##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(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












---










DDi CORP.


FORM 10-K


Index


|             |  |                                                                                                                             |    |      |    |  |  | 
|------------ |  | --------------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- |  |  | 
|             |  |                                                                                                                             |    | Page |   
|             |  |                                                                                                                             |    |      |   
|PART I      
|Item 1.      |  | Business                                                                                                                    |    |      | 1  | 
|Item 1A.     |  | Executive Officers of DDi Corp.                                                                                             |    |      | 8  | 
|Item 2.      |  | Properties                                                                                                                  |    |      | 9  | 
|Item 3.      |  | Legal Proceedings                                                                                                           |    |      | 10 | 
|Item 4.      |  | Submission of Matters to a Vote of Security
    Holders                                                                     |    |      | 10 | 
|PART II     
|Item 5.      |  | Market for the Registrants Common
    Equity and Related Stockholder Matters and Issuer Purchases of
    Equity Securities |    |      | 11 | 
|Item 6.      |  | Selected Financial Data                                                                                                     |    |      | 12 | 
|Item 7.      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                   |    |      | 15 | 
|Item 7A.     |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                              |    |      | 38 | 
|Item 8.      |  | Financial Statements and Supplementary
    Data                                                                             |    |      | 38 | 
|Item 9.      |  | Changes in and Disagreements With
    Accountants on Accounting and Financial Disclosure                                    |    |      | 38 | 
|Item 9A.     |  | Controls and Procedures                                                                                                     |    |      | 38 | 
|PART III    
|Item 10.     |  | Directors and Executive Officers of the
    Registrant                                                                      |    |      | 40 | 
|Item 11.     |  | Executive Compensation                                                                                                      |    |      | 43 | 
|Item 12.     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                          |    |      | 49 | 
|Item 13.     |  | Certain Relationships and Related
    Transactions                                                                          |    |      | 53 | 
|Item 14.     |  | Principal Accounting Fees and Services                                                                                      |    |      | 54 | 
|PART IV     
|Item 15.     |  | Exhibits and Financial Statement
    Schedules                                                                              |    |      | 55 | 
|Signatures   |  |                                                                                                                             | 60 |     
|EXHIBIT 10.1
|EXHIBIT 21.1
|EXHIBIT 23.1
|EXHIBIT 31.1
|EXHIBIT 31.2
|EXHIBIT 32.1
|EXHIBIT 32.2





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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS


On one or more occasions, we may make statements regarding
our assumptions, projections, expectations, targets, intentions
or beliefs about future events. All statements other than
statements of historical facts included in this Annual Report on
Form 10-K relating to expectation of future financial
performance, continued growth, changes in economic conditions or
capital markets and changes in customer usage patterns and
preferences, are forward-looking statements.


Words or phrases such as anticipates,
believes, estimates,
expects, intends, plans,
predicts, projects, targets,
will likely result, will continue,
may, could or similar expressions
identify forward-looking statements. Forward-looking statements
involve risks and uncertainties which could cause actual results
or outcomes to differ materially from those expressed. We
caution that while we make such statements in good faith and we
believe such statements are based on reasonable assumptions,
including without limitation, managements examination of
historical operating trends, data contained in records and other
data available from third parties, we cannot assure you that our
expectations will be realized.


In addition to the factors and other matters discussed under
the caption Factors That May Affect Future Results
in Item 7. Managements Discussion and Analysis of
Financial Condition and Results of Operations in this Annual
Report on Form 10-K, some important factors that could
cause actual results or outcomes for DDi or our subsidiaries to
differ materially from those discussed in forward-looking
statements include:




| |   |                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  | changes in general economic conditions in the markets in
    which we may compete and fluctuations in demand in the
    electronics industry;
|
| |  | our ability to sustain historical margins as the industry
    develops;                                                                      
|
| |  | increased competition;                                                                                                                       
|
| |  | increased costs;                                                                                                                             
|
| |  | our ability to retain key members of management;                                                                                             
|
| |  | adverse state, federal or foreign legislation or regulation
    or adverse determinations by regulators; and                                 
|
| |  | other factors identified from time to time in our filings
    with the Securities and Exchange Commission.                                   

Any forward-looking statement speaks only as of the date on
which such statement is made, and, except as required by law, we
undertake no obligation to update any forward-looking statement
to reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not
possible for management to predict all such factors.




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##### Table of Contents






PART I







|        |          
|------- | ---------
|Item 1. | Business.

Overview








Industry Background








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Increasing customer demand for quick-turn production and
    integrated solutions. Rapid advances in technology are
    significantly shortening product life-cycles and placing
    increased pressure on original equipment manufacturers to
    develop new products in shorter periods of time. In response to
    these pressures, original equipment manufacturers look to
    high-end printed circuit board manufacturers that can offer
    design and engineering support and quick-turn manufacturing and
    assembly services to reduce time to market.

1



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Increasing complexity of electronic equipment. Original
    equipment manufacturers are continually designing more complex
    and higher performance electronic equipment, which requires
    sophisticated printed circuit boards that accommodate higher
    speeds and frequencies and increased component densities and
    operating temperatures. In turn, original equipment
    manufacturers rely on high-end printed circuit board
    manufacturers who can provide advanced engineering and
    manufacturing services early in the new product development
    cycle.
|
| |  | Shifting of high volume production to Asia. Asian based
    manufacturers of printed circuit boards are capitalizing on
    their lower labor costs and are increasing their production and
    market share of printed circuit boards used, for example, in
    high-volume consumer electronics applications, such as personal
    computers and cell phones. Asian based manufacturers have been
    generally unable to meet the lead time requirements for the
    production of complex printed circuit boards on a quick-turn
    basis.                                    



The DDi Customer Solution








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Time-Critical Services. We specialize in providing
    time-critical, or quick-turn, printed circuit board engineering,
    manufacturing and other value-added services. Our engineering,
    fabrication, assembly and customer service systems enable us to
    respond to customers needs with quick-turn services. Our
    personnel are trained and experienced in providing our services
    with speed and precision. For example, we are able to issue
    price quotes to our customers in hours, rather than days.
    Approximately 50% of our net printed circuit board sales in 2004
    were generated from services delivered in 10 days or less,
    and we fill some of our customers orders in as little as
    24 hours.
|
| |  | Customized Engineering Solutions. We are actively
    involved in the early stages of our customers product
    development cycles. This positions us at the leading edge of
    technical innovation in the engineering of complex printed
    circuit boards. Our engineering and sales teams collaborate to
    identify the specific needs of our customers and work with them
    to develop innovative, high performance solutions. This method
    of product development provides us with an in-depth
    understanding of our customers businesses and enables us
    to better anticipate and serve their needs.                                                                                                                  
|
| |  | Advanced Manufacturing Technologies. We maintain a strong
    commitment to research and development and focus on enhancing
    existing capabilities as well as developing new technologies. We
    are consistently among the first to adopt advances in printed
    circuit board manufacturing technology. For example, we believe
    that we were the first, and remain one of only a few, printed
    circuit board manufacturers in North America to manufacture
    printed circuits boards utilizing stacked microvia, or
    SMVtm,
    technology. We continue to lead the domestic industry in
    advancing this technology.                                                                                                    

2



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Our Strategy




Focus on time-critical services.


Maintain our technology leadership.


Continue to serve our large and diverse customer base.


Pursue new customers and markets with high growth
potential.


Our Services




| |                                                                 
| | ----------------------------------------------------------------
| | Quick-turn Printed Circuit Board Engineering and
    Fabrication



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Prototype Fabrication Services. We engineer and
    manufacture highly complex, technologically advanced multi-layer
    printed circuit board prototypes on a quick-turn basis. These
    prototypes are used in the design, testing and launch phase of
    new electronic products. Our advanced development and
    manufacturing technologies facilitate production with delivery
    times ranging from 24 hours to 10 days.
|
| |  | Pre-production Fabrication Services. We offer quick-turn
    pre-production fabrication services to our customers when they
    introduce products to the market and require larger quantities
    of printed circuit boards in a short period of time. Our
    pre-production services typically include manufacturing 500 to
    5,000 printed circuit boards per order with delivery times
    ranging from two to 20 days.    





| |                     
| | --------------------
| | Value-Added Services



| |   |                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Assembly Services. We complement our quick-turn printed
    circuit board fabrication business with time-critical printed
    circuit board assembly services. We also build, configure and
    test electronic products and assemblies. These services provide
    significant value to our customers by accelerating their new
    products time to market.                 
|
| |  | Transition Services. We provide our customers with
    seamless access to volume printed circuit board manufacturing
    capabilities located in Asia. Through a single purchase order,
    our customers can place an order for prototype work to be
    manufactured domestically and volume production, which we
    procure on their behalf, from Asia-based manufacturers.

Manufacturing Technologies and Processes




3



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Laser Direct Imaging. Laser direct imaging is a new
    process that allows us to increase board density by direct
    writing onto photoresist with a high-precision laser technology.
    The system is also equipped with a vision system that enables
    accurate image placement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Blind or Buried Vias. Vias are drilled holes which
    provide electrical connectivity between layers of circuitry in a
    printed circuit board. Blind vias connect the surface layer of
    the printed circuit board to the nearest inner layer. Buried
    vias are holes that do not reach either surface of the printed
    circuit board but allow inner layers to be interconnected.
    Products with blind and buried vias can be made thinner,
    smaller, lighter and with higher component density and more
    functionality than products with traditional vias.                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Microvias. We are a leading supplier of advanced microvia
    products. Microvias are small vias with diameters generally
    between .003 and .008 inches after laser drilling.
    Traditional microvias allow for higher densities than standard
    through hole drilling and can be used to reduce layer count,
    board size or increase the amount of components on a fixed area.
    The fabrication of printed circuit boards with microvias
    requires specialized equipment, such as laser drills, and highly
    developed process knowledge. Applications such as handheld
    wireless devices employ microvias to obtain a higher degree of
    functionality from a smaller given surface area. These products
    can be delivered in as little as 3 days.                                                                                                                                                                                                
|
| |  | Stacked Microvias
    (SMV).
    Stacked microvias are microvias filled with solid copper that
    can be stacked, connecting as many as six layers sequentially.
    This technology provides improved current carrying capability
    and thermal characteristics, planar surface for ball-grid array
    assembly and increased routing density for fine pitch ball-grid
    arrays and flipchip devices.
    SMVtm
    technology provides solutions for next generation technologies
    that include high Input/ Output count, .65mm, .5mm, .4mm and
    .25mm ball-grid array and flipchip devices. This is done by
    allowing extra routing channels directly under the bonding pads,
    as compared to a standard microvia that is limited to 1 or 2
    layer deep routing. We believe that we remain one of only a few
    printed circuit board manufacturers that currently offers
    fabrication of printed circuit boards utilizing stacked
    microvias.
|
| |  | Buried passives. Buried passive technology involves
    embedding the capacitor and resistor elements inside the printed
    circuit board, which allows for removal of passive components
    from the surface of the printed circuit board, leaving more
    surface area for active components. We have offered buried
    resistor products since the early 1990s. This technology
    is used in the high speed interconnect space as well as single
    chip or multichip modules, memory and high speed switches. This
    process is used to eliminate surface mount resistors and allows
    for termination to occur directly under other surface mounted
    components such as ball-grid arrays and quad-flat packs. We have
    offered embedded                                                                                                                                                                                                                

4



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | capacitance layers since the mid 1990s. The buried
    capacitance layers are currently used mostly as a noise
    reduction method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Fine line traces and spaces. Traces are the connecting
    copper lines between the different components of the printed
    circuit board and spaces are the distances between traces. The
    smaller the traces and tighter the spaces, the higher the
    density on the printed circuit board and the greater the
    expertise required to achieve a desired final yield on an order.
    We are able to provide .002 inch traces and spaces.                                                                                                                                                                                                                                                                                                 
|
| |  | High aspect ratios. The aspect ratio is the ratio between
    the thickness of the printed circuit board and the diameter of a
    drilled hole. The higher the ratio, the greater the difficulty
    to reliably form, electroplate and finish all the holes on a
    printed circuit board. We are able to provide aspect ratios of
    up to 15:1. We are currently developing a solution to provide a
    20:1 aspect ratio technology.                                                                                                                                                                                                                                                                                                        
|
| |  | Thin core processing. A core is the basic inner-layer
    building block material from which printed circuit boards are
    constructed. A core consists of a flat sheet of material
    comprised of glass-reinforced resin with copper foil on either
    side. The thickness of inner-layer cores is determined by the
    overall thickness of the printed circuit board and the number of
    layers required. The demand for thinner cores derives from
    requirements of thinner printed circuit boards, higher layer
    counts and various electrical parameters. Core thickness in our
    printed circuit boards ranges from as little as
    0.001 inches up to 0.062 inches.                                                        
|
| |  | Materials. We offer a full range of materials for
    microwave, radio frequency and high speed applications. These
    materials can be used in hybrid stack-ups to allow for maximum
    performance in a cost reduced package. We currently use 48
    different materials and are preparing to add Green
    or Halogen-free materials and materials suitable for lead
    free assembly. The use of these materials requires
    advanced capabilities in the areas of drilling, hole cleaning,
    plating and registration. The addition of Green
    materials and materials capable of surviving
    lead-free assembly processes is to address the
    continuing environmental concerns surrounding the industry as a
    whole.



Our Customers and Markets




5



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|                           |       |              |    |      |   |      |    |     |   |  |    |     |  
|-------------------------- | ----- | ------------ | -- | ---- | - | ---- | -- | --- | - |  | -- | --- | -
|                           |       | Year Ended  
|                           |       | December 31,
|                           |       |             
|End Markets(1)(2)          |       | 2002         |    | 2003 |   | 2004
|                           |       |              |    |      |   |     
|Communications/ Networking |       |              | 44 | %    |   |      | 37 | %   |   |  | 41 | %  
|Medical/ Test/ Industrial  |       |              | 15 |      |   |      | 18 |     |   |  | 21 |    
|High-end Computing         |       |              | 24 |      |   |      | 26 |     |   |  | 22 |    
|Military/ Aerospace        |       |              | 7  |      |   |      | 9  |     |   |  | 6  |    
|Other                      |       |              | 10 |      |   |      | 10 |     |   |  | 10 |    
|                           |       |              |    |      |   |      |    |     |   |  |    |    
|                           | Total |              |    | 100  | % |      |    | 100 | % |  |    | 100 | %
|                           |       |              |    |      |   |      |    |     |   |  |    |    






|    |                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------
|(1) | Sales to electronic manufacturing services providers are
    classified by the end markets of their customers.
|   
|(2) | Statistical information for all periods presented have been
    reclassified to exclude results of DDi Europe.



Sales and Marketing








Research and Development




6



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Patents and Other Intellectual Property




Our Suppliers






Competition








| |   |                                                                                                  
| | - | -------------------------------------------------------------------------------------------------
| |  | ability to offer time-to-market capabilities;                                                    
|
| |  | capability and flexibility to produce technologically complex
    products;                      
|
| |  | additional available manufacturing capacity without material
    additional capital expenditures;
|
| |  | consistent high-quality product; and                                                             
|
| |  | outstanding customer service.                                                                    

Backlog




7



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Governmental Regulation






| |   |                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the Occupational Safety and Health Administration pertaining to
    health and safety in the workplace;                                                           
|
| |  | the Environmental Protection Agency pertaining to the use,
    storage, discharge and disposal of hazardous chemicals used in
    the manufacturing processes; and
|
| |  | corresponding state and local agencies.                                                                                                                           



Employees




Available Information


www.ddiglobal.com







|         |                                
|-------- | -------------------------------
|Item 1A. | Executive Officers Of DDi Corp.



|                    |  |     |    |        |  |                                                  
|------------------- |  | --- | -- | ------ |  | -------------------------------------------------
|Name                |  | Age |    | Office
|                    |  |     |    |       
|Bruce D. McMaster   |  |     | 43 |        |  | President, Chief Executive Officer and Director  
|Mikel H. Williams   |  |     | 48 |        |  | Senior Vice President and Chief Financial Officer
|Bradley Tesch       |  |     | 40 |        |  | Chief Operations Officer                         
|Timothy J. Donnelly |  |     | 45 |        |  | Vice President, General Counsel and Secretary    



Bruce D. McMaster


Mikel H. Williams


8



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Bradley Tesch


Timothy J. Donnelly









|        |            
|------- | -----------
|Item 2. | Properties.





|                     |       |          |                                   |             |  |  |         |         | 
|-------------------- | ----- | -------- | --------------------------------- | ----------- |  |  | ------- | ------- | 
|                     |       |          |                                   | Square Feet
|Location             |       | Function |                                   | (Approx.)  
|                     |       |          |                                   |            
|Sterling, Virginia   |       |          | Quick-turn printed circuit boards |             |  |  | 100,000 |        
|Anaheim, California  |       |          | Quick-turn printed circuit boards |             |  |  | 97,000  |        
|Milpitas, California |       |          | Quick-turn printed circuit boards |             |  |  | 73,000  |        
|Tempe, Arizona       |       |          | Quick-turn printed circuit boards |             |  |  | 49,000  |        
|Toronto, Canada      |       |          | Quick-turn printed circuit boards |             |  |  | 43,000  |        
|San Jose, California |       |          | Assembly                          |             |  |  | 62,000  |        
|Longmont, Colorado   |       |          | Assembly                          |             |  |  | 13,000  |        
|                     |       |          |                                   |             |  |  |         |        
|                     | Total |          |                                   |             |  |  |         | 437,000 | 
|                     |       |          |                                   |             |  |  |         |        





9



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|        |                   
|------- | ------------------
|Item 3. | Legal Proceedings.

In re DDi Corp.
Securities Litigation,









|        |                                                         
|------- | --------------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security
    Holders.



10



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PART II







|        |                                                                                                                               
|------- | ------------------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for the Registrants Common Equity and Related
    Stockholder Matters and 
     Issuer Purchases of Equity Securities.

Market for Common Stock


,






|                                      |                                            |              |   |       |              |  |      |       |     |  |  |   |      |  |  |   |      | 
|------------------------------------- | ------------------------------------------ | ------------ | - | ----- | ------------ |  | ---- | ----- | --- |  |  | - | ---- |  |  | - | ---- | 
|                                      |                                            | Reorganized  |   |       | Predecessor 
|                                      |                                            | DDi Corp.    |   |       | DDi Corp.   
|                                      |                                            | Common Stock |   |       | Common Stock
|                                      |                                            |              |   |       |             
|                                      |                                            | High         |   | Low   |              |  | High |       | Low
|                                      |                                            |              |   |       |              |  |      |       |    
|Fiscal Year Ended December 31, 2003:  |                                            |              |   |       |              |  |      |       |     |  |  |   |      |  |  |   |     
|                                      | First Quarter                              |              |   |      |              |  |      |      |     |  |  | $ | 0.27 |  |  | $ | 0.08 | 
|                                      | Second Quarter                             |              |   |      |              |  |      |      |     |  |  | $ | 0.15 |  |  | $ | 0.05 | 
|                                      | Third Quarter                              |              |   |      |              |  |      |      |     |  |  | $ | 0.07 |  |  | $ | 0.01 | 
|                                      | Fourth Quarter (through December 12, 2003) |              |   |      |              |  |      |      |     |  |  | $ | 0.23 |  |  | $ | 0.02 | 
|                                      | Fourth Quarter (from December 12, 2003)    |              | $ | 15.00 |              |  | $    | 11.50 |     |  |  |   |     |  |  |   |     | 
|Fiscal Year Ending December 31, 2004: |                                            |              |   |       |              |  |      |       |     |  |  |   |      |  |  |   |     
|                                      | First Quarter                              |              | $ | 19.50 |              |  | $    | 9.10  |     |  |  |   |     |  |  |   |     | 
|                                      | Second Quarter                             |              | $ | 12.00 |              |  | $    | 6.13  |     |  |  |   |     |  |  |   |     | 
|                                      | Third Quarter                              |              | $ | 8.05  |              |  | $    | 4.90  |     |  |  |   |     |  |  |   |     | 
|                                      | Fourth Quarter                             |              | $ | 5.25  |              |  | $    | 2.43  |     |  |  |   |     |  |  |   |     | 
|Fiscal Year Ending December 31, 2005: |                                            |              |   |       |              |  |      |       |     |  |  |  |      |  |  |  |     
|                                      | First Quarter (through March 1, 2005)      |              | $ | 3.27  |              |  | $    | 2.25  |     |  |  |   |     |  |  |   |     | 



11



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Dividend Policy






Equity Compensation Plan Information









|        |                         
|------- | ------------------------
|Item 6. | Selected Financial Data.

Managements Discussion and Analysis of Financial
Condition and Results of Operations


|                                           |                                                          |                                      |       |               |                       |      |           |               |       |   |               |       |               |   |       |       |      |  |   |      |      |     |   |       |       |      | 
|------------------------------------------ | -------------------------------------------------------- | ------------------------------------ | ----- | ------------- | --------------------- | ---- | --------- | ------------- | ----- | - | ------------- | ----- | ------------- | - | ----- | ----- | ---- |  | - | ---- | ---- | --- | - | ----- | ----- | ---- | 
|                                           |                                                          | Predecessor DDi Corp.                |       |               | Reorganized DDi Corp.
|                                           |                                                          |                                      |       |               |                      
|                                           |                                                          | Years Ended December 31,             |       | Eleven Months |                       |      | One Month |               | Year 
|                                           |                                                          |                                      |       | Ended         |                       |      | Ended     |               | Ended
|                                           |                                                          | 2000                                 |       | 2001          |                       | 2002 |           | Nov. 30, 2003 |       |   | Dec. 31, 2003 |       | Dec. 31, 2004
|                                           |                                                          |                                      |       |               |                       |      |           |               |       |   |               |       |              
|                                           |                                                          | (In millions, except per share data) |       |               |                       |      |          
|Consolidated Statement of Operations Data: |                                                          |                                      |       |               |                       |      |           |               |       |   |               |       |               |   |       |       |      |  |   |      |      |     |   |       |      
|Net sales                                  |                                                          | $                                    | 448.4 |               |                       | $    | 284.7     |               |       | $ | 185.6         |       |               | $ | 145.0 |       |      |  | $ | 14.6 |      |     | $ | 189.0 |      
|Cost of goods sold                         |                                                          |                                      | 274.7 |               |                       |      | 209.2     |               |       |   | 171.0         |       |               |   | 128.3 |       |      |  |   | 11.3 |      |     |   | 151.5 |      
|                                           | Non-cash compensation and amortization of intangibles(a) |                                      |       |              |                       |      |           |              |       |   |               |      |               |   |       |      |      |  |   |      | 6.9  |     |   |       | 12.6  |     
|                                           | Restructuring-related inventory impairment(b)            |                                      |       |              |                       |      |           | 3.7           |       |   |               | 3.4   |               |   |       | 1.7   |      |  |   |      |     |     |   |       |      |     
|                                           |                                                          |                                      |       |               |                       |      |           |               |       |   |               |       |               |   |       |       |      |  |   |      |      |     |   |       |      
|                                           | Total cost of goods sold                                 |                                      |       | 274.7         |                       |      |           | 212.9         |       |   |               | 174.4 |               |   |       | 130.0 |      |  |   |      | 18.2 |     |   |       | 164.1 |     
|Gross profit (loss)                        |                                                          |                                      | 173.7 |               |                       |      | 71.8      |               |       |   | 11.2          |       |               |   | 15.0  |       |      |  |   | (3.6 | )    |     |   | 24.9  |      
|Operating expenses:                        |                                                          |                                      |       |               |                       |      |           |               |       |   |               |       |               |   |       |       |      |  |   |      |      |     |   |       |      
|                                           | Sales and marketing:                                     |                                      |       |               |                       |      |           |               |       |   |               |       |               |   |       |       |      |  |   |      |      |     |   |       |       |     
|                                           |                                                          | Sales and marketing                  |       |               | 38.7                  |      |           |               | 25.4  |   |               |       | 19.7          |   |       |       | 13.5 |  |   |      |      | 1.1 |   |       |       | 14.6 | 
|                                           |                                                          | Non-cash compensation(a)             |       |               |                      |      |           |               |      |   |               |       |              |   |       |       |     |  |   |      |      | 1.0 |   |       |       | 2.4  | 
|                                           |                                                          |                                      |       |               |                       |      |           |               |       |   |               |       |               |   |       |       |      |  |   |      |      |     |   |       |      
|                                           | Total sales and marketing                                |                                      |       | 38.7          |                       |      |           | 25.4          |       |   |               | 19.7  |               |   |       | 13.5  |      |  |   |      | 2.1  |     |   |       | 17.0  |     

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|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |      |       |  
|------------------------------------------------------------------------------------ | ------------------------------------------ | ------------------------------------- | ---------- | ------------- | --------------------- | ---- | ---------- | ------------- | ----- | - | ------------- | ----- | ------------- | - | ---------- | --- | ------ | - | - | ---------- | --- | ---- | - | ---------- | ---- | ----- | -
|                                                                                     |                                            | Predecessor DDi Corp.                 |            |               | Reorganized DDi Corp.
|                                                                                     |                                            |                                       |            |               |                      
|                                                                                     |                                            | Years Ended December 31,              |            | Eleven Months |                       |      | One Month  |               | Year 
|                                                                                     |                                            |                                       |            | Ended         |                       |      | Ended      |               | Ended
|                                                                                     |                                            | 2000                                  |            | 2001          |                       | 2002 |            | Nov. 30, 2003 |       |   | Dec. 31, 2003 |       | Dec. 31, 2004
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |              
|                                                                                     |                                            | (In millions, except per share data)  |            |               |                       |      |           
|                                                                                     | General and administration:                |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |      |      
|                                                                                     |                                            | General and administration            |            |               | 30.4                  |      |            |               | 14.4  |   |               |       | 10.5          |   |            |     | 8.5    |   |   |            |     | 0.6  |   |            |      | 12.4  |  
|                                                                                     |                                            | Non-cash compensation(a)              |            |               |                      |      |            |               |      |   |               |       |              |   |            |     |       |   |   |            |     | 1.5  |   |            |      | 4.1   |  
|                                                                                     |                                            | Officers severance(c)                |            |               |                      |      |            |               |      |   |               |       |              |   |            |     |       |   |   |            |     |     |   |            |      | 0.7   |  
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|                                                                                     | Total general and administration           |                                       |            | 30.4          |                       |      |            | 14.4          |       |   |               | 10.5  |               |   |            | 8.5 |        |   |   |            | 2.1 |      |   |            | 17.2 |      
|                                                                                     | Amortization of intangibles(f)             |                                       |            | 19.5          |                       |      |            | 17.7          |       |   |               |      |               |   |            |    |        |   |   |            | 0.4 |      |   |            | 4.6  |      
|                                                                                     | Goodwill impairment                        |                                       |            |              |                       |      |            |              |       |   |               | 128.7 |               |   |            | 2.0 |        |   |   |            |    |      |   |            |     |      
|                                                                                     | Restructuring and other related charges(b) |                                       |            |              |                       |      |            | 75.8          |       |   |               | 25.3  |               |   |            | 3.9 |        |   |   |            | 0.4 |      |   |            | 0.9  |      
|                                                                                     | Reorganization expenses(d)                 |                                       |            |              |                       |      |            |              |       |   |               | 2.1   |               |   |            | 7.4 |        |   |   |            | 0.5 |      |   |            | 0.8  |      
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|                                                                                     |                                            | Operating income (loss)               |            |               | 85.1                  |      |            |               | (61.5 | ) |               |       | (175.1        | ) |            |     | (20.3  | ) |   |            |     | (9.1 | ) |            |      | (15.6 | )
|Interest rate swap valuation                                                         |                                            |                                       |           |               |                       |      | 10.0       |               |       |   |              |       |               |   |           |     |        |   |   |           |     |      |   |           |     
|Loss on interest rate swap termination                                               |                                            |                                       |           |               |                       |      |           |               |       |   |              |       |               |   | 5.6        |     |        |   |   |           |     |      |   |           |     
|Interest expense and other expense, net                                              |                                            |                                       | 49.9       |               |                       |      | 39.1       |               |       |   | 19.9          |       |               |   | 16.3       |     |        |   |   | 0.8        |     |      |   | 7.6        |     
|Reorganization items:                                                                |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|                                                                                     |                                            | Gain on extinguishment of debt        |            |               |                      |      |            |               |      |   |               |       |              |   |            |     | (120.4 | ) |   |            |     |     |   |            |      |      |  
|                                                                                     |                                            | Fresh start accounting adjustments    |            |               |                      |      |            |               |      |   |               |       |              |   |            |     | (115.2 | ) |   |            |     |     |   |            |      |      |  
|                                                                                     |                                            | Reorganization proceeding expenses(e) |            |               |                      |      |            |               |      |   |               |       |              |   |            |     | 14.0   |   |   |            |     | 1.1  |   |            |      |      |  
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|Income (loss) from continuing operations before income taxes                         |                                            |                                       | 35.2       |               |                       |      | (110.6     | )             |       |   | (195.0        | )     |               |   | 179.4      |     |        |   |   | (11.0      | )   |      |   | (23.2      | )   
|                                                                                     |                                            | Income tax benefit (expense)          |            |               | (18.0                 | )    |            |               | 22.8  |   |               |       | (17.0         | ) |            |     | (0.1   | ) |   |            |     |     |   |            |      | (2.0  | )
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|Income (loss) from continuing operations                                             |                                            |                                       | 17.2       |               |                       |      | (87.8      | )             |       |   | (212.0        | )     |               |   | 179.3      |     |        |   |   | (11.0      | )   |      |   | (25.2      | )   
|Net income (loss) from discontinued operations, net of tax                           |                                            |                                       | 3.0        |               |                       |      | 2.7        |               |       |   | (76.1         | )     |               |   | (14.9      | )   |        |   |   | (3.0       | )   |      |   | (20.7      | )   
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|Net income (loss)                                                                    |                                            |                                       | 20.2       |               |                       |      | (85.1      | )             |       |   | (288.1        | )     |               |   | 164.4      |     |        |   |   | (14.0      | )   |      |   | (45.9      | )   
|Series B preferred stock dividends and accretion                                     |                                            |                                       |           |               |                       |      |           |               |       |   |              |       |               |   |           |     |        |   |   |           |     |      |   | (4.0       | )   
|Priority distribution due shares of Class L common stock                             |                                            |                                       | (4.4       | )             |                       |      |           |               |       |   |              |       |               |   |           |     |        |   |   |           |     |      |   |           |     
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|Net income (loss) allocable to common stock                                          |                                            | $                                     | 15.8       |               |                       | $    | (85.1      | )             |       | $ | (288.1        | )     |               | $ | 164.4      |     |        |   | $ | (14.0      | )   |      | $ | (49.9      | )   
|                                                                                     |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|Net income (loss) per share of common stock from continuing
    operations (basic)   |                                            | $                                     | 0.54       |               |                       | $    | (1.84      | )             |       | $ | (4.40         | )     |               | $ | 3.63       |     |        |   | $ | (0.46      | )   |      | $ | (1.15      | )   
|Net income (loss) per share of common stock from continuing
    operations (diluted) |                                            | $                                     | 0.51       |               |                       | $    | (1.84      | )             |       | $ | (4.40         | )     |               | $ | 3.02       |     |        |   | $ | (0.46      | )   |      | $ | (1.15      | )   
|Income (loss) per share of common stock (basic)                                      |                                            | $                                     | 0.50       |               |                       | $    | (1.79      | )             |       | $ | (5.98         | )     |               | $ | 3.33       |     |        |   | $ | (0.59      | )   |      | $ | (1.97      | )   
|Income (loss) per share of common stock (diluted)                                    |                                            | $                                     | 0.47       |               |                       | $    | (1.79      | )             |       | $ | (5.98         | )     |               | $ | 2.78       |     |        |   | $ | (0.59      | )   |      | $ | (1.97      | )   
|Weighted average shares outstanding (basic)                                          |                                            |                                       | 31,781,536 |               |                       |      | 47,381,516 |               |       |   | 48,175,353    |       |               |   | 49,357,100 |     |        |   |   | 23,749,926 |     |      |   | 25,287,763 |     
|Weighted average shares outstanding (diluted)                                        |                                            |                                       | 33,520,447 |               |                       |      | 47,381,516 |               |       |   | 48,175,353    |       |               |   | 61,791,671 |     |        |   |   | 23,749,926 |     |      |   | 25,287,763 |     
|Other Financial Data:                                                                |                                            |                                       |            |               |                       |      |            |               |       |   |               |       |               |   |            |     |        |   |   |            |     |      |   |            |     
|Depreciation                                                                         |                                            | $                                     | 16.7       |               |                       | $    | 17.1       |               |       | $ | 16.1          |       |               | $ | 12.4       |     |        |   | $ | 0.9        |     |      | $ | 9.9        |     
|Capital expenditures                                                                 |                                            |                                       | 24.0       |               |                       |      | 24.7       |               |       |   | 8.0           |       |               |   | 3.9        |     |        |   |   | 0.1        |     |      |   | 4.4        |     
|Net cash provided by (used in) operating activities from
    continuing operations   |                                            |                                       | 54.9       |               |                       |      | 45.3       |               |       |   | (7.6          | )     |               |   | (12.2      | )   |        |   |   | 5.6        |     |      |   | 3.6        |     
|Net cash provided by (used in) investing activities from
    continuing operations   |                                            |                                       | (58.6      | )             |                       |      | (67.4      | )             |       |   | 1.0           |       |               |   | (2.6       | )   |        |   |   | 0.7        |     |      |   | 4.2        |     
|Net cash provided by (used in) financing activities from
    continuing operations   |                                            |                                       | 49.8       |               |                       |      | (16.0      | )             |       |   | 22.0          |       |               |   | (6.2       | )   |        |   |   | (0.1       | )   |      |   | 12.7       |     

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|                                                                            |  |                       |       |      |                       |      |              |  |      |   |        |   |  |  |   |       |  |  |   |       | 
|--------------------------------------------------------------------------- |  | --------------------- | ----- | ---- | --------------------- | ---- | ------------ |  | ---- | - | ------ | - |  |  | - | ----- |  |  | - | ----- | 
|                                                                            |  | Predecessor DDi Corp. |       |      | Reorganized DDi Corp.
|                                                                            |  |                       |       |      |                      
|                                                                            |  | December 31,          |       |      |                      
|                                                                            |  |                       |       |      | December 31,          |      | December 31,
|                                                                            |  | 2000                  |       | 2001 |                       | 2002 |              |  | 2003 |   | 2004  
|                                                                            |  |                       |       |      |                       |      |              |  |      |   |       
|Consolidated Balance Sheet Data:                                            |  |                       |       |      |                       |      |              |  |      |   |        |   |  |  |   |       |  |  |   |       | 
|Cash, cash equivalents and marketable securities (including
    restricted) |  | $                     | 61.8  |      |                       | $    | 45.5         |  |      | $ | 38.4   |   |  |  | $ | 18.7  |  |  | $ | 23.5  | 
|Working capital (deficit) from continuing operations                        |  |                       | 94.4  |      |                       |      | 66.7         |  |      |   | (220.2 | ) |  |  |   | 25.6  |  |  |   | 20.9  | 
|Total assets from continuing operations                                     |  |                       | 482.0 |      |                       |      | 349.5        |  |      |   | 151.8  |   |  |  |   | 228.8 |  |  |   | 226.7 | 
|Total debt, including current maturities                                    |  |                       | 306.9 |      |                       |      | 256.6        |  |      |   | 288.9  |   |  |  |   | 90.5  |  |  |   | 35.1  | 
|Stockholders equity (deficit)                                              |  |                       | 136.4 |      |                       |      | 122.5        |  |      |   | (163.9 | ) |  |  |   | 91.4  |  |  |   | 77.1  | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The 2003 non-cash compensation charges reflect periodic charges
    related to the grant of options to purchase an aggregate of
    1,958,022 shares of our common stock and the authorization
    to issue 1,037,500 shares of restricted common stock under
    our 2003 Management Equity Incentive Plan in connection with our
    plan of reorganization. In 2004, options to purchase
    323,300 shares of our common stock were granted that
    resulted in additional non-cash compensation charges.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | The 2001 restructuring and related charges represent the charge
    recorded in the fourth quarter of 2001 in connection with the
    approved plan to downsize and consolidate facilities and to
    effect changes in senior management. The 2002 restructuring and
    related charges represent the charges recorded in June,
    September and December 2002 in connection with the approved plan
    to close our Dallas, Texas and Moorpark, California facilities
    and selected design centers and to restructure various European
    operations. In addition to these facility closures during 2002,
    management and DDi Corp.s board of directors also approved
    a plan in 2002 to write-down unutilized assets, streamline
    certain manufacturing facilities, eliminate certain sales
    offices, including the office based in Tokyo, Japan, and to
    scale down our Anaheim, California facility. The restructuring
    and related charges for the eleven months ended
    November 30, 2003, represent the streamlining of
    manufacturing facilities, increasing operating efficiencies and
    the revision of estimates from previously recorded restructuring
    charges. The charges recorded in the one month ended
    December 31, 2003, also represent revision of estimates
    from previously recorded restructuring charges. The 2004
    restructuring and related charges represent costs related to
    lowering the cost structure of our manufacturing operations.
|   
|(c) |  | The 2004 officers severance represents charges recorded in
    the fourth quarter of 2004 related to the severance agreement
    entered into with the former Chief Financial Officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(d) |  | The 2002 reorganization expenses represent the charges recorded
    in the fourth quarter of 2002 primarily comprised of personnel
    retention costs under the Dynamic Details Key Employee Retention
    Program, or KERP, and professional fees incurred in connection
    with our efforts to effect a plan of reorganization to
    deleverage our capital structure. The reorganization expenses
    for the eleven months ended November 30, 2003, for the one
    month ended December 31, 2003, and for the year ended
    December 31, 2004 consist of professional fees incurred in
    connection with our efforts to effect a plan of reorganization
    to deleverage our capital structure as well as charges related
    to personnel retention costs under the Dynamic Details KERP.
    These amounts do not relate to the bankruptcy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(e) |  | During the eleven months ended November 30, 2003, the
    Company recorded reorganization charges relating to the
    Chapter 11 proceedings of $14.0 million. These charges
    consist of $8.8 million related to professional fees
    directly associated with the Chapter 11 proceedings,
    $6.2 million related to the write-off of debt issuance
    costs, and a non-cash credit of $1.0 million related to the
    reversal of interest expense. In the month of December the
    Company recorded reorganization charges relating to the
    Chapter 11 proceedings of $1.1 million which consist
    of $0.1 million related to the write-off of debt issuance
    costs and $1.0 million related to professional fees
    directly associated with the Chapter 11 proceedings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(f) |  | A factor that affected our comparability of information after
    2001 was our implementation of SFAS No. 142 on
    January 1, 2002, which required that goodwill no longer be
    amortized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

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|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|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.                                                                                   
|
| |  | 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.

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| |   |                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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




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

Fresh-start accounting


17



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Valuation of long-lived assets


Goodwill impairment


Inventory obsolescence


Receivables and Allowance for Doubtful
Accounts


Income taxes


18



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Litigation and other contingencies


Discontinued operation


Results of Operations and Other Financial Data




19



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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   | 

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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   |     

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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






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23



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Summary of 2003 Results






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




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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



26



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##### Table of Contents







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







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









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



27



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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




28



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##### Table of Contents





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







Series B Preferred
Stock




29



---



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Recently Issued Accounting Standards






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






30



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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;

31



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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.




32



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##### 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.




33



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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.




34



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##### 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.




35



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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.




36



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##### 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.


37



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|         |                                                                
|-------- | ---------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk.



| |                   
| | ------------------
| | Interest Rate Risk









| |                               
| | ------------------------------
| | Foreign Currency Exchange Risk








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








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements With Accountants on
    Accounting and Financial Disclosure.








|         |                         
|-------- | ------------------------
|Item 9A. | Controls and Procedures.

Disclosure Controls and Procedures




Report of Management on Internal Control Over Financial
Reporting




38



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##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | pertain to the maintenance of records that, in reasonable
    detail, accurately and fairly reflect the transactions and
    dispositions of the assets of DDi Corp.;                                                                                                                                                                                                                         
|
| |  | provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with accounting principles generally accepted in the
    United States of America and that receipts and expenditures of
    DDi Corp. are being made only in accordance with
    authorizations of management and directors of
    DDi Corp.; and
|
| |  | provide reasonable assurance regarding prevention or timely
    detection of authorized acquisition, use or disposition of
    assets that could have a material effect on the consolidated
    financial statements.                                                                                                                                                                         



Internal Control  Integrated
Framework






Changes in Internal Control Over Financial Reporting




39



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##### Table of Contents






PART III







|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.





|                 |  |     |    |          |  |                                            |      |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|---------------- |  | --- | -- | -------- |  | ------------------------------------------ | ---- |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                 |  |     |    | Director |  |                                           
|Name             |  | Age |    | Since    |  | Principal Occupation and Other Information
|                 |  |     |    |          |  |                                           
|Robert J. Amman  |  |     | 66 |          |  |                                            | 2003 |  |  | Mr. Amman is currently the sole member of Blackland Associates
    LLC, through which he provides consulting services. From 1999 to
    2000, Mr. Amman served as President of Global TeleSystems,
    Inc. (GTS), a European broadband network services
    provider. From 2000 to 2002, Mr. Amman was Chairman and
    Chief Executive Officer of GTS. Mr. Amman was Chairman,
    President and Chief Executive Officer of John H. Harland
    Company, a printing firm, from 1995 to 1998. Previously, from
    1994 to 1995, he served as Vice Chairman of First Financial
    Management Corporation. From 1988 to 1994, Mr. Amman served
    as President and Chief Executive Officer of Western Union
    Corporation.                                                                                                                                                                                                                                                   
|Robert Guezuraga |  |     | 56 |          |  |                                            | 2001 |  |  | Mr. Guezuraga is Senior Vice President and President, Diabetes
    Business, of Medtronic, Inc. a medical technology company since
    December 2004. From September 1999 to December 2004, he served
    as Senior Vice President and President, Medtronic Cardiac
    Surgery. From September 1998 to August 1999, he served as Vice
    President and General Manager of Medtronic Emergency Response
    Systems, a subsidiary of Medtronic that manufactures, sells and
    services external defibrillators and related medical equipment
    and accessories. From August 1994 to September 1998, he served
    as President and Chief Operating Officer of Physio-Control
    International, Inc., a medical equipment manufacturer. Prior to
    that, Mr. Guezuraga served as President and CEO of Positron
    Corporation from 1987 to 1994 and held various management
    positions within General Electric Corporation, including
    GEs Medical Systems division.

40



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##### Table of Contents



|                  |  |     |    |          |       |  |      |                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|----------------- |  | --- | -- | -------- | ----- |  | ---- | ------------------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                  |  |     |    | Director |       |  |     
|Name              |  | Age |    |          | Since |  |      | Principal Occupation and Other Information
|                  |  |     |    |          |       |  |      |                                           
|Jay B. Hunt       |  |     | 65 |          |       |  | 2003 |                                            |  | Mr. Hunt is a principal of The Development Group, a business and
    financial advisory services firm, since 1993. From 1983 to 1987
    he served as Chairman & Chief Executive Officer of FN
    Realty Services, a specialized financial services company. From
    1988 to 1990, he was Executive Vice President, member of the
    Executive Committee and Director of FM Productions, an
    entertainment services firm. He is a member of the Board of
    Directors of Electronic Medical Management, Inc., a medical
    payments processing firm member of the Board of Advisors of Joie
    De Vivre Hospitality, an owner or manager of 30 hotels and
    restaurants, Chairman of the Board and a Director of the
    Ischemia Research & Education Foundation and a Director
    of the Indiana University Foundation. Mr. Hunt has his B.A.
    in Political Science from Indiana University and a J.D. in law
    from the University of Michigan Law School.                                                                                                                                                                           
|Andrew E. Lietz   |  |     | 66 |          |       |  | 2003 |                                            |  | Mr. Lietz currently serves as the Managing Director of Rye
    Capital Management, a private equity investment firm he founded
    in 2001. From September 2000 until June 2002, Mr. Lietz
    served as Executive Chairman of Clare Corporation, a
    manufacturer of integrated circuits. From October 1995 until
    June 2000, he served as President and Chief Executive Officer of
    Hadco Corporation, a global manufacturer of electronic
    interconnect products and services. Previously, Mr. Lietz
    served as Chief Operating Officer and Vice President of Hadco
    from July 1991 to October 1995, and served as director of Hadco
    from February 1993 through June 2000. Mr. Lietz serves as a
    director of Amphenol Corporation, a global manufacturer of
    electronic components for the industrial and military
    marketplace, Omtool, Ltd., a provider of e-mail and fax based
    messaging software, and Safeguard Scientifics, Inc, an operating
    company focused on acquiring and developing technology
    companies. He also serves on the Board of Trustees for the
    University System of New Hampshire
|Bruce D. McMaster |  |     | 43 |          |       |  | 1997 |                                            |  | Mr. McMaster has served as President of the Company since 1991
    and as a Director and Chief Executive Officer since 1997. Before
    becoming President of the Company, Mr. McMaster worked in
    various management capacities in the Companys engineering
    and manufacturing departments. Mr. McMaster also serves as
    President and Chief Executive Officer of the Companys
    subsidiaries, DDi Capital Corp. and Dynamic Details,
    Incorporated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

41



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##### Table of Contents



|                     |  |     |    |          |       |  |      |                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-------------------- |  | --- | -- | -------- | ----- |  | ---- | ------------------------------------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                     |  |     |    | Director |       |  |     
|Name                 |  | Age |    |          | Since |  |      | Principal Occupation and Other Information
|                     |  |     |    |          |       |  |      |                                           
|Carl R. Vertuca, Jr. |  |     | 57 |          |       |  | 2003 |                                            |  | Mr. Vertuca is president of The Vertuca Group, a venture
    capital and real estate investment company since April 2000. He
    is also a managing member of the limited liability company that
    is the general partner of SOB Ventures, a private equity fund.
    Since 1993, he served as executive vice president and a board
    member of The Dii Group, a publicly held contract manufacturing
    company, until it was acquired by Flextronics International for
    $2.3 billion in April 2000. Prior to his tenure at The Dii
    Group, Mr. Vertuca held various senior level management
    positions in manufacturing, engineering and finance at IBM
    Corporation and StorageTek Corporation. Mr. Vertuca serves as a
    director of Reptron Electronics, Inc.





Section 16(a) Beneficial Ownership Reporting
Compliance








Code of Ethics




42



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##### Table of Contents



Audit Committee









|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.





43



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##### Table of Contents





| |                           
| | --------------------------
| | Summary Compensation Table



|                    |                                |                     |      |              |  |              |         |                  |  |        |   |              |  |     |        |        |     |  |         |   |  |  |   |         |  |  |         |         |     
|------------------- | ------------------------------ | ------------------- | ---- | ------------ |  | ------------ | ------- | ---------------- |  | ------ | - | ------------ |  | --- | ------ | ------ | --- |  | ------- | - |  |  | - | ------- |  |  | ------- | ------- | ----
|                    |                                |                     |      | Long-Term    |  |             
|                    |                                | Annual Compensation |      | Compensation |  |             
|                    |                                |                     |      |              |  |             
|                    |                                |                     |      | Restricted   |  | Options to   |         |                 
|                    |                                |                     |      | Stock        |  | Purchase     |         | All Other       
|                    |                                |                     |      | Bonus        |  | Other Annual |         | Awards           |  | Common |   | Compensation
|Name and Position   |                                | Year                |      | Salary ($)   |  | ($)          |         | Compensation ($) |  | (#)    |   | Stock (#)    |  | ($)
|                    |                                |                     |      |              |  |              |         |                  |  |        |   |              |  |    
|Bruce D. McMaster   |                                |                     | 2004 |              |  |              | 514,712 |                  |  |        |  |              |  |     |       | *      |     |  | 362,500 |   |  |  |  |         |  |  | 126,586 | (1)    
|                    | President and                  |                     |      | 2003         |  |              |         | 501,256          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   | 622,482 |  |  |         | 127,062 | (1) 
|                    | Chief Executive Officer        |                     |      | 2002         |  |              |         | 194,814          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   |        |  |  |         | 252,973 | (1) 
|                   
|David Blair(2)      |                                |                     | 2004 |              |  |              | 368,851 |                  |  |        |  |              |  |     | 51,318 | (3)    |     |  | 100,000 |   |  |  |  |         |  |  | 65,431  | (4)    
|                    | Former Chief Executive Officer |                     |      | 2003         |  |              |         | 330,922          |  |        |   |             |  |     |        | 54,312 | (3) |  |         |  |  |  |   | 165,999 |  |  |         | 113,735 | (4) 
|                    | of DDi Europe                  |                     |      | 2002         |  |              |         | 259,304          |  |        |   |             |  |     |        | 49,746 | (3) |  |         |  |  |  |   |        |  |  |         |        |     
|                   
|Michael Moisan(5)   |                                |                     | 2004 |              |  |              | 304,500 |                  |  |        |  |              |  |     |       | *      |     |  | 100,000 |   |  |  |  |         |  |  | 58,788  | (6)    
|                    | Former Chief Operating Officer |                     |      | 2003         |  |              |         | 290,897          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   | 165,999 |  |  |         | 58,503  | (6) 
|                    |                                |                     |      | 2002         |  |              |         | 275,000          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   |        |  |  |         | 218,737 | (6) 
|                   
|Timothy J. Donnelly |                                |                     | 2004 |              |  |              | 229,327 |                  |  |        |  |              |  |     |        |        |     |  | 50,000  |   |  |  |  |         |  |  | 45,500  | (7)    
|                    | Vice President, Secretary      |                     |      | 2003         |  |              |         | 225,000          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   | 82,995  |  |  |         | 45,336  | (7) 
|                    | and General Counsel            |                     |      | 2002         |  |              |         | 182,596          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   |        |  |  |         | 45,249  | (7) 
|                   
|Thomas Ingham(8)    |                                |                     | 2004 |              |  |              | 215,385 |                  |  |        |  |              |  |     |       | *      |     |  | 50,000  |   |  |  |  |         |  |  | 40,529  | (9)    
|                    | Former Vice President, Sales   |                     |      | 2003         |  |              |         | 206,923          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   | 82,995  |  |  |         | 40,514  | (9) 
|                    | and Marketing                  |                     |      | 2002         |  |              |         | 198,610          |  |        |   | 25,000       |  |     |        |       | *   |  |         |  |  |  |   | 2,453   |  |  |         | 40,503  | (9) 
|                   
|Joseph P. Gisch(10) |                                |                     | 2004 |              |  |              | 258,077 |                  |  |        |  |              |  |     |       | *      |     |  | 87,500  |   |  |  |  |         |  |  | 180,367 | (11)   
|                    | Former Chief Financial         |                     |      | 2003         |  |              |         | 305,000          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   | 145,250 |  |  |         | 61,504  | (11)
|                    | Officer                        |                     |      | 2002         |  |              |         | 230,963          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   |        |  |  |         | 62,028  | (11)
|                   
|Jay Latin(12)       |                                |                     | 2004 |              |  |              | 192,923 |                  |  |        |  |              |  |     |       | *      |     |  | 50,000  |   |  |  |  |         |  |  | 128,724 | (13)   
|                    | Former Vice President,         |                     |      | 2003         |  |              |         | 196,577          |  |        |   |             |  |     |        |       | *   |  |         |  |  |  |   | 82,995  |  |  |         | 38,298  | (13)
|                    | Sales and Marketing           |                     |      | 2002         |  |              |         | 147,588          |  |        |   | 50,000       |  |     |        |       | *   |  |         |  |  |  |   |        |  |  |         | 38,231  | (13)
|                    | Western Region                 |                     |      |              |  |              |         |                  |  |        |   |              |  |     |        |        |     |  |         |   |  |  |   |         |  |  |         |         |     

(Footnotes on the following page.)







|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | The aggregate amount of perquisites and other benefits paid did
    not exceed the lesser of $50,000 or 10% of the total annual
    salary and bonus of the named executive officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(1) | Other compensation for 2004 consisted of: (a) $126,250
    representing a discretionary retention bonus under the Dynamic
    Details Key Employee Retention program, or KERP and
    (b) $336 representing term life insurance premiums paid by
    the Company for the benefit of Mr. McMaster. Other
    compensation for 2003 consisted of: (a) $126,750
    representing a discretionary retention bonus under the Dynamic
    Details Key Employee Retention program, or KERP and
    (b) $312 representing term life insurance premiums paid by
    the Company for the benefit of Mr. McMaster. Other
    compensation for 2002 consisted of: (a) $252,000
    representing a discretionary retention bonus under the Dynamic
    Details KERP, which was deferred by Mr. McMaster and
    actually paid in February 2003; (b) $661 representing
    Company contributions for Mr. McMasters account under
    the Companys 401(k) Plan; and (c) $312 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. McMaster.
|   
|(2) | Mr. Blair served as President of DDi Europe from January
    2002 to February 2005. Mr. Blairs compensation is
    paid by the Company in British Pounds and for purposes of this
    Summary Compensation Table have been converted to
    U.S. Dollars at the weighted average exchange rate for the
    relevant fiscal year (for fiscal year ended December 31,
    2002: US$1.50321: £1.00; for fiscal year ended
    December 31, 2003: US$1.6412: £1.00; for fiscal year
    ended December 31, 2004: US$1.8328: £1.00).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(3) | Other annual compensation for 2004 included an automobile
    allowance of $51,318. Other annual compensation for 2003
    included an automobile allowance of $45,954. Other annual
    compensation for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

(Footnotes continued on the next page.)


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(Footnotes continued from the preceding page.)


|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | 2002 included an automobile allowance of $42,090. No other
    perquisites exceeded 25% of the total perquisites for 2002, 2003
    or 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(4) | All other compensation for 2004 consisted of $65,431
    representing a discretionary retention bonus under the KERP. All
    other compensation for 2003 consisted of $113,735 representing a
    discretionary retention bonus under the KERP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(5) | Mr. Moisan served as our Chief Operating Officer until
    March 11, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(6) | All other compensation for 2004 consisted of (a) $58,000
    representing a discretionary retention bonus under the KERP; and
    (b) $788 representing term life insurance premiums paid by
    the Company for the benefit of Mr. Moisan. All other
    compensation for 2003 consisted of (a) $58,000 representing
    a discretionary retention bonus under the KERP; and
    (b) $503 representing term life insurance premiums paid by
    the Company for the benefit of Mr. Moisan. Other
    compensation for 2002 consisted of: (a) $58,000
    representing a discretionary retention bonus under the KERP;
    (b) $312 representing term life insurance premiums paid by
    the Company for the benefit of Mr. Moisan; and
    (c) $160,425 representing a relocation allowance.
|   
|(7) | All other compensation for 2004 consisted of (a) $45,000
    representing a discretionary retention bonus under the KERP and
    (b) $500 representing term life insurance premiums paid by
    the Company for the benefit of Mr. Donnelly. All other
    compensation for 2003 consisted of (a) $45,000 representing
    a discretionary retention bonus under the KERP and (b) $336
    representing term life insurance premiums paid by the Company
    for the benefit of Mr. Donnelly. Other compensation for
    2002 consisted of (a) $45,000 representing a discretionary
    retention bonus under the KERP and (b) $249 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. Donnelly.                                                    
|   
|(8) | Mr. Ingham served as our Vice President, Sales and
    Marketing until February 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(9) | All other compensation for 2004 consisted of: (a) $40,000
    representing a discretionary retention bonus under the KERP; and
    (b) $529 representing term life insurance premiums paid by
    the Company for the benefit of Mr. Ingham. All other
    compensation for 2003 consisted of: (a) $40,000
    representing a discretionary retention bonus under the KERP; and
    (b) $514 representing term life insurance premiums paid by
    the Company for the benefit of Mr. Ingham. Other
    compensation for 2002 consisted of: (a) $40,000
    representing a discretionary retention bonus under the KERP; and
    (b) $503 representing term life insurance premiums paid by
    the Company for the benefit of Mr. Ingham.                                                    



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Mr. Gisch served as our Chief Financial Officer until
    November 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    
|(11) | All other compensation for 2004 consisted of: (a) $61,000
    representing a discretionary retention bonus under the KERP;
    (b) $34,891 representing accrued vacation paid upon
    Mr. Gischs resignation, (c) a severance payment
    of $34,019, representing the continuation of
    Mr. Gischs salary from November 16 through year end,
    (d) $50,000 representing the first consulting payment
    pursuant to Mr. Gischs Confidential Severance
    Agreement and General Release, and (b) $457 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. Gisch. All other compensation for 2003 consisted of:
    (a) $61,000 representing a discretionary retention bonus
    under the KERP; and (b) $504 representing term life
    insurance premiums paid by the Company for the benefit of
    Mr. Gisch. Other compensation for 2002 consisted of:
    (a) $61,000 representing a discretionary retention bonus
    under the KERP; (b) $716 representing Company contributions
    for Mr. Gischs account under the Companys
    401(k) Plan; and (c) $312 representing term life insurance
    premiums paid by the Company for the benefit of Mr. Gisch.
|    
|(12) | Mr. Latin served as our Vice President, Sales and
    Marketing  Western Region until November 2004.
    Mr. Latin continues to be employed by the Company in a
    non-executive officer capacity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    
|(13) | All other compensation for 2004 consisted of: (a) $38,000
    representing a discretionary retention bonus under the KERP;
    (b) $90,444 representing a payment in connection with
    Mr. Latins relocation; and (c) $280 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. Latin. All other compensation for 2003 consisted of:
    (a) $38,000 representing a discretionary retention bonus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

(Footnotes continued on the next page.)


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(Footnotes continued from the preceding page.)


| |                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | under the KERP; and (b) $298 representing term life
    insurance premiums paid by the Company for the benefit of
    Mr. Latin. Other compensation for 2002 consisted of:
    (a) $38,000 representing a discretionary retention bonus
    under the KERP; and (b) $231 representing term life
    insurance premiums paid by the Company for the benefit of
    Mr. Latin.

Stock Options


Stock Option Grants.


Option Exercises/ Fiscal Year End Value.


Aggregated Option/ SAR Exercises in Last Fiscal Year and
FY-End Option/ SAR Values


|                    |  |                 |   |              |  |                        |   |                           |  |             |         |               |  |  |         |  |  |   |         |  |  |   |         | 
|------------------- |  | --------------- | - | ------------ |  | ---------------------- | - | ------------------------- |  | ----------- | ------- | ------------- |  |  | ------- |  |  | - | ------- |  |  | - | ------- | 
|                    |  |                 |   |              |  | Number of Securities   |   |                          
|                    |  |                 |   |              |  | Underlying Unexercised |   | Value of Unexercised     
|                    |  |                 |   |              |  | Options/SARs at        |   | In-the-Money Options/SARs
|                    |  |                 |   |              |  | Fiscal Year-End (#)    |   | at Fiscal Year-End ($)   
|                    |  | Shares Acquired |   | Value        |  |                        |   |                          
|Name                |  | on Exercise (#) |   | Realized ($) |  | Exercisable            |   | Unexercisable             |  | Exercisable |         | Unexercisable
|                    |  |                 |   |              |  |                        |   |                           |  |             |         |              
|Bruce D. McMaster   |  |                 |  |              |  |                        |  |                           |  |             | 149,700 |               |  |  | 411,678 |  |  | $ | 134,231 |  |  | $ | 625,387 | 
|David Blair         |  |                 |  |              |  |                        |  |                           |  |             | 39,918  |               |  |  | 109,783 |  |  | $ | 35,793  |  |  | $ | 166,774 | 
|Michael Moisan      |  |                 |  |              |  |                        |  |                           |  |             | 39,918  |               |  |  | 109,782 |  |  | $ | 35,793  |  |  | $ | 166,771 | 
|Timothy J. Donnelly |  |                 |  |              |  |                        |  |                           |  |             | 19,959  |               |  |  | 54,891  |  |  | $ | 17,897  |  |  | $ | 83,385  | 
|Thomas Ingham       |  |                 |  |              |  |                        |  |                           |  |             | 19,959  |               |  |  | 54,891  |  |  | $ | 17,897  |  |  | $ | 83,385  | 
|Joseph P. Gisch     |  |                 |  |              |  |                        |  |                           |  |             | 104,793 |               |  |  | 26,198  |  |  | $ | 93,964  |  |  | $ | 83,283  | 
|Jay Latin           |  |                 |  |              |  |                        |  |                           |  |             | 19,959  |               |  |  | 54,891  |  |  | $ | 17,897  |  |  | $ | 83,385  | 

Employment Contracts and Termination of Employment and Change
of Control Arrangements










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i ii i ii iii i ii


i ii iii


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Compensation Committee Interlocks and Insider
Participation




Compensation of Directors




Cash Compensation.


Stock Options.


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|         |                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters.

Beneficial Ownership Table






| |   |                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | each person known by us to own beneficially more than 5% of the
    voting power of our outstanding Common Stock and each series of
    Preferred Stock;                                                                                       
|
| |  | each of our current directors;                                                                                                                                                                                                                 
|
| |  | our chief executive officer and the other officers named in the
    Summary Compensation Table set forth under the caption
    Compensation of Executive Officers (we refer to
    these officers as the Named Executive
    Officers); and
|
| |  | all of our current directors and executive officers as a group.                                                                                                                                                                                





|                                        |                                   |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      |  
|--------------------------------------- | --------------------------------- | -------------------- |  | --------- |  | ----- |  | ---------- |  |  |  | --------- |  |  |  | ---- | -
|                                        |                                   | Amount and Nature of |  |          
|                                        |                                   | Beneficial Ownership |  |          
|                                        |                                   |                      |  |          
|                                        |                                   | Number of            |  |           |  |      
|                                        |                                   | Shares               |  | Right to  |  |       |  | Percent of
|Name and Address of Beneficial Owner(1) |                                   | Owned                |  | Acquire   |  | Total |  | Class     
|                                        |                                   |                      |  |           |  |       |  |           
|Common Stock                            |                                   |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |     
|Principal Stockholders:                 |                                   |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |     
|                                        | FMR Corp.(2)                      |                      |  | 3,405,389 |  |       |  |           |  |  |  | 3,405,389 |  |  |  | 13.1 | %
|                                        | 82 Devonshire Street              |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      |  
|                                        | Boston, MA 02109                  |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      |  
|                                        | Symphony Asset Management LLC(3)  |                      |  | 2,371,267 |  |       |  |           |  |  |  | 2,371,267 |  |  |  | 9.1  | %
|                                        | Nuveen Investments, Inc.          |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      |  
|                                        | Nuveen Investments Holdings, Inc. |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      |  
|                                        | 555 California Street, Suite 2975 |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      |  
|                                        | San Francisco, CA 94104           |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      |  

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|                                                  |                                                             |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|------------------------------------------------- | ----------------------------------------------------------- | -------------------- |  | --------- |  | ----- |  | ---------- |  |  |  | --------- |  |  |  | ----- | -
|                                                  |                                                             | Amount and Nature of |  |          
|                                                  |                                                             | Beneficial Ownership |  |          
|                                                  |                                                             |                      |  |          
|                                                  |                                                             | Number of            |  |           |  |      
|                                                  |                                                             | Shares               |  | Right to  |  |       |  | Percent of
|Name and Address of Beneficial Owner(1)           |                                                             | Owned                |  | Acquire   |  | Total |  | Class     
|                                                  |                                                             |                      |  |           |  |       |  |           
|                                                  | Pacific Edge Investment Management, LLC(4)                  |                      |  | 1,679,075 |  |       |  |           |  |  |  | 1,679,075 |  |  |  | 6.4   | %
|                                                  | 100 Hamilton Avenue, Suite 100                              |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Palo Alto, CA 94301                                         |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Citigroup Global Markets Holdings Inc.(5)                   |                      |  | 1,473,292 |  |       |  |           |  |  |  | 1,473,292 |  |  |  | 5.6   | %
|                                                  | 338 Greenwich Street                                        |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | New York, NY 10013                                          |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | C. L. King & Associates(6)                                  |                      |  | 1,413,600 |  |       |  |           |  |  |  | 1,413,600 |  |  |  | 5.4   | %
|                                                  | Nine Elk Street                                             |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Albany, New York 12207                                      |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Greywolf Capital Partners II(7)                             |                      |  | 1,350,000 |  |       |  |           |  |  |  | 1,350,000 |  |  |  | 5.2   | %
|                                                  | Greywolf Capital Overseas Fund                              |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | 411 West Putnam Avenue, Suite 265                           |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Greenwich, CT 06830                                         |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Sankaty High Yield Asset Partners, L.P.(8)                  |                      |  | 1,320,500 |  |       |  |           |  |  |  | 1,320,500 |  |  |  | 5.1   | %
|                                                  | Sankaty High Yield Partners II, L.P.                        |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Sankaty High Yield Partners III, L.P.                       |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Sankaty Credit Opportunities, L.P.                          |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | 111 Huntington Avenue                                       |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Boston, Massachusetts 02199                                 |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | QVT Financial LLC(9)                                        |                      |  | 1,366,461 |  |       |  |           |  |  |  | 1,366,461 |  |  |  | 5.2   | %
|                                                  | 527 Madison Avenue, 8th Floor                               |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | New York, New York 10022                                    |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|Named Executive Officers and Directors:           |                                                             |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      
|                                                  | Bruce D. McMaster                                           |                      |  | 289,559   |  |       |  | 149,700    |  |  |  | 439,259   |  |  |  | 1.7   | %
|                                                  | David Blair                                                 |                      |  | 72,700    |  |       |  | 39,918     |  |  |  | 112,618   |  |  |  | *     |  
|                                                  | Michael Moisan                                              |                      |  | 75,071    |  |       |  | 39,918     |  |  |  | 114,989   |  |  |  | *     |  
|                                                  | Timothy J. Donnelly                                         |                      |  | 40,000    |  |       |  | 19,959     |  |  |  | 59,959    |  |  |  | *     |  
|                                                  | Thomas Ingham                                               |                      |  | 28,732    |  |       |  | 19,959     |  |  |  | 48,691    |  |  |  | *     |  
|                                                  | Joseph P. Gisch                                             |                      |  | 66,705    |  |       |  | 104,793    |  |  |  | 171,498   |  |  |  | *     |  
|                                                  | Jay Latin                                                   |                      |  | 25,000    |  |       |  | 19,959     |  |  |  | 44,959    |  |  |  | *     |  
|                                                  | Robert J. Amman                                             |                      |  | 8,000     |  |       |  | 60,000     |  |  |  | 68,000    |  |  |  | *     |  
|                                                  | Robert Guezuraga                                            |                      |  |          |  |       |  | 60,000     |  |  |  | 60,000    |  |  |  | *     |  
|                                                  | Jay B. Hunt                                                 |                      |  | 7,500     |  |       |  | 60,000     |  |  |  | 67,500    |  |  |  | *     |  
|                                                  | Andrew E. Lietz                                             |                      |  | 10,000    |  |       |  | 60,000     |  |  |  | 70,000    |  |  |  | *     |  
|                                                  | Carl R. Vertuca, Jr.                                        |                      |  | 9,300     |  |       |  | 60,000     |  |  |  | 69,300    |  |  |  | *     |  
|                                                  | All Directors and Executive Officers as a group (8 persons) |                      |  | 393,091   |  |       |  | 572,951    |  |  |  | 966,042   |  |  |  | 3.6   | %
|Series B-1 Preferred Stock Principal Stockholder: |                                                             |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |      
|                                                  | Isotope Limited                                             |                      |  | 147,679   |  |       |  |           |  |  |  | 147,679   |  |  |  | 100.0 | %
|                                                  | c/o Amaranth LLC                                            |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | One America Lane                                            |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  
|                                                  | Greenwich, CT 06831                                         |                      |  |           |  |       |  |            |  |  |  |           |  |  |  |       |  

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|                                        |                                          |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|--------------------------------------- | ---------------------------------------- | -------------------- |  | -------- |  | ----- |  | ---------- |  |  |  | ------- |  |  |  | ---- | -
|                                        |                                          | Amount and Nature of |  |         
|                                        |                                          | Beneficial Ownership |  |         
|                                        |                                          |                      |  |         
|                                        |                                          | Number of            |  |          |  |      
|                                        |                                          | Shares               |  | Right to |  |       |  | Percent of
|Name and Address of Beneficial Owner(1) |                                          | Owned                |  | Acquire  |  | Total |  | Class     
|                                        |                                          |                      |  |          |  |       |  |           
|Series B-2 Preferred Stock              |                                          |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |     
|Principal Stockholders:                 |                                          |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |     
|                                        | Capital Ventures International           |                      |  | 63,291   |  |       |  |           |  |  |  | 63,291  |  |  |  | 5.6  | %
|                                        | 401 City Ave., Ste. 220                  |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | Bala Cynwyd, PA 19004                    |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | Topaz Partners                           |                      |  | 63,291   |  |       |  |           |  |  |  | 63,291  |  |  |  | 5.6  | %
|                                        | c/o Jemmco Capital Corp.                 |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | 600 Third Ave., 11th Fl.                 |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | New York, NY 10022                       |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | Manchester Securities Corporation        |                      |  | 210,970  |  |       |  |           |  |  |  | 210,970 |  |  |  | 18.5 | %
|                                        | 712 Fifth Ave., 35th Fl.                 |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | New York, NY 10017                       |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | Deutsche Bank, AG London Branch          |                      |  | 421,940  |  |       |  |           |  |  |  | 421,940 |  |  |  | 37.0 | %
|                                        | c/o QVT Financial LP                     |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | 527 Madison Ave., 8th Fl.                |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | New York, NY 10022                       |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | Portside Growth and Opportunity Fund(10) |                      |  | 210,970  |  |       |  |           |  |  |  | 210,970 |  |  |  | 18.5 | %
|                                        | c/o Ramius Capital Group LLC             |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | 666 Third Ave., 26th Fl.                 |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | New York, NY 10017                       |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | RCG Latitude Master Fund Ltd.(11)        |                      |  | 105,485  |  |       |  |           |  |  |  | 105,485 |  |  |  | 9.3  | %
|                                        | c/o Ramius Capital Group LLC             |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | 666 Third Ave., 26th Fl.                 |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  
|                                        | New York, NY 10017                       |                      |  |          |  |       |  |            |  |  |  |         |  |  |  |      |  






|  |                                                                                               
|- | ----------------------------------------------------------------------------------------------
|* | Represents beneficial ownership of less than 1% of the
    outstanding shares of common stock.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Unless otherwise indicated, the address of each beneficial owner
    listed is c/o DDi Corp., 1220 Simon Circle, Anaheim,
    California 92806.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(2) | This beneficial ownership information is based on information
    contained in a Schedule 13G/ A filing filed with the
    Commission on February 14, 2005. FMR Corp., on behalf of
    its direct and indirect subsidiaries, Fidelity
    Management & Research Company, and Fidelity Management
    Trust Company and Fidelity International Limited, on behalf
    of its direct and indirect subsidiaries, is the beneficial owner
    of 2,071,300 shares of Common Stock as a result of acting
    as investment adviser to various investment companies.                                 
|   
|(3) | This beneficial ownership information is based on information
    contained in a composite Schedule 13G dated
    February 26, 2004 and filed with the Commission on
    March 3, 2004.                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(4) | This beneficial ownership information is based on information
    contained in a Schedule 13G dated December 31, 2003
    and filed with the Commission on January 23, 2004. Pacific
    Edge Investment Management, LLC is an investment adviser whose
    clients have the right to receive or the power to direct the
    receipt of dividends from, or the proceeds from the sale of, the
    stock. Karen Payne is the Manager of Pacific Edge Investment
    Management, LLC. No individual clients holdings of the
    stock are more than five percent of the outstanding common stock.
|   
|(5) | This beneficial ownership information is based on information
    contained in a composite Schedule 13G/ A filed with the
    Commission on February 9, 2005. According to the
    Schedule 13G/ A, each of Citigroup Global Markets Holdings,
    Inc. (Holdings) and Citigroup Inc.
    (Citigroup) are the beneficial                                                                                                                                                                                                                                                                    



(Footnotes continued on the next page.)


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##### Table of Contents



(Footnotes continued from the preceding page.)




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | owners of 1,473,292 shares, and Citigroup Financial
    Products Inc. (Products) is the beneficial owner of
    800,117 shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(6) | This beneficial ownership information is based on information
    contained in Schedule 13G filed with the Commission on
    February 14, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(7) | This beneficial ownership information is based on information
    contained in Schedule 13G filed with the Commission on
    November 1, 2004. Greywolf Capital Partners II LP
    beneficially owns 673,245 shares of Common Stock. Greywolf
    Capital Overseas Fund beneficially owns 676,755 shares of
    Common Stock. Jonathan Savitz is the senior managing member of a
    limited liability company which is the sole general partner of
    Greywolf Capital Partners II LP. Mr. Savitz is also
    the managing member of a limited liability company which is the
    general partner of the investment manager for Greywolf Capital
    Overseas Fund. This investment manager exercises investment
    discretion and control over the securities held by Greywolf
    Capital Overseas Fund.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (8) | This beneficial ownership information is based on information
    contained in Schedule 13G filed with the Commission on
    August 16, 2004. Represents shares of common stock held by
    Sankaty High Yield Asset Partners, L.P., a Delaware limited
    partnership (Sankaty I), Sankaty High Yield
    Partners II, L.P., a Delaware limited partnership
    (Sankaty II), Sankaty High Yield
    Partners III, L.P., a Delaware limited partnership
    (Sankaty III) and Sankaty Credit Opportunities,
    L.P., a Delaware limited partnership (Sankaty
    Credit). Sankaty Advisors, LLC (Sankaty
    Advisors), a Delaware limited liability company, is the
    investment sub-adviser to Sankaty I, and the investment
    adviser to each of Sankaty II, Sankaty III and Sankaty
    Credit. Mr. Jonathan S. Lavine is the manager of Sankaty
    Advisors. Sankaty High Yield Asset Investors, LLC (Sankaty
    HIYA), a Delaware limited liability company, is the
    general partner of Sankaty I. Sankaty Investors, LLC
    (Sankaty Investors), a Delaware limited liability
    company, is the managing member of Sankaty HIYA. Sankaty High
    Yield Asset Investors II, LLC (Sankaty
    HIYA II), a Delaware limited liability company, is
    the general partner of Sankaty II. Sankaty
    Investors II, LLC (Sankaty Investors II),
    a Delaware limited liability company, is the managing member of
    Sankaty HIYA II. Sankaty High Yield Asset
    Investors III, LLC (Sankaty HIYA III), a
    Delaware limited liability company, is the general partner of
    Sankaty III. Sankaty Investors III, LLC (Sankaty
    Investors III), a Delaware limited liability company,
    is the member of Sankaty HIYA III. Sankaty Credit
    Opportunities Investors LLC (Sankaty Credit
    Investors), a Delaware limited liability company, is the
    general partner of Sankaty Credit. Sankaty Credit Member, LLC
    (Sankaty Credit Member) is the managing member of
    Sankaty Credit Investors. Mr. Jonathan S. Lavine is the
    managing member of each of Sankaty Investors, Sankaty
    Investors II, Sankaty Investors III and Sankaty Credit
    Member.
|
| | (9) | This beneficial ownership information is based on information
    contained in Schedule 13G filed with the Commission on
    May 13, 2004. QVT Financial LP (QVT Financial)
    is the investment manager for QVT Fund LP (the QVT
    Fund), which beneficially owns 854,882 shares of
    Common Stock. QVT Financial is also the investment manager for a
    separate discretionary account managed for Deutsche Bank AG (the
    Separate Account), which holds 511,579 shares
    of Common Stock. QVT Financial has the power to direct the vote
    and disposition of the Common Stock held by each of the QVT Fund
    and the Separate Account. Accordingly, QVT Financial may be
    deemed to be the beneficial owner of an aggregate amount of
    1,366,461 shares of Common Stock, consisting of the shares
    owned by the QVT Fund and the shares held in the Separate
    Account. QVT Financial GP LLC, as General Partner of QVT
    Financial, may be deemed to beneficially own the same number of
    shares of Common Stock reported by QVT Financial.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | The Investment Advisor to Portside Growth and Opportunity Fund
    is Ramius Capital Group, LLC. The Managing Member of Ramius
    Capital Group, LLC is C4S & Co., the Managing Members
    of which are Peter Cohen, Morgan Stark, Thomas Strauss and
    Jeffrey Solomon. As such, Messrs. Cohen, Stark, Strauss and
    Solomon may be deemed beneficial owners of the shares.
    Messrs. Cohen, Stark, Strauss and Solomon therefore
    disclaim beneficial ownership of such shares.



(Footnotes continued on the next page.)


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##### Table of Contents



(Footnotes continued from the preceding page.)




|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(11) | The Investment Advisor to RCG Latitude Master Fund, Ltd. is
    Ramius Capital Group, LLC. The Managing Member of Ramius Capital
    Group, LLC is C4S & Co., the Managing Members of which
    are Peter Cohen, Morgan Stark, Thomas Strauss and Jeffrey
    Solomon. As such, Messrs. Cohen, Stark, Strauss and Solomon
    may be deemed beneficial owners of the shares.
    Messrs. Cohen, Stark, Strauss and Solomon therefore
    disclaim beneficial ownership of such shares.

Securities Authorized for Issuance under Equity Compensation
Plans






Equity Compensation Plan Information


|                                                              |       |                      |           |                   |  |                           |      |      |  |  |           |           | 
|------------------------------------------------------------- | ----- | -------------------- | --------- | ----------------- |  | ------------------------- | ---- | ---- |  |  | --------- | --------- | 
|                                                              |       | (a)                  |           | (b)               |  | (c)                      
|                                                              |       |                      |           |                   |  |                          
|                                                              |       |                      |           |                   |  | Number of Securities     
|                                                              |       | Number of Securities |           | Weighted-Average  |  | Remaining Available for  
|                                                              |       | to be Issued upon    |           | Exercise Price of |  | Future Issuance under    
|                                                              |       | Exercise of          |           | Outstanding       |  | Equity Compensation Plans
|                                                              |       | Outstanding Options, |           | Options, Warrants |  | (Excluding Securities    
|Plan Category                                                 |       | Warrants and Rights  |           | and Rights        |  | Reflected in Column(a))  
|                                                              |       |                      |           |                   |  |                          
|Equity compensation plans approved by security holders(1)     |       |                      | 500,000   |                   |  | $                         | 5.00 |      |  |  | 100,000   | (1)      
|Equity compensation plans not approved by security holders(2) |       |                      | 2,652,502 | (2)               |  | $                         | 3.99 |      |  |  | 2,192,722 | (2)      
|                                                              |       |                      |           |                   |  |                           |      |      |  |  |           |          
|                                                              | Total |                      |           | 3,152,502         |  |                           | $    | 4.15 |  |  |           | 2,292,722 | 
|                                                              |       |                      |           |                   |  |                           |      |      |  |  |           |          






|    |                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the maximum number of shares of common stock that may
    be issued pursuant to outstanding options granted under and
    available for future grant under the 2003 Directors Equity
    Incentive Plan. 
|   
|(2) | Represents the maximum number of shares of common stock that may
    be issued pursuant to outstanding options granted under and
    available for future grant under the 2003 Management Equity
    Incentive Plan.






|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.





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##### Table of Contents










|         |                                        
|-------- | ---------------------------------------
|Item 14. | Principal Accounting Fees and Services.



|                   |       |             |         |           |  |   |           |           | 
|------------------ | ----- | ----------- | ------- | --------- |  | - | --------- | --------- | 
|                   |       | Fiscal Year
|                   |       |            
|                   |       | 2003        |         | 2004     
|                   |       |             |         |          
|Audit Fees         |       | $           | 920,520 |           |  | $ | 2,510,527 |          
|Audit Related Fees |       |             |        |           |  |   | 117,700   |          
|Tax Fees           |       |             | 363,596 |           |  |   | 305,016   |          
|                   |       |             |         |           |  |   |           |          
|                   | Total |             | $       | 1,284,116 |  |   | $         | 2,933,243 | 
|                   |       |             |         |           |  |   |           |          

Audit Fees.


Audit-Related Fees.


Tax Fees.




de minimis


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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.*                                                   
|                                                                                
|                                                                                 | 10 | .2          |  | Dynamic Details, Inc. Key Employee Retention Plan.(4)                                                            

55



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##### Table of Contents



|                         |    |             |  |                                                                                                                                                                                                                                                                                                                                                                          
|------------------------ | -- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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)                                                                                                                                     

56



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|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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)                                                                                                    

57



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|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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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.                                                                   

59



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SIGNATURES






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



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

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



|                                                 |  |                                                                                                   |  |                |  | 
|------------------------------------------------ |  | ------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                        |  | Title                                                                                             |  | Date          
|                                                 |  |                                                                                                   |  |               
|                                                
|/s/ BRUCE D. MCMASTERBruce
    D. McMaster       |  | President, Chief Executive Officer and Director (Principal
    Executive Officer)                 |  | March 15, 2005
|                                                
|/s/ MIKEL H. WILLIAMSMikel
    H. Williams       |  | Senior Vice President and Chief Financial Officer and Treasurer
    (Principal Financial Officer) |  | March 15, 2005
|                                                
|/s/ REBECCA H. YANGRebecca
    H. Yang           |  | Corporate Controller (Principal Accounting Officer)                                               |  | March 15, 2005
|                                                
|/s/ ROBERT J. AMMANRobert
    J. Amman           |  | Director                                                                                          |  | March 15, 2005
|                                                
|/s/ ROBERT GUEZURAGARobert
    Guezuraga         |  | Director                                                                                          |  | March 15, 2005
|                                                
|/s/ JAY B. HUNTJay
    B. Hunt                   |  | Director                                                                                          |  | March 15, 2005
|                                                
|/s/ ANDREW E. LIETZAndrew
    E. Lietz           |  | Director                                                                                          |  | March 15, 2005
|                                                
|/s/ CARL R. VERTUCA, JR.Carl
    R. Vertuca, Jr. |  | Director                                                                                          |  | March 15, 2005

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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



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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












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





F-3



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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



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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        
|                                                                                       |  |                       |            |               |                       |   |              |   |             
|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



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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


DDi Capital Senior Discount Notes


Management Equity Incentive Plan and 2003 Directors
Equity Incentive Plan


New Senior Credit Facility


F-23



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)








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





F-24



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##### 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 |  
|                                                                                |  |   |         |  



F-25



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




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-26



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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-27



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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-28



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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-29



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)












Revolving Credit Facility




F-30



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




5.25% Convertible Subordinated Notes








6.25% Convertible Subordinated Notes










F-31



---



##### 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-32



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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-33



---



##### 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-34



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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-35



---



##### 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-36



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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-37



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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-38



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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-39



---



##### 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-40



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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-41



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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-42



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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-43



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##### 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-44



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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-45



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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-46



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)






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







F-47



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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-48



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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-49



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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-50



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##### 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-51



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS  (Continued)




Declaration of Dividend




F-52



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##### 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-53



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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.*                                                                                                                                                                                                                                                                                                           
|                                                                                
|                                                                                 | 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)                                                                                                                                                    



---



##### 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.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|       
|        | 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.