##### 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, 2005                                                     
|           |   |  |  | 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                         |  | 92806(Zip Code)                         
|(Address of principal executive offices)                            |  |                                         

(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)





o þ


o þ


þ o


S-K 10-K 10-K. o


12b-2


| |                            |                      |                          | 
| | -------------------------- | -------------------- | ------------------------ | 
| | Large accelerated filer  o | Accelerated filer  þ | Non-accelerated filer  o | 

12b-2 o þ




þ o












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##### 










DDi CORP.


FORM 10-K


Index


|              |  |                                                                                                                      |    |      |    | 
|------------- |  | -------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|              |  |                                                                                                                      |    | Page |   
|              |  |                                                                                                                      |    |      |   
|PART I       
|Item 1.       |  | Business                                                                                                             |    |      | 1  | 
|Item 1A.      |  | Risk Factors                                                                                                         |    |      | 8  | 
|Item 1B.      |  | Unresolved Staff Comments                                                                                            |    |      | 15 | 
|Item 1C.      |  | Executive Officers of the Registrant                                                                                 |    |      | 15 | 
|Item 2.       |  | Properties                                                                                                           |    |      | 16 | 
|Item 3.       |  | Legal Proceedings                                                                                                    |    |      | 16 | 
|Item 4.       |  | Submission of Matters to a Vote of Security
    Holders                                                              |    |      | 17 | 
|PART II      
|Item 5.       |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |    |      | 17 | 
|Item 6.       |  | Selected Financial Data                                                                                              |    |      | 19 | 
|Item 7.       |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operation                             |    |      | 22 | 
|Item 7A.      |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |    |      | 38 | 
|Item 8.       |  | Financial Statements and Supplementary
    Data                                                                      |    |      | 39 | 
|Item 9.       |  | Changes in and Disagreements With
    Accountants on Accounting and Financial Disclosure                             |    |      | 40 | 
|Item 9A.      |  | Controls and Procedures                                                                                              |    |      | 40 | 
|Item 9B.      |  | Other Information                                                                                                    |    |      | 41 | 
|PART III     
|Item 10.      |  | Directors and Executive Officers of the
    Registrant                                                               |    |      | 41 | 
|Item 11.      |  | Executive Compensation                                                                                               |    |      | 44 | 
|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 10.10
|EXHIBIT 23.1 
|EXHIBIT 31.1 
|EXHIBIT 32.1 





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10-K


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 in
Item 1A. Risk Factors 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;
|
| |  | increased competition;                                                                                                                       
|
| |  | increased costs;                                                                                                                             
|
| |  | our ability to retain key members of management;                                                                                             
|
| |  | our ability to address changes to environmental laws and
    regulations;                                                                    
|
| |  | 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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PART I







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

Overview














Industry Background




1



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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
    printed circuit board manufacturers that can offer design and
    engineering support and quick-turn manufacturing and assembly
    services to reduce time to market.            
|
| |  | 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 printed circuit board manufacturers that
    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








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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
    committed to manufacturing process improvements 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 believe we continue to lead the domestic industry
    in advancing this technology.

2



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Time-Critical Services. In addition to customized
    engineering solutions and advanced manufacturing technologies,
    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 2005 were generated from services
    delivered in 10 days or less, and we fill some of our
    customers orders in as little as 24 hours.

Our Strategy




Focus on engineering services and support for high technology
and complex printed circuit boards.


Maintain our technology leadership.


Focus on time-critical services.


Continue to serve our large and diverse customer base.


Pursue new customers and markets with high growth
potential.


Our Services




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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Prototype Fabrication Services. We engineer and
    manufacture highly complex, technologically advanced multi-layer
    printed circuit board prototypes on a quick-turn basis. Our
    advanced development and manufacturing technologies facilitate
    production with delivery times ranging from 24 hours to
    10 days.                                                                                                                                                                        
|
| |  | Pre-production and 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 generally from 2 days to
    20 days, or, in some cases, longer delivery times.



3



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



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Assembly Services. We complement our quick-turn printed
    circuit board fabrication business with time-critical printed
    circuit board assembly services. Our specialty is in assembling
    high technology and complex boards that have stringent quality
    and performance requirements. We also build, configure and test
    electronic products and assemblies. These services provide value
    to our customers by accelerating their new products time
    to market.                                                                                                                      
|
| |  | Transition Services. We provide our customers with a
    seamless transition to volume printed circuit board
    manufacturing capabilities located in Asia. Our suppliers have
    been carefully selected based upon their technology and
    manufacturing capabilities, and we offer a full range of
    capabilities to complement our North America prototyping and low
    volume facilities. In addition to managing the off-shore
    sourcing process, we provide the engineering support required to
    ensure the final product meets the customer expectation for
    quality and performance.

Manufacturing Technologies and Processes












| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Laser Direct Imaging (LDI). LDI is a process
    that allows us to process high-density products by direct
    writing onto photoresist with a high-precision laser technology.
    LDI is a high-resolution tool that is capable of imaging
    0.001 inches/0.001 inches line/space and also gives us
    the ability to image solder mask especially where tolerances are
    tightly defined.                                                                                                                                                                                                                
|
| |  | 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, and may
    require fewer layers.
|
| |  | Laser Drilling Microvias. We have a variety of Laser
    Technology to offer (UV, UV/
    CO2 &
    CO2)
    that is very well suited to laser drill to any customer driven
    application. Microvias are small vias with diameters generally
    between 0.003 and 0.008 inches after laser drilling. The
    fabrication of printed circuit boards with microvias requires
    specialized equipment and highly skilled process knowledge.
    These tools are also capable of solder mask ablation and
    precision milling. Applications such as                                                             

4



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | 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 tm).
    Stacked microvias are microvias filled with solid copper that
    can be stacked, connecting as many as six layers sequentially on
    each side of a center buried via core. 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, 0.65mm, 0.50mm, 0.40mm
    and 0.25mm 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
    SMVtm
    Technology.
|
| |  | 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 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 a
    customer required order. We are able to provide 0.002 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 have added 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



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Our Customers and Markets


6-month




|                           |       |              |    |     |      |  |    |      |   |  |    |     |  
|-------------------------- | ----- | ------------ | -- | --- | ---- |  | -- | ---- | - |  | -- | --- | -
|                           |       | Year Ended   |   
|                           |       | December 31, |   
|                           |       |              |   
|End Markets(1)(2)          |       | 2003         |    |     | 2004 |  |    | 2005 |  
|                           |       |              |    |     |      |  |    |      |  
|Communications/ Networking |       |              | 37 | %   |      |  | 41 | %    |   |  | 43 | %  
|Medical/ Test/ Industrial  |       |              | 18 |     |      |  | 21 |      |   |  | 21 |    
|High-end Computing         |       |              | 26 |     |      |  | 22 |      |   |  | 22 |    
|Military/ Aerospace        |       |              | 9  |     |      |  | 6  |      |   |  | 6  |    
|Other                      |       |              | 10 |     |      |  | 10 |      |   |  | 8  |    
|                           |       |              |    |     |      |  |    |      |  
|                           | 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


just-in




Competition








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

7



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Backlog




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 10-K, 10-Q, 8-K,





Item 1A.     Risk
Factors.


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




8



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The holders of our Series B Preferred Stock may 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.




If we default on covenants under the Certificate of
Designation for our Series B Preferred Stock, the
Series B Holders would have the right to accelerate and to
obtain immediate repayment of the entire stated value of the
Series B Preferred Stock.




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.




9



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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 2006;                                                                                                            
|
| |  | to fund redemption of Series B Preferred Stock on
    September 30, 2006;                                                                      
|
| |  | to fund working capital requirements for future growth that we
    may experience;                                                             
|
| |  | 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.



We may issue additional shares of common stock that may
dilute the value of our common stock and adversely affect the
market price of our common stock.






| |   |                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | approximately 1,165,000 shares of our common stock may be
    required to be issued pursuant to our issued and outstanding
    stock options;                                                                                        
|
| |  | approximately 2,302,000 shares of our common stock may be
    issued in connection with the exercise of warrants that were
    issued to the standby purchasers in connection with the 2005
    rights offerings to our stockholders;
|
| |  | 1,344,000 shares of our common stock may be issued pursuant
    to our 2005 Stock Incentive Plan;                                                                                                                                    
|
| |  | up to 1,217,000 shares of our common stock may be issued in
    connection with the redemption of our Series B Preferred
    Stock;                                                                                                  
|
| |  | a significant number of additional shares of our common stock
    may be issued for financing, the payment of dividends or other
    purposes.                                                                                       



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.




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




10



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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.






Recent changes to environmental laws and regulations
applicable to manufacturers of electrical and electronic
equipment are causing us to redesign our products, and may
result in increases to our costs and greater exposure to
liability.




11



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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
from, or an inability to pay by, this core group could adversely
affect our total revenue.




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.






12



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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.




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.




13



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on-site




Several of our former officers and directors are named
defendants in a securities class action complaint 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.




14



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Item 1B.     Unresolved
Staff Comments.







Item 1C.     Executive
Officers of the Registrant




|                  |  |     |    |  |        |                                                                             
|----------------- |  | --- | -- |  | ------ | ----------------------------------------------------------------------------
|Name              |  | Age |    |  | Office
|                  |  |     |    |  |       
|Mikel H. Williams |  |     | 49 |  |        | President, Chief Executive Officer, Chief Financial Officer and
    Director
|Bradley Tesch     |  |     | 45 |  |        | Chief Operations Officer                                                    
|Diane Brundage    |  |     | 54 |  |        | Senior Vice President, Sales                                                



Mikel H. Williams


Bradley Tesch


Diane Brundage


15



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|        |            
|------- | -----------
|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  |        
|Toronto, Canada      |       | Quick-turn printed circuit boards |  |             | 43,000  |        
|San Jose, California |       | Assembly                          |  |             | 62,000  |        
|Longmont, Colorado   |       | Assembly                          |  |             | 27,000  |        
|                     |       |                                   |  |             |        
|                     | Total |                                   |  |             |         | 402,000 | 
|                     |       |                                   |  |             |        










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

In re DDi Corp. Securities Litigation,


16



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##### Table of Contents














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






PART II







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

Market for Common Stock




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##### Table of Contents







|                                      |                |              |   |        |     |  |   |       | 
|------------------------------------- | -------------- | ------------ | - | ------ | --- |  | - | ----- | 
|                                      |                | DDi Corp.    |  
|                                      |                | Common Stock |  
|                                      |                |              |  
|                                      |                | High         |   |        | Low | 
|                                      |                |              |   |        |     | 
|Fiscal Year Ending December 31, 2004: |                |              |   |        |     |  |   |      
|                                      | First Quarter  |              | $ | 136.50 |     |  | $ | 63.70 | 
|                                      | Second Quarter |              | $ | 84.00  |     |  | $ | 42.91 | 
|                                      | Third Quarter  |              | $ | 56.35  |     |  | $ | 34.30 | 
|                                      | Fourth Quarter |              | $ | 36.75  |     |  | $ | 17.01 | 
|Fiscal Year Ending December 31, 2005: |                |              |   |        |     |  |   |      
|                                      | First Quarter  |              | $ | 22.89  |     |  | $ | 15.75 | 
|                                      | Second Quarter |              | $ | 24.50  |     |  | $ | 12.11 | 
|                                      | Third Quarter  |              | $ | 13.93  |     |  | $ | 5.04  | 
|                                      | Fourth Quarter |              | $ | 6.65   |     |  | $ | 4.62  | 



Dividend Policy




10-K


18



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##### Table of Contents



Equity Compensation Plan Information


10-K,


Recent Sales of Unregistered Securities









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

Managements Discussion and
Analysis of Financial Condition and Results of Operations 10-K


|                                           |                                                          |                                      |       |       |                      |   |       |               |             |   |               |       |      |      |      |      |      |   |       |       |      |   |       |       |      | 
|------------------------------------------ | -------------------------------------------------------- | ------------------------------------ | ----- | ----- | -------------------- | - | ----- | ------------- | ----------- | - | ------------- | ----- | ---- | ---- | ---- | ---- | ---- | - | ----- | ----- | ---- | - | ----- | ----- | ---- | 
|                                           |                                                          | Predecessor DDi Corp.                |       |       | Reorganized DDi Corp |  
|                                           |                                                          |                                      |       |       |                      |  
|                                           |                                                          | Years Ended                          |       |       |                      |   |       |               | Years Ended |  
|                                           |                                                          | December 31,                         |       |       | Eleven Months        |   |       | One Month     |             |   | December 31,  |      
|                                           |                                                          |                                      |       |       | Ended                |   |       | Ended         |             |   |               |      
|                                           |                                                          | 2001                                 |       |       | 2002                 |   |       | Nov. 30, 2003 |             |   | Dec. 31, 2003 |       |      | 2004 |      |      | 2005 |  
|                                           |                                                          |                                      |       |       |                      |   |       |               |             |   |               |       |      |      |      |      |      |  
|                                           |                                                          | (In millions, except per share data) |      
|Consolidated Statement of Operations Data: |                                                          |                                      |       |       |                      |   |       |               |             |   |               |       |      |      |      |      |      |   |       |       |      |   |       |      
|Net sales                                  |                                                          | $                                    | 284.7 |       |                      | $ | 185.6 |               |             | $ | 145.0         |       |      | $    | 14.6 |      |      | $ | 189.0 |       |      | $ | 184.6 |      
|Cost of goods sold                         |                                                          |                                      | 209.2 |       |                      |   | 171.0 |               |             |   | 128.3         |       |      |      | 11.3 |      |      |   | 151.5 |       |      |   | 153.2 |      
|                                           | Non-cash compensation and amortization of intangibles(a) |                                      |       |      |                      |   |       |              |             |   |               |      |      |      |      | 6.9  |      |   |       | 12.6  |      |   |       | 3.4   |     
|                                           | Restructuring-related inventory impairment(b)            |                                      |       | 3.7   |                      |   |       | 3.4           |             |   |               | 1.7   |      |      |      |     |      |   |       |      |      |   |       | 1.3   |     
|                                           |                                                          |                                      |       |       |                      |   |       |               |             |   |               |       |      |      |      |      |      |  
|                                           | Total cost of goods sold                                 |                                      |       | 212.9 |                      |   |       | 174.4         |             |   |               | 130.0 |      |      |      | 18.2 |      |   |       | 164.1 |      |   |       | 157.9 |     
|Gross profit (loss)                        |                                                          |                                      | 71.8  |       |                      |   | 11.2  |               |             |   | 15.0          |       |      |      | (3.6 | )    |      |   | 24.9  |       |      |   | 26.7  |      
|Operating expenses:                        |                                                          |                                      |       |       |                      |   |       |               |             |   |               |       |      |      |      |      |      |   |       |       |      |   |       |      
|                                           | Sales and marketing:                                     |                                      |       |       |                      |   |       |               |             |   |               |       |      |      |      |      |      |   |       |       |      |   |       |       |     
|                                           |                                                          | Sales and marketing                  |       |       | 25.4                 |   |       |               | 19.7        |   |               |       | 13.5 |      |      |      | 1.1  |   |       |       | 14.6 |   |       |       | 14.9 | 
|                                           |                                                          | Non-cash compensation(a)             |       |       |                     |   |       |               |            |   |               |       |     |      |      |      | 1.0  |   |       |       | 2.4  |   |       |       | 0.1  | 
|                                           |                                                          |                                      |       |       |                      |   |       |               |             |   |               |       |      |      |      |      |      |  
|                                           | Total sales and marketing                                |                                      |       | 25.4  |                      |   |       | 19.7          |             |   |               | 13.5  |      |      |      | 2.1  |      |   |       | 17.0  |      |   |       | 15.0  |     

19



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|                                                                                     |                                            |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |   |        |      |       |   |        |      |       |  
|------------------------------------------------------------------------------------ | ------------------------------------------ | ------------------------------------ | ------ | ---- | -------------------- | - | ------ | ------------- | ----------- | - | ------------- | ------ | ------ | ---- | ----- | --- | ---- | - | ------ | ---- | ----- | - | ------ | ---- | ----- | -
|                                                                                     |                                            | Predecessor DDi Corp.                |        |      | Reorganized DDi Corp |  
|                                                                                     |                                            |                                      |        |      |                      |  
|                                                                                     |                                            | Years Ended                          |        |      |                      |   |        |               | Years Ended |  
|                                                                                     |                                            | December 31,                         |        |      | Eleven Months        |   |        | One Month     |             |   | December 31,  |       
|                                                                                     |                                            |                                      |        |      | Ended                |   |        | Ended         |             |   |               |       
|                                                                                     |                                            | 2001                                 |        |      | 2002                 |   |        | Nov. 30, 2003 |             |   | Dec. 31, 2003 |        |        | 2004 |       |     | 2005 |  
|                                                                                     |                                            |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |  
|                                                                                     |                                            | (In millions, except per share data) |       
|                                                                                     | General and administration:                |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |   |        |      |       |   |        |      |      
|                                                                                     |                                            | General and administration           |        |      | 14.4                 |   |        |               | 10.5        |   |               |        | 8.5    |      |       |     | 0.6  |   |        |      | 12.4  |   |        |      | 13.6  |  
|                                                                                     |                                            | Non-cash compensation(a)             |        |      |                     |   |        |               |            |   |               |        |       |      |       |     | 1.5  |   |        |      | 4.1   |   |        |      | 1.1   |  
|                                                                                     |                                            | Officers severance(c)               |        |      |                     |   |        |               |            |   |               |        |       |      |       |     |     |   |        |      | 0.7   |   |        |      | 1.0   |  
|                                                                                     |                                            |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |  
|                                                                                     | Total general and administration           |                                      |        | 14.4 |                      |   |        | 10.5          |             |   |               | 8.5    |        |      |       | 2.1 |      |   |        | 17.2 |       |   |        | 15.7 |      
|                                                                                     | Amortization of intangibles(f)             |                                      |        | 17.7 |                      |   |        |              |             |   |               |       |        |      |       | 0.4 |      |   |        | 4.6  |       |   |        | 4.6  |      
|                                                                                     | Goodwill impairment                        |                                      |        |     |                      |   |        | 128.7         |             |   |               | 2.0    |        |      |       |    |      |   |        |     |       |   |        | 54.7 |      
|                                                                                     | Restructuring and other related charges(b) |                                      |        | 75.8 |                      |   |        | 25.3          |             |   |               | 3.9    |        |      |       | 0.4 |      |   |        | 0.9  |       |   |        | 4.7  |      
|                                                                                     | Reorganization expenses(d)                 |                                      |        |     |                      |   |        | 2.1           |             |   |               | 7.4    |        |      |       | 0.5 |      |   |        | 0.8  |       |   |        |     |      
|                                                                                     |                                            |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |  
|                                                                                     |                                            | Operating income (loss)              |        |      | (61.5                | ) |        |               | (175.1      | ) |               |        | (20.3  | )    |       |     | (9.1 | ) |        |      | (15.6 | ) |        |      | (68.0 | )
|Interest rate swap valuation                                                         |                                            |                                      | 10.0   |      |                      |   |       |               |             |   |              |        |        |      |      |     |      |   |       |      |       |   |       |     
|Loss on interest rate swap termination                                               |                                            |                                      |       |      |                      |   |       |               |             |   | 5.6           |        |        |      |      |     |      |   |       |      |       |   |       |     
|Interest expense and other expense, net                                              |                                            |                                      | 39.1   |      |                      |   | 19.9   |               |             |   | 16.3          |        |        |      | 0.8   |     |      |   | 7.6    |      |       |   | 4.8    |     
|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                         |                                            |                                      | (110.6 | )    |                      |   | (195.0 | )             |             |   | 179.4         |        |        |      | (11.0 | )   |      |   | (23.2  | )    |       |   | (72.8  | )   
|                                                                                     |                                            | Income tax benefit (expense)         |        |      | 22.8                 |   |        |               | (17.0       | ) |               |        | (0.1   | )    |       |     |     |   |        |      | (2.0  | ) |        |      | (1.4  | )
|                                                                                     |                                            |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |  
|Income (loss) from continuing operations                                             |                                            |                                      | (87.8  | )    |                      |   | (212.0 | )             |             |   | 179.3         |        |        |      | (11.0 | )   |      |   | (25.2  | )    |       |   | (74.2  | )   
|Net income (loss) from discontinued operations, net of tax                           |                                            |                                      | 2.7    |      |                      |   | (76.1  | )             |             |   | (14.9         | )      |        |      | (3.0  | )   |      |   | (20.7  | )    |       |   | 10.2   |     
|                                                                                     |                                            |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |  
|Net income (loss)                                                                    |                                            |                                      | (85.1  | )    |                      |   | (288.1 | )             |             |   | 164.4         |        |        |      | (14.0 | )   |      |   | (45.9  | )    |       |   | (64.0  | )   
|Series B preferred stock dividends and accretion                                     |                                            |                                      |       |      |                      |   |       |               |             |   |              |        |        |      |      |     |      |   | (4.0   | )    |       |   | (6.4   | )   
|Net income (loss) allocable to common stock                                          |                                            | $                                    | (85.1  | )    |                      | $ | (288.1 | )             |             | $ | 164.4         |        |        | $    | (14.0 | )   |      | $ | (49.9  | )    |       | $ | (70.4  | )   
|                                                                                     |                                            |                                      |        |      |                      |   |        |               |             |   |               |        |        |      |       |     |      |  
|Net income (loss) per share of common stock from continuing
    operations (basic)   |                                            | $                                    | (12.46 | )    |                      | $ | (29.63 | )             |             | $ | 24.48         |        |        | $    | (2.99 | )   |      | $ | (7.51  | )    |       | $ | (10.04 | )   
|Net income (loss) per share of common stock from continuing
    operations (diluted) |                                            | $                                    | (12.46 | )    |                      | $ | (29.63 | )             |             | $ | 20.51         |        |        | $    | (2.99 | )   |      | $ | (7.51  | )    |       | $ | (10.04 | )   
|Income (loss) per share of common stock (basic)                                      |                                            | $                                    | (12.08 | )    |                      | $ | (40.27 | )             |             | $ | 22.45         |        |        | $    | (3.82 | )   |      | $ | (12.85 | )    |       | $ | (8.76  | )   

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|                                                                                   |  |                                      |           |   |                      |   |           |               |             |   |               |   |  |      |           |   |      |   |           |   |  |   |           |  
|---------------------------------------------------------------------------------- |  | ------------------------------------ | --------- | - | -------------------- | - | --------- | ------------- | ----------- | - | ------------- | - |  | ---- | --------- | - | ---- | - | --------- | - |  | - | --------- | -
|                                                                                   |  | Predecessor DDi Corp.                |           |   | Reorganized DDi Corp |  
|                                                                                   |  |                                      |           |   |                      |  
|                                                                                   |  | Years Ended                          |           |   |                      |   |           |               | Years Ended |  
|                                                                                   |  | December 31,                         |           |   | Eleven Months        |   |           | One Month     |             |   | December 31,  |  
|                                                                                   |  |                                      |           |   | Ended                |   |           | Ended         |             |   |               |  
|                                                                                   |  | 2001                                 |           |   | 2002                 |   |           | Nov. 30, 2003 |             |   | Dec. 31, 2003 |   |  | 2004 |           |   | 2005 |  
|                                                                                   |  |                                      |           |   |                      |   |           |               |             |   |               |   |  |      |           |   |      |  
|                                                                                   |  | (In millions, except per share data) |          
|Income (loss) per share of common stock (diluted)                                  |  | $                                    | (12.08    | ) |                      | $ | (40.27    | )             |             | $ | 18.87         |   |  | $    | (3.82     | ) |      | $ | (12.85    | ) |  | $ | (8.76     | )
|Weighted average shares outstanding (basic)                                        |  |                                      | 7,041,342 |   |                      |   | 7,154,747 |               |             |   | 7,323,568     |   |  |      | 3,665,401 |   |      |   | 3,885,092 |   |  |   | 8,039,094 |  
|Weighted average shares outstanding (diluted)                                      |  |                                      | 7,041,342 |   |                      |   | 7,154,747 |               |             |   | 9,099,935     |   |  |      | 3,665,401 |   |      |   | 3,885,092 |   |  |   | 8,039,094 |  
|Other Financial Data:                                                              |  |                                      |           |   |                      |   |           |               |             |   |               |   |  |      |           |   |      |   |           |   |  |   |           |  
|Depreciation                                                                       |  | $                                    | 17.1      |   |                      | $ | 16.1      |               |             | $ | 12.4          |   |  | $    | 0.9       |   |      | $ | 9.9       |   |  | $ | 9.9       |  
|Capital expenditures                                                               |  |                                      | 24.7      |   |                      |   | 8.0       |               |             |   | 3.9           |   |  |      | 0.1       |   |      |   | 4.4       |   |  |   | 6.7       |  
|Net cash provided by (used in) operating activities from
    continuing operations |  |                                      | 45.3      |   |                      |   | (7.6      | )             |             |   | (12.2         | ) |  |      | 5.6       |   |      |   | 3.6       |   |  |   | (1.6      | )
|Net cash provided by (used in) investing activities from
    continuing operations |  |                                      | (67.4     | ) |                      |   | 1.0       |               |             |   | (2.6          | ) |  |      | 0.7       |   |      |   | 4.2       |   |  |   | (9.9      | )
|Net cash provided by (used in) financing activities from
    continuing operations |  |                                      | (16.0     | ) |                      |   | 22.0      |               |             |   | (6.2          | ) |  |      | (0.1      | ) |      |   | 12.7      |   |  |   | 14.9      |  

|                                                                            |  |  |        |                       |  |  |                       |   |  |      |        |  |      |  |        |      |  |  |        |  |  |  |  | 
|--------------------------------------------------------------------------- |  |  | ------ | --------------------- |  |  | --------------------- | - |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  |  |  | 
|                                                                            |  |  |        | Predecessor DDi Corp. |  |  | Reorganized DDi Corp. |  
|                                                                            |  |  |        |                       |  |  |                       |  
|                                                                            |  |  |        | December 31,          |  |  | December 31,          |   |  |     
|                                                                            |  |  |        |                       |  |  |                       |   |  |     
|                                                                            |  |  |        | 2001                  |  |  | 2002                  |   |  | 2003 |        |  | 2004 |  |        | 2005 | 
|                                                                            |  |  |        |                       |  |  |                       |   |  |      |        |  |      |  |        |      | 
|Consolidated Balance Sheet Data:                                            |  |  |        |                       |  |  |                       |   |  |      |        |  |      |  |        |      |  |  |        | 
|Cash, cash equivalents and marketable securities (including
    restricted) |  |  | $ 45.5 |                       |  |  | $  38.4               |   |  |      | $ 18.7 |  |      |  | $ 23.5 |      |  |  | $ 26.0 | 
|Working capital (deficit) from continuing operations                        |  |  | 66.7   |                       |  |  | (220.2                | ) |  |      | 25.6   |  |      |  | 20.9   |      |  |  | 26.2   | 
|Total assets from continuing operations                                     |  |  | 349.5  |                       |  |  | 151.8                 |   |  |      | 228.8  |  |      |  | 226.7  |      |  |  | 164.3  | 
|Total debt, including current maturities                                    |  |  | 256.6  |                       |  |  | 288.9                 |   |  |      | 90.5   |  |      |  | 35.1   |      |  |  | 19.9   | 
|Stockholders equity (deficit)                                              |  |  | 122.5  |                       |  |  | (163.9                | ) |  |      | 91.4   |  |      |  | 77.1   |      |  |  | 108.0  | 








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

Overview






Bankruptcy and Reorganization




22



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| |   |                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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
    3,357,142 shares of our common stock to the holders of our
    old convertible subordinated notes. We issued 35,703 shares
    of common stock to the holders of our pre-bankruptcy common
    stock.
|
| |  | Issuance of Series A Preferred Stock. We issued an
    aggregate of 1,000,000 shares of our Series A
    preferred stock to the holders of our old convertible
    subordinated notes.                                                                       
|
| |  | Issuance of Warrants. We issued warrants to purchase an
    aggregate of 544,911 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 345,251 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


90-7 90-7), 90-7.


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10-K,






year-to


Discontinuation of European Business




24



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##### Table of Contents



03-13,




Critical Accounting Policies and Estimates








| |   |                                        
| | - | ---------------------------------------
| |  | revenue recognition;                   
|
| |  | 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.                

Revenue recognition


25



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Fresh-start accounting 90-7, write-up




Valuation of long-lived assets


Goodwill impairment


Inventory obsolescence


Receivables and Allowance for Doubtful
Accounts


26



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Income taxes


Litigation and other contingencies


Discontinued operation


Results of Operations and Other Financial Data




27



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|                                            |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |       |       |  |   |       |       | 
|------------------------------------------- | ----------------------------------------------------- | ------------- | ----- | ----- | ------------ | ----------- | ---- | ------------ | - | - | --------------------- | ----- |  | ------------ | ----- | ----- |  | - | ----- | ----- | 
|                                            |                                                       |               |       |       |              | Combined    |      |              |   |   |                      
|                                            |                                                       |               |       |       |              | Predecessor |      |              |   |   |                      
|                                            |                                                       | Predecessor   |       |       | Reorganized  |             |      | DDi Corp. &  |   |   |                       |       | 
|                                            |                                                       | DDi Corp.     |       |       | DDi Corp.    |             |      | Reorganized  |   |   |                      
|                                            |                                                       |               |       |       |              |             |      | DDi Corp.    |   |   | Reorganized DDi Corp. |      
|                                            |                                                       | Eleven Months |       |       | One Month    |             |      |              |   |   |                       |      
|                                            |                                                       | Ended         |       |       | Ended        |             |      | Year Ended   |   |   | Year Ended            |       |  | Year Ended   |      
|                                            |                                                       | November 30,  |       |       | December 31, |             |      | December 31, |   |   | December 31,          |       |  | December 31, |      
|                                            |                                                       | 2003          |       |       | 2003         |             |      | 2003         |   |   | 2004                  |       |  | 2005         |      
|                                            |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |      
|Consolidated Statements of Operations Data: |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |       |       |  |   |       |      
|Net sales                                   |                                                       | $             | 145.0 |       |              | $           | 14.6 |              |   | $ | 159.6                 |       |  | $            | 189.0 |       |  | $ | 184.6 |      
|                                            | Cost of goods sold                                    |               |       | 128.3 |              |             |      | 11.3         |   |   |                       | 139.6 |  |              |       | 151.5 |  |   |       | 153.2 | 
|                                            | Non-cash compensation and amortization of intangibles |               |       |      |              |             |      | 6.9          |   |   |                       | 6.9   |  |              |       | 12.6  |  |   |       | 3.4   | 
|                                            | Restructuring related inventory impairment            |               |       | 1.7   |              |             |      |             |   |   |                       | 1.7   |  |              |       |      |  |   |       | 1.3   | 
|                                            |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |      
|Total cost of goods sold                    |                                                       |               | 130.0 |       |              |             | 18.2 |              |   |   | 148.2                 |       |  |              | 164.1 |       |  |   | 157.9 |      
|                                            | Gross profit (loss)                                   |               |       | 15.0  |              |             |      | (3.6         | ) |   |                       | 11.4  |  |              |       | 24.9  |  |   |       | 26.7  | 
|Operating expenses:                         |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |       |       |  |   |       |      
|Sales and Marketing:                        |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |       |       |  |   |       |      
|                                            | Sales and marketing                                   |               |       | 13.5  |              |             |      | 1.1          |   |   |                       | 14.6  |  |              |       | 14.6  |  |   |       | 14.9  | 
|                                            | Non-cash compensation                                 |               |       |      |              |             |      | 1.0          |   |   |                       | 1.0   |  |              |       | 2.4   |  |   |       | 0.1   | 
|                                            |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |      
|Total sales and marketing                   |                                                       |               | 13.5  |       |              |             | 2.1  |              |   |   | 15.6                  |       |  |              | 17.0  |       |  |   | 15.0  |      
|General and Administration:                 |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |       |       |  |   |       |      
|                                            | General and administration                            |               |       | 8.5   |              |             |      | 0.6          |   |   |                       | 9.1   |  |              |       | 12.4  |  |   |       | 13.6  | 
|                                            | Non-cash compensation                                 |               |       |      |              |             |      | 1.5          |   |   |                       | 1.5   |  |              |       | 4.1   |  |   |       | 1.1   | 
|                                            | Officers severance                                   |               |       |      |              |             |      |             |   |   |                       |      |  |              |       | 0.7   |  |   |       | 1.0   | 
|                                            |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |      
|Total general and administration            |                                                       |               | 8.5   |       |              |             | 2.1  |              |   |   | 10.6                  |       |  |              | 17.2  |       |  |   | 15.7  |      
|                                            | Amortization of intangibles                           |               |       |      |              |             |      | 0.4          |   |   |                       | 0.4   |  |              |       | 4.6   |  |   |       | 4.6   | 
|                                            | Goodwill impairment                                   |               |       | 2.0   |              |             |      |             |   |   |                       | 2.0   |  |              |       |      |  |   |       | 54.7  | 
|                                            | Restructuring and related charges                     |               |       | 3.9   |              |             |      | 0.4          |   |   |                       | 4.3   |  |              |       | 0.9   |  |   |       | 4.7   | 
|                                            | Reorganization expenses                               |               |       | 7.4   |              |             |      | 0.5          |   |   |                       | 7.9   |  |              |       | 0.8   |  |   |       |      | 
|                                            |                                                       |               |       |       |              |             |      |              |   |   |                       |       |  |              |      

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|               |                                                              |                                    |       |       |              |             |      |              |     |  |                       |       |        |              |       |       |   |  |       |       |   | 
|-------------- | ------------------------------------------------------------ | ---------------------------------- | ----- | ----- | ------------ | ----------- | ---- | ------------ | --- |  | --------------------- | ----- | ------ | ------------ | ----- | ----- | - |  | ----- | ----- | - | 
|               |                                                              |                                    |       |       |              | Combined    |      |              |     |  |                      
|               |                                                              |                                    |       |       |              | Predecessor |      |              |     |  |                      
|               |                                                              | Predecessor                        |       |       | Reorganized  |             |      | DDi Corp. &  |     |  |                       |       |       
|               |                                                              | DDi Corp.                          |       |       | DDi Corp.    |             |      | Reorganized  |     |  |                      
|               |                                                              |                                    |       |       |              |             |      | DDi Corp.    |     |  | Reorganized DDi Corp. |      
|               |                                                              | Eleven Months                      |       |       | One Month    |             |      |              |     |  |                       |      
|               |                                                              | Ended                              |       |       | Ended        |             |      | Year Ended   |     |  | Year Ended            |       |        | Year Ended   |      
|               |                                                              | November 30,                       |       |       | December 31, |             |      | December 31, |     |  | December 31,          |       |        | December 31, |      
|               |                                                              | 2003                               |       |       | 2003         |             |      | 2003         |     |  | 2004                  |       |        | 2005         |      
|               |                                                              |                                    |       |       |              |             |      |              |     |  |                       |       |        |              |      
|Operating loss |                                                              |                                    | (20.3 | )     |              |             | (9.1 | )            |     |  | (29.4                 | )     |        |              | (15.6 | )     |   |  | (68.0 | )    
|               | Loss on interest rate swap termination                       |                                    |       | 5.6   |              |             |      |             |     |  |                       | 5.6   |        |              |       |      |   |  |       |      |  
|               | Interest expense and other expense, net                      |                                    |       | 16.3  |              |             |      | 0.8          |     |  |                       | 17.1  |        |              |       | 7.6   |   |  |       | 4.8   |  
|               | 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 |                                    |       | 179.4 |              |             |      | (11.0        | )   |  |                       | 168.4 |        |              |       | (23.2 | ) |  |       | (72.8 | )
|               | Income tax expense                                           |                                    |       | (0.1  | )            |             |      |             |     |  |                       | (0.1  | )      |              |       | (2.0  | ) |  |       | (1.4  | )
|               |                                                              |                                    |       |       |              |             |      |              |     |  |                       |       |        |              |      
|               | Income (loss) from continuing operations                     |                                    |       | 179.3 |              |             |      | (11.0        | )   |  |                       | 168.3 |        |              |       | (25.2 | ) |  |       | (74.2 | )
|               | Net income (loss) from discontinued operations, net of tax   |                                    |       | (14.9 | )            |             |      | (3.0         | )   |  |                       | (17.9 | )      |              |       | (20.7 | ) |  |       | 10.2  |  
|               |                                                              |                                    |       |       |              |             |      |              |     |  |                       |       |        |              |      
|               | Net income (loss)                                            |                                    |       | 164.4 |              |             |      | (14.0        | )   |  |                       | 150.4 |        |              |       | (45.9 | ) |  |       | (64.0 | )
|               | Series B preferred stock dividend and accretion              |                                    |       |      |              |             |      |             |     |  |                       |      |        |              |       | (4.0  | ) |  |       | (6.4  | )
|               |                                                              |                                    |       |       |              |             |      |              |     |  |                       |       |        |              |      
|               | Net income (loss) available to common stockholders           |                                    | $     | 164.4 |              |             | $    | (14.0        | )   |  | $                     | 150.4 |        |              | $     | (49.9 | ) |  | $     | (70.4 | )
|               |                                                              |                                    |       |       |              |             |      |              |     |  |                       |       |        |              |      
|               | Other Financial Data:                                        |                                    |       |       |              |             |      |              |     |  |                       |       |        |              |       |       |   |  |       |       |  
|               | Depreciation                                                 |                                    | $     | 12.4  |              |             | $    | 0.9          |     |  | $                     | 13.3  |        |              | $     | 9.9   |   |  | $     | 9.9   |  
|               | Capital expenditures                                         |                                    | $     | 3.9   |              |             | $    | 0.1          |     |  | $                     | 4.1   |        |              | $     | 4.4   |   |  | $     | 6.7   |  

Year Ended December 31, 2005 Compared to the Year Ended
December 31, 2004






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






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Quarterly Financial Information




|                                                          |                   |                    |       |       |          |   |      |               |   |   |          |       |   |          |      |       |          |   |      |           |   |   |          |       |   |   |       |       |   |   |      |       |  
|--------------------------------------------------------- | ----------------- | ------------------ | ----- | ----- | -------- | - | ---- | ------------- | - | - | -------- | ----- | - | -------- | ---- | ----- | -------- | - | ---- | --------- | - | - | -------- | ----- | - | - | ----- | ----- | - | - | ---- | ----- | -
|                                                          |                   | Three Months Ended |      
|                                                          |                   |                    |      
|                                                          |                   | Mar. 31,           |       |       | June 30, |   |      | Sept. 30,     |   |   | Dec. 31, |       |   | Mar. 31, |      |       | June 30, |   |      | Sept. 30, |   |   | Dec. 31, |      
|                                                          |                   | 2004               |       |       | 2004     |   |      | 2004          |   |   | 2004     |       |   | 2005     |      |       | 2005     |   |      | 2005      |   |   | 2005     |      
|                                                          |                   |                    |       |       |          |   |      |               |   |   |          |       |   |          |      |       |          |   |      |           |   |   |          |      
|                                                          |                   |                    |       |       |          |   |      | (In millions) |   |   |          |       |   |          |     
|Net sales                                                 |                   | $                  | 48.1  |       |          | $ | 49.9 |               |   | $ | 47.1     |       |   | $        | 43.9 |       |          | $ | 44.9 |           |   | $ | 45.5     |       |   | $ | 46.0  |       |   | $ | 48.2 |      
|Gross profit                                              |                   |                    | 5.6   |       |          |   | 9.9  |               |   |   | 4.3      |       |   |          | 5.1  |       |          |   | 8.0  |           |   |   | 5.5      |       |   |   | 6.5   |       |   |   | 6.6  |      
|Loss from continuing operations                           |                   |                    | (9.6  | )     |          |   | (1.1 | )             |   |   | (6.5     | )     |   |          | (8.0 | )     |          |   | (2.6 | )         |   |   | (38.7    | )     |   |   | (27.3 | )     |   |   | (5.6 | )    
|Net income (loss) from discontinued operations            |                   |                    | (7.8  | )     |          |   | (2.8 | )             |   |   | (10.3    | )     |   |          | 0.2  |       |          |   | 9.7  |           |   |   |         |       |   |   | 0.5   |       |   |   |     |      
|Net income (loss)                                         |                   |                    | (17.4 | )     |          |   | (3.9 | )             |   |   | (16.8    | )     |   |          | (7.8 | )     |          |   | 7.1  |           |   |   | (38.7    | )     |   |   | (26.8 | )     |   |   | (5.6 | )    
|Loss per share from continuing operations:                |                   |                    |       |       |          |   |      |               |   |   |          |       |   |          |      |       |          |   |      |           |   |   |          |       |   |   |       |       |   |   |      |      
|                                                          | Basic and Diluted |                    | $     | (2.52 | )        |   | $    | (0.64         | ) |   | $        | (2.01 | ) |          | $    | (2.37 | )        |   | $    | (1.00     | ) |   | $        | (9.63 | ) |   | $     | (5.15 | ) |   | $    | (0.41 | )
|Net income (loss) per share from discontinued operations: |                   |                    |       |       |          |   |      |               |   |   |          |       |   |          |      |       |          |   |      |           |   |   |          |       |   |   |       |       |   |   |      |      
|                                                          | Basic and Diluted |                    | $     | (2.06 | )        |   | $    | (0.70         | ) |   | $        | (2.63 | ) |          | $    | 0.04  |          |   | $    | 2.47      |   |   | $        |      |   |   | $     | 0.09  |   |   | $    |      |  
|Net income (loss) per share:                              |                   |                    |       |       |          |   |      |               |   |   |          |       |   |          |      |       |          |   |      |           |   |   |          |       |   |   |       |       |   |   |      |      
|                                                          | Basic and Diluted |                    | $     | (4.58 | )        |   | $    | (1.34         | ) |   | $        | (4.64 | ) |          | $    | (2.33 | )        |   | $    | 1.47      |   |   | $        | (9.63 | ) |   | $     | (5.06 | ) |   | $    | (0.41 | )

Liquidity and Capital Resources




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





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





| |                                    
| | -----------------------------------
| | Capital Raising Transaction in 2005





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









| |                        
| | -----------------------
| | Contractual Obligations



Payments Due by Period


|                                          |                   |                         |       |        |      |  |       |       |  |  |       |       |  |      |       |       |            |  |       |       |  |  |       |       |  |  |        |        | 
|----------------------------------------- | ----------------- | ----------------------- | ----- | ------ | ---- |  | ----- | ----- |  |  | ----- | ----- |  | ---- | ----- | ----- | ---------- |  | ----- | ----- |  |  | ----- | ----- |  |  | ------ | ------ | 
|                                          |                   | Year Ending December 31 |      
|                                          |                   |                         |      
|Commitments                               |                   | 2006                    |       |        | 2007 |  |       | 2008  |  |  | 2009  |       |  | 2010 |       |       | Thereafter |  |       | Total | 
|                                          |                   |                         |       |        |      |  |       |       |  |  |       |       |  |      |       |       |            |  |       |       | 
|                                          |                   | (In thousands)          |      
|Mandatorily redeemable preferred stock(1) |                   |                         |       |        |      |  |       |       |  |  |       |       |  |      |       |       |            |  |       |       |  |  |       |       |  |  |        |       
|                                          |  Series B        |                         | $     | 19,333 |      |  | $     |      |  |  | $     |      |  |      | $     |      |            |  | $     |      |  |  | $     |      |  |  | $      | 19,333 | 
|                                          |  Dividends       |                         |       | 874    |      |  |       |      |  |  |       |      |  |      |       |      |            |  |       |      |  |  |       |      |  |  |        | 874    | 
|Note Payable                              |                   |                         | 300   |        |      |  |      |       |  |  |      |       |  |      |      |       |            |  |      |       |  |  |      |       |  |  | 300    |       
|Operating Leases                          |                   |                         | 4,596 |        |      |  | 4,450 |       |  |  | 3,742 |       |  |      | 2,819 |       |            |  | 1,965 |       |  |  | 1,346 |       |  |  | 18,918 |       
|                                          |                   |                         |       |        |      |  |       |       |  |  |       |       |  |      |       |       |            |  |       |       | 
|                                          | Total Commitments |                         | $     | 25,103 |      |  | $     | 4,450 |  |  | $     | 3,742 |  |      | $     | 2,819 |            |  | $     | 1,965 |  |  | $     | 1,346 |  |  | $      | 39,425 | 
|                                          |                   |                         |       |        |      |  |       |       |  |  |       |       |  |      |       |       |            |  |       |       | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Series B Preferred Stock is due to be repaid no later
    than March 30, 2009. However, holders have the option to
    require the Company to redeem the shares on September 30,
    2006. In addition, the Company has the right to redeem the
    shares earlier under certain circumstances. 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 will
    accrue at 6% per annum on any unredeemed shares until
    maturity in

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| |                                                                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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
    1,428,571 shares.

Current Indebtedness and Outstanding Preferred Stock of the
Company




| |                                            
| | -------------------------------------------
| | Dynamic Details Asset-based Credit Facility





| |                         
| | ------------------------
| | Series B Preferred Stock





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paid-in










Recently Issued Accounting Standards






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



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





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








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

10-K 10-K


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








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

Disclosure Controls and Procedures


13a-15(e) 15d-15(e) 10-K


Report of Management on Internal Control Over Financial
Reporting


Management of DDi Corp. 13a-15(f) 15d-15(f)




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




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|         |                   
|-------- | ------------------
|Item 9B. | Other Information.






PART III





Item 10. Directors and Executive Officers of the
Registrant.


10-K




|                 |  |     |    |  |                |  |      |                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---------------- |  | --- | -- |  | -------------- |  | ---- | ------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name             |  | Age |    |  | Director Since |  |      | Principal Occupation and Other Information
|                 |  |     |    |  |                |  |      |                                           
|Robert J. Amman  |  |     | 67 |  |                |  | 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 1999 to 2004, he served as Senior Vice
    President and President, Medtronic Cardiac Surgery. From 1998 to
    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 1994 to
    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.

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|                  |  |     |    |  |                |  |      |                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------- |  | --- | -- |  | -------------- |  | ---- | ------------------------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name              |  | Age |    |  | Director Since |  |      | Principal Occupation and Other Information
|                  |  |     |    |  |                |  |      |                                           
|Jay B. Hunt       |  |     | 66 |  |                |  | 2003 |                                            |  | Mr. Hunt has served as Chairman of the Board of Directors of DDi
    Corp. since December 2003. Mr. Hunt is President 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
    Gentiae Clinical Research, Inc., a 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.                                                                                                                                                                                                
|Andrew E. Lietz   |  |     | 67 |  |                |  | 2003 |                                            |  | Mr. Lietz currently serves as the Managing Director of Rye
    Capital Management, a private equity investment firm he founded
    in 2001. From 2000 until 2002, Mr. Lietz served as
    Executive Chairman of Clare Corporation, a manufacturer of
    integrated circuits. From 1995 until 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 1991 to 1995, and
    served as director of Hadco from 1993 through 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.
|Steven C. Schlepp |  |     | 49 |  |                |  | 2005 |                                            |  | Mr. Schlepp is president of Integrated Executive Services
    Corporation, a General Business and Private Equity Consulting
    Firm, since 2002. From 1996 to 2002, Mr. Schlepp served as
    President and Chief Executive Officer of Multilayer Technology
    Inc. (Multek), a provider of PCB and backpanel fabrication
    services. From 1990 until 1996, Mr. Schlepp served as
    President of Toppan West Incorporated, a wholly owned subsidiary
    of Toppan Electronics Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

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|                    |  |     |    |  |                |  |      |                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------------------- |  | --- | -- |  | -------------- |  | ---- | ------------------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name                |  | Age |    |  | Director Since |  |      | Principal Occupation and Other Information
|                    |  |     |    |  |                |  |      |                                           
|Carl R. Vertuca, Jr |  |     | 59 |  |                |  | 2003 |                                            |  | Mr. Vertuca is president of The Vertuca Group, a venture capital
    and real estate investment company since 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 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Mikel H. Williams   |  |     | 49 |  |                |  | 2005 |                                            |  | Mr. Williams has served as President, Chief Executive Officer
    and Chief Financial Officer of the Company since November 2005.
    From November 2004 to October 2005, Mr. Williams served as
    Senior Vice President and Chief Financial Officer of the
    Company. Before joining the Company, Mr. Williams served as
    the sole member of Constellation Management Group, LLC providing
    strategic, operational and financial/capital advisory consulting
    services to companies in the telecom, software and high-tech
    industries from May to November 2004; and as Chief Operating
    Officer of LNG Holdings, a European telecommunications company
    where he oversaw the restructuring and sale of the business from
    June 2002 to December 2003. Prior to that, from November 1996 to
    June 2001, Mr. Williams held the following executive
    positions with Global TeleSystems, Inc. and its subsidiaries, a
    leading telecommunications company providing data and internet
    services in Europe: Senior Vice President, Ebone Sales from
    December 2000 through June 2001; President, GTS Broadband
    Services from August 2000 through November 2000; President, GTS
    Wholesale Services from January 2000 through July 2000; and
    prior thereto, Vice President, Finance of Global TeleSystems,
    Inc. Mr. Williams began his career as a certified public
    accountant in the State of Maryland working as an auditor for
    PricewaterhouseCoopers.



Section 16(a) Beneficial Ownership Reporting
Compliance




43



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Code of Ethics


10-K.


Audit Committee









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



10-K


44



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Summary Compensation Table




|                     |                               |                     |      |              |            |  |            |          |  |                        |                 |   |           |           |    |    |           |  |   |                  |        |  |         |        |  |  |        |         |    
|-------------------- | ----------------------------- | ------------------- | ---- | ------------ | ---------- |  | ---------- | -------- |  | ---------------------- | --------------- | - | --------- | --------- | -- | -- | --------- |  | - | ---------------- | ------ |  | ------- | ------ |  |  | ------ | ------- | ---
|                     |                               |                     |      |              |            |  |            |          |  | Long-Term Compensation |                 |   |          
|                     |                               |                     |      |              |            |  |           
|                     |                               | Annual Compensation |      |              |            |  | Options to |          |  |                       
|                     |                               |                     |      |              | Restricted |  |            | Purchase |  |                        |                
|                     |                               |                     |      | Other Annual |            |  | Stock      |          |  | Common                 |                 |   | All Other |          
|Name and Position    |                               | Year                |      |              | Salary($)  |  |            | Bonus($) |  |                        | Compensation($) |   |           | Awards($) |    |    | Stock (#) |  |   | Compensation ($) |       
|                     |                               |                     |      |              |            |  |            |          |  |                        |                 |   |           |           |    |    |           |  |   |                  |       
|Mikel H. Williams(1) |                               |                     | 2005 |              |            |  | 325,000    |          |  |                        | 81,250          |   |           |           | * |    |           |  |  |                  |        |  | 214,286 |        |  |  | 166    | (6)    
|                     | President, Chief Executive    |                     |      | 2004         |            |  |            | 50,000   |  |                        |                 |  |           |           |    | * |           |  |   |                 |        |  |         | 35,714 |  |  |        | 52      | (6)
|                     | Officer, and Chief Financial  |                     |      | 2003         |            |  |            |         |  |                        |                 |  |           |           |    | * |           |  |   |                 |        |  |         |       |  |  |        |        |    
|                     | Officer                       |                     |      |              |            |  |            |          |  |                        |                 |   |           |           |    |    |           |  |   |                  |        |  |         |        |  |  |        |         |    
|Bradley Tesch        |                               |                     | 2005 |              |            |  | 249,292    |          |  |                        | 83,939          |   |           |           | * |    |           |  |  |                  |        |  | 78,572  |        |  |  | 436    | (7)    
|                     | Chief Operating Officer       |                     |      | 2004         |            |  |            | 200,539  |  |                        |                 |  |           |           |    | * |           |  |   | 679,950          | (2)(3) |  |         |       |  |  |        | 40,268  | (7)
|                     |                               |                     | 2003 |              |            |  | 183,248    |          |  |                        |                |   |           |           | * |    |           |  |  |                  |        |  | 10,693  |        |  |  | 40,275 | (7)    
|Bruce D. McMaster    |                               |                     | 2005 |              |            |  | 431,605    |          |  |                        | 151,500         |   |           |           | * |    |           |  |  |                  |        |  |        |        |  |  | 318    | (8)    
|                     | Former President and          |                     |      | 2004         |            |  |            | 514,712  |  |                        |                 |  |           |           |    | * |           |  |   | 4,929,638        | (2)(4) |  |         |       |  |  |        | 126,586 | (8)
|                     | Chief Executive Officer       |                     |      | 2003         |            |  |            | 501,256  |  |                        |                 |  |           |           |    | * |           |  |   |                 |        |  |         | 80,197 |  |  |        | 127,062 | (8)
|Timothy J. Donnelly  |                               |                     | 2005 |              |            |  | 193,664    |          |  |                        | 67,500          |   |           |           | * |    |           |  |  |                  |        |  |        |        |  |  | 488    | (9)    
|                     | Former Vice President,        |                     |      | 2004         |            |  |            | 229,327  |  |                        |                 |  |           |           |    | * |           |  |   | 679,950          | (2)(5) |  |         |       |  |  |        | 45,500  | (9)
|                     | Secretary and General Counsel |                     |      | 2003         |            |  |            | 225,000  |  |                        |                 |  |           |           |    | * |           |  |   |                 |        |  |         | 10,693 |  |  |        | 45,336  | (9)






|  |                                                                                                                                                                                     
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | 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) | Mr. Williams joined the Company in November 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(2) | The Restricted Stock Awards value was calculated using the
    closing market price on December 19, 2003 of $95.20, the
    date the awards were approved by the Board of Directors of the
    Company. The awards were actually granted in 2004 when all
    required documentation was completed.                                                                                                                                                                                                                                                                                                                                                    
|   
|(3) | Mr. Tesch held 3,571 shares of restricted stock at
    December 31, 2005, which are fully vested. The value of
    these shares at December 31, 2005 was $23,725. The Company
    does not expect to pay dividends on these shares.                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(4) | Mr. McMaster held 40,642 shares of restricted stock at
    December 31, 2005, which are fully vested. The value of
    these shares at December 31, 2005 was $269,991. The Company
    does not expect to pay dividends on these shares.                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(5) | Mr. Donnelly held 5,714 shares of restricted stock at
    December 31, 2005, which are fully vested. The value of
    these shares at December 31, 2005 was $37,960. The Company
    does not expect to pay dividends on these shares.                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(6) | All other compensation for 2005 consisted of $166 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. Williams. All other compensation for 2004 consisted
    of $52 representing term life insurance premiums paid by the
    Company for the benefit of Mr. Williams.                                                                                                                                                                                                                                                                                                                                       
|   
|(7) | All other compensation for 2005 consisted of $436 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. Tesch. All other compensation for 2004 consisted of:
    (a) $40,000 representing a discretionary retention payment
    under the KERP and (b) $268 representing term life
    insurance premiums paid by the Company for the benefit of
    Mr. Tesch. All other compensation for 2003 consisted of:
    (a) $40,000 representing a discretionary retention payment
    under the KERP and (b) $275 representing term life
    insurance premiums paid by the Company for the benefit of
    Mr. Tesch.
|   
|(8) | All other compensation for 2005 consisted of $318 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. McMaster. All other compensation for 2004 consisted
    of: (a) $126,250 representing a discretionary retention
    payment under the KERP and (b) $336 representing term life
    insurance premiums paid by the Company for the benefit of
    Mr. McMaster. All other compensation for 2003 consisted of:
    (a) $126,750 representing a discretionary retention payment
    under the KERP and                                                                                                     

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | (b) $312 representing term life insurance premiums paid by
    the Company for the benefit of Mr. McMaster.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(9) | All other compensation for 2005 consisted of $488 representing
    term life insurance premiums paid by the Company for the benefit
    of Mr. Donnelly. All other compensation for 2004 consisted
    of: (a) $45,000 representing a discretionary retention
    payment 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 payment
    under the KERP and (b) $336 representing term life
    insurance premiums paid by the Company for the benefit of
    Mr. Donnelly.

Stock Options


Stock Option Grants.


|                    |  |               |         |               |                |  |      |             |  |                            |                         |                         |         |       |            |  |        |   |         |  |  |   |           | 
|------------------- |  | ------------- | ------- | ------------- | -------------- |  | ---- | ----------- |  | -------------------------- | ----------------------- | ----------------------- | ------- | ----- | ---------- |  | ------ | - | ------- |  |  | - | --------- | 
|                    |  |               |         |               |                |  |      |             |  | Potential Realizable Value |                        
|                    |  |               |         | Percentage of |                |  |      |             |  |                            | At Assumed Annual Rates |                        
|                    |  | Number of     |         |               | Total          |  |      |             |  |                            |                         | of or Base Stock Price  |        
|                    |  | Securities    |         |               | Options/SARs   |  |      |             |  |                            |                         | Appreciation for Option |        
|                    |  | Underlying    |         |               | Granted to     |  |      | Exercise or |  |                            |                         |                         | Term(4) |      
|                    |  | Options/SARs  |         |               | Employees in   |  |      | Base Price  |  |                            | Expiration              |                         |         |       |           
|Name                |  | Granted(#)(1) |         |               | Fiscal Year(2) |  |      | ($/sh)(3)   |  |                            | Date                    |                         |         | 5%($) |            |  | 10%($) |  
|                    |  |               |         |               |                |  |      |             |  |                            |                         |                         |         |       |            |  |        |  
|Mikel H. Williams   |  |               | 214,286 |               |                |  | 30.7 | %           |  | $                          | 5.67                    |                         |         |       | 12/20/2015 |  |        | $ | 764,108 |  |  | $ | 1,936,400 | 
|Bradley Tesch       |  |               | 21,429  |               |                |  | 3.1  | %           |  | $                          | 17.71                   |                         |         |       | 3/21/2015  |  |        | $ | 238,670 |  |  | $ | 604,837   | 
|                    |  |               | 57,143  |               |                |  | 8.2  | %           |  | $                          | 5.67                    |                         |         |       | 12/20/2015 |  |        | $ | 203,762 |  |  | $ | 516,374   | 
|Bruce D. McMaster   |  |               |        |               |                |  |     |             |  |                            |                        |                         |         |       |           |  |        |   |        |  |  |   |          | 
|Timothy J. Donnelly |  |               |        |               |                |  |     |             |  |                            |                        |                         |         |       |           |  |        |   |        |  |  |   |          | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Options granted in fiscal year 2005 under the 2005 Stock
    Incentive Plan vest over three years in three equal annual
    installments. A few option grants were made under the 2003
    Management Equity Incentive Plan (the 2003 Plan)
    prior to the adoption of the 2005 Stock Incentive Plan. Options
    granted under the 2003 Plan vest one-third on the date of grant,
    one-third 18 months from the date of grant and one-third
    36 months from the date of grant. Options granted to the
    Named Executive Officers at an exercise price of $5.67 were
    under the 2005 Stock Incentive Plan and options granted at an
    exercise price of $17.71 were under the 2003 Plan. Grants under
    both plans expire ten years from the date of grant.
|   
|(2) | Based on an aggregate of 697,144 options granted to all
    employees during fiscal year 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | All options were granted at an exercise price equal to the fair
    market value based on the closing market value of the
    Companys common stock on the Nasdaq National Market on the
    date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(4) | The Company is required by the SEC to use 5% and 10% assumed
    annualized rate of appreciation over the ten year option term.
    This does not represent the Companys estimate or
    projection of the future common stock price. If the common stock
    does not appreciate, the Named Executive Officers will receive
    no benefit from the options.                                                                                                                                                                                                                                                                                                                                                                                                                

Option Exercises/ Fiscal Year End Value.


46



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


|                    |  |                    |   |  |              |                        |   |             |                        |  |               |  |  |             |         |  |               |   |         |  |  |   |         | 
|------------------- |  | ------------------ | - |  | ------------ | ---------------------- | - | ----------- | ---------------------- |  | ------------- |  |  | ----------- | ------- |  | ------------- | - | ------- |  |  | - | ------- | 
|                    |  |                    |   |  |              | Number of Securities   |   |             | Value of Unexercised   | 
|                    |  |                    |   |  |              | Underlying Unexercised |   |             | In-the-Money           | 
|                    |  |                    |   |  |              | Options/SARs at Fiscal |   |             | Options/SARs at Fiscal | 
|                    |  |                    |   |  |              | Year-End(#)            |   |             | Year-End($)            | 
|                    |  | Shares Acquired on |   |  | Value        |                        |   |             |                        |  |               | 
|Name                |  | Exercise(#)        |   |  | Realized ($) |                        |   | Exercisable |                        |  | Unexercisable |  |  | Exercisable |         |  | Unexercisable |  
|                    |  |                    |   |  |              |                        |   |             |                        |  |               |  |  |             |         |  |               |  
|Mikel H. Williams   |  |                    |  |  |              |                        |  |             |                        |  | 35,714        |  |  |             | 214,286 |  |               | $ |        |  |  | $ | 210,000 | 
|Bradley Tesch       |  |                    |  |  |              |                        |  |             |                        |  | 29,508        |  |  |             | 59,757  |  |               | $ | 12,531  |  |  | $ | 66,857  | 
|Bruce D. McMaster   |  |                    |  |  |              |                        |  |             |                        |  | 80,197        |  |  |             |        |  |               | $ | 175,410 |  |  | $ |        | 
|Timothy J. Donnelly |  |                    |  |  |              |                        |  |             |                        |  |              |  |  |             |        |  |               |   |        |  |  |   |        | 

Employment Contracts and Termination of Employment and Change
of Control Arrangements










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Compensation Committee Interlocks and Insider
Participation




Compensation of Directors




Cash Compensation.


Stock Options.









|         |                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------
|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
    our outstanding preferred stock;
|
| |  | each of our current directors;                                                                                                                                          

49



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| |   |                                                                
| | - | ---------------------------------------------------------------
| |  | 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:                 |                                                                                              |                      |  |           |          |  |  |         |  |            |       |           |  |  |  |     
|                                        | Contrarian Capital Management, LLC(2)                                                        |                      |  | 2,351,586 |          |  |  | 592,549 |  |            |       | 2,944,135 |  |  |  | 15.6 | %
|                                        | 411 West Putman Avenue, Suite 225
    Greenwich, CT 06830                                    |                      |  |           |          |  |  |         |  |            |       |           |  |  |  |      |  
|                                        | QVT Financial LLC(3)                                                                         |                      |  | 1,665,382 |          |  |  | 162,121 |  |            |       | 1,827,503 |  |  |  | 9.9  | %
|                                        | 527 Madison Avenue, 8th Floor
     New York, New York 10022                                  |                      |  |           |          |  |  |         |  |            |       |           |  |  |  |      |  
|                                        | Greywolf Capital Partners II(4)                                                              |                      |  | 1,863,024 |          |  |  | 230,200 |  |            |       | 2,093,224 |  |  |  | 11.3 | %
|                                        | Greywolf Capital Overseas Fund
    411 West Putnam Avenue, Suite 265
    Greenwich, CT 06830 |                      |  |           |          |  |  |         |  |            |       |           |  |  |  |      |  
|                                        | Caiman Partners, L.P.                                                                        |                      |  | 797,259   |          |  |  | 460,401 |  |            |       | 1,257,660 |  |  |  | 6.7  | %
|                                        | 5506 Worsham Court
     Windermere, FL 34786                                                 |                      |  |           |          |  |  |         |  |            |       |           |  |  |  |      |  

50



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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 |        
|                                                  |                                                                                    |                      |  |         |          |  |  |         |  |            |       |        
|Named Executive Officers and Directors:           |                                                                                    |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |      
|                                                  | Mikel H. Williams                                                                  |                      |  |        |          |  |  | 35,714  |  |            |       | 35,714  |  |  |  | *     |  
|                                                  | Brad Tesch                                                                         |                      |  | 3,571   |          |  |  | 29,508  |  |            |       | 33,079  |  |  |  | *     |  
|                                                  | Bruce D. McMaster                                                                  |                      |  | 41,365  |          |  |  | 80,197  |  |            |       | 121,562 |  |  |  | *     |  
|                                                  | Timothy J. Donnelly                                                                |                      |  | 4,285   |          |  |  |        |  |            |       | 4,285   |  |  |  | *     |  
|                                                  | Robert J. Amman                                                                    |                      |  | 5,291   |          |  |  | 14,286  |  |            |       | 19,577  |  |  |  | *     |  
|                                                  | Robert Guezuraga                                                                   |                      |  |        |          |  |  | 14,286  |  |            |       | 14,286  |  |  |  | *     |  
|                                                  | Jay B. Hunt                                                                        |                      |  | 4,828   |          |  |  | 14,286  |  |            |       | 19,114  |  |  |  | *     |  
|                                                  | Andrew E. Lietz                                                                    |                      |  | 6,614   |          |  |  | 14,286  |  |            |       | 20,900  |  |  |  | *     |  
|                                                  | Steven C. Schlepp                                                                  |                      |  | 25,000  |          |  |  |        |  |            |       | 25,000  |  |  |  | *     |  
|                                                  | Carl R. Vertuca, Jr.                                                               |                      |  | 1,328   |          |  |  | 14,286  |  |            |       | 15,614  |  |  |  | *     |  
|                                                  | All Directors and Executive Officers as a group (9 persons)                        |                      |  | 46,632  |          |  |  | 136,652 |  |            |       | 183,284 |  |  |  | 1.0   | %
|                                                 
|Series B-1 Preferred Stock Principal Stockholder: |                                                                                    |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |      
|                                                  | Isotope Limited                                                                    |                      |  | 49,227  |          |  |  |        |  |            |       | 49,227  |  |  |  | 100.0 | %
|                                                  | C/o Amaranth LLC
     One America Lane
     Greenwich, CT 06831                    |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |       |  
|                                                 
|Series B-1 Preferred Stock Principal Stockholder: |                                                                                    |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |      
|                                                  | Capital Ventures International                                                     |                      |  | 21,097  |          |  |  |        |  |            |       | 21,097  |  |  |  | 5.9   | %
|                                                  | 401 City Ave., Ste. 220
    Bala Cynwyd, PA 19004                                  |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |       |  
|                                                  | Contrarian Funds LLC                                                               |                      |  | 19,666  |          |  |  |        |  |            |       | 19,666  |  |  |  | 5.5   | %
|                                                  | 411 West Outman Avenue, Suite 225
     Greenwich, CT 06830                         |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |       |  
|                                                  | Manchester Securities Corporation                                                  |                      |  | 70,324  |          |  |  |        |  |            |       | 70,324  |  |  |  | 19.7  | %
|                                                  | 712 Fifth Ave., 35th Fl.
    New York, NY 10017                                    |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |       |  
|                                                  | Deutsche Bank, AG London Branch                                                    |                      |  | 140,646 |          |  |  |        |  |            |       | 140,646 |  |  |  | 39.4  | %
|                                                  | C/o QVT Financial LP
     527 Madison Ave., 8th Fl.
     New York, NY 10022        |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |       |  
|                                                  | Portside Growth and Opportunity Fund(10)                                           |                      |  | 70,324  |          |  |  |        |  |            |       | 70,324  |  |  |  | 19.7  | %
|                                                  | C/o Ramius Capital Group LLC
    666 Third Ave., 26th Fl.
    New York, NY 10017   |                      |  |         |          |  |  |         |  |            |       |         |  |  |  |       |  
|                                                  | RCG Latitude Master Fund Ltd.(11)                                                  |                      |  | 35,161  |          |  |  |        |  |            |       | 35,161  |  |  |  | 9.8   | %
|                                                  | 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.

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | This beneficial ownership information is based on information
    contained in an amended Schedule 13G/ A filed with the SEC
    on February 14, 2006. Contrarian Capital Management, LLC
    (Contrarian Capital) is the investment manager for
    Contrarian Equity Fund, LP (Contrarian Equity).
    Contrarian Capital owns 2,944,135 shares of Common Stock,
    consisting of 2,351,586 shares of Common Stock and warrants
    that are immediately exercisable into 592,549 shares of
    Common Stock. Contrarian Equity beneficially owns
    2,828,057 shares of Common Stock, consisting of
    2,199,896 shares of Common Stock and warrants that are
    immediately exercisable into 628,161 shares of Common Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(3) | This beneficial ownership information is based on information
    contained in an amended Schedule 13G/ A filed with the SEC
    on February 14, 2006. QVT Financial LP (QVT
    Financial) is the investment manager for QVT Fund LP
    (the QVT Fund), which beneficially owns
    1,489,131 shares of Common Stock, consisting of
    1,327,010 shares of Common Stock and warrants that are
    immediately exercisable into 162,121 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 338,372 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
    1,827,503 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.
|   
|(4) | This beneficial ownership information is based on information
    contained in an amended Schedule 13G/ A filed with the SEC
    on September 25, 2005. Greywolf Capital Partners II LP
    (Greywolf Capital Partners) owns
    1,086,593 shares of Common Stock, consisting of
    856,393 shares of Common Stock and warrants that are
    immediately exercisable for 230,200 shares of Common Stock.
    Greywolf Capital Overseas Fund owns 1,006,631 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. 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. Accordingly, Mr. Savitz may be deemed to be
    the beneficial owner of an aggregate amount of
    2,093,224 shares of Common Stock, consisting of the shares
    owned by Greywolf Capital Partners and the shares owned by
    Greywolf Capital Overseas Fund.            

Securities Authorized for Issuance under Equity Compensation
Plans




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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)     |       |                      | 870,715 |           |                   | $                    | 8.08  |                           |  |  | 1,357,857 | (1)      
|Equity compensation plans not approved by security holders(2) |       |                      | 294,121 | (2)       |                   | $                    | 25.45 |                           |  |  |          |          
|                                                              |       |                      |         |           |                   |                      |       |                           | 
|                                                              | Total |                      |         | 1,164,836 |                   |                      | $     | 12.47                     |  |  |           | 1,357,857 | 
|                                                              |       |                      |         |           |                   |                      |       |                           | 






|    |                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the maximum number of shares of our common stock that
    may be issued pursuant to outstanding options granted under and
    available for future grant under the 2003 Directors Equity
    Incentive Plan and the 2005 Stock Incentive Plan.                                                                                         
|   
|(2) | Represents the maximum number of shares of our common stock that
    may be issued pursuant to outstanding options granted under the
    2003 Management Equity Incentive Plan, which was approved by the
    Bankruptcy Court in connection with the Companys Modified
    First Amended Plan of Reorganization dated as of August 30,
    2003.






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

Executive
Compensation


day-to


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day-to







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



|                   |       |             |           |           |      |   |           |           | 
|------------------ | ----- | ----------- | --------- | --------- | ---- | - | --------- | --------- | 
|                   |       | Fiscal Year |          
|                   |       |             |          
|                   |       | 2004        |           |           | 2005 |  
|                   |       |             |           |           |      |  
|Audit fees         |       | $           | 2,510,527 |           |      | $ | 1,278,925 |          
|Audit related fees |       |             | 117,700   |           |      |   | 93,000    |          
|Tax fees           |       |             | 305,016   |           |      |   | 104,955   |          
|All other fees     |       |             |          |           |      |   | 3,000     |          
|                   |       |             |           |           |      |  
|                   | Total |             | $         | 2,933,243 |      |   | $         | 1,479,880 | 
|                   |       |             |           |           |      |  

Audit fees. 10-Q


Audit-related fees.


Tax fees.


All other 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, 2004 and 2005                                                                                                                                                                                          |  |      | F-4  | 
|Consolidated Statements of Operations for the Eleven Months
    Ended November 30, 2003 (Predecessor DDi Corp.), One Month
    Ended December 31, 2003 and the Years Ended
    December 31, 2004 and 2005 (Reorganized DDi Corp.)                     |  |      | F-5  | 
|Consolidated Statements of Comprehensive Income (Loss) for the
    Eleven Months Ended November 30, 2003 (Predecessor DDi
    Corp.), One Month Ended December 31, 2003 and the Years
    Ended December 31, 2004 and 2005 (Reorganized DDi Corp.)    |  |      | F-6  | 
|Consolidated Statements of Stockholders Equity (Deficit)
    for the Eleven Months Ended November 30, 2003 (Predecessor
    DDi Corp.), One Month Ended December 31, 2003 and the Years
    Ended December 31, 2004 and 2005 (Reorganized DDi Corp.) |  |      | F-7  | 
|Consolidated Statements of Cash Flows for the Eleven Months
    Ended November 30, 2003 (Predecessor DDi Corp.), One Month
    Ended December 31, 2003 and the Years Ended
    December 31, 2004 and 2005 (Reorganized DDi Corp.)                     |  |      | F-10 | 
|Notes to Consolidated Financial Statements                                                                                                                                                                                                            |  |      | F-13 | 

Financial Statement Schedules.






Exhibits.


10-K.


|        |   |    |  |  |             |                                                                                                                  
|------- | - | -- |  |  | ----------- | -----------------------------------------------------------------------------------------------------------------
|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 |  |  |             | Certificate of Amendment to the Amended and Restated Certificate
    of Incorporation of DDi Corp.(3)            
|        | 3 | .5 |  |  |             | Amended and Restated Bylaws of DDi Corp.(4.)                                                                     

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|                                                                                 |    |      |  |  |             |                                                                                                                                                                                                                                      
|-------------------------------------------------------------------------------- | -- | ---- |  |  | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit                                                                          |    |      |  |  | Description
|                                                                                 |    |      |  |  |            
|Material Contracts Relating to Management Compensation Plans
    or Arrangements
|                                                                                 | 10 | .1*  |  |  |             | Dynamic Details Incorporated 2006 Senior Management Bonus
    Program.                                                                                                                                                               
|                                                                                 | 10 | .2   |  |  |             | DDi Corp. Amended and Restated Severance Plan for Key Employees
    Effective December 19, 2004.(5)                                                                                                                                  
|                                                                                 | 10 | .3   |  |  |             | 2003 Directors Equity Incentive Plan.(6)                                                                                                                                                                                             
|                                                                                 | 10 | .4   |  |  |             | Form of Stock Option Agreement (2003 Directors Equity
    Incentive Plan).(6)                                                                                                                                                        
|                                                                                 | 10 | .5   |  |  |             | DDi Corp. 2003 Management Incentive Plan.(7)                                                                                                                                                                                         
|                                                                                 | 10 | .6   |  |  |             | Form of Restricted Stock Agreement (2003 Management Equity
    Incentive Plan).(8)                                                                                                                                                   
|                                                                                 | 10 | .7   |  |  |             | Form of Stock Option Agreement (2003 Management Equity Incentive
    Plan).(8)                                                                                                                                                       
|                                                                                 | 10 | .8   |  |  |             | Form of Amendment to Restricted Stock Agreement (with schedule
    of parties attached).(9)                                                                                                                                          
|                                                                                 | 10 | .9   |  |  |             | Severance Agreement and General Release dated November 17,
    2004 between DDi Corp. and Joseph P. Gisch.(10)                                                                                                                       
|                                                                                 | 10 | .10* |  |  |             | Employment Agreement dated March 16, 2006 between DDi Corp.
    and Mikel Williams                                                                                                                                                   
|                                                                                 | 10 | .11  |  |  |             | Non-Solicitation Agreement dated December 12, 2003 by and
    between Bruce McMaster and Dynamic Details, Inc.(7)                                                                                                                    
|                                                                                 | 10 | .12  |  |  |             | DDi Corp. 2005 Stock Incentive Plan.(3)                                                                                                                                                                                              
|                                                                                 | 10 | .13  |  |  |             | Amendment to Restricted Stock Agreement (with schedule of
    parties attached).(11)                                                                                                                                                 
|                                                                                 | 10 | .14  |  |  |             | Amendment to Non-Qualified Stock Option Agreement (with schedule
    of parties attached).(11)                                                                                                                                       
|                                                                                 | 10 | .15  |  |  |             | Form of Amendment to Restricted Stock Agreement (with schedule
    of parties attached).(9)                                                                                                                                          
|                                                                                 | 10 | .16  |  |  |             | Employment Letter dated September 29, 2005 between DDi
    Corp. and Diane N. Brundage.(12)                                                                                                                                          
|                                                                                 | 10 | .17  |  |  |             | Severance Agreement dated October 10, 2005 between DDi
    Corp. and Diane N. Brundage.(12)                                                                                                                                          
|                                                                                 | 10 | .18  |  |  |             | Form of Stock Option Agreement under the DDi Corp 2005 Stock
    Incentive Plan.(13)                                                                                                                                                 
|                                                                                 | 10 | .19  |  |  |             | Confidential Severance Agreement and General Release dated
    February 9, 2006 between DDi Corp. and Bruce McMaster.(24)                                                                                                            
|Other Material Contracts                                                        
|                                                                                 | 10 | .20  |  |  |             | Registration Rights Agreement, dated as of December 12,
    2003, relating to Series A Preferred Stock of DDi Corp.(1)                                                                                                               
|                                                                                 | 10 | .21  |  |  |             | 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.(14)                                                     
|                                                                                 | 10 | .22  |  |  |             | 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.(14)                                                 
|                                                                                 | 10 | .23  |  |  |             | 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.(15)                          
|                                                                                 | 10 | .24  |  |  |             | 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.(16)
|                                                                                 | 10 | .25  |  |  |             | 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.(16)    
|                                                                                 | 10 | .26  |  |  |             | 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.(16) 
|                                                                                 | 10 | .27  |  |  |             | Lease Agreement dated July 22, 1991 between Geomax and
    Dynamic Circuits, Inc.(17)                                                                                                                                                
|                                                                                 | 10 | .28  |  |  |             | Lease dated March 20, 1997 by and between Mercury
    Partners 30, Inc. and Dynamic Circuits, Inc.(18)                                                                                                                               
|                                                                                 | 10 | .29  |  |  |             | Amendment to Lease Agreement, dated as of November 9, 2001
    by and between D & D Tarob Properties, LLC and Dynamic
    Details Incorporated Silicon Valley.(17)                                                                   

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|        |    |     |  |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------- | -- | --- |  |  | ----------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |  |  | Description
|        |    |     |  |  |            
|        | 10 | .30 |  |  |             | Lease dated November 12, 1997 by and between Miller and
    Associates and Dynamic Circuits Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .31 |  |  |             | Lease dated August 18, 1998, by and between
    Mrs. Alberta M. Talley, Trustee and Dynamic Circuits,
    Inc.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10 | .32 |  |  |             | Lease Agreement dated April 14, 1998 by and between
    Continental Electric Contractors and Cuplex, Inc.(9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 10 | .33 |  |  |             | 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.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .34 |  |  |             | Lease Agreement dated as of November 2, 1995, between
    Trammell Crow International Partners and Cuplex, Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10 | .35 |  |  |             | 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 | .36 |  |  |             | 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 | .37 |  |  |             | 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 | .38 |  |  |             | 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 | .39 |  |  |             | 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 | .40 |  |  |             | 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 | .41 |  |  |             | 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 | .43 |  |  |             | Master Agreement for Standby Letters of Credit, dated as of
    March 30, 2004.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10 | .44 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                    

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|        |    |     |  |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | -- | --- |  |  | ----------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |  |  | Description
|        |    |     |  |  |            
|        | 10 | .45 |  |  |             | 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.(19)
|        | 10 | .46 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .47 |  |  |             | Master Agreement for Documentary Letters of Credit, dated as of
    June 30, 2004.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .48 |  |  |             | Master Agreement for Standby Letters of Credit, dated as of
    June 30, 2004.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10 | .49 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 10 | .50 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 10 | .51 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10 | .52 |  |  |             | Common Stock Purchase Warrant dated September 21, 2005,
    with schedule of parties attached.(20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10 | .53 |  |  |             | Registration Rights Agreement dated September 21, 2005.(20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .54 |  |  |             | Amendment No. 1 to Standby Securities Purchase Agreement
    dated September 21, 2005.(20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 10 | .55 |  |  |             | Purchase Agreement, dated as of June 2, 2005, by and
    between DDi Corp. and Caiman Partners, L.P., Contrarian
    Turnaround Equities, LLC, Greywolf Capital Partners II LP,
    QVT Fund LP, Sankaty Credit Opportunities, L.P., Sankaty
    High Yield Asset Partners, L.P., Sankaty High Yield
    Partners II, L.P., Sankaty High Yield Partners III,
    L.P. and Sankaty Prospect Credit Partners, L.P.(21)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10 | .56 |  |  |             | Amendment No. 3 to Credit Agreement, by and among Dynamic
    Details, Incorporated, Dynamic Details, Incorporated, Virginia,
    Dynamic Details Incorporated, Silicon Valley, Laminate
    Technology Corp., the other Credit Parties signatory thereto and
    General Electric Capital Corporation.(22)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .57 |  |  |             | Amendment No. 2 to Credit Agreement, by and among Dynamic
    Details, Incorporated, Dynamic Details Canada, Corp., DDi Canada
    Acquisition Corp., the other Credit Parties signatory thereto
    and GE Canada Finance Holding Company.(22)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|        | 10 | .58 |  |  |             | Amendment No. 3 to Real Property Master Lease Agreement.(22)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 14 | .1  |  |  |             | Code of Business Conduct and Ethics.(23)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | 21 | .1  |  |  |             | Subsidiaries of DDi Corp.(25)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 23 | .1* |  |  |             | Consent of PricewaterhouseCoopers LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 31 | .1* |  |  |             | Certification of Chief Executive Officer and Chief Financial
    Officer of DDi Corp., Pursuant to Rule 13a-14 of the
    Securities Exchange Act                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 32 | .1* |  |  |             | Certification of Chief Executive Officer and 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.

58



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##### Table of Contents





|    |                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 August 10, 2005 as
    an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                               
|   
|(4) | Previously filed with the Commission on August 9, 2005 as
    an exhibit to DDi Corp.s Quarterly Report on
    Form 10-Q.                                             
|   
|(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 June 24, 2005 as an
    exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                        
|    
|(12) | Previously filed with the Commission on October 11, 2005 as
    an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                     
|    
|(13) | Previously filed with the Commission on December 27, 2005
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                    
|    
|(14) | 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.                      
|    
|(15) | 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.                      
|    
|(16) | 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.
|    
|(17) | Previously filed with the Commission on March 25, 2002 as
    an exhibit to DDi Corp.s Annual Report on
    Form 10-K.                                                                       
|    
|(18) | 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.                                   
|    
|(19) | Previously filed with the Commission on August 16, 2004 as
    an exhibit to DDi Corp.s Quarterly Report on
    Form 10-Q.                                                                   
|    
|(20) | Previously filed with the Commission on September 23, 2005
    as an exhibit to DDi Corp.s Amended Current Report on
    Form 8-K/ A.                                                        
|    
|(21) | Previously filed with the Commission on June 5, 2005 as an
    exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                         
|    
|    
|(22) | Previously filed with the Commission on November 29, 2005
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                    
|    
|    
|(23) | Previously filed with the Commission on March 6, 2006 as an
    exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                        
|    
|    
|(24) | Previously filed with the Commission on February 15, 2006
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                    
|    
|(25) | Previously filed with the Commission on March 16, 2005 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                  
| | President, Chief Executive         
| | Officer and Chief Financial Officer



|                                                 |  |                                                                                                                          |  |                |  | 
|------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------ |  | -------------- |  | 
|Signature                                        |  | Title                                                                                                                    |  | Date          
|                                                 |  |                                                                                                                          |  |               
|                                                
|/s/ Mikel H. WilliamsMikel H. Williams           |  | President, Chief Executive Officer, Chief Financial Officer and
    Director (Principal Executive and Financial Officer) |  | March 16, 2006
|                                                
|/s/ John ElwoodJohn Elwood                       |  | Corporate Controller (Principal Accounting Officer)                                                                      |  | March 16, 2006
|                                                
|/s/ Robert J. AmmanRobert J. Amman               |  | Director                                                                                                                 |  | March 16, 2006
|                                                
|/s/ Robert GuezuragaRobert Guezuraga             |  | Director                                                                                                                 |  | March 16, 2006
|                                                
|/s/ Jay B. HuntJay B. Hunt                       |  | Director                                                                                                                 |  | March 16, 2006
|                                                
|/s/ Andrew E. LietzAndrew E. Lietz               |  | Director                                                                                                                 |  | March 16, 2006
|                                                
|/s/ Steven C. SchleppSteven C. Schlepp           |  | Director                                                                                                                 |  | March 16, 2006
|                                                
|/s/ Carl R.
    Vertuca, Jr.Carl R. Vertuca, Jr. |  | Director                                                                                                                 |  | March 16, 2006

60



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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Consolidated Financial Statements and Financial Statement
Schedule






Internal Control Over Financial Reporting


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


F-1



---



##### Table of Contents











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





F-2



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












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





F-3



---



##### Table of Contents



DDi CORP.


CONSOLIDATED BALANCE SHEETS


(In thousands, except share and per share amounts)


|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |         |        |         |          |         | 
|-------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------------------------------------------------- | ------- | ------- | ------- | ------ | ------- | -------- | ------- | 
|                                                                                 |                                                                                                                                                                                                                                                                       | Reorganized DDi Corp.                                                  |                                                                                       
|                                                                                 |                                                                                                                                                                                                                                                                       | December 31,                                                           |                                                                                       
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                       
|                                                                                 |                                                                                                                                                                                                                                                                       | 2004                                                                   |                                                                                        |         | 2005    |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|ASSETS                                                                          
|Current assets:                                                                  |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |         |        |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Cash and cash equivalents                                              |                                                                                        | $       | 23,526  |         |        | $       | 25,985   |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Cash and cash equivalents  restricted (see
    Note 10)               |                                                                                        |         |        |         |        |         | 2,972    |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Accounts receivable, net                                               |                                                                                        |         | 26,564  |         |        |         | 29,710   |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Inventories                                                            |                                                                                        |         | 17,996  |         |        |         | 16,117   |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Prepaid expenses and other                                             |                                                                                        |         | 1,713   |         |        |         | 1,506    |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Current assets held for disposal                                       |                                                                                        |         | 33,016  |         |        |         |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        | Total current assets                                                                   |         |         | 102,815 |        |         |          | 76,290  | 
|Property, plant and equipment, net                                               |                                                                                                                                                                                                                                                                       |                                                                        | 36,376                                                                                 |         |         |         | 31,063 |        
|Debt issuance costs, net                                                         |                                                                                                                                                                                                                                                                       |                                                                        | 1,780                                                                                  |         |         |         | 895    |        
|Goodwill                                                                         |                                                                                                                                                                                                                                                                       |                                                                        | 99,375                                                                                 |         |         |         | 41,845 |        
|Other intangibles, net                                                           |                                                                                                                                                                                                                                                                       |                                                                        | 18,009                                                                                 |         |         |         | 13,411 |        
|Deferred income tax asset                                                        |                                                                                                                                                                                                                                                                       |                                                                        | 541                                                                                    |         |         |         | 251    |        
|Assets held for disposal                                                         |                                                                                                                                                                                                                                                                       |                                                                        | 26,245                                                                                 |         |         |         |       |        
|Other                                                                            |                                                                                                                                                                                                                                                                       |                                                                        | 810                                                                                    |         |         |         | 573    |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|                                                                                 | Total assets                                                                                                                                                                                                                                                          |                                                                        | $                                                                                      | 285,951 |         |         | $      | 164,328 |         
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|                                                                                
|LIABILITIES, MANDATORILY REDEEMABLE PREFERRED STOCK
    AND STOCKHOLDERS EQUITY
|Current liabilities:                                                             |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |         |        |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Current maturities of long-term debt and capital lease
    obligations |                                                                                        | $       | 916     |         |        | $       |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Revolving credit facilities                                            |                                                                                        |         | 15,948  |         |        |         | 19,929   |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Accounts payable                                                       |                                                                                        |         | 16,389  |         |        |         | 15,443   |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Accrued expenses and other liabilities                                 |                                                                                        |         | 14,527  |         |        |         | 12,639   |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Income tax payable                                                     |                                                                                        |         | 1,099   |         |        |         | 2,070    |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Current liabilities held for disposal                                  |                                                                                        |         | 67,853  |         |        |         |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        | Total current liabilities                                                              |         |         | 116,732 |        |         |          | 50,081  | 
|Long-term debt and capital lease obligations                                     |                                                                                                                                                                                                                                                                       |                                                                        | 18,252                                                                                 |         |         |         |       |        
|Notes payable and other                                                          |                                                                                                                                                                                                                                                                       |                                                                        | 8,602                                                                                  |         |         |         | 4,745  |        
|Liabilities held for disposal                                                    |                                                                                                                                                                                                                                                                       |                                                                        | 3,725                                                                                  |         |         |         |       |        
|Series A preferred stock                                                         |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                       |         |         |         |       |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|                                                                                 | Total liabilities                                                                                                                                                                                                                                                     |                                                                        |                                                                                        | 147,311 |         |         |        | 54,826  |         
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|Commitments and contingencies (Note 14)                                          |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |         |        |        
|Series B mandatorily redeemable preferred stock                                  |                                                                                                                                                                                                                                                                       |                                                                        | 61,557                                                                                 |         |         |         | 1,513  |        
|Stockholders equity:                                                            |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |         |        |        
|                                                                                 | Common stock  $0.001 par value,
    75,000,000 shares authorized and 3,917,340 shares
    issued and outstanding at December 31, 2004;
    $0.001 par value, 190,000,000 shares authorized and
    18,259,356 shares issued and outstanding at
    December 31, 2005 |                                                                        |                                                                                        | 4       |         |         |        | 18      |         
|                                                                                 |                                                                                                                                                                                                                                                                       | Additional paid-in capital                                             |                                                                                        |         | 147,761 |         |        |         | 231,821  |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Deferred compensation                                                  |                                                                                        |         | (9,445  | )       |        |         | (349     | )      
|                                                                                 |                                                                                                                                                                                                                                                                       | Accumulated other comprehensive income (loss)                          |                                                                                        |         | (712    | )       |        |         | 346      |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Stockholder receivables                                                |                                                                                        |         | (652    | )       |        |         |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       | Accumulated deficit                                                    |                                                                                        |         | (59,873 | )       |        |         | (123,847 | )      
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        | Total stockholders equity                                                             |         |         | 77,083  |        |         |          | 107,989 | 
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        | Total liabilities, mandatorily redeemable preferred stock and
    stockholders equity |         | $       | 285,951 |        |         | $        | 164,328 | 
|                                                                                 |                                                                                                                                                                                                                                                                       |                                                                        |                                                                                        |         |         |        



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             |        |         |             
|                                                                                 |                                    | Ended                                                        |                                  |                     |         | Ended                 |        |         | Year Ended   |         |       | Year Ended   |  
|                                                                                 |                                    | November 30,                                                 |                                  |                     |         | December 31,          |        |         | December 31, |         |       | December 31, |  
|                                                                                 |                                    | 2003                                                         |                                  |                     |         | 2003                  |        |         | 2004         |         |       | 2005         |  
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|                                                                                 |                                    | (See Note 21)                                                |                                  |                     |         | (See Note 21)         |        |         |              |         |      
|Net sales                                                                        |                                    | $                                                            | 144,950                          |                     |         |                       | $      | 14,613  |              |         | $     | 189,007      |   |         | $      | 184,625 |  
|                                                                                 | Cost of goods sold:                |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |   |         |        |         |   |        
|                                                                                 |                                    | Cost of goods sold                                           |                                  |                     | 128,232 |                       |        |         |              | 11,339  |       |              |   | 151,520 |        |         |   | 153,278 |       
|                                                                                 |                                    | Restructuring-related inventory impairment                   |                                  |                     | 1,736   |                       |        |         |              |        |       |              |   |        |        |         |   | 1,253   |       
|                                                                                 |                                    | Non-cash compensation and amortization of intangibles        |                                  |                     |        |                       |        |         |              | 6,855   |       |              |   | 12,556  |        |         |   | 3,428   |       
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|                                                                                 |                                    | Total cost of goods sold                                     |                                  |                     | 129,968 |                       |        |         |              | 18,194  |       |              |   | 164,076 |        |         |   | 157,959 |       
|                                                                                 |                                    |                                                              |                                  | Gross profit (loss) |         |                       | 14,982 |         |              |         |       | (3,581       | ) |         |        | 24,931  |   |         |        | 26,666 | 
|                                                                                 | Operating expenses:                |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |   |         |        |         |   |        
|                                                                                 |                                    | Sales and Marketing:                                         |                                  |                     |         |                       |        |         |              |         |       |              |   |         |        |         |   |         |       
|                                                                                 |                                    |                                                              | Sales and marketing              |                     |         | 13,521                |        |         |              |         | 1,123 |              |   |         | 14,531 |         |   |         | 14,877 |       
|                                                                                 |                                    |                                                              | Non-cash compensation            |                     |         |                      |        |         |              |         | 1,021 |              |   |         | 2,402  |         |   |         | 116    |       
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|                                                                                 |                                    |                                                              | Total sales and marketing        |                     |         | 13,521                |        |         |              |         | 2,144 |              |   |         | 16,933 |         |   |         | 14,993 |       
|                                                                                 |                                    | General and Administration:                                  |                                  |                     |         |                       |        |         |              |         |       |              |   |         |        |         |   |         |       
|                                                                                 |                                    |                                                              | General and administration       |                     |         | 8,533                 |        |         |              |         | 535   |              |   |         | 12,368 |         |   |         | 13,639 |       
|                                                                                 |                                    |                                                              | Non-cash compensation            |                     |         |                      |        |         |              |         | 1,533 |              |   |         | 4,155  |         |   |         | 1,058  |       
|                                                                                 |                                    |                                                              | Officers severance              |                     |         |                      |        |         |              |         |      |              |   |         | 676    |         |   |         | 1,031  |       
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|                                                                                 |                                    |                                                              | Total general and administration |                     |         | 8,533                 |        |         |              |         | 2,068 |              |   |         | 17,199 |         |   |         | 15,728 |       
|                                                                                 |                                    | Amortization of intangibles                                  |                                  |                     |        |                       |        |         |              | 383     |       |              |   | 4,598   |        |         |   | 4,598   |       
|                                                                                 |                                    | Goodwill impairment                                          |                                  |                     | 2,000   |                       |        |         |              |        |       |              |   |        |        |         |   | 54,669  |       
|                                                                                 |                                    | Restructuring and other related charges                      |                                  |                     | 3,823   |                       |        |         |              | 439     |       |              |   | 903     |        |         |   | 4,703   |       
|                                                                                 |                                    | Reorganization expenses                                      |                                  |                     | 7,378   |                       |        |         |              | 471     |       |              |   | 829     |        |         |   |        |       
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|                                                                                 |                                    | Operating loss                                               |                                  |                     | (20,273 | )                     |        |         |              | (9,086  | )     |              |   | (15,531 | )      |         |   | (68,025 | )     
|Loss on interest rate swap termination                                           |                                    |                                                              | 5,621                            |                     |         |                       |        |        |              |         |       |             |   |         |        |        |  
|Interest expense and other expense, net                                          |                                    |                                                              | 16,316                           |                     |         |                       |        | 788     |              |         |       | 7,637        |   |         |        | 4,756   |  
|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 |                                  |                     | 179,367 |                       |        |         |              | (11,012 | )     |              |   | (23,168 | )      |         |   | (72,781 | )     
|Income tax benefit (expense)                                                     |                                    |                                                              | (60                              | )                   |         |                       |        | 39      |              |         |       | (1,984       | ) |         |        | (1,429  | )
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|Income (loss) from continuing operations                                         |                                    |                                                              | 179,307                          |                     |         |                       |        | (10,973 | )            |         |       | (25,152      | ) |         |        | (74,210 | )
|Net income (loss) from discontinued operations, net of tax                       |                                    |                                                              | (14,885                          | )                   |         |                       |        | (3,035  | )            |         |       | (20,713      | ) |         |        | 10,236  |  
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|Net income (loss)                                                                |                                    |                                                              | 164,422                          |                     |         |                       |        | (14,008 | )            |         |       | (45,865      | ) |         |        | (63,974 | )
|Less: Series B preferred stock dividends and accretion                           |                                    |                                                              |                                 |                     |         |                       |        |        |              |         |       | (4,044       | ) |         |        | (6,473  | )
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|Net income (loss) available to common stockholders                               |                                    | $                                                            | 164,422                          |                     |         |                       | $      | (14,008 | )            |         | $     | (49,909      | ) |         | $      | (70,447 | )
|                                                                                 |                                    |                                                              |                                  |                     |         |                       |        |         |              |         |       |              |  
|Income (loss) per share of common stock from continuing
    operations  basic   |                                    | $                                                            | 24.48                            |                     |         |                       | $      | (2.99   | )            |         | $     | (7.51        | ) |         | $      | (10.04  | )
|Income (loss) per share of common stock from continuing
    operations  diluted |                                    | $                                                            | 20.51                            |                     |         |                       | $      | (2.99   | )            |         | $     | (7.51        | ) |         | $      | (10.04  | )
|Net income (loss) per share of common stock  basic                              |                                    | $                                                            | 22.45                            |                     |         |                       | $      | (3.82   | )            |         | $     | (12.85       | ) |         | $      | (8.76   | )
|Net income (loss) per share of common stock  diluted                            |                                    | $                                                            | 18.87                            |                     |         |                       | $      | (3.82   | )            |         | $     | (12.85       | ) |         | $      | (8.76   | )



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             |   |         |             
|                                   |                                                                                | Ended         |         |        | Ended                 |   |         | Year Ended   |   |   | Year Ended   |     
|                                   |                                                                                | November 30,  |         |        | December 31,          |   |         | December 31, |   |   | December 31, |     
|                                   |                                                                                | 2003          |         |        | 2003                  |   |         | 2004         |   |   | 2005         |     
|                                   |                                                                                |               |         |        |                       |   |         |              |   |   |              |     
|                                   |                                                                                | (See Note 21) |         |        | (See Note 21)         |   |         |              |   |  
|Net income (loss)                  |                                                                                | $             | 164,422 |        |                       | $ | (14,008 | )            |   | $ | (45,865      | )    |   | $ | (63,974 | )    
|Other comprehensive income (loss): |                                                                                |               |         |        |                       |   |         |              |   |   |              |      |   |   |         |      
|                                   | Foreign currency translation adjustments                                       |               |         | 783    |                       |   |         | (152         | ) |   |              | (560 | ) |   |         | 1,058 | 
|                                   | Unrealized loss on interest rate swap agreements, net of income
    tax effect |               |         | (165   | )                     |   |         |             |   |   |              |     |   |   |         |      | 
|                                   | Reclassification adjustment for loss on interest rate swap
    termination     |               |         | 5,621  |                       |   |         |             |   |   |              |     |   |   |         |      | 
|                                   | Unrealized holding loss on marketable securities 
    available for sale      |               |         | (4     | )                     |   |         |             |   |   |              |     |   |   |         |      | 
|                                   | Effect of fresh start accounting adjustments                                   |               |         | (3,020 | )                     |   |         |             |   |   |              |     |   |   |         |      | 
|                                   |                                                                                |               |         |        |                       |   |         |              |   |   |              |     
|Comprehensive income (loss)        |                                                                                | $             | 167,637 |        |                       | $ | (14,160 | )            |   | $ | (46,425      | )    |   | $ | (62,916 | )    
|                                   |                                                                                |               |         |        |                       |   |         |              |   |   |              |     



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 |   |      |     
|                                                   |                                                                            | Share                                |           |            | Amount     |   |    | Capital  |   |   | Compensation |          |   | Receivables |   |         | Deficit       |   |      | Loss |   |   | Total    |        
|                                                   |                                                                            |                                      |           |            |            |   |    |          |   |   |              |          |   |             |   |         |               |   |      |      |   |   |          |        
|                                                   |                                                                            | (In thousands, except share amounts) |          
|Balance, December 31, 2002 (Predecessor DDi Corp.) |                                                                            |                                      | 7,291,556 |            |            | $ | 70 |          |   | $ | 542,196      |          |   | $           |  |         |               | $ | (618 | )    |   | $ | (702,293 | )       |   | $ | (3,215 | )      |   | $ | (163,860 | )      
|                                                   | Issuance of common stock upon exercise of stock options                    |                                      |           | 11,352     |            |   |    |         |   |   |              | 4        |   |             |   |        |               |   |      |     |   |   |          |        |   |   |        |       |   |   |          | 4       |  
|                                                   | Issuance of common stock through Employee Stock Purchase Plan              |                                      |           | 44,808     |            |   |    |         |   |   |              | 18       |   |             |   |        |               |   |      |     |   |   |          |        |   |   |        |       |   |   |          | 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                                               |                                      |           | (7,075,162 | )          |   |    | (70      | ) |   |              | 70       |   |             |   |        |               |   |      |     |   |   |          |        |   |   |        |       |   |   |          |        |  
|                                                   | Issuance of new common stock                                               |                                      |           | 35,703     |            |   |    |         |   |   |              | 1        |   |             |   |        |               |   |      |     |   |   |          |        |   |   |        |       |   |   |          | 1       |  
|                                                   | Debt discharge                                                             |                                      |           | 3,357,142  |            |   |    | 3        |   |   |              | 88,192   |   |             |   |        |               |   |      |     |   |   |          |        |   |   |        |       |   |   |          | 88,195  |  
|                                                   | Fresh start accounting adjustments                                         |                                      |           |           |            |   |    |         |   |   |              | (534,851 | ) |             |   |        |               |   |      |     |   |   |          | 537,871 |   |   |        | (3,020 | ) |   |          |        |  
|                                                   |                                                                            |                                      |           |            |            |   |    |          |   |   |              |          |   |             |   |         |               |   |      |      |   |   |          |        
|Balance, November 30, 2003 (Predecessor DDi Corp.) |                                                                            |                                      | 3,665,399 |            |            |   | 3  |          |   |   | 95,630       |          |   |             |  |         |               |   | (633 | )    |   |   |         |         |   |   |       |        |   |   | 95,000   |        
|                                                   |                                                                            |                                      |           |            |            |   |    |          |   |   |              |          |   |             |   |         |               |   |      |      |   |   |          |        
|Balance, December 1, 2003 (Reorganized DDi Corp.)  |                                                                            |                                      | 3,665,399 |            |            |   | 3  |          |   |   | 95,630       |          |   |             |  |         |               |   | (633 | )    |   |   |         |         |   |   |       |        |   |   | 95,000   |        
|                                                   | Deferred compensation                                                      |                                      |           |           |            |   |    |         |   |   |              | 43,052   |   |             |   | (43,052 | )             |   |      |     |   |   |          |        |   |   |        |       |   |   |          |        |  
|                                                   | Amortization of deferred compensation                                      |                                      |           |           |            |   |    |         |   |   |              |         |   |             |   | 10,598  |               |   |      |     |   |   |          |        |   |   |        |       |   |   |          | 10,598  |  
|                                                   | Foreign currency translation adjustment                                    |                                      |           |           |            |   |    |         |   |   |              |         |   |             |   |        |               |   |      |     |   |   |          |        |   |   |        | (152   | ) |   |          | (152    | )
|                                                   | Accrued interest on stockholder receivables                                |                                      |           |           |            |   |    |         |   |   |              |         |   |             |   |        |               |   |      | (2   | ) |   |          |        |   |   |        |       |   |   |          | (2      | )
|                                                   | Net loss                                                                   |                                      |           |           |            |   |    |         |   |   |              |         |   |             |   |        |               |   |      |     |   |   |          | (14,008 | ) |   |        |       |   |   |          | (14,008 | )
|                                                   |                                                                            |                                      |           |            |            |   |    |          |   |   |              |          |   |             |   |         |               |   |      |      |   |   |          |        

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##### Table of Contents



|                                                   |                                                                                       |                                      |           |            |            |  |   |          |   |  |              |        |        |             |         |        |               |  |      |      |   |  |         |         |   |  |      |      |   |  |        |         |   | 
|-------------------------------------------------- | ------------------------------------------------------------------------------------- | ------------------------------------ | --------- | ---------- | ---------- |  | - | -------- | - |  | ------------ | ------ | ------ | ----------- | ------- | ------ | ------------- |  | ---- | ---- | - |  | ------- | ------- | - |  | ---- | ---- | - |  | ------ | ------- | - | 
|                                                   |                                                                                       | Common Stock                         |           |            | Additional |  |   |          |   |  |              |        |        | Other       |         |        |              
|                                                   |                                                                                       |                                      |           |            | Paid-In    |  |   | Deferred |   |  | Stockholder  |        |        | Accumulated |         |        | Comprehensive |  |      |     
|                                                   |                                                                                       | Share                                |           |            | Amount     |  |   | Capital  |   |  | Compensation |        |        | Receivables |         |        | Deficit       |  |      | Loss |   |  | Total   |        
|                                                   |                                                                                       |                                      |           |            |            |  |   |          |   |  |              |        |        |             |         |        |               |  |      |      |   |  |         |        
|                                                   |                                                                                       | (In thousands, except share amounts) |          
|Balance, December 31, 2003 (Reorganized DDi Corp.) |                                                                                       |                                      | 3,665,399 |            |            |  | 3 |          |   |  | 138,682      |        |        |             | (32,454 | )      |               |  | (635 | )    |   |  | (14,008 | )       |   |  | (152 | )    |   |  | 91,436 |        
|                                                   | Deferred compensation adjustments                                                     |                                      |           |           |            |  |   |         |   |  |              | (2,027 | )      |             |         | 2,027  |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        |        |  
|                                                   | Amortization of deferred compensation                                                 |                                      |           |           |            |  |   |         |   |  |              |       |        |             |         | 20,982 |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        | 20,982  |  
|                                                   | Issuance of new common stock in private placement, net of
    offering costs          |                                      |           | 142,857    |            |  |   | 1        |   |  |              | 14,766 |        |             |         |       |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        | 14,767  |  
|                                                   | Issuance of common stock upon exercise of stock options                               |                                      |           | 13,549     |            |  |   |         |   |  |              | 383    |        |             |         |       |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        | 383     |  
|                                                   | Vesting of restricted common stock                                                    |                                      |           | 95,535     |            |  |   |         |   |  |              | 1      |        |             |         |       |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        | 1       |  
|                                                   | Foreign currency translation adjustment                                               |                                      |           |           |            |  |   |         |   |  |              |       |        |             |         |       |               |  |      |     |   |  |         |        |   |  |      | (560 | ) |  |        | (560    | )
|                                                   | Accrued interest on shareholder receivables                                           |                                      |           |           |            |  |   |         |   |  |              |       |        |             |         |       |               |  |      | (17  | ) |  |         |        |   |  |      |     |   |  |        | (17     | )
|                                                   | Accrual of 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.) |                                                                                       |                                      | 3,917,340 |            |            |  | 4 |          |   |  | 147,761      |        |        |             | (9,445  | )      |               |  | (652 | )    |   |  | (59,873 | )       |   |  | (712 | )    |   |  | 77,083 |        
|                                                   |                                                                                       | Deferred compensation                |           |            |           |  |   |          |  |  |              |        | (5,095 | )           |         |        | 5,095         |  |      |      |  |  |         |         |  |  |      |      |  |  |        |         |  | 
|                                                   | Amortization of deferred compensation                                                 |                                      |           |           |            |  |   |         |   |  |              |       |        |             |         | 4,001  |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        | 4,001   |  
|                                                   | Issuance of new common stock in rights offering and in standby
    purchase agreement |                                      |           | 14,013,159 |            |  |   | 14       |   |  |              | 74,986 |        |             |         |       |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        | 75,000  |  
|                                                   | Costs incurred in connection with the issuance of common stock                        |                                      |           |           |            |  |   |         |   |  |              | (2,954 | )      |             |         |       |               |  |      |     |   |  |         |        |   |  |      |     |   |  |        | (2,954  | )

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##### Table of Contents



|                                                  |                                                                                                                          |                                      |            |         |            |   |    |          |  |   |              |        |   |             |      |   |               |   |   |      |   |   |          |         |   |   |     |     |  |   |         |         |  
|------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ------------------------------------ | ---------- | ------- | ---------- | - | -- | -------- |  | - | ------------ | ------ | - | ----------- | ---- | - | ------------- | - | - | ---- | - | - | -------- | ------- | - | - | --- | --- |  | - | ------- | ------- | -
|                                                  |                                                                                                                          | Common Stock                         |            |         | Additional |   |    |          |  |   |              |        |   | Other       |      |   |              
|                                                  |                                                                                                                          |                                      |            |         | Paid-In    |   |    | Deferred |  |   | Stockholder  |        |   | Accumulated |      |   | Comprehensive |   |   |     
|                                                  |                                                                                                                          | Share                                |            |         | Amount     |   |    | Capital  |  |   | Compensation |        |   | Receivables |      |   | Deficit       |   |   | Loss |   |   | Total    |        
|                                                  |                                                                                                                          |                                      |            |         |            |   |    |          |  |   |              |        |   |             |      |   |               |   |   |      |   |   |          |        
|                                                  |                                                                                                                          | (In thousands, except share amounts) |           
|                                                  | Series B preferred stock beneficial conversion feature, net
    of accretion of $1,509 (and debt issuance costs of $414) |                                      |            |        |            |   |    |         |  |   |              | 17,410 |   |             |      |  |               |   |   |     |   |   |          |        |   |   |     |    |  |   |         | 17,410  |  
|                                                  | Conversion of Series B preferred stock to common stock                                                                   |                                      |            | 49,603  |            |   |    |         |  |   |              | 1,000  |   |             |      |  |               |   |   |     |   |   |          |        |   |   |     |    |  |   |         | 1,000   |  
|                                                  | Issuance of new common stock upon exercise of stock options                                                              |                                      |            | 7,603   |            |   |    |         |  |   |              | 26     |   |             |      |  |               |   |   |     |   |   |          |        |   |   |     |    |  |   |         | 26      |  
|                                                  | Issuance of restricted common stock                                                                                      |                                      |            | 59,821  |            |   |    |         |  |   |              |       |   |             |      |  |               |   |   |     |   |   |          |        |   |   |     |    |  |   |         |        |  
|                                                  | Foreign currency translation adjustment                                                                                  |                                      |            |        |            |   |    |         |  |   |              |       |   |             |      |  |               |   |   |     |   |   |          |        |   |   |     | 512 |  |   |         | 512     |  
|                                                  | Foreign currency translation recognized on disposal of DDi Europe                                                        |                                      |            |        |            |   |    |         |  |   |              |       |   |             |      |  |               |   |   |     |   |   |          |        |   |   |     | 546 |  |   |         | 546     |  
|                                                  | Accrued interest on stockholder receivables                                                                              |                                      |            |         |            |   |    |         |  |   |              |       |   |             |      |  |               |   |   | (18  | ) |   |          |        |   |   |     |    |  |   |         | (18     | )
|                                                  | Repayment of stockholder receivables (including interest of $70)                                                         |                                      |            |        |            |   |    |         |  |   |              |       |   |             |      |  |               |   |   | 670  |   |   |          |        |   |   |     |    |  |   |         | 670     |  
|                                                  | Dividends paid in common stock on Series B preferred stock                                                               |                                      |            | 211,830 |            |   |    |         |  |   |              | 3,660  |   |             |      |  |               |   |   |     |   |   |          |        |   |   |     |    |  |   |         | 3,660   |  
|                                                  | Accrual of dividends payable on Series B preferred stock,
    including 1% redemption fee of $203                        |                                      |            |        |            |   |    |         |  |   |              | (3,179 | ) |             |      |  |               |   |   |     |   |   |          |        |   |   |     |    |  |   |         | (3,179  | )
|                                                  | Accretion on Series B preferred stock                                                                                    |                                      |            |        |            |   |    |         |  |   |              | (1,794 | ) |             |      |  |               |   |   |     |   |   |          |        |   |   |     |    |  |   |         | (1,794  | )
|                                                  | Net loss                                                                                                                 |                                      |            |        |            |   |    |         |  |   |              |       |   |             |      |  |               |   |   |     |   |   |          | (63,974 | ) |   |     |    |  |   |         | (63,974 | )
|                                                  |                                                                                                                          |                                      |            |         |            |   |    |          |  |   |              |        |   |             |      |   |               |   |   |      |   |   |          |        
|Balance, December 31, 2005 (Reorganized DDi Corp) |                                                                                                                          |                                      | 18,259,356 |         |            | $ | 18 |          |  | $ | 231,821      |        |   | $           | (349 | ) |               | $ |  |      |   | $ | (123,847 | )       |   | $ | 346 |     |  | $ | 107,989 |        
|                                                  |                                                                                                                          |                                      |            |         |            |   |    |          |  |   |              |        |   |             |      |   |               |   |   |      |   |   |          |        



F-9



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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             |   |   |             
|                                      |                                                                                                                                   | Ended                                                                          |   |         | Ended                 |   |   | Year Ended   |        |   | Year Ended   |        
|                                      |                                                                                                                                   | November 30,                                                                   |   |         | December 31,          |   |   | December 31, |        |   | December 31, |        
|                                      |                                                                                                                                   | 2003                                                                           |   |         | 2003                  |   |   | 2004         |        |   | 2005         |        
|                                      |                                                                                                                                   |                                                                                |   |         |                       |   |   |              |        |   |              |        
|                                      |                                                                                                                                   | (See Note 21)                                                                  |   |         | (See Note 21)         |   |   |              |        |  
|CASH FLOWS FROM OPERATING ACTIVITIES: |                                                                                                                                   |                                                                                |   |         |                       |   |   |              |        |   |              |         |        |   |   |        
|                                      | Income (loss) from continuing operations                                                                                          |                                                                                | $ | 179,307 |                       |   | $ | (10,973      | )      |   | $            | (25,152 | )      |   | $ | (74,210 | )     
|                                      | 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                   |   |         | 6,899                 |   |   |              | 570    |   |              |         | 757    |   |   |         | 2,478  |  
|                                      |                                                                                                                                   | Accrued reorganization proceeding charges                                      |   |         | 3,170                 |   |   |              | 40     |   |              |         |       |   |   |         |       |  
|                                      |                                                                                                                                   | Restructuring related inventory impairment                                     |   |         | 1,736                 |   |   |              |       |   |              |         |       |   |   |         | 1,253  |  
|                                      |                                                                                                                                   | Depreciation                                                                   |   |         | 12,399                |   |   |              | 923    |   |              |         | 9,856  |   |   |         | 9,918  |  
|                                      |                                                                                                                                   | Provision for doubtful accounts                                                |   |         | 413                   |   |   |              | 2      |   |              |         | 1,085  |   |   |         | 658    |  
|                                      |                                                                                                                                   | Amortization of debt issuance costs and discount                               |   |         | 2,439                 |   |   |              | 47     |   |              |         | 1,496  |   |   |         | 702    |  
|                                      |                                                                                                                                   | Capital senior note accretion                                                  |   |         |                      |   |   |              | 157    |   |              |         | 581    |   |   |         | 200    |  
|                                      |                                                                                                                                   | Amortization of intangible assets and loss on early
    extinguishment of debt |   |         |                      |   |   |              | 1,537  |   |              |         | 5,367  |   |   |         | 4,598  |  
|                                      |                                                                                                                                   | Goodwill impairment                                                            |   |         | 2,000                 |   |   |              |       |   |              |         |       |   |   |         | 54,669 |  
|                                      |                                                                                                                                   | Amortization of deferred interest rate swap loss                               |   |         | 5,054                 |   |   |              |       |   |              |         |       |   |   |         |       |  
|                                      |                                                                                                                                   | Write-off of debt issuance costs                                               |   |         | 6,162                 |   |   |              |       |   |              |         |       |   |   |         |       |  
|                                      |                                                                                                                                   | Deferred income taxes                                                          |   |         |                      |   |   |              |       |   |              |         | (24    | ) |   |         |       |  
|                                      |                                                                                                                                   | Interest income on stockholder receivables                                     |   |         | (15                   | ) |   |              | (2     | ) |              |         | (17    | ) |   |         | (18    | )
|                                      |                                                                                                                                   | Loss (gain) on sale of fixed assets                                            |   |         | 65                    |   |   |              | (48    | ) |              |         | 164    |   |   |         | 256    |  
|                                      |                                                                                                                                   | Gain on extinguishment of debt                                                 |   |         | (120,444              | ) |   |              |       |   |              |         |       |   |   |         |       |  
|                                      |                                                                                                                                   | Fresh start accounting adjustments                                             |   |         | (115,167              | ) |   |              |       |   |              |         |       |   |   |         |       |  
|                                      |                                                                                                                                   | Non-cash compensation                                                          |   |         |                      |   |   |              | 8,255  |   |              |         | 18,345 |   |   |         | 4,602  |  
|                                      | Change in operating assets and liabilities, net of acquisitions:                                                                  |                                                                                |   |         |                       |   |   |              |        |   |              |         |        |   |   |         |       
|                                      |                                                                                                                                   | (Increase) decrease in accounts receivable                                     |   |         | 1,274                 |   |   |              | 2,795  |   |              |         | (3,491 | ) |   |         | (3,624 | )
|                                      |                                                                                                                                   | (Increase) decrease in inventories                                             |   |         | (1,879                | ) |   |              | (1,230 | ) |              |         | (1,195 | ) |   |         | 698    |  
|                                      |                                                                                                                                   | (Increase) decrease in prepaid expenses and other                              |   |         | 2,030                 |   |   |              | 208    |   |              |         | (427   | ) |   |         | 215    |  
|                                      |                                                                                                                                   | Increase in current income taxes                                               |   |         | 1,926                 |   |   |              | 145    |   |              |         | 281    |   |   |         | 2,097  |  
|                                      |                                                                                                                                   | Increase (decrease) in accounts payable                                        |   |         | (4,811                | ) |   |              | 3,883  |   |              |         | 2,337  |   |   |         | (1,313 | )
|                                      |                                                                                                                                   | Increase (decrease) in accrued expenses and other accrued
    liabilities      |   |         | 5,248                 |   |   |              | (751   | ) |              |         | (6,327 | ) |   |         | (4,735 | )
|                                      |                                                                                                                                   |                                                                                |   |         |                       |   |   |              |        |   |              |        

F-10



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##### Table of Contents



DDi CORP.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)  (Continued)


|                                      |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |         |        |     |  |         |        |        |  
|------------------------------------- | ------------------------------------------------------------------------------ | --------------------------------------------------- | --------------------------------------------------- | ------- | --------------------- | ------ | - | ------------ | ----- | --- | ------------ | ------- | ------ | --- |  | ------- | ------ | ------ | -
|                                      |                                                                                | Predecessor                                         |                                                     |         |                      
|                                      |                                                                                | DDi Corp.                                           |                                                     |         | Reorganized DDi Corp. |       
|                                      |                                                                                |                                                     |                                                     |         |                       |       
|                                      |                                                                                | Eleven Months                                       |                                                     |         | One Month             |        |   |             
|                                      |                                                                                | Ended                                               |                                                     |         | Ended                 |        |   | Year Ended   |       |     | Year Ended   |        
|                                      |                                                                                | November 30,                                        |                                                     |         | December 31,          |        |   | December 31, |       |     | December 31, |        
|                                      |                                                                                | 2003                                                |                                                     |         | 2003                  |        |   | 2004         |       |     | 2005         |        
|                                      |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |        
|                                      |                                                                                | (See Note 21)                                       |                                                     |         | (See Note 21)         |        |   |              |       |    
|                                      | Net cash provided by (used in) continuing operations                           |                                                     |                                                     | (12,194 | )                     |        |   | 5,558        |       |     |              | 3,636   |        |     |  | (1,556  | )     
|                                      | Net cash provided by (used in) discontinued operations                         |                                                     |                                                     | (6,970  | )                     |        |   | 1,091        |       |     |              | (4,700  | )      |     |  | (1,975  | )     
|                                      |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |        
|                                      |                                                                                | Net cash provided by (used in) operating activities |                                                     |         | (19,164               | )      |   |              | 6,649 |     |              |         | (1,064 | )   |  |         | (3,531 | )     
|                                      |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |        
|CASH FLOWS FROM INVESTING ACTIVITIES: |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |         |        |     |  |        
|                                      | Purchases of equipment and leasehold improvements                              |                                                     |                                                     | (3,897  | )                     |        |   | (132         | )     |     |              | (4,378  | )      |     |  | (6,699  | )     
|                                      | Proceeds from sale of fixed assets                                             |                                                     |                                                     | 70      |                       |        |   | 800          |       |     |              | 1,510   |        |     |  | 116     |       
|                                      | Purchase of marketable securities  available for sale                         |                                                     |                                                     | (64     | )                     |        |   |             |       |     |              |        |        |     |  |        |       
|                                      | Proceeds from sale of marketable securities 
    available for sale           |                                                     |                                                     | 175     |                       |        |   |             |       |     |              |        |        |     |  |        |       
|                                      | Proceeds from (investment in) restricted assets                                |                                                     |                                                     | 1,892   |                       |        |   |             |       |     |              | 7,500   |        |     |  | (2,972  | )     
|                                      | Cash outflows related to acquisition earn out                                  |                                                     |                                                     | (750    | )                     |        |   |             |       |     |              | (475    | )      |     |  | (300    | )     
|                                      | Net cash used in investing activities from discontinued
    operations         |                                                     |                                                     | (1,418  | )                     |        |   | (278         | )     |     |              | (3,354  | )      |     |  | (9      | )     
|                                      |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |        
|                                      |                                                                                |                                                     | Net cash provided by (used in) investing activities |         |                       | (3,992 | ) |              |       | 390 |              |         |        | 803 |  |         |        | (9,864 | )
|                                      |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |        
|CASH FLOWS FROM FINANCING ACTIVITIES: |                                                                                |                                                     |                                                     |         |                       |        |   |              |       |     |              |         |        |     |  |        
|                                      | Payments on long-term debt                                                     |                                                     |                                                     | (2,621  | )                     |        |   |             |       |     |              | (71,695 | )      |     |  |        |       
|                                      | Net borrowings on revolving credit facilities                                  |                                                     |                                                     |        |                       |        |   |             |       |     |              | 15,948  |        |     |  | 3,981   |       
|                                      | Refunds (payments) of debt issuance costs                                      |                                                     |                                                     | (1,715  | )                     |        |   |             |       |     |              | (2,350  | )      |     |  | 183     |       
|                                      | Payments of other notes payable                                                |                                                     |                                                     |        |                       |        |   |             |       |     |              | (500    | )      |     |  |        |       
|                                      | Principal payments on capital lease obligations                                |                                                     |                                                     | (1,879  | )                     |        |   | (83          | )     |     |              | (1,330  | )      |     |  | (963    | )     
|                                      | Issuance proceeds (redemption payments) of Series B
    preferred stock        |                                                     |                                                     |        |                       |        |   |             |       |     |              | 61,000  |        |     |  | (40,667 | )     
|                                      | Costs incurred in connection with the issuance of Series B
    preferred stock |                                                     |                                                     |        |                       |        |   |             |       |     |              | (3,488  | )      |     |  |        |       
|                                      | Proceeds from subscription rights exercises and Standby Purchase
    Agreement |                                                     |                                                     |        |                       |        |   |             |       |     |              |        |        |     |  | 75,000  |       
|                                      | Proceeds from issuance of common stock                                         |                                                     |                                                     |        |                       |        |   |             |       |     |              | 15,980  |        |     |  |        |       
|                                      | Costs incurred in connection with the issuance of common stock                 |                                                     |                                                     |        |                       |        |   |             |       |     |              | (1,213  | )      |     |  | (2,645  | )     
|                                      | Repayment of senior accretion note                                             |                                                     |                                                     |        |                       |        |   |             |       |     |              |        |        |     |  | (18,394 | )     

F-11



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##### Table of Contents



DDi CORP.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)  (Continued)


|                                               |                                                                                      |                                                      |        |       |                       |   |        |              |       |   |              |      |        |   |        |        |        | 
|---------------------------------------------- | ------------------------------------------------------------------------------------ | ---------------------------------------------------- | ------ | ----- | --------------------- | - | ------ | ------------ | ----- | - | ------------ | ---- | ------ | - | ------ | ------ | ------ | 
|                                               |                                                                                      | Predecessor                                          |        |       |                      
|                                               |                                                                                      | DDi Corp.                                            |        |       | Reorganized DDi Corp. |  
|                                               |                                                                                      |                                                      |        |       |                       |  
|                                               |                                                                                      | Eleven Months                                        |        |       | One Month             |   |        |             
|                                               |                                                                                      | Ended                                                |        |       | Ended                 |   |        | Year Ended   |       |   | Year Ended   |     
|                                               |                                                                                      | November 30,                                         |        |       | December 31,          |   |        | December 31, |       |   | December 31, |     
|                                               |                                                                                      | 2003                                                 |        |       | 2003                  |   |        | 2004         |       |   | 2005         |     
|                                               |                                                                                      |                                                      |        |       |                       |   |        |              |       |   |              |     
|                                               |                                                                                      | (See Note 21)                                        |        |       | (See Note 21)         |   |        |              |       |  
|                                               | Repayment of stockholder receivable, including interest                              |                                                      |        |      |                       |   |        |             |       |   |              |     |        |   |        | 670    |       
|                                               | Issuance of common stock through Employee Stock Purchase Plan                        |                                                      |        | 18    |                       |   |        |             |       |   |              |     |        |   |        |       |       
|                                               | Dividends paid on series B preferred stock                                           |                                                      |        |      |                       |   |        |             |       |   |              |     |        |   |        | (2,280 | )     
|                                               | Proceeds from exercise of stock options                                              |                                                      |        | 4     |                       |   |        |             |       |   |              | 383  |        |   |        | 26     |       
|                                               | Net cash provided by (used in) financing activities from
    discontinued operations |                                                      |        | 5,737 |                       |   |        | (726         | )     |   |              | 308  |        |   |        | 885    |       
|                                               |                                                                                      |                                                      |        |       |                       |   |        |              |       |   |              |     
|                                               |                                                                                      | Net cash provided by (used in) financing activities  |        |       | (456                  | ) |        |              | (809  | ) |              |      | 13,043 |   |        |        | 15,796 | 
|                                               |                                                                                      |                                                      |        |       |                       |   |        |              |       |   |              |     
|                                               | Effect of exchange rate changes on cash                                              |                                                      |        | (282  | )                     |   |        | (68          | )     |   |              | (458 | )      |   |        | 58     |       
|                                               |                                                                                      |                                                      |        |       |                       |   |        |              |       |   |              |     
|                                               |                                                                                      | Net increase (decrease) in cash and cash equivalents |        |       | (23,894               | ) |        |              | 6,162 |   |              |      | 12,324 |   |        |        | 2,459  | 
|Cash and cash equivalents, beginning of period |                                                                                      |                                                      | 28,934 |       |                       |   | 5,040  |              |       |   | 11,202       |      |        |   | 23,526 |       
|                                               |                                                                                      |                                                      |        |       |                       |   |        |              |       |   |              |     
|Cash and cash equivalents, end of period       |                                                                                      | $                                                    | 5,040  |       |                       | $ | 11,202 |              |       | $ | 23,526       |      |        | $ | 25,985 |       
|                                               |                                                                                      |                                                      |        |       |                       |   |        |              |       |   |              |     



F-12



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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













| |                           
| | --------------------------
| | Common Stock Reverse Split



F-13



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                       
| | ----------------------
| | Fresh Start Accounting

90-7,




| |                   
| | ------------------
| | Nature of Business





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



Cash and cash equivalents


Cash and cash equivalents 
restricted


Receivables and Allowances for Doubtful
Accounts


F-14



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Inventories first-in,


Property, plant and equipment


Debt issuance costs and debt discounts




Business combinations


Revenue recognition


F-15



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |  |                   |        |   |                       |   |      |                   |  |   |                   |   |  |   |        |  
|----------------------------- |  | ----------------- | ------ | - | --------------------- | - | ---- | ----------------- |  | - | ----------------- | - |  | - | ------ | -
|                              |  | Predecessor       |        |   |                       |   |      |                   | 
|                              |  | DDi Corp.         |        |   |                      
|                              |  |                   |        |   | Reorganized DDi Corp. |  
|                              |  | Eleven Months     |        |   |                       |  
|                              |  | Ended             |        |   | One Month Ended       |   |      | Year Ended        |  |   | Year Ended        |  
|                              |  | November 30, 2003 |        |   | December 31, 2003     |   |      | December 31, 2004 |  |   | December 31, 2005 |  
|                              |  |                   |        |   |                       |   |      |                   |  |   |                   |  
|Beginning balance             |  | $                 | 659    |   |                       | $ | 547  |                   |  | $ | 522               |   |  | $ | 656    |  
|Current year warranty charges |  |                   | 2,108  |   |                       |   | 105  |                   |  |   | 2,762             |   |  |   | 2,556  |  
|Net utilization               |  |                   | (2,220 | ) |                       |   | (130 | )                 |  |   | (2,628            | ) |  |   | (2,685 | )
|                              |  |                   |        |   |                       |   |      |                   |  |   |                   |  
|Ending Balance                |  | $                 | 547    |   |                       | $ | 522  |                   |  | $ | 656               |   |  | $ | 527    |  
|                              |  |                   |        |   |                       |   |      |                   |  |   |                   |  

Shipping costs


Comprehensive income (loss)


Concentration of credit risk


Environmental matters


Income taxes


Long-lived assets


Goodwill and identifiable intangibles


F-16



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Deferred lease liability


Fair value of financial instruments


Foreign currency translation


Derivative financial instruments




02-04,


Stock options


F-17



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                                                |                                                                    |               |   |       |                       |  |   |              |   |  |              |        |   |  |   |       |  
|------------------------------------------------------------------------------- | ------------------------------------------------------------------ | ------------- | - | ----- | --------------------- |  | - | ------------ | - |  | ------------ | ------ | - |  | - | ----- | -
|                                                                                |                                                                    | Predecessor   |   |       |                      
|                                                                                |                                                                    | DDi Corp      |   |       | Reorganized DDi Corp. | 
|                                                                                |                                                                    |               |   |       |                       | 
|                                                                                |                                                                    | Eleven Months |   |       | One Month             |  |   |             
|                                                                                |                                                                    | Ended         |   |       | Ended                 |  |   | Year Ended   |   |  | Year Ended   |       
|                                                                                |                                                                    | November 30,  |   |       | December 31,          |  |   | December 31, |   |  | December 31, |       
|                                                                                |                                                                    | 2003          |   |       | 2003                  |  |   | 2004         |   |  | 2005         |       
|                                                                                |                                                                    |               |   |       |                       |  |   |              |   |  |              |       
|Net income (loss) available to holders of common stock:                         |                                                                    |               |   |       |                       |  |   |              |   |  |              |        |   |  |   |      
|                                                                                | As reported basic                                                  |               | $ | 164.4 |                       |  | $ | (14.0        | ) |  | $            | (49.9  | ) |  | $ | (70.4 | )
|                                                                                | Less: non-cash compensation expenses under FAS 123, net of
    tax |               |   | (7.4  | )                     |  |   | (10.4        | ) |  |              | (23.8  | ) |  |   | (9.6  | )
|                                                                                | Add: non-cash compensation expenses under APB 25, net of tax       |               |   |      |                       |  |   | 10.0         |   |  |              | 21.0   |   |  |   | 4.0   |  
|                                                                                |                                                                    |               |   |       |                       |  |   |              |   |  |              |       
|                                                                                | Pro forma basic                                                    |               | $ | 157.0 |                       |  | $ | (14.4        | ) |  | $            | (52.7  | ) |  | $ | (76.0 | )
|                                                                                |                                                                    |               |   |       |                       |  |   |              |   |  |              |       
|                                                                                | As reported diluted                                                |               | $ | 171.7 |                       |  | $ | (14.0        | ) |  | $            | (49.9  | ) |  | $ | (70.4 | )
|                                                                                | Less: non-cash compensation expenses under FAS 123, net of
    tax |               |   | (7.4  | )                     |  |   | (10.4        | ) |  |              | (23.8  | ) |  |   | (9.6  | )
|                                                                                | Add: non-cash compensation expenses under APB 25, net of tax       |               |   |      |                       |  |   | 10.0         |   |  |              | 21.0   |   |  |   | 4.0   |  
|                                                                                |                                                                    |               |   |       |                       |  |   |              |   |  |              |       
|                                                                                | Pro forma diluted                                                  |               | $ | 164.3 |                       |  | $ | (14.4        | ) |  | $            | (52.7  | ) |  | $ | (76.0 | )
|                                                                                |                                                                    |               |   |       |                       |  |   |              |   |  |              |       
|Net income (loss) per share available to holders of common
    stock  basic:   |                                                                    |               |   |       |                       |  |   |              |   |  |              |        |   |  |   |      
|                                                                                | As reported                                                        |               | $ | 22.45 |                       |  | $ | (3.82        | ) |  | $            | (12.85 | ) |  | $ | (8.76 | )
|                                                                                | Pro forma                                                          |               | $ | 21.44 |                       |  | $ | (3.93        | ) |  | $            | (13.56 | ) |  | $ | (9.46 | )
|Net income (loss) per share available to holders of common
    stock  diluted: |                                                                    |               |   |       |                       |  |   |              |   |  |              |        |   |  |   |      
|                                                                                | As reported                                                        |               | $ | 18.87 |                       |  | $ | (3.82        | ) |  | $            | (12.85 | ) |  | $ | (8.76 | )
|                                                                                | Pro forma                                                          |               | $ | 18.06 |                       |  | $ | (3.93        | ) |  | $            | (13.56 | ) |  | $ | (9.46 | )

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


Basic and diluted earnings per share Earnings Per Share


F-18



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








Segment reporting






|           |                  |               |   |         |                       |  |   |              |        |  |              |         |         |  |   |         |         | 
|---------- | ---------------- | ------------- | - | ------- | --------------------- |  | - | ------------ | ------ |  | ------------ | ------- | ------- |  | - | ------- | ------- | 
|           |                  | Predecessor   |   |         |                      
|           |                  | DDi Corp.     |   |         | Reorganized DDi Corp. | 
|           |                  |               |   |         |                       | 
|           |                  | Eleven Months |   |         | One Month             |  |   |             
|           |                  | Ended         |   |         | Ended                 |  |   | Year Ended   |        |  | Year Ended   |        
|           |                  | November 30,  |   |         | December 31,          |  |   | December 31, |        |  | December 31, |        
|           |                  | 2003          |   |         | 2003                  |  |   | 2004         |        |  | 2005         |        
|           |                  |               |   |         |                       |  |   |              |        |  |              |        
|Net sales: |                  |               |   |         |                       |  |   |              |        |  |              |         |         |  |   |        
|           | North America(1) |               | $ | 135,882 |                       |  | $ | 13,608       |        |  | $            | 180,817 |         |  | $ | 176,441 |        
|           | Asia             |               |   | 5,264   |                       |  |   | 624          |        |  |              | 5,826   |         |  |   | 5,369   |        
|           | Other            |               |   | 3,804   |                       |  |   | 381          |        |  |              | 2,364   |         |  |   | 2,815   |        
|           |                  |               |   |         |                       |  |   |              |        |  |              |        
|           |                  | Total         |   | $       | 144,950               |  |   | $            | 14,613 |  |              | $       | 189,007 |  |   | $       | 184,625 | 
|           |                  |               |   |         |                       |  |   |              |        |  |              |        






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

Recently issued accounting standards


F-19



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










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



| |                              
| | -----------------------------
| | Bankruptcy and Reorganization

debtors-in


F-20



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Current Equity


Pre-Bankruptcy Common Equity


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


F-21



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




New Senior Credit Facility






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





F-22



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






year-to


90-7, Business
Combinations,


F-23



---



##### 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. (3,357,142 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 |  
|                                                                               |  |   |        

03-13,




F-24



---



##### 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 | 
|                                       |                                        |                      |        |        |             |  |             |   |   |             |              |       |             |              |             |         |              |         | 

F-25



---



##### 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)                             |  
|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 | )   |  |   |       |        
|                                               | 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):                |                                                                        |                                            |   |          |             |   |   |             |          |             |   |              |             |   |              |   |         |              |  |   |         |     |  |   |       
|                                               | Common stock for Predecessor DDi Corp.                                 |                                            |   | 70       |             |   |   | (70         | )(b)     |             |   |             |             |   |              |   |        |              |  |   |        |     |  |   |       |        
|                                               | Common stock for Reorganized DDi Corp.                                 |                                            |   |         |             |   |   | 3           | (a)(b)   |             |   |             |             |   |              |   | 3       |              |  |   |        |     |  |   | 3      |        
|                                               | Additional paid-in-capital                                             |                                            |   | 542,219  |             |   |   | 88,262      | (a)(b)   |             |   | (534,851     | )(c)        |   |              |   | 95,630  |              |  |   |        |     |  |   | 95,630 |        
|                                               | 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  | 
|                                               |                                                                        |                                            |   |          |             |   |   |             |          |             |   |              |             |   |              |   |         |              | 
|                                               |                                                                        | Total liabilities and stockholders equity |   | $        | 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 Senior Credit Facility to
    long-term debt.                                                                                                                                                                                                                          

F-26



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |  |                                                                                                                                                                                            
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(f) |  | To record the fair value of common stock warrants issued to the
    holders of the 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.                                                                                                                   



|   |                        
|-- | -----------------------
|5. | DISCONTINUED OPERATIONS



03-13,


F-27



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




DDi Europe Statements of Operations


(In thousands)


|                                                               |                                         |                     |         |       |       |                       |   |        |              |      |   |              |        |       |   |        |       |       | 
|-------------------------------------------------------------- | --------------------------------------- | ------------------- | ------- | ----- | ----- | --------------------- | - | ------ | ------------ | ---- | - | ------------ | ------ | ----- | - | ------ | ----- | ----- | 
|                                                               |                                         | Predecessor         |         |       |       |                      
|                                                               |                                         | DDi Corp.           |         |       |       | Reorganized DDi Corp. |  
|                                                               |                                         |                     |         |       |       |                       |  
|                                                               |                                         | Eleven Months       |         |       |       | One Month             |   |        |             
|                                                               |                                         | Ended               |         |       |       | Ended                 |   |        | Year Ended   |      |   | Year Ended   |       
|                                                               |                                         | November 30,        |         |       |       | December 31,          |   |        | December 31, |      |   | December 31, |       
|                                                               |                                         | 2003                |         |       |       | 2003                  |   |        | 2004         |      |   | 2005         |       
|                                                               |                                         |                     |         |       |       |                       |   |        |              |      |   |              |       
|Net sales                                                      |                                         | $                   | 76,779  |       |       |                       | $ | 6,780  |              |      | $ | 99,775       |        |       | $ | 7,873  |      
|Cost of goods sold                                             |                                         |                     | 71,336  |       |       |                       |   | 7,770  |              |      |   | 90,927       |        |       |   | 6,843  |      
|                                                               |                                         |                     |         |       |       |                       |   |        |              |      |   |              |       
|                                                               |                                         | Gross profit (loss) |         |       | 5,443 |                       |   |        |              | (990 | ) |              |        | 8,848 |   |        |       | 1,030 | 
|Operating expenses:                                            |                                         |                     |         |       |       |                       |   |        |              |      |   |              |        |       |   |        |      
|                                                               | Sales and marketing                     |                     |         | 2,814 |       |                       |   |        | 1,330        |      |   |              | 4,957  |       |   |        | 126   |      
|                                                               | General and administration              |                     |         | 7,041 |       |                       |   |        | 762          |      |   |              | 10,513 |       |   |        | 1,618 |      
|                                                               | Goodwill impairment                     |                     |         | 9,645 |       |                       |   |        |             |      |   |              | 7,252  |       |   |        |      |      
|                                                               | Restructuring and other related charges |                     |         |      |       |                       |   |        |             |      |   |              | 7,044  |       |   |        | 219   |      
|                                                               | Reorganization expenses                 |                     |         | 1,568 |       |                       |   |        | 101          |      |   |              | 329    |       |   |        |      |      
|                                                               |                                         |                     |         |       |       |                       |   |        |              |      |   |              |       
|Operating loss                                                 |                                         |                     | (15,625 | )     |       |                       |   | (3,183 | )            |      |   | (21,247      | )      |       |   | (933   | )    
|Gain on disposal of DDi Europe                                 |                                         |                     |        |       |       |                       |   |       |              |      |   |             |        |       |   | 11,549 |      
|Interest expense and other expense, net                        |                                         |                     | 1,862   |       |       |                       |   | 536    |              |      |   | 750          |        |       |   | 380    |      
|Fresh start accounting adjustments                             |                                         |                     | (3,201  | )     |       |                       |   |       |              |      |   |             |        |       |   |       |      
|                                                               |                                         |                     |         |       |       |                       |   |        |              |      |   |              |       
|Income (loss) from discontinued operations before income taxes |                                         |                     | (14,286 | )     |       |                       |   | (3,719 | )            |      |   | (21,997      | )      |       |   | 10,236 |      
|Income tax benefit (expense)                                   |                                         |                     | (599    | )     |       |                       |   | 684    |              |      |   | 1,284        |        |       |   |       |      
|                                                               |                                         |                     |         |       |       |                       |   |        |              |      |   |              |       
|Net income (loss) from discontinued operations                 |                                         | $                   | (14,885 | )     |       |                       | $ | (3,035 | )            |      | $ | (20,713      | )      |       | $ | 10,236 |      
|                                                               |                                         |                     |         |       |       |                       |   |        |              |      |   |              |       

F-28



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




DDi Europe Balance Sheets


(In thousands)


|                                             |                                                 |                           |                                             |        |        |         |  
|-------------------------------------------- | ----------------------------------------------- | ------------------------- | ------------------------------------------- | ------ | ------ | ------- | -
|                                             |                                                 | December 31,              |                                            
|                                             |                                                 | 2004                      |                                            
|                                             |                                                 |                           |                                            
|ASSETS                                      
|Current assets:                              |                                                 |                           |                                             |       
|                                             | Accounts receivable, net                        |                           | $                                           | 18,973 |       
|                                             | Inventories                                     |                           |                                             | 11,874 |       
|                                             | Prepaid expenses and others                     |                           |                                             | 2,169  |       
|                                             |                                                 |                           |                                            
|                                             |                                                 | Total current assets      |                                             |        | 33,016 |        
|Property, plant and equipment, net           |                                                 |                           | 26,243                                      |       
|Other                                        |                                                 |                           | 2                                           |       
|                                             |                                                 |                           |                                            
|                                             | Total assets                                    |                           | $                                           | 59,261 |       
|                                             |                                                 |                           |                                            
|                                            
|LIABILITIES AND STOCKHOLDERS DEFICIT       
|Current liabilities:                         |                                                 |                           |                                             |       
|                                             | Current maturities of capital lease obligations |                           | $                                           | 325    |       
|                                             | Facilities Agreement                            |                           |                                             | 27,454 |       
|                                             | Revolving credit facilities                     |                           |                                             | 13,552 |       
|                                             | Accounts payable                                |                           |                                             | 16,338 |       
|                                             | Accrued expenses and other liabilities          |                           |                                             | 10,184 |       
|                                             |                                                 |                           |                                            
|                                             |                                                 | Total current liabilities |                                             |        | 67,853 |        
|Long-term debt and capital lease obligations |                                                 |                           | 123                                         |       
|Notes payable and other                      |                                                 |                           | 3,602                                       |       
|                                             |                                                 |                           |                                            
|                                             |                                                 | Total liabilities         |                                             |        | 71,578 |        
|                                             |                                                 |                           |                                            
|                                             |                                                 |                           | Total stockholders deficit                 |        |        | (12,317 | )
|                                             |                                                 |                           |                                            
|                                             |                                                 |                           | Total liabilities and stockholders deficit |        | $      | 59,261  |  
|                                             |                                                 |                           |                                            



|   |                           
|-- | --------------------------
|6. | DETAIL OF CERTAIN ACCOUNTS



|                                      |  |              |        |   |      |   |        |  
|------------------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                                      |  | December 31, |       
|                                      |  |              |       
|                                      |  | 2004         |        |   | 2005 |  
|                                      |  |              |        |   |      |  
|Accounts receivable                   |  | $            | 28,143 |   |      | $ | 31,591 |  
|Less: Allowance for doubtful accounts |  |              | (1,579 | ) |      |   | (1,881 | )
|                                      |  |              |        |   |      |  
|                                      |  | $            | 26,564 |   |      | $ | 29,710 |  
|                                      |  |              |        |   |      |  

F-29



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                |  |              |        |  |      |   |        | 
|--------------- |  | ------------ | ------ |  | ---- | - | ------ | 
|                |  | December 31, |       
|                |  |              |       
|                |  | 2004         |        |  | 2005 |  
|                |  |              |        |  |      |  
|Raw materials   |  | $            | 8,094  |  |      | $ | 8,630  | 
|Work-in-process |  |              | 7,020  |  |      |   | 5,059  | 
|Finished goods  |  |              | 2,882  |  |      |   | 2,428  | 
|                |  |              |        |  |      |  
|                |  | $            | 17,996 |  |      | $ | 16,117 | 
|                |  |              |        |  |      |  



|                                      |  |              |        |  |      |   |        | 
|------------------------------------- |  | ------------ | ------ |  | ---- | - | ------ | 
|                                      |  | December 31, |       
|                                      |  |              |       
|                                      |  | 2004         |        |  | 2005 |  
|                                      |  |              |        |  |      |  
|Accrued salaries and related benefits |  | $            | 6,145  |  |      | $ | 5,924  | 
|Accrued interest payable              |  |              | 143    |  |      |   | 24     | 
|Accrued restructuring charges         |  |              | 418    |  |      |   | 1,082  | 
|Deferred lease liability              |  |              | 1,877  |  |      |   | 1,358  | 
|Other accrued expenses                |  |              | 5,944  |  |      |   | 4,251  | 
|                                      |  |              |        |  |      |  
|                                      |  | $            | 14,527 |  |      | $ | 12,639 | 
|                                      |  |              |        |  |      |  



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



|                                     |  |              |         |   |      |   |         |  
|------------------------------------ |  | ------------ | ------- | - | ---- | - | ------- | -
|                                     |  | December 31, |        
|                                     |  |              |        
|                                     |  | 2004         |         |   | 2005 |  
|                                     |  |              |         |   |      |  
|Buildings and leasehold improvements |  | $            | 9,864   |   |      | $ | 10,595  |  
|Machinery and equipment              |  |              | 32,427  |   |      |   | 34,053  |  
|Office furniture and equipment       |  |              | 3,836   |   |      |   | 4,503   |  
|Vehicles                             |  |              | 58      |   |      |   | 62      |  
|Deposits on equipment                |  |              | 962     |   |      |   | 912     |  
|                                     |  |              |         |   |      |  
|                                     |  |              | 47,147  |   |      |   | 50,125  |  
|Less: Accumulated depreciation       |  |              | (10,771 | ) |      |   | (19,062 | )
|                                     |  |              |         |   |      |  
|                                     |  | $            | 36,376  |   |      | $ | 31,063  |  
|                                     |  |              |         |   |      |  

30-40 5-7






F-30



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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



|                                                                                                                                              |           |              |         |        |      |   |         |        | 
|--------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ------------ | ------- | ------ | ---- | - | ------- | ------ | 
|                                                                                                                                              |           | December 31, |        
|                                                                                                                                              |           |              |        
|                                                                                                                                              |           | 2004         |         |        | 2005 |  
|                                                                                                                                              |           |              |         |        |      |  
|Dynamic Details Revolving Credit Facility(a)                                                                                                  |           | $            | 15,948  |        |      | $ | 19,929  |       
|Capital Senior Accreting Notes, face amount of $18,394 at
    December 31, 2004, net of unamortized discount of $200 at
    December 31, 2004 |           |              | 18,194  |        |      |   |        |       
|Capital lease obligations                                                                                                                     |           |              | 974     |        |      |   |        |       
|                                                                                                                                              |           |              |         |        |      |  
|                                                                                                                                              | Sub-total |              |         | 35,116 |      |   |         | 19,929 | 
|Less: current maturities                                                                                                                      |           |              | (916    | )      |      |   |        |       
|Less: Dynamic Details Revolving Credit Facility                                                                                               |           |              | (15,948 | )      |      |   | (19,929 | )     
|                                                                                                                                              |           |              |         |        |      |  
|                                                                                                                                              | Total     |              | $       | 18,252 |      |   | $       |       | 
|                                                                                                                                              |           |              |         |        |      |  






|    |  |                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Interest rate is based on Prime rate. The effective interest
    rate as of December 31, 2004 and 2005 was 8.25% and 9.25%,
    respectively.



| |                          
| | -------------------------
| | Revolving Credit Facility







| |                               
| | ------------------------------
| | Capital Senior Accreting Notes



F-31



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                          
| | -------------------------
| | Capital Lease Obligations





| |                    
| | -------------------
| | Debt Issuance Costs

90-7.






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



F-32



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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







F-33



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


paid-in










| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | provide that upon completion of a rights offering and/or related
    standby purchase commitments that raise aggregate gross proceeds
    of at least $65 million (a Qualified Rights
    Offering), the Company will redeem one-third of the
    outstanding shares of Series B Preferred Stock at a
    redemption price payable in cash equal to the stated value of
    the Series B Preferred Stock plus all accrued but unpaid
    dividends on such shares through the date of redemption;
|
| |  | provide that upon completion of a Qualified Rights Offering the
    Company will redeem an additional one-third of the outstanding
    shares of Series B Preferred Stock at a redemption price
    payable in cash equal to 101% of the Stated Value of such shares;                                                                                                                                                                                                                              
|
| |  | provide that upon the completion of a Qualified Rights Offering,
    eliminate the option of the holders of the Series B
    Preferred to require the Company to redeem a portion of the
    Series B Preferred Stock on September 30, 2005 and
    March 30, 2006; and                                                                                                                                                                                                                            
|
| |  | provide that the issuance of our common stock pursuant to a
    Qualified Rights Offering, related standby agreement and related
    warrants (each as defined in the Certificate of Designation)
    shall not constitute a change of control as defined in the
    Certificate of Designation.                                                                                                                                                                                                   



F-34



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                     
|--- | --------------------
|11. | STOCKHOLDERS EQUITY



| |             
| | ------------
| | Common Stock











| |                        
| | -----------------------
| | Stockholder Receivables



F-35



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                             
| | ----------------------------
| | Employee Stock Purchase Plan

non-U.S. (non-U.S. non-U.S.




| |              
| | -------------
| | Stock Options







F-36



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                 
| | ----------------
| | Director Options



F-37



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                       |  |               |           |   |           |  |           |                   |         |   |                |  |  |   |       | 
|-------------------------------------- |  | ------------- | --------- | - | --------- |  | --------- | ----------------- | ------- | - | -------------- |  |  | - | ----- | 
|                                       |  |               |           |   |           |  |           | Weighted          |        
|                                       |  | Option        |           |   |           |  |           |                   | Average |  
|                                       |  | Available for |           |   | Number of |  |           | Outstanding Price |         |   | Exercise       | 
|                                       |  | Grant         |           |   | Options   |  |           | per Option        |         |   | Price          | 
|                                       |  |               |           |   |           |  |           |                   |         |   |                | 
|Balance as of December 1, 2003         |  |               |          |   |           |  |          |                   |         | $ |               |  |  | $ |      | 
|Shares reserved                        |  |               | 598,802   |   |           |  |          |                   |         |   |                |  |  |   |       | 
|Granted                                |  |               | (363,215  | ) |           |  | 363,215   |                   |         | $ | 3.43 - $40.25  |  |  | $ | 29.82 | 
|Exercised                              |  |               |          |   |           |  |          |                   |         |   |                |  |  |   |       | 
|Forfeited                              |  |               |          |   |           |  |          |                   |         |   |                |  |  |   |       | 
|                                       |  |               |           |   |           |  |           |                   |         |   |                | 
|Balance as of December 31, 2003        |  |               | 235,587   |   |           |  | 363,215   |                   |         | $ | 3.43 - $40.25  |  |  | $ | 29.82 | 
|Additional Shares reserved             |  |               | 85,714    |   |           |  |           |                   |         |   |                |  |  |   |       | 
|Granted                                |  |               | (55,586   | ) |           |  | 55,586    |                   |         | $ | 27.16 - $73.15 |  |  | $ | 43.61 | 
|Transferred in from contingent options |  |               | 53,464    |   |           |  | 53,465    |                   |         | $ | 0.007 - $0.007 |  |  | $ | 0.007 | 
|Exercised                              |  |               |          |   |           |  | (13,549   | )                 |         | $ | 3.43 - $40.25  |  |  | $ | 28.70 | 
|Forfeited                              |  |               | 8,359     |   |           |  | (8,359    | )                 |         | $ | 0.007 - $73.15 |  |  | $ | 34.37 | 
|                                       |  |               |           |   |           |  |           |                   |         |   |                | 
|Balance as of December 31, 2004        |  |               | 327,538   |   |           |  | 450,358   |                   |         | $ | 0.007 - $73.15 |  |  | $ | 27.93 | 
|Shares reserved                        |  |               | 1,752,400 |   |           |  |          |                   |         |   |                |  |  |   |       | 
|Granted                                |  |               | (825,714  | ) |           |  | 825,714   |                   |         | $ | 5.67 - $22.47  |  |  | $ | 6.06  | 
|Exercised                              |  |               |          |   |           |  | (7,603    | )                 |         | $ | 3.43 - $ 3.43  |  |  | $ | 3.43  | 
|Forfeited                              |  |               | 103,633   |   |           |  | (103,633  | )                 |         | $ | 0.007 - $73.15 |  |  | $ | 29.28 | 
|                                       |  |               |           |   |           |  |           |                   |         |   |                | 
|Balance as of December 31, 2005        |  |               | 1,357,857 |   |           |  | 1,164,836 |                   |         | $ | 0.007 - $73.15 |  |  | $ | 12.43 | 
|                                       |  |               |           |   |           |  |           |                   |         |   |                | 



|                    |  |                  |                     |  |                  |  |      |                  |  |   |             |  |  |                  |         |  |  |   |       | 
|------------------- |  | ---------------- | ------------------- |  | ---------------- |  | ---- | ---------------- |  | - | ----------- |  |  | ---------------- | ------- |  |  | - | ----- | 
|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   |        
|                    |  |                  |                     |  |                  |  |      |                  |  |   |             |  |  |                  |        
|$0.007 - $0.007     |  |                  | 37,247              |  |                  |  | 1.3  |                  |  | $ | 0.007       |  |  |                  | 33,683  |  |  | $ | 0.007 | 
|$ 3.43 - $ 3.43     |  |                  | 44,197              |  |                  |  | 3.1  |                  |  | $ | 3.43        |  |  |                  | 33,979  |  |  | $ | 3.43  | 
|$ 5.67 - $ 5.67     |  |                  | 799,286             |  |                  |  | 10.0 |                  |  | $ | 5.67        |  |  |                  |        |  |  |   |      | 
|$15.54 - $22.47     |  |                  | 25,714              |  |                  |  | 9.2  |                  |  | $ | 17.92       |  |  |                  | 25,714  |  |  | $ | 17.97 | 
|$27.16 - $40.25     |  |                  | 249,206             |  |                  |  | 6.4  |                  |  | $ | 34.93       |  |  |                  | 249,206 |  |  | $ | 34.90 | 
|$73.15 - $73.15     |  |                  | 9,186               |  |                  |  | 7.8  |                  |  | $ | 73.15       |  |  |                  | 9,507   |  |  | $ | 73.15 | 
|                    |  |                  |                     |  |                  |  |      |                  |  |   |             |  |  |                  |        
|$0.007 - $73.15     |  |                  | 1,164,836           |  |                  |  | 8.7  |                  |  | $ | 12.43       |  |  |                  | 352,089 |  |  | $ | 28.28 | 
|                    |  |                  |                     |  |                  |  |      |                  |  |   |             |  |  |                  |        



F-38



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |  |              |      |   |              |  |       |              |  |  |       |  
|------------------------------- |  | ------------ | ---- | - | ------------ |  | ----- | ------------ |  |  | ----- | -
|                                |  | One Month    |      |   |              |  |      
|                                |  | Ended        |      |   | Year Ended   |  |       | Year Ended   | 
|                                |  | December 31, |      |   | December 31, |  |       | December 31, | 
|                                |  | 2003         |      |   | 2004         |  |       | 2005         | 
|                                |  |              |      |   |              |  |       |              | 
|Expected Dividend Yield         |  |              | 0    | % |              |  | 0     | %            |  |  | 0     | %
|Expected stock price volatility |  |              | 170  | % |              |  | 61.07 | %            |  |  | 60.00 | %
|Risk-free Interest rate         |  |              | 2.83 | % |              |  | 3.10  | %            |  |  | 4.40  | %
|Expected life (years)           |  |              | 4    |   |              |  | 4     |              |  |  | 4     |  



| |                   
| | ------------------
| | Contingent Options







F-39



---



##### 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                          |  |               | 188,399 |   |            |  |            |            |  |          |              |  |  |   |       | 
|Granted                                  |  |               | (82,561 | ) |            |  | 82,561      |            |  | $        | 0.007-$40.25 |  |  | $ | 9.24  | 
|Exercised                                |  |               |        |   |            |  |            |            |  |          |              |  |  |   |       | 
|Forfeited                                |  |               |        |   |            |  |            |            |  |          |              |  |  |   |       | 
|                                         |  |               |         |   |            |  |             |            |  |          |              | 
|Balance as of December 31, 2003          |  |               | 105,838 |   |            |  | 82,561      |            |  | $        | 0.007-$40.25 |  |  | $ | 9.24  | 
|Additional Shares reserved               |  |               |        |   |            |  |            |            |  |          |              |  |  |   |       | 
|Cancelled due to lifting of contingency  |  |               | (52,374 | ) |            |  | (29,096     | )          |  | $        | 3.43- $40.25 |  |  | $ | 26.25 | 
|Transferred to non-contingent options    |  |               | (53,464 | ) |            |  | (53,465     | )          |  | $        | 0.007-$0.007 |  |  | $ | 0.007 | 
|                                         |  |               |         |   |            |  |             |            |  |          |              | 
|Balance as of December 31, 2004 and 2005 |  |               |        |   |            |  |            |            |  | $        |             |  |  | $ |      | 
|                                         |  |               |         |   |            |  |             |            |  |          |              | 



| |                 
| | ----------------
| | Restricted Stock





Deferred Compensation




F-40



---



##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |                                    |                               |   |        |                |  |   |       | 
|----------------------------------- | ---------------------------------- | ----------------------------- | - | ------ | -------------- |  | - | ----- | 
|                                    |                                    | Market Value of Companys     |  
|                                    |                                    | Common Stock at Date of Grant |  
|                                    |                                    |                               |  
|                                    |                                    | Granted During                |   |        |               
|                                    |                                    | the One Month                 |   |        | Granted During | 
|                                    |                                    | Ended                         |   |        | Year Ended     | 
|                                    |                                    | December 31,                  |   |        | December 31,   | 
|                                    |                                    | 2003                          |   |        | 2004           | 
|                                    |                                    |                               |   |        |                | 
|Stock Options under 2003 Plan:      |                                    |                               |   |        |                |  |   |      
|                                    | Granted December 19, 2003          |                               | $ | 95.20  |                |  |   |       | 
|                                    | Granted April 1, 2004              |                               |   |        |                |  | $ | 77.28 | 
|Contingent Options under 2003 Plan: |                                    |                               |   |        |                |  |   |      
|                                    | Granted December 19, 2003          |                               | $ | 102.90 | (a)            |  |   |       | 
|                                    | Contingency lifted March 30, 2004  |                               |   |        |                |  | $ | 78.40 | 
|Restricted Stock                    |                                    |                               |   |        |                |  |   |      
|                                    | Granted December 19, 2003          |                               | $ | 95.20  |                |  |   |       | 
|Directors Options                  |                                    |                               |   |        |                |  |   |      
|                                    | Shareholders approved May 26, 2003 |                               |   |        |                |  | $ | 52.99 | 






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



|                                                 |                                                                                                  |               |      |      |               |   |      |               |   |   |      |      |  
|------------------------------------------------ | ------------------------------------------------------------------------------------------------ | ------------- | ---- | ---- | ------------- | - | ---- | ------------- | - | - | ---- | ---- | -
|                                                 |                                                                                                  | One Month     |      |      |               |   |     
|                                                 |                                                                                                  | Ended         |      |      | Year Ended    |   |      | Year Ended    |  
|                                                 |                                                                                                  | December 31,  |      |      | December 31,  |   |      | December 31,  |  
|                                                 |                                                                                                  | 2003          |      |      | 2004          |   |      | 2005          |  
|                                                 |                                                                                                  |               |      |      |               |   |      |               |  
|                                                 |                                                                                                  | (In millions) |      |      | (In millions) |   |      | (In millions) |  
|Deferred Compensation:                           |                                                                                                  |               |      |      |               |   |      |               |   |   |      |     
|                                                 | Grants of stock options, Contingent Options and restricted stock                                 |               | $    | 35.0 |               |   | $    | 1.3           |   |   | $    |     |  
|                                                 | Cancellation of stock options and restricted stock                                               |               |      |     |               |   |      | (0.2          | ) |   |      | (3.4 | )
|                                                 | Adjustment for Contingent Options                                                                |               |      |     |               |   |      | (1.1          | ) |   |      |     |  
|                                                 |                                                                                                  |               |      |      |               |   |      |               |  
|Deferred compensation from continuing operations |                                                                                                  |               | 35.0 |      |               |   |     |               |   |   | (3.4 | )   
|                                                 | Grants of stock options, Contingent Options and restricted stock
    for discontinued operations |               |      | 8.1  |               |   |      |              |   |   |      |     |  
|                                                 | Cancellation of stock options and restricted stock for
    discontinued operations               |               |      |     |               |   |      | (1.8          | ) |   |      | (1.7 | )
|                                                 | Adjustment for Contingent Options for discontinued operations                                    |               |      |     |               |   |      | (0.2          | ) |   |      |     |  
|                                                 |                                                                                                  |               |      |      |               |   |      |               |  
|                                                 |                                                                                                  | $             | 43.1 |      |               | $ | (2.0 | )             |   | $ | (5.1 | )   
|                                                 |                                                                                                  |               |      |      |               |   |      |               |  

F-41



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                         |                                     |               |      |     |               |   |      |               |  |   |     |      |  
|-------------------------------------------------------- | ----------------------------------- | ------------- | ---- | --- | ------------- | - | ---- | ------------- |  | - | --- | ---- | -
|                                                         |                                     | One Month     |      |     |               |   |     
|                                                         |                                     | Ended         |      |     | Year Ended    |   |      | Year Ended    | 
|                                                         |                                     | December 31,  |      |     | December 31,  |   |      | December 31,  | 
|                                                         |                                     | 2003          |      |     | 2004          |   |      | 2005          | 
|                                                         |                                     |               |      |     |               |   |      |               | 
|                                                         |                                     | (In millions) |      |     | (In millions) |   |      | (In millions) | 
|Non-Cash Compensation Expense:                           |                                     |               |      |     |               |   |      |               |  |   |     |     
|                                                         | Cost of Good Sold                   |               | $    | 5.8 |               |   | $    | 11.8          |  |   | $   | 3.4  |  
|                                                         | Sales and Marketing Expenses        |               |      | 1.0 |               |   |      | 2.4           |  |   |     | 0.1  |  
|                                                         | General and administrative expenses |               |      | 1.5 |               |   |      | 4.1           |  |   |     | 1.1  |  
|                                                         |                                     |               |      |     |               |   |      |               | 
|Non-cash compensation expense from continuing operations |                                     | $             | 8.3  |     |               | $ | 18.3 |               |  | $ | 4.6 |     
|                                                         | Discontinued operations             |               |      | 2.3 |               |   |      | 2.7           |  |   |     | (0.6 | )
|                                                         |                                     |               |      |     |               |   |      |               | 
|Total non-cash compensation expense                      |                                     | $             | 10.6 |     |               | $ | 21.0 |               |  | $ | 4.0 |     
|                                                         |                                     |               |      |     |               |   |      |               | 



F-42



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                   
|--- | ------------------
|12. | NET LOSS PER SHARE



|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |   |  |   |           |  
|-------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | --------- | - |  | --------------------- | - | --------- | ------------ |  | - | ------------ | - |  | - | --------- | -
|                                                                                                                                       |  | Predecessor   |           |   |  | Reorganized DDi Corp. |  
|                                                                                                                                       |  | DDi Corp.     |           |   |  |                       |  
|                                                                                                                                       |  | Eleven Months |           |   |  | One Month             |   |           |             
|                                                                                                                                       |  | Ended         |           |   |  | Ended                 |   |           | Year Ended   |  |   | Year Ended   |  
|                                                                                                                                       |  | November 30,  |           |   |  | December 31,          |   |           | December 31, |  |   | December 31, |  
|                                                                                                                                       |  | 2003          |           |   |  | 2003                  |   |           | 2004         |  |   | 2005         |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Income (loss) from continuing operations                                                                                               |  | $             | 179,307   |   |  |                       | $ | (10,973   | )            |  | $ | (25,152      | ) |  | $ | (74,210   | )
|Less: Series B preferred stock dividends and accretion                                                                                 |  |               |          |   |  |                       |   |          |              |  |   | (4,044       | ) |  |   | (6,473    | )
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Income (loss) from continuing operations available to common
    stockholders  basic                                                  |  |               | 179,307   |   |  |                       |   | (10,973   | )            |  |   | (29,196      | ) |  |   | (80,683   | )
|Add: income impact of assumed conversions of convertible debt                                                                          |  |               | 7,327     |   |  |                       |   |          |              |  |   |             |   |  |   |          |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Income (loss) from continuing operations allocable to common
    stock  diluted                                                       |  | $             | 186,634   |   |  |                       | $ | (10,973   | )            |  | $ | (29,196      | ) |  | $ | (80,683   | )
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Weighted average shares of common stock outstanding 
    basic                                                                        |  |               | 7,323,568 |   |  |                       |   | 3,665,401 |              |  |   | 3,885,092    |   |  |   | 8,039,094 |  
|Add: Dilutive potential common shares for convertible debt,
    stock options and warrants                                             |  |               | 1,776,367 |   |  |                       |   |          |              |  |   |             |   |  |   |          |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Weighted average shares of common stock outstanding 
    diluted                                                                      |  |               | 9,099,935 |   |  |                       |   | 3,665,401 |              |  |   | 3,885,092    |   |  |   | 8,039,094 |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Income (loss) per share of common stock from continuing
    operations  basic                                                         |  | $             | 24.48     |   |  |                       | $ | (2.99     | )            |  | $ | (7.51        | ) |  | $ | (10.04    | )
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Income (loss) per share of common stock from continuing
    operations  diluted                                                       |  | $             | 20.51     |   |  |                       | $ | (2.99     | )            |  | $ | (7.51        | ) |  | $ | (10.04    | )
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Net income (loss) from discontinued operations, net of
    tax  basic and diluted (including gain on disposal of
    $12,045 in 2005) |  | $             | (14,885   | ) |  |                       | $ | (3,035    | )            |  | $ | (20,713      | ) |  | $ | 10,236    |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Weighted average shares of common stock outstanding 
    basic                                                                        |  |               | 7,323,568 |   |  |                       |   | 3,665,401 |              |  |   | 3,885,092    |   |  |   | 8,039,094 |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Add: Dilutive potential common shares for convertible debt,
    stock options and warrants                                             |  |               | 1,776,367 |   |  |                       |   |          |              |  |   |             |   |  |   |          |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Weighted average shares of common stock outstanding 
    diluted                                                                      |  |               | 9,099,935 |   |  |                       |   | 3,665,401 |              |  |   | 3,885,092    |   |  |   | 8,039,094 |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Net income (loss) per share of common stock from discontinued
    operations  basic                                                   |  | $             | (2.03     | ) |  |                       | $ | (0.83     | )            |  | $ | (5.33        | ) |  | $ | 1.26      |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Net income (loss) per share of common stock from discontinued
    operations  diluted                                                 |  | $             | (1.64     | ) |  |                       | $ | (0.83     | )            |  | $ | (5.33        | ) |  | $ | 1.26      |  
|                                                                                                                                       |  |               |           |   |  |                       |   |           |              |  |   |              |  
|Net income (loss)                                                                                                                      |  | $             | 164,422   |   |  |                       | $ | (14,008   | )            |  | $ | (45,865      | ) |  | $ | (63,974   | )

F-43



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |   |  |   |           |  
|------------------------------------------------------------------------------------------ |  | ------------- | --------- |  | --------------------- | - | --------- | ------------ |  | - | ------------ | - |  | - | --------- | -
|                                                                                           |  | Predecessor   |           |  | Reorganized DDi Corp. |  
|                                                                                           |  | DDi Corp.     |           |  |                       |  
|                                                                                           |  | Eleven Months |           |  | One Month             |   |           |             
|                                                                                           |  | Ended         |           |  | Ended                 |   |           | Year Ended   |  |   | Year Ended   |  
|                                                                                           |  | November 30,  |           |  | December 31,          |   |           | December 31, |  |   | December 31, |  
|                                                                                           |  | 2003          |           |  | 2003                  |   |           | 2004         |  |   | 2005         |  
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Less: Series B preferred stock dividends and accretion                                     |  |               |          |  |                       |   |          |              |  |   | (4,044       | ) |  |   | (6,473    | )
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Net income (loss) available to common stockholders 
    basic                             |  |               | 164,422   |  |                       |   | (14,008   | )            |  |   | (49,909      | ) |  |   | (70,447   | )
|Add: income impact of assumed conversions of convertible debt                              |  |               | 7,327     |  |                       |   |          |              |  |   |             |   |  |   |          |  
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Net income (loss) allocable to common stock   diluted                                     |  | $             | 171,749   |  |                       | $ | (14,008   | )            |  | $ | (49,909      | ) |  | $ | (70,447   | )
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Weighted average shares of common stock outstanding 
    basic                            |  |               | 7,323,568 |  |                       |   | 3,665,401 |              |  |   | 3,885,092    |   |  |   | 8,039,094 |  
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Add: Dilutive potential common shares for convertible debt,
    stock options and warrants |  |               | 1,776,367 |  |                       |   |          |              |  |   |             |   |  |   |          |  
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Weighted average shares of common stock outstanding 
    diluted                          |  |               | 9,099,935 |  |                       |   | 3,665,401 |              |  |   | 3,885,092    |   |  |   | 8,039,094 |  
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Net loss per share of common stock  basic                                                 |  | $             | 22.45     |  |                       | $ | (3.82     | )            |  | $ | (12.85       | ) |  | $ | (8.76     | )
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  
|Net loss per share of common stock  diluted                                               |  | $             | 18.87     |  |                       | $ | (3.82     | )            |  | $ | (12.85       | ) |  | $ | (8.76     | )
|                                                                                           |  |               |           |  |                       |   |           |              |  |   |              |  



F-44



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                   
|--- | ------------------
|13. | INCOME TAX MATTERS



|                                                                |         |               |      |      |   |                       |   |     |              |   |   |              |       |  |   |       |     | 
|--------------------------------------------------------------- | ------- | ------------- | ---- | ---- | - | --------------------- | - | --- | ------------ | - | - | ------------ | ----- |  | - | ----- | --- | 
|                                                                |         | Predecessor   |      |      |   | Reorganized DDi Corp. |  
|                                                                |         | DDi Corp.     |      |      |   |                       |  
|                                                                |         | Eleven Months |      |      |   | One Month             |   |     |             
|                                                                |         | Ended         |      |      |   | Ended                 |   |     | Year Ended   |   |   | Year Ended   |      
|                                                                |         | November 30,  |      |      |   | December 31,          |   |     | December 31, |   |   | December 31, |      
|                                                                |         | 2003          |      |      |   | 2003                  |   |     | 2004         |   |   | 2005         |      
|                                                                |         |               |      |      |   |                       |   |     |              |   |   |              |      
|Current:                                                        |         |               |      |      |   |                       |   |     |              |   |   |              |       |  |   |       |    
|                                                                | Federal |               | $    |     |   |                       |   | $   |             |   |   | $            | 340   |  |   | $     | 443 | 
|                                                                | State   |               |      |     |   |                       |   |     |             |   |   |              |      |  |   |       |    | 
|                                                                | Foreign |               |      | 828  |   |                       |   |     | (39          | ) |   |              | 1,644 |  |   |       | 915 | 
|                                                                |         |               |      |      |   |                       |   |     |              |   |   |              |      
|                                                                |         |               | 828  |      |   |                       |   | (39 | )            |   |   | 1,984        |       |  |   | 1,358 |    
|                                                                |         |               |      |      |   |                       |   |     |              |   |   |              |      
|Deferred:                                                       |         |               |      |      |   |                       |   |     |              |   |   |              |       |  |   |       |    
|                                                                | Foreign |               |      | (768 | ) |                       |   |     |             |   |   |              |      |  |   |       | 71  | 
|                                                                |         |               |      |      |   |                       |   |     |              |   |   |              |      
|                                                                |         |               | (768 | )    |   |                       |   |    |              |   |   |             |       |  |   | 71    |    
|                                                                |         |               |      |      |   |                       |   |     |              |   |   |              |      
|Provision (benefit) for income taxes from continuing operations |         | $             | 60   |      |   |                       | $ | (39 | )            |   | $ | 1,984        |       |  | $ | 1,429 |    
|                                                                |         |               |      |      |   |                       |   |     |              |   |   |              |      



|                          |                                                    |              |         |        |      |  |         |        |  
|------------------------- | -------------------------------------------------- | ------------ | ------- | ------ | ---- |  | ------- | ------ | -
|                          |                                                    | December 31, |        
|                          |                                                    |              |        
|                          |                                                    | 2004         |         |        | 2005 | 
|                          |                                                    |              |         |        |      | 
|Deferred tax assets:      |                                                    |              |         |        |      |  |         |       
|                          | Net operating loss carryforwards                   |              |         | 36,186 |      |  |         | 53,149 |  
|                          | Deferred compensation                              |              |         | 7,516  |      |  |         | 60     |  
|                          | Tax credits                                        |              |         | 6,413  |      |  |         | 3,286  |  
|                          | Accrued liabilities                                |              |         | 5,111  |      |  |         | 1,811  |  
|                          | Capitalized research and development costs         |              |         | 5,494  |      |  |         | 4,842  |  
|                          | Capital loss carryforwards                         |              |         | 30,423 |      |  |         |       |  
|                          | Other                                              |              |         | 2,854  |      |  |         | 1,631  |  
|                          |                                                    |              |         |        |      | 
|                          |                                                    |              | 93,997  |        |      |  | 64,779  |       
|                          |                                                    |              |         |        |      | 
|Deferred tax liabilities: |                                                    |              |         |        |      |  |         |       
|                          | Property, plant and equipment                      |              |         | 2,406  |      |  |         | 228    |  
|                          | Intangible assets                                  |              |         | (6,825 | )    |  |         | (3,492 | )
|                          |                                                    |              |         |        |      | 
|                          |                                                    |              | (4,419  | )      |      |  | (3,264  | )     
|Valuation allowance       |                                                    |              | (89,037 | )      |      |  | (61,264 | )     
|                          |                                                    |              |         |        |      | 
|                          | Net deferred tax assets from continuing operations |              | $       | 541    |      |  | $       | 251    |  
|                          |                                                    |              |         |        |      | 



F-45



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                                         |                                      |               |        |         |   |                       |   |        |              |   |   |              |       |   |   |         |        |  
|------------------------------------------------------------------------ | ------------------------------------ | ------------- | ------ | ------- | - | --------------------- | - | ------ | ------------ | - | - | ------------ | ----- | - | - | ------- | ------ | -
|                                                                         |                                      | Predecessor   |        |         |   | Reorganized DDi Corp. |  
|                                                                         |                                      | DDi Corp.     |        |         |   |                       |  
|                                                                         |                                      | Eleven Months |        |         |   | One Month             |   |        |             
|                                                                         |                                      | Ended         |        |         |   | Ended                 |   |        | Year Ended   |   |   | Year Ended   |      
|                                                                         |                                      | November 30,  |        |         |   | December 31,          |   |        | December 31, |   |   | December 31, |      
|                                                                         |                                      | 2003          |        |         |   | 2003                  |   |        | 2004         |   |   | 2005         |      
|                                                                         |                                      |               |        |         |   |                       |   |        |              |   |   |              |      
|Computed expected tax expense (benefit) from
    continuing operations |                                      | $             | 62,778 |         |   |                       | $ | (3,854 | )            |   | $ | (8,109       | )     |   | $ | (25,473 | )     
|Increase (decrease) in income taxes resulting from:                      |                                      |               |        |         |   |                       |   |        |              |   |   |              |       |   |   |         |       
|                                                                         | Goodwill amortization and impairment |               |        | 700     |   |                       |   |        |             |   |   |              |      |   |   |         | 19,134 |  
|                                                                         | Dividend income                      |               |        |        |   |                       |   |        |             |   |   |              |      |   |   |         | 2,243  |  
|                                                                         | Gain on extinguishment of debt       |               |        | (71,355 | ) |                       |   |        |             |   |   |              |      |   |   |         |       |  
|                                                                         | Fresh start accounting adjustments   |               |        | (34,940 | ) |                       |   |        |             |   |   |              |      |   |   |         |       |  
|                                                                         | Reorganization expenses              |               |        | 4,550   |   |                       |   |        | 525          |   |   |              |      |   |   |         |       |  
|                                                                         | Non-cash compensation                |               |        |        |   |                       |   |        |             |   |   |              | 700   |   |   |         | 1,417  |  
|                                                                         | Research and development credits     |               |        | (484    | ) |                       |   |        | (41          | ) |   |              | (325  | ) |   |         | (843   | )
|                                                                         | Increase in valuation allowance      |               |        | 39,231  |   |                       |   |        | 3,205        |   |   |              | 9,108 |   |   |         | 3,998  |  
|                                                                         | Other                                |               |        | (420    | ) |                       |   |        | 126          |   |   |              | 610   |   |   |         | 953    |  
|                                                                         |                                      |               |        |         |   |                       |   |        |              |   |   |              |      
|Provision (benefit) for income taxes for continuing operations           |                                      | $             | 60     |         |   |                       | $ | (39    | )            |   | $ | 1,984        |       |   | $ | 1,429   |       
|                                                                         |                                      |               |        |         |   |                       |   |        |              |   |   |              |      







F-46



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|    |                                          
|--- | -----------------------------------------
|14. | COMMITMENTS, CONTINGENCIES AND GUARANTEES

Environmental matters


Operating leases


|                              |            |             |        |       | 
|----------------------------- | ---------- | ----------- | ------ | ----- | 
|                              |            | Reorganized |       
|                              |            | DDi Corp.   |       
|                              |            |             |       
|Year Ending December 31,      |            |             |        |      
|2006                          |            | $           | 4,596  |      
|2007                          |            |             | 4,450  |      
|2008                          |            |             | 3,742  |      
|2009                          |            |             | 2,819  |      
|2010                          |            |             | 1,965  |      
|                              | Thereafter |             |        | 1,346 | 
|                              |            |             |       
|Future minimum lease payments |            | $           | 18,918 |      
|                              |            |             |       

F-47



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








Litigation


Guarantees


Key Employee Retention Program


Indemnification of Directors and Officers




|    |                                        
|--- | ---------------------------------------
|15. | RESTRUCTURING AND OTHER RELATED CHARGES



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



F-48



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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





| |             
| | ------------
| | 2005 Charges









F-49



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                 |                         |             |       |        |              |   |       |          |   |   |            |       |   |       |       |        |   |   |       |        |  
|------------------------------------------------ | ----------------------- | ----------- | ----- | ------ | ------------ | - | ----- | -------- | - | - | ---------- | ----- | - | ----- | ----- | ------ | - | - | ----- | ------ | -
|                                                 |                         | Employee    |       |        |              |   |       |          |   |   |           
|                                                 |                         | Termination |       |        | Contract     |   |       | Facility |   |   | Other Exit |       |   |      
|                                                 |                         | Benefits    |       |        | Terminations |   |       | Closure  |   |   | Costs      |       |   | Total |      
|                                                 |                         |             |       |        |              |   |       |          |   |   |            |       |   |       |      
|Accrued restructuring costs at December 31, 2003 |                         | $           | 1,440 |        |              | $ | 1,652 |          |   | $ |           |       |   | $     | 2,209 |        |   | $ | 5,301 |       
|                                                 | 2004 reduction in force |             |       | 1,112  |              |   |       | 17       |   |   |            |      |   |       |       | 287    |   |   |       | 1,416  |  
|                                                 | Other costs             |             |       |       |              |   |       | (370     | ) |   |            |      |   |       |       |       |   |   |       | (370   | )
|                                                 |                         |             |       |        |              |   |       |          |   |   |            |       |   |       |      
|                                                 |                         |             | 1,112 |        |              |   | (353  | )        |   |   |           |       |   |       | 287   |        |   |   | 1,046 |       
|                                                 | Payments                |             |       | (2,537 | )            |   |       | (1,051   | ) |   |            |      |   |       |       | (2,341 | ) |   |       | (5,929 | )
|                                                 |                         |             |       |        |              |   |       |          |   |   |            |       |   |       |      
|Accrued restructuring costs at December 31, 2004 |                         |             | 15    |        |              |   | 248   |          |   |   |           |       |   |       | 155   |        |   |   | 418   |       
|                                                 | Arizona shutdown        |             |       | 654    |              |   |       | 334      |   |   |            | 1,100 |   |       |       | 233    |   |   |       | 2,321  |  
|                                                 | Colorado closure        |             |       | 94     |              |   |       | 6        |   |   |            |      |   |       |       | 12     |   |   |       | 112    |  
|                                                 | Other costs             |             |       |       |              |   |       |         |   |   |            |      |   |       |       | 432    |   |   |       | 432    |  
|                                                 |                         |             |       |        |              |   |       |          |   |   |            |       |   |       |      
|                                                 |                         |             | 748   |        |              |   | 340   |          |   |   | 1,100      |       |   |       | 677   |        |   |   | 2,865 |       
|                                                 | Payments                |             |       | (763   | )            |   |       | (572     | ) |   |            | (101  | ) |       |       | (765   | ) |   |       | (2,201 | )
|                                                 |                         |             |       |        |              |   |       |          |   |   |            |       |   |       |      
|Accrued restructuring costs at December 31, 2005 |                         | $           |      |        |              | $ | 16    |          |   | $ | 999        |       |   | $     | 67    |        |   | $ | 1,082 |       
|                                                 |                         |             |       |        |              |   |       |          |   |   |            |       |   |       |      





|    |                                                      
|--- | -----------------------------------------------------
|16. | REORGANIZATION AND REORGANIZATION PROCEEDING EXPENSES







F-50



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|    |                                                                    
|--- | -------------------------------------------------------------------
|17. | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (in
    thousands)

|                                             |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |       |   |  |   |       |       | 
|-------------------------------------------- | ---------------------------------- | ------------------------------------------------------ | - | ----- | - | -------------------- |  | - | ------------ | - |  | ------------ | ----- | - |  | - | ----- | ----- | 
|                                             |                                    | Predecessor                                            |   |       |   |                     
|                                             |                                    | DDi Corp.                                              |   |       |   | Reorganized DDi Corp | 
|                                             |                                    |                                                        |   |       |   |                      | 
|                                             |                                    | Eleven Months                                          |   |       |   | One Month            |  |   |             
|                                             |                                    | Ended                                                  |   |       |   | Ended                |  |   | Year Ended   |   |  | Year Ended   |      
|                                             |                                    | November 30,                                           |   |       |   | December 31,         |  |   | December 31, |   |  | December 31, |      
|                                             |                                    | 2003                                                   |   |       |   | 2003                 |  |   | 2004         |   |  | 2005         |      
|                                             |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |      
|Cash Payments For:                           |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |       |   |  |   |      
|                                             | Income taxes                       |                                                        | $ | 366   |   |                      |  | $ |             |   |  | $            | 906   |   |  | $ | 314   |      
|                                             |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |      
|                                             | Interest                           |                                                        | $ | 4,831 |   |                      |  | $ | 553          |   |  | $            | 4,061 |   |  | $ | 3,042 |      
|                                             |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |      
|                                             | Reorganization proceeding expenses |                                                        | $ | 5,295 |   |                      |  | $ | 1,962        |   |  | $            | 1,543 |   |  | $ |      |      
|                                             |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |      
|Non-cash Investing and Financing Activities: |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |       |   |  |   |      
|                                             |                                    | Conversion of Series B preferred stock to common stock |   | $     |  |                      |  |   | $            |  |  |              | $     |  |  |   | $     | 1,000 | 
|                                             |                                    |                                                        |   |       |   |                      |  |   |              |   |  |              |      



|    |                    
|--- | -------------------
|18. | OFFICERS SEVERANCE





|    |                         
|--- | ------------------------
|19. | GOODWILL AND INTANGIBLES





F-51



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                |                        |                         |        |        |                         |   |        |        |   |   |        |        |  |              |        |        |        |   |         |        |   |   |        |        | 
|------------------------------- | ---------------------- | ----------------------- | ------ | ------ | ----------------------- | - | ------ | ------ | - | - | ------ | ------ |  | ------------ | ------ | ------ | ------ | - | ------- | ------ | - | - | ------ | ------ | 
|                                |                        | As of December 31, 2004 |        |        | As of December 31, 2005 |  
|                                |                        |                         |        |        |                         |  
|                                |                        | Gross                   |        |        | Accumulated             |   |        | Net    |   |   | Gross  |        |  | Accumulated  |        |        | Net    |  
|                                |                        | Amount                  |        |        | Amortization            |   |        | Amount |   |   | Amount |        |  | Amortization |        |        | Amount |  
|                                |                        |                         |        |        |                         |   |        |        |   |   |        |        |  |              |        |        |        |  
|Identifiable intangible assets: |                        |                         |        |        |                         |   |        |        |   |   |        |        |  |              |        |        |        |   |         |        |   |   |        |       
|                                | Customer relationships |                         | $      | 22,990 |                         |   | $      | (4,981 | ) |   | $      | 18,009 |  |              | $      | 22,990 |        |   | $       | (9,579 | ) |   | $      | 13,411 | 
|                                | Backlog                |                         |        | 1,923  |                         |   |        | (1,923 | ) |   |        |       |  |              |        | 1,923  |        |   |         | (1,923 | ) |   |        |       | 
|                                |                        |                         |        |        |                         |   |        |        |   |   |        |        |  |              |        |        |        |  
|                                |                        | $                       | 24,913 |        |                         | $ | (6,904 | )      |   | $ | 18,009 |        |  | $            | 24,913 |        |        | $ | (11,502 | )      |   | $ | 13,411 |       
|                                |                        |                         |        |        |                         |   |        |        |   |   |        |        |  |              |        |        |        |  



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







F-52



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##### Table of Contents



DDi CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                                                           |  |                 |        |  |              |   |        |              |  |   |         |  
|------------------------------------------------------------------------------------------ |  | --------------- | ------ |  | ------------ | - | ------ | ------------ |  | - | ------- | -
|                                                                                           |  | One Month Ended |        |  | Year Ended   |   |        | Year Ended   | 
|                                                                                           |  | December 31,    |        |  | December 31, |   |        | December 31, | 
|                                                                                           |  | 2003            |        |  | 2004         |   |        | 2005         | 
|                                                                                           |  |                 |        |  |              |   |        |              | 
|Beginning balance                                                                          |  | $               | 99,829 |  |              | $ | 99,829 |              |  | $ | 99,375  |  
|Goodwill increases (decreases), primarily due to adjustments to
    fresh start accounting |  |                 |       |  |              |   | (454   | )            |  |   | (2,861  | )
|Impairment charges                                                                         |  |                 |       |  |              |   |       |              |  |   | (54,669 | )
|                                                                                           |  |                 |        |  |              |   |        |              | 
|Ending balance                                                                             |  | $               | 99,829 |  |              | $ | 99,375 |              |  | $ | 41,845  |  
|                                                                                           |  |                 |        |  |              |   |        |              | 

F-53



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##### Table of Contents



FINANCIAL STATEMENT SCHEDULE


10-K.


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
    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 |         |  | $ | 1,085      |  |            | $      | (582 | ) |  | $ | 1,579 | 
|                                | Year ended December 31, 2005      |                       | $ | 1,579 |         |  | $ | 658        |  |            | $      | (356 | ) |  | $ | 1,881 | 

F-54



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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   |  |  |             | Certificate of Amendment to the Amended and Restated Certificate
    of Incorporation of DDi Corp.(3)                                                                                                                                
|                                                                                 | 3  | .5   |  |  |             | Amended and Restated Bylaws of DDi Corp.(4.)                                                                                                                                                                                         
|Material Contracts Relating to Management Compensation Plans
    or Arrangements
|                                                                                 | 10 | .1*  |  |  |             | Dynamic Details Incorporated 2006 Senior Management Bonus
    Program.                                                                                                                                                               
|                                                                                 | 10 | .2   |  |  |             | DDi Corp. Amended and Restated Severance Plan for Key Employees
    Effective December 19, 2004.(5)                                                                                                                                  
|                                                                                 | 10 | .3   |  |  |             | 2003 Directors Equity Incentive Plan.(6)                                                                                                                                                                                             
|                                                                                 | 10 | .4   |  |  |             | Form of Stock Option Agreement (2003 Directors Equity
    Incentive Plan).(6)                                                                                                                                                        
|                                                                                 | 10 | .5   |  |  |             | DDi Corp. 2003 Management Incentive Plan.(7)                                                                                                                                                                                         
|                                                                                 | 10 | .6   |  |  |             | Form of Restricted Stock Agreement (2003 Management Equity
    Incentive Plan).(8)                                                                                                                                                   
|                                                                                 | 10 | .7   |  |  |             | Form of Stock Option Agreement (2003 Management Equity Incentive
    Plan).(8)                                                                                                                                                       
|                                                                                 | 10 | .8   |  |  |             | Form of Amendment to Restricted Stock Agreement (with schedule
    of parties attached).(9)                                                                                                                                          
|                                                                                 | 10 | .9   |  |  |             | Severance Agreement and General Release dated November 17,
    2004 between DDi Corp. and Joseph P. Gisch.(10)                                                                                                                       
|                                                                                 | 10 | .10* |  |  |             | Employment Agreement dated March 16, 2006 between DDi Corp.
    and Mikel Williams                                                                                                                                                   
|                                                                                 | 10 | .11  |  |  |             | Non-Solicitation Agreement dated December 12, 2003 by and
    between Bruce McMaster and Dynamic Details, Inc.(7)                                                                                                                    
|                                                                                 | 10 | .12  |  |  |             | DDi Corp. 2005 Stock Incentive Plan.(3)                                                                                                                                                                                              
|                                                                                 | 10 | .13  |  |  |             | Amendment to Restricted Stock Agreement (with schedule of
    parties attached).(11)                                                                                                                                                 
|                                                                                 | 10 | .14  |  |  |             | Amendment to Non-Qualified Stock Option Agreement (with schedule
    of parties attached).(11)                                                                                                                                       
|                                                                                 | 10 | .15  |  |  |             | Form of Amendment to Restricted Stock Agreement (with schedule
    of parties attached).(9)                                                                                                                                          
|                                                                                 | 10 | .16  |  |  |             | Employment Letter dated September 29, 2005 between DDi
    Corp. and Diane N. Brundage.(12)                                                                                                                                          
|                                                                                 | 10 | .17  |  |  |             | Severance Agreement dated October 10, 2005 between DDi
    Corp. and Diane N. Brundage.(12)                                                                                                                                          
|                                                                                 | 10 | .18  |  |  |             | Form of Stock Option Agreement under the DDi Corp 2005 Stock
    Incentive Plan.(13)                                                                                                                                                 
|                                                                                 | 10 | .19  |  |  |             | Confidential Severance Agreement and General Release dated
    February 9, 2006 between DDi Corp. and Bruce McMaster.(24)                                                                                                            
|Other Material Contracts                                                        
|                                                                                 | 10 | .20  |  |  |             | Registration Rights Agreement, dated as of December 12,
    2003, relating to Series A Preferred Stock of DDi Corp.(1)                                                                                                               
|                                                                                 | 10 | .21  |  |  |             | 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.(14)                                                     
|                                                                                 | 10 | .22  |  |  |             | 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.(14)                                                 
|                                                                                 | 10 | .23  |  |  |             | 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.(15)                          
|                                                                                 | 10 | .24  |  |  |             | 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.(16)



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##### Table of Contents



|        |    |     |  |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------- | -- | --- |  |  | ----------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |  |  | Description
|        |    |     |  |  |            
|        | 10 | .25 |  |  |             | 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.(16)                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | 10 | .26 |  |  |             | 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.(16)                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .27 |  |  |             | Lease Agreement dated July 22, 1991 between Geomax and
    Dynamic Circuits, Inc.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        | 10 | .28 |  |  |             | Lease dated March 20, 1997 by and between Mercury
    Partners 30, Inc. and Dynamic Circuits, Inc.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | 10 | .29 |  |  |             | Amendment to Lease Agreement, dated as of November 9, 2001
    by and between D & D Tarob Properties, LLC and Dynamic
    Details Incorporated Silicon Valley.(17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10 | .30 |  |  |             | Lease dated November 12, 1997 by and between Miller and
    Associates and Dynamic Circuits Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .31 |  |  |             | Lease dated August 18, 1998, by and between
    Mrs. Alberta M. Talley, Trustee and Dynamic Circuits,
    Inc.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10 | .32 |  |  |             | Lease Agreement dated April 14, 1998 by and between
    Continental Electric Contractors and Cuplex, Inc.(9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 10 | .33 |  |  |             | 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.(18)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .34 |  |  |             | Lease Agreement dated as of November 2, 1995, between
    Trammell Crow International Partners and Cuplex, Inc.(15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10 | .35 |  |  |             | 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 | .36 |  |  |             | 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 | .37 |  |  |             | 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 | .38 |  |  |             | 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 | .39 |  |  |             | 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 | .40 |  |  |             | 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)



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##### Table of Contents



|        |    |     |  |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | -- | --- |  |  | ----------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |  |  | Description
|        |    |     |  |  |            
|        | 10 | .41 |  |  |             | 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 | .43 |  |  |             | Master Agreement for Standby Letters of Credit, dated as of
    March 30, 2004.(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10 | .44 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|        | 10 | .45 |  |  |             | 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.(19)
|        | 10 | .46 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .47 |  |  |             | Master Agreement for Documentary Letters of Credit, dated as of
    June 30, 2004.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .48 |  |  |             | Master Agreement for Standby Letters of Credit, dated as of
    June 30, 2004.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10 | .49 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 10 | .50 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 10 | .51 |  |  |             | 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.(19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10 | .52 |  |  |             | Common Stock Purchase Warrant dated September 21, 2005,
    with schedule of parties attached.(20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10 | .53 |  |  |             | Registration Rights Agreement dated September 21, 2005.(20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .54 |  |  |             | Amendment No. 1 to Standby Securities Purchase Agreement
    dated September 21, 2005.(20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 10 | .55 |  |  |             | Purchase Agreement, dated as of June 2, 2005, by and
    between DDi Corp. and Caiman Partners, L.P., Contrarian
    Turnaround Equities, LLC, Greywolf Capital Partners II LP,
    QVT Fund LP, Sankaty Credit Opportunities, L.P., Sankaty
    High Yield Asset Partners, L.P., Sankaty High Yield
    Partners II, L.P., Sankaty High Yield Partners III,
    L.P. and Sankaty Prospect Credit Partners, L.P.(21)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10 | .56 |  |  |             | Amendment No. 3 to Credit Agreement, by and among Dynamic
    Details, Incorporated, Dynamic Details, Incorporated, Virginia,
    Dynamic Details Incorporated, Silicon Valley, Laminate
    Technology Corp., the other Credit Parties signatory thereto and
    General Electric Capital Corporation.(22)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .57 |  |  |             | Amendment No. 2 to Credit Agreement, by and among Dynamic
    Details, Incorporated, Dynamic Details Canada, Corp., DDi Canada
    Acquisition Corp., the other Credit Parties signatory thereto
    and GE Canada Finance Holding Company.(22)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|        | 10 | .58 |  |  |             | Amendment No. 3 to Real Property Master Lease Agreement.(22)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         



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##### Table of Contents



|        |    |     |  |  |             |                                                                                                                                                     
|------- | -- | --- |  |  | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |  |  | Description
|        |    |     |  |  |            
|        | 14 | .1  |  |  |             | Code of Business Conduct and Ethics.(23)                                                                                                            
|        | 21 | .1  |  |  |             | Subsidiaries of DDi Corp.(25)                                                                                                                       
|        | 23 | .1* |  |  |             | Consent of PricewaterhouseCoopers LLP                                                                                                               
|        | 31 | .1* |  |  |             | Certification of Chief Executive Officer and Chief Financial
    Officer of DDi Corp., Pursuant to Rule 13a-14 of the
    Securities Exchange Act   
|        | 32 | .1* |  |  |             | Certification of Chief Executive Officer and 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 August 10, 2005 as
    an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                               
|   
|(4) | Previously filed with the Commission on August 9, 2005 as
    an exhibit to DDi Corp.s Quarterly Report on
    Form 10-Q.                                             
|   
|(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 June 24, 2005 as an
    exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                        
|    
|(12) | Previously filed with the Commission on October 11, 2005 as
    an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                     
|    
|(13) | Previously filed with the Commission on December 27, 2005
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.                                                                    
|    
|(14) | 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.                      
|    
|(15) | 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.                      
|    
|(16) | 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.
|    
|(17) | Previously filed with the Commission on March 25, 2002 as
    an exhibit to DDi Corp.s Annual Report on
    Form 10-K.                                                                       
|    
|(18) | 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.                                   
|    
|(19) | Previously filed with the Commission on August 16, 2004 as
    an exhibit to DDi Corp.s Quarterly Report on
    Form 10-Q.                                                                   



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##### Table of Contents





|     |                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------
|(20) | Previously filed with the Commission on September 23, 2005
    as an exhibit to DDi Corp.s Amended Current Report on
    Form 8-K/ A.
|    
|(21) | Previously filed with the Commission on June 5, 2005 as an
    exhibit to DDi Corp.s Current Report on
    Form 8-K.                 
|    
|(22) | Previously filed with the Commission on November 29, 2005
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.            
|    
|(23) | Previously filed with the Commission on March 6, 2006 as an
    exhibit to DDi Corp.s Current Report on
    Form 8-K.                
|    
|(24) | Previously filed with the Commission on February 15, 2006
    as an exhibit to DDi Corp.s Current Report on
    Form 8-K.            
|    
|(25) | Previously filed with the Commission on March 16, 2005 as
    an exhibit to DDi Corp.s Annual Report on
    Form 10-K.