        |  | $ |        |       
|Dynamic Details Revolving Credit Facility(a)                                                                                                                                                                                                             |           |                       |       |        |  |   | 15,948  |       
|Capital Senior Accreting Notes, due January 1, 2009 face
    amount of $17,656 at December 31, 2003 and $18,394 at
    December 31, 2004, respectively, net of unamortized
    discount of $229 and $200 at December 31, 2003 and 2004,
    respectively |           |                       | 17,427 |        |  |   | 18,194  |       
|Capital lease obligations                                                                                                                                                                                                                                |           |                       | 2,298  |        |  |   | 974     |       
|                                                                                                                                                                                                                                                         |           |                       |        |        |  |   |         |       
|                                                                                                                                                                                                                                                         | Sub-total |                       |        | 90,524 |  |   |         | 35,116 | 
|Less: current maturities                                                                                                                                                                                                                                 |           |                       | (1,186 | )      |  |   | (916    | )     
|Less: Dynamic Details Revolving Credit Facility                                                                                                                                                                                                          |           |                       |       |        |  |   | (15,948 | )     
|                                                                                                                                                                                                                                                         |           |                       |        |        |  |   |         |       
|                                                                                                                                                                                                                                                         | Total     |                       | $      | 89,338 |  |   | $       | 18,252 | 
|                                                                                                                                                                                                                                                         |           |                       |        |        |  |   |         |       






|    |                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------
|(a) | Interest rate is based on Prime rate. The effective interest
    rate as of December 31, 2004 was 8.25%.

Senior Credit Facility






F-28



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)












Revolving Credit Facility




F-29



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




5.25% Convertible Subordinated Notes








6.25% Convertible Subordinated Notes










F-30



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Capital Senior Discount Notes






Capital Senior Accreting Notes




Note Payable




Debt Issuance Costs




F-31



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






Change of Control






|   |                                                
|-- | -----------------------------------------------
|9. | SERIES A MANDATORILY REDEEMABLE PREFERRED STOCK









F-32



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|    |                                                
|--- | -----------------------------------------------
|10. | SERIES B MANDATORILY REDEEMABLE PREFERRED STOCK







|    |                                       
|--- | --------------------------------------
|11. | ACCRUED EXPENSES AND OTHER LIABILITIES



|                                      |  |              |        |  |      |  |   |        | 
|------------------------------------- |  | ------------ | ------ |  | ---- |  | - | ------ | 
|                                      |  | Reorganized 
|                                      |  | DDi Corp.   
|                                      |  |             
|                                      |  | December 31,
|                                      |  |             
|                                      |  | 2003         |        |  | 2004
|                                      |  |              |        |  |     
|Accrued salaries and related benefits |  | $            | 5,111  |  |      |  | $ | 6,145  | 
|Accrued interest payable              |  |              | 161    |  |      |  |   | 143    | 
|Accrued restructuring charges         |  |              | 5,301  |  |      |  |   | 418    | 
|Deferred lease liability              |  |              | 2,147  |  |      |  |   | 1,877  | 
|Other accrued expenses                |  |              | 6,107  |  |      |  |   | 5,944  | 
|                                      |  |              |        |  |      |  |   |        | 
|                                      |  | $            | 18,827 |  |      |  | $ | 14,527 | 
|                                      |  |              |        |  |      |  |   |        | 

F-33



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|    |            
|--- | -----------
|12. | DERIVATIVES









|    |                                    
|--- | -----------------------------------
|13. | FAIR VALUE OF FINANCIAL INSTRUMENTS





|    |                          
|--- | -------------------------
|14. | CAPITAL LEASE OBLIGATIONS



Future Payments




F-34



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|    |                     
|--- | --------------------
|15. | STOCKHOLDERS EQUITY

Common Stock






Stockholder Receivables




Employee Stock Purchase Plan




Common Stock Warrants






F-35



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Stock Options






|                                       |  |               |            |           |  |             |           |          |  |   |                |  |  |   |       | 
|-------------------------------------- |  | ------------- | ---------- | --------- |  | ----------- | --------- | -------- |  | - | -------------- |  |  | - | ----- | 
|                                       |  |               |            |           |  |             |           | Weighted
|                                       |  | Option        |            |           |  | Outstanding |           | Average 
|                                       |  | Available for |            | Number of |  | Price per   |           | Exercise
|                                       |  | Grant         |            | Options   |  | Option      |           | Price   
|                                       |  |               |            |           |  |             |           |         
|Balance as of December 1, 2003         |  |               |           |           |  |             |          |          |  | $ |               |  |  | $ |      | 
|Shares reserved                        |  |               | 4,191,617  |           |  |             |           |          |  |   |                |  |  |   |       | 
|Granted                                |  |               | (2,542,506 | )         |  |             | 2,542,506 |          |  | $ | 0.49 - $ 5.75  |  |  | $ | 4.26  | 
|Exercised                              |  |               |            |           |  |             |           |          |  |   |                |  |  |   |       | 
|Forfeited                              |  |               |            |           |  |             |           |          |  |   |                |  |  |   |       | 
|                                       |  |               |            |           |  |             |           |          |  |   |                |  |  |   |       | 
|Balance as of December 31, 2003        |  |               | 1,649,111  |           |  |             | 2,542,506 |          |  | $ | 0.49 - $ 5.75  |  |  | $ | 4.26  | 
|Additional Shares reserved             |  |               | 600,000    |           |  |             |           |          |  |   |                |  |  |   |       | 
|Granted                                |  |               | (389,100   | )         |  |             | 389,100   |          |  | $ | 3.88 - $10.45  |  |  | $ | 6.23  | 
|Transferred in from contingent options |  |               | 374,251    |           |  |             | 374,252   |          |  | $ | 0.001 - $0.001 |  |  | $ | 0.001 | 
|Exercised                              |  |               |            |           |  |             | (94,846   | )        |  | $ | 0.49 - $ 5.75  |  |  | $ | 4.10  | 
|Forfeited                              |  |               | 58,510     |           |  |             | (58,510   | )        |  | $ | 0.001 - $10.45 |  |  | $ | 4.91  | 
|                                       |  |               |            |           |  |             |           |          |  |   |                |  |  |   |       | 
|Balance as of December 31, 2004        |  |               | 2,292,722  |           |  |             | 3,152,502 |          |  | $ | 0.001 - $10.45 |  |  | $ | 3.99  | 
|                                       |  |               |            |           |  |             |           |          |  |   |                |  |  |   |       | 



|                    |                 |                     |  |                  |           |                  |  |             |     |                  |  |   |       |  |  |  |           |  |  |   |       | 
|------------------- | --------------- | ------------------- |  | ---------------- | --------- | ---------------- |  | ----------- | --- | ---------------- |  | - | ----- |  |  |  | --------- |  |  | - | ----- | 
|Options Outstanding |                 | Options Exercisable
|                    |                 |                    
|                    |                 | Weighted Average    |  |                  |           |                 
|Range of            |                 | Number              |  | Remaining        |           | Weighted Average |  | Number      |     | Weighted Average
|Exercise Prices     |                 | Outstanding         |  | Contractual Life |           | Exercise Price   |  | Exercisable |     | Exercise Price  
|                    |                 |                     |  |                  |           |                  |  |             |     |                 
|                    | $0.001 - $0.001 |                     |  |                  | 370,511   |                  |  |             | 3.7 |                  |  | $ | 0.001 |  |  |  | 255,738   |  |  | $ | 0.001 | 
|                    | $ 0.49 - $ 0.49 |                     |  |                  | 475,716   |                  |  |             | 8.4 |                  |  | $ | 0.49  |  |  |  | 169,656   |  |  | $ | 0.49  | 
|                    | $ 3.88 - $ 5.75 |                     |  |                  | 2,171,675 |                  |  |             | 8.8 |                  |  | $ | 5.04  |  |  |  | 860,999   |  |  | $ | 5.05  | 
|                    | $10.45 - $10.45 |                     |  |                  | 134,600   |                  |  |             | 9.3 |                  |  | $ | 10.45 |  |  |  | 44,835    |  |  | $ | 10.45 | 
|                    |                 |                     |  |                  |           |                  |  |             |     |                  |  |   |       |  |  |  |           |  |  |   |       | 
|                    | $0.001 - $10.45 |                     |  |                  | 3,152,502 |                  |  |             | 8.2 |                  |  | $ | 3.99  |  |  |  | 1,331,228 |  |  | $ | 3.68  | 
|                    |                 |                     |  |                  |           |                  |  |             |     |                  |  |   |       |  |  |  |           |  |  |   |       | 

F-36



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|                                |  |              |      |              |  |  |       |  
|------------------------------- |  | ------------ | ---- | ------------ |  |  | ----- | -
|                                |  | One Month    |      |             
|                                |  | Ended        |      | Year Ended  
|                                |  | December 31, |      | December 31,
|                                |  | 2003         |      | 2004        
|                                |  |              |      |             
|Expected Dividend Yield         |  |              | 0    | %            |  |  | 0     | %
|Expected stock price volatility |  |              | 170  | %            |  |  | 61.07 | %
|Risk-free Interest rate         |  |              | 2.83 | %            |  |  | 3.10  | %
|Expected life (years)           |  |              | 4    |              |  |  | 4     |  

Contingent Options








F-37



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                                        |  |               |           |            |  |             |          |          |  |   |                |  |  |   |       | 
|--------------------------------------- |  | ------------- | --------- | ---------- |  | ----------- | -------- | -------- |  | - | -------------- |  |  | - | ----- | 
|                                        |  | Contingent    |           |            |  | Outstanding |          | Weighted
|                                        |  | Options       |           | Number of  |  | Price per   |          | Average 
|                                        |  | Available for |           | Contingent |  | Contingent  |          | Exercise
|                                        |  | Grant         |           | Options    |  | Option      |          | Price   
|                                        |  |               |           |            |  |             |          |         
|Balance as of December 1, 2003          |  |               |          |            |  |             |         |          |  | $ |               |  |  | $ |      | 
|Shares reserved                         |  |               | 1,318,791 |            |  |             |          |          |  |   |                |  |  |   |       | 
|Granted                                 |  |               | (577,928  | )          |  |             | 577,928  |          |  | $ | 0.001 - $ 5.75 |  |  | $ | 1.32  | 
|Exercised                               |  |               |          |            |  |             |         |          |  |   |                |  |  |   |       | 
|Forfeited                               |  |               |          |            |  |             |         |          |  |   |                |  |  |   |       | 
|                                        |  |               |           |            |  |             |          |          |  |   |                |  |  |   |       | 
|Balance as of December 31, 2003         |  |               | 740,863   |            |  |             | 577,928  |          |  | $ | 0.001 - $ 5.75 |  |  | $ | 1.32  | 
|Additional Shares reserved              |  |               |          |            |  |             |         |          |  |   |                |  |  |   |       | 
|Cancelled due to lifting of contingency |  |               | (366,612  | )          |  |             | (203,676 | )        |  | $ | 0.49 - $ 5.75  |  |  | $ | 3.75  | 
|Transferred to non-contingent options   |  |               | (374,251  | )          |  |             | (374,252 | )        |  | $ | 0.001 - $0.001 |  |  | $ | 0.001 | 
|                                        |  |               |           |            |  |             |          |          |  |   |                |  |  |   |       | 
|Balance as of December 31, 2004         |  |               |          |            |  |             |         |          |  | $ |               |  |  | $ |      | 
|                                        |  |               |           |            |  |             |          |          |  |   |                |  |  |   |       | 

Restricted Stock




Director Options




F-38



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)


Deferred Compensation




|                                    |                                    |                               |   |                |     |  |   |       | 
|----------------------------------- | ---------------------------------- | ----------------------------- | - | -------------- | --- |  | - | ----- | 
|                                    |                                    | Market Value of Companys    
|                                    |                                    | Common Stock at Date of Grant
|                                    |                                    |                              
|                                    |                                    | Granted During                |   | Granted During
|                                    |                                    | the One Month                 |   | Year          
|                                    |                                    | Ended                         |   | Ended         
|                                    |                                    | December 31,                  |   | December 31,  
|                                    |                                    | 2003                          |   | 2004          
|                                    |                                    |                               |   |               
|Stock Options under 2003 Plan:      |                                    |                               |   |                |     |  |   |      
|                                    | Granted December 19, 2003          |                               | $ | 13.60          |     |  |   |       | 
|                                    | Granted April 1, 2004              |                               |   |                |     |  | $ | 11.04 | 
|Contingent Options under 2003 Plan: |                                    |                               |   |                |     |  |   |      
|                                    | Granted December 19, 2003          |                               | $ | 14.70          | (a) |  |   |       | 
|                                    | Contingency lifted March 30, 2004  |                               |   |                |     |  | $ | 11.20 | 
|Restricted Stock                    |                                    |                               |   |                |     |  |   |      
|                                    | Granted December 19, 2003          |                               | $ | 13.60          |     |  |   |       | 
|Directors Options                  |                                    |                               |   |                |     |  |   |      
|                                    | Shareholders approved May 26, 2003 |                               |   |                |     |  | $ | 7.57  | 






|    |                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------
|(a) | Variable accounting under FIN 44 is used, therefore the
    balance sheet date is used as the measurement date.



|                                                                                                                                                 |                                     |              |      |              |  |   |      |      | 
|------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------- | ------------ | ---- | ------------ |  | - | ---- | ---- | 
|                                                                                                                                                 |                                     | One Month    |      | Year        
|                                                                                                                                                 |                                     | Ended        |      | Ended       
|                                                                                                                                                 |                                     | December 31, |      | December 31,
|                                                                                                                                                 |                                     | 2003         |      | 2004        
|                                                                                                                                                 |                                     |              |      |             
|                                                                                                                                                 |                                     | in million   |      | in million  
|Deferred Compensation Expense for grants of stock options,
    Contingent Options and restricted stock (net of adjustments and
    cancellation) |                                     | $            | 35.0 |              |  | $ | 0.03 |     
|                                                                                                                                                 |                                     |              |      |              |  |   |      |     
|Non-Cash Compensation Charge for grants of stock options,
    Contingent Options and restricted stock:                                           |                                     |              |      |              |  |   |      |     
|                                                                                                                                                 | Cost of Good Sold                   |              | $    | 5.8          |  |   | $    | 11.8 | 
|                                                                                                                                                 | Sales and Marketing Expenses        |              |      | 1.0          |  |   |      | 2.4  | 
|                                                                                                                                                 | General and administrative expenses |              |      | 1.5          |  |   |      | 4.1  | 
|                                                                                                                                                 |                                     |              |      |              |  |   |      |     
|Total non-cash compensation charge                                                                                                               |                                     | $            | 8.3  |              |  | $ | 18.3 |     
|                                                                                                                                                 |                                     |              |      |              |  |   |      |     



F-39



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|    |                   
|--- | ------------------
|16. | INCOME TAX MATTERS



|                                                                |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |       | 
|--------------------------------------------------------------- | ------- | --------------------- | ------ | ------------- | --------------------- | - | ------------ | ---- | ------------ |  | - | --- | --- | - | - | ----- | ----- | 
|                                                                |         | Predecessor DDi Corp. |        |               | Reorganized DDi Corp.
|                                                                |         |                       |        |               |                      
|                                                                |         |                       |        | Eleven Months |                       |   | One Month    |      |             
|                                                                |         |                       |        | Ended         |                       |   | Ended        |      | Year Ended  
|                                                                |         | December 31,          |        | November 30,  |                       |   | December 31, |      | December 31,
|                                                                |         | 2002                  |        | 2003          |                       |   | 2003         |      | 2004        
|                                                                |         |                       |        |               |                       |   |              |      |             
|Current:                                                        |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |      
|                                                                | Federal |                       | $      |              |                       |   | $            |     |              |  |   | $   |    |   |   | $     | 340   | 
|                                                                | State   |                       |        |              |                       |   |              |     |              |  |   |     |    |   |   |       |      | 
|                                                                | Foreign |                       |        | 534           |                       |   |              | 828  |              |  |   |     | (39 | ) |   |       | 1,644 | 
|                                                                |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |      
|                                                                |         |                       | 534    |               |                       |   | 828          |      |              |  |   | (39 | )   |   |   | 1,984 |      
|                                                                |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |      
|Deferred:                                                       |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |      
|                                                                | Federal |                       |        | 12,250        |                       |   |              |     |              |  |   |     |    |   |   |       |      | 
|                                                                | State   |                       |        | 4,185         |                       |   |              |     |              |  |   |     |    |   |   |       |      | 
|                                                                | Foreign |                       |        |              |                       |   |              | (768 | )            |  |   |     |    |   |   |       |      | 
|                                                                |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |      
|                                                                |         |                       | 16,435 |               |                       |   | (768         | )    |              |  |   |    |     |   |   |      |      
|                                                                |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |      
|Provision (benefit) for income taxes from continuing operations |         | $                     | 16,969 |               |                       | $ | 60           |      |              |  | $ | (39 | )   |   | $ | 1,984 |      
|                                                                |         |                       |        |               |                       |   |              |      |              |  |   |     |     |   |   |       |      



|                          |                                                    |                       |         |        |      |  |  |         |        |  
|------------------------- | -------------------------------------------------- | --------------------- | ------- | ------ | ---- |  |  | ------- | ------ | -
|                          |                                                    | Reorganized DDi Corp.
|                          |                                                    |                      
|                          |                                                    | December 31,         
|                          |                                                    |                      
|                          |                                                    | 2003                  |         |        | 2004
|                          |                                                    |                       |         |        |     
|Deferred tax assets:      |                                                    |                       |         |        |      |  |  |         |       
|                          | Net operating loss carryforwards                   |                       |         | 39,592 |      |  |  |         | 36,186 |  
|                          | Trade receivables                                  |                       |         | 227    |      |  |  |         | 199    |  
|                          | Deferred compensation                              |                       |         | 3,347  |      |  |  |         | 7,516  |  
|                          | Tax credits                                        |                       |         | 5,051  |      |  |  |         | 6,413  |  
|                          | Accrued liabilities                                |                       |         | 4,394  |      |  |  |         | 5,111  |  
|                          | Capitalized research and development costs         |                       |         | 3,104  |      |  |  |         | 5,494  |  
|                          | Capital loss carryforwards                         |                       |         | 29,200 |      |  |  |         | 30,423 |  
|                          | Other                                              |                       |         | 1,818  |      |  |  |         | 2,655  |  
|                          |                                                    |                       |         |        |      |  |  |         |       
|                          |                                                    |                       | 86,733  |        |      |  |  | 93,997  |       
|                          |                                                    |                       |         |        |      |  |  |         |       
|Deferred tax liabilities: |                                                    |                       |         |        |      |  |  |         |       
|                          | Property, plant and equipment                      |                       |         | (214   | )    |  |  |         | 2,406  |  
|                          | Intangible assets                                  |                       |         | (7,871 | )    |  |  |         | (6,825 | )
|                          |                                                    |                       |         |        |      |  |  |         |       
|                          |                                                    |                       | (8,085  | )      |      |  |  | (4,419  | )     
|                          |                                                    |                       |         |        |      |  |  |         |       
|Valuation allowance       |                                                    |                       | (77,985 | )      |      |  |  | (89,037 | )     
|                          |                                                    |                       |         |        |      |  |  |         |       
|                          | Net deferred tax assets from continuing operations |                       | $       | 663    |      |  |  | $       | 541    |  
|                          |                                                    |                       |         |        |      |  |  |         |       

F-40



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|                                                                         |                                                                              |                       |         |               |                       |   |              |         |              |  |   |        |       |   |   |        |       |  
|------------------------------------------------------------------------ | ---------------------------------------------------------------------------- | --------------------- | ------- | ------------- | --------------------- | - | ------------ | ------- | ------------ |  | - | ------ | ----- | - | - | ------ | ----- | -
|                                                                         |                                                                              | Predecessor DDi Corp. |         |               | Reorganized DDi Corp.
|                                                                         |                                                                              |                       |         |               |                      
|                                                                         |                                                                              |                       |         | Eleven Months |                       |   | One Month    |         |             
|                                                                         |                                                                              | Year Ended            |         | Ended         |                       |   | Ended        |         | Year Ended  
|                                                                         |                                                                              | December 31,          |         | November 30,  |                       |   | December 31, |         | December 31,
|                                                                         |                                                                              | 2002                  |         | 2003          |                       |   | 2003         |         | 2004        
|                                                                         |                                                                              |                       |         |               |                       |   |              |         |             
|Computed expected tax expense (benefit) from
    continuing operations |                                                                              | $                     | (68,251 | )             |                       | $ | 62,778       |         |              |  | $ | (3,854 | )     |   | $ | (8,109 | )    
|Increase (decrease) in income taxes resulting from:                      |                                                                              |                       |         |               |                       |   |              |         |              |  |   |        |       |   |   |        |      
|                                                                         | State taxes, net of credits, valuation allowance and federal tax
    benefit |                       |         | 6,345         |                       |   |              |        |              |  |   |        |      |   |   |        |      |  
|                                                                         | Goodwill amortization and impairment                                         |                       |         | 45,045        |                       |   |              | 700     |              |  |   |        |      |   |   |        |      |  
|                                                                         | Gain on extinguishment of debt                                               |                       |         |              |                       |   |              | (71,355 | )            |  |   |        |      |   |   |        |      |  
|                                                                         | Fresh start accounting adjustments                                           |                       |         |              |                       |   |              | (34,940 | )            |  |   |        |      |   |   |        |      |  
|                                                                         | Reorganization expenses                                                      |                       |         |              |                       |   |              | 4,550   |              |  |   |        | 525   |   |   |        |      |  
|                                                                         | Non-deductible officers compensation                                        |                       |         |              |                       |   |              |        |              |  |   |        |      |   |   |        | 700   |  
|                                                                         | Research and development credits                                             |                       |         | (820          | )                     |   |              | (484    | )            |  |   |        | (41   | ) |   |        | (325  | )
|                                                                         | Increase in valuation allowance                                              |                       |         | 33,143        |                       |   |              | 39,231  |              |  |   |        | 3,205 |   |   |        | 9,108 |  
|                                                                         | Other                                                                        |                       |         | 1,507         |                       |   |              | (420    | )            |  |   |        | 126   |   |   |        | 610   |  
|                                                                         |                                                                              |                       |         |               |                       |   |              |         |              |  |   |        |       |   |   |        |      
|Provision (benefit) for income taxes for continuing operations           |                                                                              | $                     | 16,969  |               |                       | $ | 60           |         |              |  | $ | (39    | )     |   | $ | 1,984  |      
|                                                                         |                                                                              |                       |         |               |                       |   |              |         |              |  |   |        |       |   |   |        |      









F-41



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)














|    |                                          
|--- | -----------------------------------------
|17. | COMMITMENTS, CONTINGENCIES AND GUARANTEES

Environmental matters


Operating leases


F-42



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|                         |                               |             |   |        |       | 
|------------------------ | ----------------------------- | ----------- | - | ------ | ----- | 
|                         |                               | Reorganized
|                         |                               | DDi Corp.  
|                         |                               |            
|Year Ending December 31, |                               |             |   |       
|                         |                               | 2005        |   | $      | 5,773 | 
|                         |                               | 2006        |   |        | 5,149 | 
|                         |                               | 2007        |   |        | 4,412 | 
|                         |                               | 2008        |   |        | 3,633 | 
|                         |                               | 2009        |   |        | 2,991 | 
|                         |                               | Thereafter  |   |        | 3,386 | 
|                         |                               |             |   |       
|                         | Future minimum lease payments |             | $ | 25,344 |      
|                         |                               |             |   |       





Litigation


Guarantees


Retirement plans


Key Employee Retention Program


Indemnification of Directors and Officers


F-43



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|    |                                        
|--- | ---------------------------------------
|18. | RESTRUCTURING AND OTHER RELATED CHARGES



| |             
| | ------------
| | 2002 Charges











| |             
| | ------------
| | 2003 Charges



F-44



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)








| |             
| | ------------
| | 2004 Charges







|    |                        
|--- | -----------------------
|19. | REORGANIZATION EXPENSES









|    |                                   
|--- | ----------------------------------
|20. | REORGANIZATION PROCEEDING EXPENSES



F-45



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






|    |                        
|--- | -----------------------
|21. | DISCONTINUED OPERATIONS







F-46



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




DDi Europe Statements of Operations


(In thousands)


|                                                      |                                         |                     |         |               |             |   |              |       |              |  |   |        |       |      |   |         |        |       | 
|----------------------------------------------------- | --------------------------------------- | ------------------- | ------- | ------------- | ----------- | - | ------------ | ----- | ------------ |  | - | ------ | ----- | ---- | - | ------- | ------ | ----- | 
|                                                      |                                         | Predecessor         |         |               | Reorganized
|                                                      |                                         |                     |         |               |            
|                                                      |                                         |                     |         | Eleven Months |             |   | One Month    |       |             
|                                                      |                                         | Year Ended          |         | Ended         |             |   | Ended        |       | Year Ended  
|                                                      |                                         | December 31,        |         | November 30,  |             |   | December 31, |       | December 31,
|                                                      |                                         | 2002                |         | 2003          |             |   | 2003         |       | 2004        
|                                                      |                                         |                     |         |               |             |   |              |       |             
|Net sales                                             |                                         | $                   | 63,214  |               |             | $ | 76,779       |       |              |  | $ | 6,780  |       |      | $ | 99,775  |       
|Cost of goods sold                                    |                                         |                     | 58,647  |               |             |   | 71,336       |       |              |  |   | 7,770  |       |      |   | 90,927  |       
|                                                      |                                         |                     |         |               |             |   |              |       |              |  |   |        |       |      |   |         |       
|                                                      |                                         | Gross profit (loss) |         |               | 4,567       |   |              |       | 5,443        |  |   |        |       | (990 | ) |         |        | 8,848 | 
|Operating expenses:                                   |                                         |                     |         |               |             |   |              |       |              |  |   |        |       |      |   |         |       
|                                                      | Sales and marketing                     |                     |         | 3,293         |             |   |              | 2,814 |              |  |   |        | 1,330 |      |   |         | 4,957  |      
|                                                      | General and administration              |                     |         | 5,986         |             |   |              | 7,041 |              |  |   |        | 762   |      |   |         | 10,513 |      
|                                                      | Goodwill impairment                     |                     |         | 70,300        |             |   |              | 9,645 |              |  |   |        |      |      |   |         | 7,252  |      
|                                                      | Restructuring and other related charges |                     |         | 1,374         |             |   |              |      |              |  |   |        |      |      |   |         | 7,044  |      
|                                                      | Reorganization expenses                 |                     |         | 175           |             |   |              | 1,568 |              |  |   |        | 101   |      |   |         | 329    |      
|                                                      |                                         |                     |         |               |             |   |              |       |              |  |   |        |       |      |   |         |       
|Operating loss                                        |                                         |                     | (76,561 | )             |             |   | (15,625      | )     |              |  |   | (3,183 | )     |      |   | (21,247 | )     
|Interest expense and other expense, net               |                                         |                     | 2,225   |               |             |   | 1,862        |       |              |  |   | 536    |       |      |   | 750     |       
|Fresh start accounting adjustments                    |                                         |                     |        |               |             |   | (3,201       | )     |              |  |   |       |       |      |   |        |       
|                                                      |                                         |                     |         |               |             |   |              |       |              |  |   |        |       |      |   |         |       
|Loss from discontinued operations before income taxes |                                         |                     | (78,786 | )             |             |   | (14,286      | )     |              |  |   | (3,719 | )     |      |   | (21,997 | )     
|Income tax benefit (expense)                          |                                         |                     | 2,666   |               |             |   | (599         | )     |              |  |   | 684    |       |      |   | 1,284   |       
|                                                      |                                         |                     |         |               |             |   |              |       |              |  |   |        |       |      |   |         |       
|Net loss from discontinued operations                 |                                         | $                   | (76,120 | )             |             | $ | (14,885      | )     |              |  | $ | (3,035 | )     |      | $ | (20,713 | )     
|                                                      |                                         |                     |         |               |             |   |              |       |              |  |   |        |       |      |   |         |       

F-47



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




DDi Europe Balance Sheets


(In thousands)


|                                               |                                                 |                           |                                      |        |        |     |        |        |        |         |  
|---------------------------------------------- | ----------------------------------------------- | ------------------------- | ------------------------------------ | ------ | ------ | --- | ------ | ------ | ------ | ------- | -
|                                               |                                                 | December 31,              |                                     
|                                               |                                                 |                           |                                     
|                                               |                                                 | 2003                      |                                      |        | 2004   |    
|                                               |                                                 |                           |                                      |        |        |    
|ASSETS                                        
|Current assets:                                |                                                 |                           |                                      |        |        |     |        |       
|                                               | Accounts receivable, net                        |                           | $                                    | 15,279 |        |     | $      | 18,973 |       
|                                               | Inventories                                     |                           |                                      | 9,682  |        |     |        | 11,874 |       
|                                               | Prepaid expenses and others                     |                           |                                      | 1,350  |        |     |        | 2,169  |       
|                                               |                                                 |                           |                                      |        |        |    
|                                               |                                                 | Total current assets      |                                      |        | 26,311 |     |        |        | 33,016 |        
|Property, plant and equipment, net             |                                                 |                           | 31,252                               |        |        |     | 26,243 |       
|Goodwill                                       |                                                 |                           | 5,623                                |        |        |     |       |       
|Other                                          |                                                 |                           | 94                                   |        |        |     | 2      |       
|                                               |                                                 |                           |                                      |        |        |    
|                                               | Total assets                                    |                           | $                                    | 63,280 |        |     | $      | 59,261 |       
|                                               |                                                 |                           |                                      |        |        |    
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
|Current liabilities:                           |                                                 |                           |                                      |        |        |     |        |       
|                                               | Current maturities of capital lease obligations |                           | $                                    | 253    |        |     | $      | 325    |       
|                                               | Facilities Agreement                            |                           |                                      |       |        |     |        | 27,454 |       
|                                               | Revolving credit facilities                     |                           |                                      | 11,809 |        |     |        | 13,552 |       
|                                               | Accounts payable                                |                           |                                      | 15,316 |        |     |        | 16,338 |       
|                                               | Accrued expenses and other liabilities          |                           |                                      | 7,511  |        |     |        | 10,184 |       
|                                               |                                                 |                           |                                      |        |        |    
|                                               |                                                 | Total current liabilities |                                      |        | 34,889 |     |        |        | 67,853 |        
|Long-term debt and capital lease obligations   |                                                 |                           | 25,461                               |        |        |     | 123    |       
|Deferred income tax liability                  |                                                 |                           | 1,196                                |        |        |     |       |       
|Notes payable and other                        |                                                 |                           | 1,040                                |        |        |     | 3,602  |       
|                                               |                                                 |                           |                                      |        |        |    
|                                               |                                                 | Total liabilities         |                                      |        | 62,586 |     |        |        | 71,578 |        
|                                               |                                                 |                           |                                      |        |        |    
|                                               |                                                 |                           | Total stockholders equity (deficit) |        |        | 694 |        |        |        | (12,317 | )
|                                               |                                                 |                           |                                      |        |        |    
|                                               |                                                 | $                         | 63,280                               |        |        | $   | 59,261 |       
|                                               |                                                 |                           |                                      |        |        |    

F-48



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




|    |                                                                    
|--- | -------------------------------------------------------------------
|22. | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (in
    thousands)

|                   |                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |  |  |   |       | 
|------------------ | ---------------------------------- | --------------------- | - | ------------- | --------------------- |  | ------------ | ----- | ------------ |  |  | - | ----- |  |  | - | ----- | 
|                   |                                    | Predecessor DDi Corp. |   |               | Reorganized DDi Corp.
|                   |                                    |                       |   |               |                      
|                   |                                    |                       |   | Eleven Months |                       |  | One Month    |       |             
|                   |                                    | Year Ended            |   | Ended         |                       |  | Ended        |       | Year Ended  
|                   |                                    | December 31,          |   | November 30,  |                       |  | December 31, |       | December 31,
|                   |                                    | 2002                  |   | 2003          |                       |  | 2003         |       | 2004        
|                   |                                    |                       |   |               |                       |  |              |       |             
|CASH PAYMENTS FOR: |                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |  |  |   |      
|                   | Income taxes                       |                       | $ | 630           |                       |  | $            | 366   |              |  |  | $ |      |  |  | $ | 906   | 
|                   |                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |  |  |   |      
|                   | Interest                           |                       | $ | 14,957        |                       |  | $            | 4,831 |              |  |  | $ | 553   |  |  | $ | 2,130 | 
|                   |                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |  |  |   |      
|                   | Reorganization proceeding expenses |                       | $ |              |                       |  | $            | 5,295 |              |  |  | $ | 1,962 |  |  | $ | 1,543 | 
|                   |                                    |                       |   |               |                       |  |              |       |              |  |  |   |       |  |  |   |      



|    |                           
|--- | --------------------------
|23. | RELATED PARTY TRANSACTIONS







|    |                    
|--- | -------------------
|24. | OFFICERS SEVERANCE





|    |                         
|--- | ------------------------
|25. | GOODWILL AND INTANGIBLES





F-49



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)










|                                                                                           |  |                       |        |              |  |   |        |  
|------------------------------------------------------------------------------------------ |  | --------------------- | ------ | ------------ |  | - | ------ | -
|                                                                                           |  | Reorganized DDi Corp.
|                                                                                           |  |                      
|                                                                                           |  | One Month             |        |             
|                                                                                           |  | Ended                 |        | Year Ended  
|                                                                                           |  | December 31,          |        | December 31,
|                                                                                           |  | 2003                  |        | 2004        
|                                                                                           |  |                       |        |             
|Beginning balance                                                                          |  | $                     | 99,829 |              |  | $ | 99,829 |  
|Goodwill increases (decreases), primarily due to adjustments to
    fresh start accounting |  |                       |       |              |  |   | (454   | )
|Impairment charges                                                                         |  |                       |       |              |  |   |       |  
|                                                                                           |  |                       |        |              |  |   |        |  
|Ending balance                                                                             |  | $                     | 99,829 |              |  | $ | 99,375 |  
|                                                                                           |  |                       |        |              |  |   |        |  



|    |                  
|--- | -----------------
|26. | SUBSEQUENT EVENTS

Discontinuation of European Business




F-50



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Declaration of Dividend




F-51



---



##### Table of Contents



FINANCIAL STATEMENT SCHEDULE




SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


DDi CORP.


|                                |                                       |                       |   |         |  |            |   |            |  |  |   |        |   |  |   |       | 
|------------------------------- | ------------------------------------- | --------------------- | - | ------- |  | ---------- | - | ---------- |  |  | - | ------ | - |  | - | ----- | 
|                                |                                       | Predecessor DDi Corp.
|                                |                                       |                      
|                                |                                       | Balance               |   |        
|                                |                                       | at                    |   | Charged |  |            |   | Balance at
|                                |                                       | Beginning             |   | to      |  |            |   | End of    
|                                |                                       | of Period             |   | Income  |  | Deductions |   | Period    
|                                |                                       |                       |   |         |  |            |   |           
|                                |                                       | (In thousands)       
|Allowance for Doubtful Accounts |                                       |                       |   |         |  |            |   |            |  |  |   |        |   |  |   |      
|                                | Year ended December 31, 2002          |                       | $ | 4,278   |  |            | $ | 690        |  |  | $ | (3,527 | ) |  | $ | 1,441 | 
|                                | Eleven months ended November 30, 2003 |                       | $ | 1,441   |  |            | $ | 413        |  |  | $ | (502   | ) |  | $ | 1,352 | 
|                               

|                                |                                   |                       |   |         |  |            |   |            |  |  |   |      |   |  |   |       | 
|------------------------------- | --------------------------------- | --------------------- | - | ------- |  | ---------- | - | ---------- |  |  | - | ---- | - |  | - | ----- | 
|                                |                                   | Reorganized DDi Corp.
|                                |                                   |                      
|                                |                                   | Balance               |   |        
|                                |                                   | at                    |   | Charged |  |            |   | Balance at
|                                |                                   | Beginning             |   | to      |  |            |   | End of    
|                                |                                   | of Period             |   | Income  |  | Deductions |   | Period    
|                                |                                   |                       |   |         |  |            |   |           
|                                |                                   | (In thousands)       
|Allowance for Doubtful Accounts |                                   |                       |   |         |  |            |   |            |  |  |   |      |   |  |   |      
|                                | One month ended December 31, 2003 |                       | $ | 1,352   |  |            | $ | 2          |  |  | $ | (278 | ) |  | $ | 1,076 | 
|                                | Year ended December 31, 2004      |                       | $ | 1,076   |  |            | $ | 426        |  |  | $ | 77   |   |  | $ | 1,579 | 

F-52



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##### Table of Contents



EXHIBIT INDEX





|                                                                                 |    |             |  |                                                                                                                                                                                                                                                                                                                                                                          
|-------------------------------------------------------------------------------- | -- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit                                                                          |    | Description
|                                                                                 |    |            
|                                                                                 | 2  | .1          |  | Modified First Amended Joint Plan of Reorganization Dated As Of
    August 30, 2003.(1)                                                                                                                                                                                                                                                                                  
|                                                                                
|                                                                                 | 2  | .2          |  | Order Confirming Debtors Modified First Amended Joint Plan
    of Reorganization Dated as of August 30, 2003.(1)                                                                                                                                                                                                                                                        
|                                                                                
|                                                                                 | 3  | .1          |  | Amended and Restated Certificate of Incorporation of DDi Corp.(1)                                                                                                                                                                                                                                                                                                        
|                                                                                
|                                                                                 | 3  | .2          |  | Certificate of Designation of DDi Corp.(1)                                                                                                                                                                                                                                                                                                                               
|                                                                                
|                                                                                 | 3  | .3          |  | Certificate of Designation of Series B Preferred Stock of
    DDi Corp.(2)                                                                                                                                                                                                                                                                                               
|                                                                                
|                                                                                 | 3  | .4          |  | Amended and Restated Bylaws of DDi Corp.(3)                                                                                                                                                                                                                                                                                                                              
|                                                                                
|Material Contracts Relating to Management Compensation Plans
    or Arrangements
|                                                                                
|                                                                                 | 10 | .1          |  | Dynamic Details Incorporated Senior Management Bonus Program.(19)                                                                                                                                                                                                                                                                                                        
|                                                                                
|                                                                                 | 10 | .2          |  | Dynamic Details, Inc. Key Employee Retention Plan.(4)                                                                                                                                                                                                                                                                                                                    
|                                                                                
|                                                                                 | 10 | .3          |  | Dynamic Details, Inc. Severance Plan for Key Employees and
    Summary Plan Description Effective December 19, 2002.(4)                                                                                                                                                                                                                                                  
|                                                                                
|                                                                                 | 10 | .4          |  | DDi Corp. Amended and Restated Severance Plan for Key
    Employees Effective December 19, 2004.(5)                                                                                                                                                                                                                                                                      
|                                                                                
|                                                                                 | 10 | .5          |  | 2003 Directors Equity Incentive Plan.(6)                                                                                                                                                                                                                                                                                                                                 
|                                                                                
|                                                                                 | 10 | .6          |  | Form of Stock Option Agreement (2003 Directors Equity
    Incentive Plan).(6)                                                                                                                                                                                                                                                                                            
|                                                                                
|                                                                                 | 10 | .7          |  | DDi Corp. 2003 Management Incentive Plan.(7)                                                                                                                                                                                                                                                                                                                             
|                                                                                
|                                                                                 | 10 | .8          |  | Form of Restricted Stock Agreement (2003 Management Equity
    Incentive Plan)(8)                                                                                                                                                                                                                                                                                        
|                                                                                
|                                                                                 | 10 | .9          |  | Form of Stock Option Agreement (2003 Management Equity
    Incentive Plan)(8)                                                                                                                                                                                                                                                                                            
|                                                                                
|                                                                                 | 10 | .10         |  | Form of Amendment to Restricted Stock Agreement (with schedule
    of parties attached).(9)                                                                                                                                                                                                                                                                              
|                                                                                
|                                                                                 | 10 | .11         |  | Severance Agreement and General Release dated November 17,
    2004 between DDi Corp. and Joseph P. Gisch.(10)                                                                                                                                                                                                                                                           
|                                                                                
|                                                                                 | 10 | .12         |  | Employment Letter dated November 1, 2004 between
    DDi Corp. and Mikel Williams.(5)                                                                                                                                                                                                                                                                                    
|                                                                                
|                                                                                 | 10 | .13         |  | Non-Solicitation Agreement dated December 12, 2003 by and
    between Bruce McMaster and Dynamic Details, Inc.(7)                                                                                                                                                                                                                                                        
|                                                                                
|Other Material Contracts                                                        
|                                                                                
|                                                                                 | 10 | .14         |  | Indenture dated as of December 12, 2003 with respect to DDi
    Capital Senior Accreting Notes due 2009.(1)                                                                                                                                                                                                                                                              
|                                                                                
|                                                                                 | 10 | .15         |  | Senior Discount Warrant Agreement, dated as of December 12,
    2003.(1)                                                                                                                                                                                                                                                                                                 
|                                                                                
|                                                                                 | 10 | .16         |  | Senior Discount Warrant Escrow Agreement, dated as of
    December 12, 2003.(1)                                                                                                                                                                                                                                                                                          
|                                                                                
|                                                                                 | 10 | .17         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to DDi Corp. Secured Lender Warrants.(1)                                                                                                                                                                                                                                                      
|                                                                                
|                                                                                 | 10 | .18         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to DDi Corp. Senior Discount Warrants.(1)                                                                                                                                                                                                                                                     
|                                                                                
|                                                                                 | 10 | .19         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to Series A Preferred Stock of
    DDi Corp.(1)                                                                                                                                                                                                                                               
|                                                                                
|                                                                                 | 10 | .20         |  | Registration Rights Agreement, dated as of December 12,
    2003, relating to Preferred Stock of DDi Europe.(1)                                                                                                                                                                                                                                                          
|                                                                                
|                                                                                 | 10 | .21         |  | Amendment and Restatement Deed, dated November 15, 2001,
    relating to a Facilities Agreement dated 27 May 1999,
    among(i) DDi Europe Limited, formerly known as
    MCM Electronics Limited, (ii) the additional borrowers
    named therein, (iii) the other charging parties named
    therein and (iv) the Governor and Company of the Bank of
    Scotland.(11)
|                                                                                
|                                                                                 | 10 | .22         |  | Working Capital Letter, dated November 15, 2001,
    among(i) DDi Europe Limited, (ii) the additional
    borrowers named therein and (iii) the Governor and Company
    of the Bank of Scotland.(11)                                                                                                                                                                    
|                                                                                
|                                                                                 | 10 | .23         |  | Composite Guarantee and Debenture, dated November 15, 2001,
    among(i) DDi Europe Limited and the additional charging
    companies named herein and (ii) the Governor and Company of
    the Bank of Scotland.(11)                                                                                                                                                    






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##### Table of Contents



|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 10 | .24         |  | Real Property Master Lease Agreement dated January 1, 1996
    between James I. Swenson and Susan G. Swenson, as Trustees of
    the Swenson Family Trust, and Details, Inc.(12)                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10 | .25         |  | Personal Property Master Lease Agreement dated January 1,
    1996 between James I. Swenson and Susan G. Swenson, as Trustees
    of the Swenson Family Trust, and Details, Inc.(12)                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .26         |  | Amendment Number One to Real Property Master Lease Agreement
    dated January 1, 1997 between James I. Swenson and Susan G.
    Swenson, as trustees of the Swenson Family Trust and Details,
    Inc.(13)                                                                                                                                                                                                                                                                                                                                                                           
|       
|        | 10 | .27         |  | Lease dated June 15, 1994, by and between Michael J. Irvin,
    Trustee of the Davila Living Trust dated March 13, 1989 and
    Colorado Springs Circuits, Inc., regarding 6031-6035 Galley
    Road, Colorado Springs, Colorado(14)                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .28         |  | Lease dated June 15, 1994, by and between Michael J. Irvin,
    Trustee of the Davila Living Trust dated March 13, 1989 and
    Colorado Springs Circuits, Inc., regarding 2115 Victor Place,
    Colorado Springs, Colorado(14)                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10 | .29         |  | Lease dated June 15, 1994, by and between Michael J. Irvin,
    Trustee of the Davila Living Trust dated March 13, 1989 and
    Colorado Springs Circuits, Inc., regarding 980 Technology Court,
    Colorado Springs, Colorado.(14)                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .30         |  | Lease Agreement dated July 22, 1991 between Geomax and
    Dynamic Circuits, Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 10 | .31         |  | Lease dated March 20, 1997 by and between Mercury
    Partners 30, Inc. and Dynamic Circuits, Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 10 | .32         |  | Amendment to Lease Agreement, dated as of November 9, 2001
    by and between D & D Tarob Properties, LLC and Dynamic
    Details Incorporated Silicon Valley.(16)                                                                                                                                                                                                                                                                                                                                                                                                                    
|       
|        | 10 | .33         |  | Lease dated November 12, 1997 by and between Miller and
    Associates and Dynamic Circuits Inc.(13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .34         |  | Lease dated August 18, 1998, by and between
    Mrs. Alberta M. Talley, Trustee and Dynamic Circuits,
    Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       
|        | 10 | .35         |  | Lease Agreement dated April 14, 1998 by and between
    Continental Electric Contractors and Cuplex, Inc.(9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 10 | .36         |  | Lease Agreement dated as of May 13, 1996, as amended by a
    First Lease Amendment dated August 7, 1996, between 410
    Forest Street Realty Trust and Cuplex, Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 10 | .37         |  | Lease Agreement dated as of November 2, 1995, between
    Trammell Crow International Partners and Cuplex, Inc.(13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 10 | .38         |  | Share Purchase Agreement dated October 24, 2002 by and
    between H.N. Goff, G.P. Harvey and H.L. Williams and DDi Europe
    Limited.(4)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | 10 | .39         |  | Tax Deed dated October 24, 2002 by and between H.N. Goff,
    G.P. Harvey and H.L. Williams and DDi Europe Limited.(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 10 | .40         |  | Minority Share Purchase Agreement dated October 24, 2002 by
    and between Jamie Fuller and others and DDi Europe Limited.(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10 | .41         |  | Stock Purchase Agreement dated January 21, 2004 by and
    among DDi Corp. and the purchasers identified on the schedule of
    investors attached thereto.(7)                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 10 | .42         |  | Registration Rights Agreement dated January 21, 2004 by and
    among DDi Corp. and certain purchasers of DDi Corp.s
    capital stock listed on the signature pages thereof.(7)                                                                                                                                                                                                                                                                                                                                                                                                     
|       
|        | 10 | .42         |  | Purchase Agreement dated as of March 29, 2004, by and
    between DDi Corp. and each of the purchasers whose names and
    addresses are set forth on the signature page thereof.(2)                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .42         |  | Credit Agreement dated as of March 30, 2004, among Dynamic
    Details, Incorporated, Dynamic Details, Incorporated, Virginia,
    Dynamic Details Incorporated, Silicon Valley, and Laminate
    Technology Corp.; the other Credit Parties signatory thereto;
    General Electric Capital Corporation, for itself, as Lender, and
    as Agent for Lenders, and the other Lenders signatory thereto
    from time to time.(2)                                                                                                                                                      
|       
|        | 10 | .42         |  | Security Agreement, dated as of March 30, 2004, made by
    Dynamic Details, Incorporated, Dynamic Details Incorporated,
    Virginia, Dynamic Details Incorporated, Silicon Valley, Laminate
    Technology Corp., Dynamic Details Incorporated, Colorado
    Springs, DDi Sales Corp., Dynamic Details Texas, LLC, DDi-Texas
    Intermediate Partners II, L.L.C., DDi-Texas Intermediate
    Holdings II, L.L.C., and Dynamic Details, L.P., in favor of
    General Electric Capital Corporation, as agent for the lenders
    from time to time party to the Credit Agreement.(2)



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##### Table of Contents






|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 10 | .42         |  | Guaranty dated as of March 30, 2004, made by DDi Corp., DDi
    Intermediate Holdings Corp., DDi Capital Corp., Dynamic Details
    Incorporated, Colorado Springs, DDi Sales Corp., Dynamic Details
    Texas, LLC, DDi-Texas Intermediate Partners II, L.L.C.,
    DDi-Texas Intermediate Holdings II, L.L.C., Dynamic
    Details, L.P., in favor of General Electric Capital Corporation,
    as agent for the lenders from time to time party to the Credit
    Agreement.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 10 | .42         |  | Pledge Agreement dated as of March 30, 2004, made by
    Dynamic Details, Incorporated, Dynamic Details, Incorporated,
    Virginia, Dynamic Details Incorporated, Silicon Valley, Laminate
    Technology Corp., DDi Corp., DDi Intermediate Holdings Corp.,
    DDi Capital Corp., Dynamic Details Incorporated, Colorado
    Springs, DDi Sales Corp., Dynamic Details Texas, LLC, DDi-Texas
    Intermediate Partners II, L.L.C., DDi-Texas Intermediate
    Holdings II, L.L.C., Dynamic Details, L.P., in favor of General
    Electric Capital Corporation, as agent for the lenders from time
    to time party to the Credit Agreement.(2)                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 10 | .42         |  | Patent, Trademark and Copyright Security Agreement dated as of
    March 30, 2004, made by Dynamic Details, Incorporated,
    Dynamic Details Incorporated, Virginia, Dynamic Details
    Incorporated, Silicon Valley, Laminate Technology Corp., Dynamic
    Details Incorporated, Colorado Springs, DDi Sales Corp., Dynamic
    Details Texas, LLC, DDi-Texas Intermediate Partners II,
    L.L.C., DDi-Texas Intermediate Holdings II, L.L.C., and
    Dynamic Details, L.P., in favor of General Electric Capital
    Corporation, as agent for the lenders from time to time party to
    the Credit Agreement.(2)                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | 10 | .42         |  | Master Agreement for Documentary Letters of Credit, dated as of
    March 30, 2004.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       
|        | 10 | .42         |  | Master Agreement for Standby Letters of Credit, dated as of
    March 30, 2004.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 10 | .42         |  | First Supplemental Indenture, dated as of February 24,
    2004, between DDi Capital Corp. and Wilmington
    Trust Company, as trustee.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 10 | .42         |  | Credit Agreement dated as of June 30, 2004 among Dynamic
    Details Canada, Corp., and DDi Canada Acquisition Corp., as
    Borrowers, the Other Credit Parties Signatory Thereto, as Credit
    Parties, the Lenders Signatory Thereto from Time to Time, as
    Lenders, and GE Canada Finance Holding Company, as Agent and
    Lender.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       
|        | 10 | .42         |  | Guaranty, dated as of June 30, 2004, made by DDi Corp., a
    Delaware corporation, DDi Intermediate Holdings Corp., a
    California corporation, DDi Capital Corp., a California
    corporation, Dynamic Details, Incorporated, a California
    corporation, Dynamic Details Incorporated, Virginia, a Delaware
    corporation, Dynamic Details Incorporated, Silicon Valley, a
    Delaware corporation, Laminate Technology Corp., a Delaware
    corporation, Dynamic Details Incorporated, Colorado Springs, a
    Colorado corporation, DDi Sales Corp., a Delaware corporation,
    Dynamic Details Texas, LLC, a Delaware limited liability
    company, DDi-Texas Intermediate Partners II, L.L.C., a
    Delaware limited liability company, DDi-Texas Intermediate
    Holdings II, L.L.C., a Delaware limited liability company,
    and Dynamic Details, L.P., a Delaware limited partnership, in
    favor of GE Canada Finance Holding Company, a Nova Scotia
    unlimited liability company.(17)
|       
|        | 10 | .42         |  | Intercreditor Agreement dated as of June 30, 2004, between
    GE Capital Finance Holding Company, a Nova Scotia unlimited
    liability company, and General Electric Capital Corporation, a
    New York corporation.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 10 | .42         |  | Master Agreement for Documentary Letters of Credit, dated as of
    June 30, 2004.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       
|        | 10 | .42         |  | Master Agreement for Standby Letters of Credit, dated as of
    June 30, 2004.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 10 | .42         |  | Security Agreement dated as of June 30, 2004, made by
    Dynamic Details Canada, Corp., and DDi Canada Acquisition Corp.
    in favor of GE Canada Finance Holding Company.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       
|        | 10 | .42         |  | Pledge Agreement dated as of June 30, 2004, made by Dynamic
    Details, Incorporated, DDi Canada Acquisition Corp. in favor of
    GE Canada Finance Holding Company.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       
|        | 10 | .42         |  | Amendment No. 1 to Credit Agreement dated as of
    June 30, 2004, by and among Dynamic Details, Incorporated,
    Dynamic Details, Incorporated, Virginia, Dynamic Details
    Incorporated, Silicon Valley and Laminate Technology Corp., the
    other Credit Parties signatory thereto; and General Electric
    Capital Corporation.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 14 | .1          |  | Code of Business Conduct and Ethics.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 21 | .1          |  | Subsidiaries of DDi Corp.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 23 | .1*         |  | Consent of PricewaterhouseCoopers LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 31 | .1*         |  | Certification of Chief Executive Officer of DDi Corp., Pursuant
    to Rule 13a-14 of the Securities Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       
|        | 31 | .2*         |  | Certification of Chief Financial Officer of DDi Corp.,
    Pursuant to Rule 13a-14 of the Securities Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   






---



##### Table of Contents



|        |    |             |  |                                                                                                                      
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 32 | .1*         |  | Certification of Chief Executive Officer of DDi Corp.,
    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|       
|        | 32 | .2*         |  | Certification of Chief Financial Officer of DDi Corp.,
    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.






| |   |                
| | - | ---------------
| | * | Filed herewith.



| |     |                                                                                                                                                                
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Previously filed with the Commission on December 17, 2003
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                     
|
| | (2) | Previously filed with the Commission on April 7, 2004 as an
    exhibit to DDi Corp.s Current Report on Form 8-K.                                             
|
| | (3) | Previously filed with the Commission on January 20, 2004 as
    an exhibit to DDi Corp.s Registration Statement on
    Form 8-A/ A.                           
|
| | (4) | Previously filed with the Commission on March 31, 2003 as
    an exhibit to DDi Corp.s Annual Report on
    Form 10-K.                                        
|
| | (5) | Previously filed with the Commission on December 23, 2004
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                     
|
| | (6) | Previously filed with the Commission on June 14, 2004 as an
    exhibit to DDi Corp.s Registration Statement on
    Form S-8, Registration No. 333-116418.    
|
| | (7) | Previously filed with the Commission on February 12, 2004
    as an exhibit to DDi Corp.s Registration Statement on
    Form S-1, Registration No. 333-112786.
|
| | (8) | Previously filed with the Commission on February 13, 2004
    as an exhibit to DDi Corp.s Registration Statement on
    Form S-8, Registration No. 333-112853.
|
| | (9) | Previously filed with the Commission on January 12, 2005 as
    an exhibit to DDi Corp.s Current Report on Form 8-K.                                          



|     |                                                                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Previously filed with the Commission on November 19, 2004
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                            
|    
|(11) | Previously filed with the Commission on March 25, 2002 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|    
|(12) | Previously filed with the Commission on November 26, 1997
    as an exhibit to DDi Capitals Registration Statement on
    Form S-4, Registration No. 333-41187.                      
|    
|(13) | Previously filed with the Commission on March 30, 2001 as
    an exhibit to DDi Corp.s, DDi Capitals and Dynamic
    Details combined Annual Report on Form 10-K.                  
|    
|(14) | Previously filed with the Commission on January 20, 1998 as
    an exhibit to Amendment No. 1 to DDi Capitals
    Registration Statement on Form S-4, Registration
    No. 333-41187.
|    
|(15) | Previously filed with the Commission on March 31, 1999 as
    an exhibit to DDi Capitals and Dynamic Details
    combined Annual Report on Form 10-K.                               
|    
|(16) | Previously filed with the Commission on March 25, 2002 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|    
|(17) | Previously filed with the Commission on August 16, 2004 as
    an exhibit to DDi Corp.s Quarterly Report on
    Form 10-Q.                                                           
|    
|(18) | Previously filed with the Commission on March 30, 2004 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|    
|    
|(19) | Previously filed with the Commission on March 16, 2005 as
    an exhibit to DDi Corp.s Annual Report on Form 10-K.                                                                   
|