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| MERIX CORPORATION |
|-------------------|

| Oregon                                                        |   | 93-1135197                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporationor organization) |   | (I.R.S. Employer Identification No.) |

| 15725 SW Greystone Court, Suite 200, Beaverton, Oregon |   | 97006      |
|--------------------------------------------------------|--------|------------|
| (Address of principal executive offices)               |   | (Zip Code) |

| Registrant’s telephone number, including area code:  503-716-3700 |
|-----------------------------------------------------------------------------------|

| Securities Registered pursuant to Section 12(b) of the Act: |                                      |
|-------------------------------------------------------------|-------------------------------------------|
| Title of each class                                         | Name of each exchange on which registered |
| Common Stock, no par value                                  | NASDAQ Global Market                      |

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|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|        | PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 1.     | Business                                                                                                                                                              | 2      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 1A.    | Risk Factors                                                                                                                                                          | 10     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 1B.    | Unresolved Staff Comments                                                                                                                                                  | 26     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 2.     | Properties                                                                                                                                                            | 26     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 3.     | Legal Proceedings                                                                                                                                                     | 26     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 4.     | Submission of Matters to a Vote of Security Holders                                                                                                                   | 27     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|        | PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 5.     | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 28     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 6.     | Selected Financial Data                                                                                                                                               | 30     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 7.     | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 31     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 7A.    | Quantitative and Qualitative Disclosures About Market Risk                                                                                                            | 49     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 8.     | Financial Statements and Supplementary Data                                                                                                                           | 50     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 9.     | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 85     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 9A(T). | Controls and Procedures                                                                                                                                               | 85     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 9B.    | Other Information                                                                                                                                                     | 87     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|        | PART III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 10.    | Directors, Executive Officers and Corporate Governance                                                                                                                | 87     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 11.    | Executive Compensation                                                                                                                                                | 87     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 12.    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 87     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 13.    | Certain Relationships and Related Transactions, and Director Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 90     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 14.    | Principal Accounting Fees and Services                                                                                                                                | 90     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|        | PART IV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 15.    | Exhibits and Financial Statement Schedules                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 91     |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Signatures  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 95     |

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PART I

Item 1

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| ·   | RF/Microwave application products.  We manufacture printed circuit boards using a variety of advanced insulating materials, primarily for RF/Microwave applications in the wireless infrastructure market. Although typicallyincluded in PCBs with lower layer counts, these advanced materials offer electrical, thermal and long-term reliability advantages over conventional materials. They are, however, more difficult to process through manufacturing. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Thermal management solutions.  We offer solutions to help our customers manage heat in high performance applications, such as RF/Microwave, and address thermal and signal integrity requirements in high-power wireless products. Our manufacturing facilities support theintegration of metal heat sinks with PCBs as well as other processes for managing thermal issues. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| United States                                                                                       |   | $      | 63,305  |   |   | $      | 79,172  |   |   | $ | 93,867 |   |
| People’s Republic of China  (including Hong Kong)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 57,083  |   |   |   | 71,244  |   |   |   | 56,409 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 120,388 |   |   | $      | 150,416 |   |   | $ | 150,276 |   |

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| ·   | growing our technological capability, particularly in Asia; |
|--------------------|-------------------------------------------------------------|

| ·   | providing customers with high quality, reliable products; |
|--------------------|-----------------------------------------------------------|

| ·   | meeting our committed delivery schedules; and |
|--------------------|-----------------------------------------------|

| ·   | maintaining a competitive cost structure in our global factories enabling competitive customer pricing. |
|--------------------|---------------------------------------------------------------------------------------------------------|

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Item 1A

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| ·   | significantly greater financial, technical, marketing and manufacturing resources; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | preferred vendor status with some of our existing and potential customers; |
|--------------------|----------------------------------------------------------------------------|

| ·   | more focused production facilities that may allow them to produce and sell products at lower price points; |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | more capital; and |
|--------------------|-------------------|

| ·   | larger customer bases. |
|--------------------|------------------------|

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| ·   | fluctuation in demand for our customers’ products; |
|--------------------|----------------------------------------------------------|

| ·   | changes in customers’ manufacturing strategies, such as a decision by a customer to either diversify or consolidate the number of PCB manufacturers used; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | customers’ inventory management; |
|--------------------|----------------------------------------|

| ·   | our own operational performance, such as missed delivery dates and repeated rescheduling; and |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | changes in new product introductions. |
|--------------------|---------------------------------------|

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| ·   | logistical, communications and other operational difficulties in managing a global enterprise; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | potentially adverse tax consequences; |
|--------------------|---------------------------------------|

| ·   | restrictions on the transfer of funds into or out of a country; |
|--------------------|-----------------------------------------------------------------|

| ·   | longer sales and collection cycles; |
|--------------------|-------------------------------------|

| ·   | potential adverse changes in laws and regulatory practices, including export license requirements, trade barriers, tariffs and tax laws; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | protectionist and trade laws and business practices that favor local companies; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | restrictive governmental actions; |
|--------------------|-----------------------------------|

| ·   | burdens and costs of compliance with a variety of foreign laws; |
|--------------------|-----------------------------------------------------------------|

| ·   | political, social and economic instability impacting our foreign labor force, including terrorist activities; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | natural disaster or outbreaks of infectious diseases affecting the regions in which we operate or sell products; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | difficulties in collecting accounts receivable. |
|--------------------|-------------------------------------------------|

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| ·   | lack of developed infrastructure; |
|--------------------|-----------------------------------|

| ·   | currency fluctuations; |
|--------------------|------------------------|

| ·   | overlapping taxes and multiple taxation issues; |
|--------------------|-------------------------------------------------|

| ·   | employment and severance taxes; |
|--------------------|---------------------------------|

| ·   | the burdens of cost, compliance and interpretation of a variety of foreign laws; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | difficulty in attracting and training workers in foreign markets and problems caused by labor unrest; and |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | less protection of our proprietary processes and know-how. |
|--------------------|------------------------------------------------------------|

| ·   | delays in receiving and installing required manufacturing equipment; |
|--------------------|----------------------------------------------------------------------|

| ·   | inability to retain management personnel and skilled employees, or labor shortages in general; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | difficulties scaling up production, including producing products at competitive costs, yields and quality standards at our expanded facilities; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | challenges in coordinating management of operations and order fulfillment between our U.S. and Asian facilities; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | a need to improve and expand our management information systems and financial controls to accommodate our expanded operations; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | additional unanticipated costs;  and |
|--------------------|------------------------------------------------|

| ·   | shortfalls in production volumes as a result of unanticipated start-up or expansion delays that could prevent us from meeting our customers’ delivery schedules or production needs. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | problems integrating the purchased operations, technologies or products; |
|--------------------|--------------------------------------------------------------------------|

| ·   | failure to achieve potential sales, materials costs and other synergies; |
|--------------------|--------------------------------------------------------------------------|

| ·   | inability to retain existing customers of acquired entities when we desire to do so; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | the need to restructure, modify or terminate customer relationships of the acquired company; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | increased concentration of business from existing or new customers; |
|--------------------|---------------------------------------------------------------------|

| ·   | unanticipated expenses and working capital requirements; |
|--------------------|----------------------------------------------------------|

| ·   | diversion of management’s attention and loss of key employees; |
|--------------------|----------------------------------------------------------------------|

| ·   | asset impairments related to the acquisitions; or |
|--------------------|---------------------------------------------------|

| ·   | fewer resources available for our legacy businesses as they are being redirected to the acquired entities to integrate their business processes. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | enter lines of business and/or markets in which we have limited or no prior experience; |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | issue stock that would dilute our current shareholders’ percentage ownership; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | incur debt and assume liabilities that could impair our liquidity; |
|--------------------|--------------------------------------------------------------------|

| ·   | record goodwill and non-amortizable intangible assets that will be subject to impairment testing and potential periodic impairment charges; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | incur amortization expenses related to intangible assets; |
|--------------------|-----------------------------------------------------------|

| ·   | uncover previously unknown liabilities; |
|--------------------|-----------------------------------------|

| ·   | become subject to litigation and environmental remediation issues; |
|--------------------|--------------------------------------------------------------------|

| ·   | incur large and immediate write-offs that would reduce net income; or |
|--------------------|-----------------------------------------------------------------------|

| ·   | incur substantial transaction-related costs, whether or not a proposed acquisition is consummated. |
|--------------------|----------------------------------------------------------------------------------------------------|

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| ·   | increasing our vulnerability to general adverse economic and industry conditions; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | limiting our ability to obtain additional financing; |
|--------------------|------------------------------------------------------|

| ·   | requiring the use of a substantial portion of any cash flow from operations to service our indebtedness, thereby reducing the amount of cash flow available for other purposes, including capital expenditures; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | placing us at a possible competitive disadvantage to less leveraged competitors and competitors that have better access to capital resources. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | the effects of a mix of profits or losses earned by us and our subsidiaries in numerous tax jurisdictions with a broad range of income tax rates; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to utilize net operating losses; |
|--------------------|----------------------------------------------|

| ·   | changes in contingencies related to taxes, interest or penalties resulting from tax audits; and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | changes in tax laws or the interpretation of such laws. |
|--------------------|---------------------------------------------------------|

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| ·   | actual and anticipated variations in our operating results; |
|--------------------|-------------------------------------------------------------|

| ·   | general economic and market conditions, including changes in demand in the PCB industry and the end markets which we serve; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | interest rates; |
|--------------------|-----------------|

| ·   | geopolitical conditions throughout the world; |
|--------------------|-----------------------------------------------|

| ·   | perceptions of the strengths and weaknesses of the PCB industry and the end markets which it serves; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | our ability to pay principal and interest on our debt when due; |
|--------------------|-----------------------------------------------------------------|

| ·   | developments in our relationships with our lenders, customers, and/or suppliers; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | announcements of alliances, mergers or other relationships by or between our competitors and/or our suppliers and customers; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | announcements of plant closings, layoffs, restructurings or bankruptcies by our competitors; and |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | developments related to regulations, including environmental and wastewater regulations. |
|--------------------|------------------------------------------------------------------------------------------|

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Item 1B

Item 2

|  Location       |   |  Type of Facility                      |   | Approximate size (sq. ft.) |   | Owned/Leased |
|----------------------|--------|---------------------------------------------|--------|----------------------------|--------|--------------|
| Beaverton, Oregon    |   | Corporate executive offices                 |   | 19,100                     |   | Leased       |
| Forest Grove, Oregon |   | Manufacturing and warehouse                 |   | 248,000                    |   | Owned        |
|                 |   | Administration                              |   | 62,500                     |   | Owned        |
| San Jose, California |   | Manufacturing and warehouse                 |   | 40,000                     |   | Leased       |
| Huiyang, China       |   | Manufacturing, warehouse and administration |   | 250,000                    |   | Owned(1)     |
| Huizhou, China       |   | Manufacturing, warehouse and administration |   | 135,000                    |   | Leased(2)    |

| (1)   | We own the facility; however, the land is leased under a land use right agreement with the PRC government. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (2)   | The land is leased under a land use right agreement with the PRC government. |
|-----------------|------------------------------------------------------------------------------|

Item 3

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Item 4

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PART II

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer   Purchases of Equity Securities |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|

| Fiscal 2009                                                                                                                                                                                                                                                                                                                 |   | High   |   |   | Low    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Quarter 1                                                    |   | $      | 2.60   |   |   | $      | 1.86 |   |
| Quarter 2                                                    |   |   | 1.90   |   |   |   | 0.17 |   |
| Quarter 3                                                    |   |   | 0.65   |   |   |   | 0.20 |   |
| Quarter 4                                                    |   |   | 0.72   |   |   |   | 0.23 |   |
|                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Fiscal 2008                                                                                                                                                                                                                                                                                                                 |   | High   |   |   | Low    |   |
| Quarter 1                                                    |   | $      | 8.52   |   |   | $      | 5.66 |   |
| Quarter 2                                                    |   |   | 7.15   |   |   |   | 5.57 |   |
| Quarter 3                                                    |   |   | 5.70   |   |   |   | 2.34 |   |
| Quarter 4                                                    |   |   | 2.65   |   |   |   | 1.86 |   |

|                           |   | Total number of shares purchased |   |   |  Average price paid per share |   |   | Total number of shares purchased as part of publicly announced plan |   |   | Maximum number of shares that may yet be purchased under the plan |   |
|--------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
| March 1, 2009 to April 4, 2009 |   |                             | -      |   |                               | $      | -      |                                                                |   |   | -                                                                 |   |   |   | - |   |
| April 5, 2009 to May 2, 2009   |   |                             | -      |   |                               |   | -      |                                                                |   |   | -                                                                 |   |   |   | - |   |
| May 3, 2009 to May 30, 2009    |   |                             | 27,639 |   |                               |   | 0.63   |                                                                |   |   | -                                                                 |   |   |   | - |   |
|    Total        |   |                             | 27,639 |   |                               | $      | 0.63   |                                                                |   |   | -                                                                 |   |   |   | - |   |

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|  Cumulative Total Return |   | May 2004 |   |   | May 2005 |   |   | May 2006 |   |   | May 2007 |   |   | May 2008 |   |   | May 2009 |   |
|-------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| Merix Corporation             |   |     | 100.00 |   |     |   | 67.76  |     |   |   | 89.91    |   |   |     | 69.81  |   |     |   | 23.36 |   |   |   | 4.77 |   |
| NASDAQ Composite              |   |     | 100.00 |   |     |   | 104.91 |     |   |   | 113.08   |   |   |     | 136.66 |   |     |   | 132.60 |   |   |   | 92.61 |   |
| Peer Group – SIC 3672   |   |     | 100.00 |   |     |   | 77.04  |     |   |   | 96.80    |   |   |     | 67.60  |   |     |   | 48.60 |   |   |   | 30.71 |   |

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Item 6

|  (in thousands, except per share amounts)                                                                                                                                                                                                                                                                                |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| Statement of Operations Data(1)                                                                                                                                                                                                                                                                                               |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Net sales                                                           |   | $      | 287,127 |   |   | $      | 378,637 |   |   | $      | 400,496 |   |   | $      | 303,978 |   |   | $ | 186,994 |   |
| Gross profit(2)                                                     |   |   | 22,186  |   |   |   | 37,859  |   |   |   | 65,571  |   |   |   | 53,584  |   |   |   | 23,789 |   |
| Severance and impairment charges(3)(4) (5)                                                                                                                                                                                                                                                                                    |   |   | 24,895  |   |   |   | 15,686  |   |   |   | 81,414  |   |   |   | 1,135   |   |   |   | - |   |
| Income (loss) from continuing operations                                                                                                                                                                                                                                                                                      |   |   | (49,264 | )      |   |   | (25,551 | )      |   |   | (71,915 | )      |   |   | 1,609   |   |   |   | (2,610 | ) |
| Loss from discontinued operations, net of tax                                                                                                                                                                                                                                                                                 |   |   | -       |   |   |   | -       |   |   |   | (517    | )      |   |   | (177    | ) |   |   | - |   |
| Net income (loss)                                                   |   |   | (49,264 | )      |   |   | (25,551 | )      |   |   | (72,432 | )      |   |   | 1,432   |   |   |   | (2,610 | ) |
|                                                                                                                                                                                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Basic income (loss) per share from continuing operations                                                                                                                                                                                                                                                                      |   | $      | (2.34   | )      |   | $      | (1.22   | )      |   | $      | (3.52   | )      |   | $      | 0.08    |   |   | $ | (0.14 | ) |
| Basic loss per share from discontinued operations                                                                                                                                                                                                                                                                             |   |   | -       |   |   |   | -       |   |   |   | (0.03   | )      |   |   | (0.01   | ) |   |   | - |   |
| Basic net income (loss) per share                                                                                                                                                                                                                                                                                             |   | $      | (2.34   | )      |   | $      | (1.22   | )      |   | $      | (3.55   | )      |   | $      | 0.07    |   |   | $ | (0.14 | ) |
|                                                                                                                                                                                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Diluted income (loss) per share from continuing operations                                                                                                                                                                                                                                                                    |   | $      | (2.34   | )      |   | $      | (1.22   | )      |   | $      | (3.52   | )      |   | $      | 0.08    |   |   | $ | (0.14 | ) |
| Diluted loss per share from discontinued operations                                                                                                                                                                                                                                                                           |   |   | -       |   |   |   | -       |   |   |   | (0.03   | )      |   |   | (0.01   | ) |   |   | - |   |
| Diluted net income (loss) per share                                                                                                                                                                                                                                                                                           |   | $      | (2.34   | )      |   | $      | (1.22   | )      |   | $      | (3.55   | )      |   | $      | 0.07    |   |   | $ | (0.14 | ) |
|                                                                                                                                                                                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Shares used in basic per share calculations                                                                                                                                                                                                                                                                                   |   |   | 21,098  |   |   |   | 21,019  |   |   |   | 20,406  |   |   |   | 19,519  |   |   |   | 19,224 |   |
| Shares used in diluted per share calculations                                                                                                                                                                                                                                                                                 |   |   | 21,098  |   |   |   | 21,019  |   |   |   | 20,406  |   |   |   | 19,715  |   |   |   | 19,224 |   |

|                                                                                                                                                                                                                                                                                                                                   |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| Balance Sheet Data                                                                                                                                                                                                                                                                                                                     |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Cash and cash equivalents                                                    |   | $      | 17,571  |   |   | $      | 5,728   |   |   | $      | 17,175  |   |   | $      | 12,280  |   |   | $ | 9,130 |   |
| Short-term investments                                                       |   |   | -       |   |   |   | -       |   |   |   | 9,025   |   |   |   | 18,525  |   |   |   | 68,555 |   |
| Accounts receivable, net                                                     |   |   | 43,285  |   |   |   | 73,153  |   |   |   | 76,825  |   |   |   | 75,277  |   |   |   | 37,338 |   |
| Working capital                                                              |   |   | 32,304  |   |   |   | 41,453  |   |   |   | 70,066  |   |   |   | 59,544  |   |   |   | 99,461 |   |
| Total assets                                                                 |   |   | 200,670 |   |   |   | 267,441 |   |   |   | 286,857 |   |   |   | 378,930 |   |   |   | 253,941 |   |
| Long-term debt                                                               |   |   | 78,000  |   |   |   | 70,000  |   |   |   | 75,503  |   |   |   | 98,732  |   |   |   | 27,000 |   |
| Shareholders’ equity                                                   |   |   | 66,523  |   |   |   | 113,774 |   |   |   | 138,444 |   |   |   | 202,125 |   |   |   | 198,011 |   |

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| (1)   | Includes the results of Merix Asia from September 29, 2005 and the results of acquired operations in San Jose from December 10, 2004. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Fiscal 2006 and fiscal 2005 gross profit have not been revised on a comparative basis for the reclassification of certain engineering costs to cost of goods sold as presented for fiscal 2009, 2008 and 2007. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Severance and impairment charges in fiscal 2009 are comprised primarily of the following: |
|-----------------|-------------------------------------------------------------------------------------------|

| ·   | a $20.5 million charge to reduce the value of goodwill recorded in the Asia acquisition to $0; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | a $1.1 million charge for Wood Village lease termination lease termination costs; and |
|--------------------|---------------------------------------------------------------------------------------|

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| ·   | $3.1 million for severance costs related to reductions-in-force in response to the decline in demand as a result of deteriorating global economic conditions. See Note 15 of Notes to Consolidated Financial Statements for additional information. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a $1.6 million charge for severance costs and $0.4 million in asset impairments related to the closure of our Hong Kong facility and other restructuring actions at Merix Asia; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $13.5 million in charges related to the closure of our Wood Village facility, including $12.3 million in asset impairments and other restructuring costs and $1.2 million related to severance payments; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a $0.4 million charge for severance costs related to executive termination. |
|--------------------|-----------------------------------------------------------------------------|

| ·   | a $1.5 million charge for severance, primarily related to our former Chief Executive Officer; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | a $26.6 million impairment charge in the fourth quarter of fiscal 2007 related primarily to the property, plant and equipment and land use rights of our Hong Kong facility. In addition, it includes a $0.2 million charge related to specific assets at our Oregon facility which were determined to have limited future use; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a $53.3 million charge in the fourth quarter of fiscal 2007 for goodwill impairment, which included $14.2 million for Merix San Jose and $39.1 million for our Asia operations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | Our Oregon manufacturing facility provides quality quick-turn and volume manufacturing services for mid- to high-technology PCBs. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our San Jose manufacturing facility provides quick-turn manufacturing services for design and prototype applications of mid- to high-technology PCBs. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our factory in Huizhou provides high quality lower technology PCBs primarily to automotive customers. |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | Our Huiyang facility is targeted at mid- to high-technology production and is more closely aligned with our capabilities in the United States. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                     |   |   | Cisco |   |   |   |   |   | Motorola |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------|--------|--------|--------|--------|--------|----------|--------|--------|
|                                                                                                                                                                     | 2009   |   | 2008  |   | 2007   |   | 2009   |   | 2008     |   | 2007   |
| North America                                                                                                                                                            | 16%    |   | 20%   |   | 24%    |   | 12%    |   | 12%      |   | 16%    |
| Asia                                   | *(1)   |   | *(1)  |   | *(1)   |   | 13%    |   | 8%       |   | *(1)   |
| Consolidated                           | 8%     |   | 11%   |   | 15%    |   | 13%    |   | 10%      |   | 11%    |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Net sales                                                                                                        |   | $      | 287,127 |   |   | $      | 378,637 |   |   | $ | 400,496 |   |
| Cost of sales                                                                                                    |   |   | 264,941 |   |   |   | 340,778 |   |   |   | 334,925 |   |
| Gross profit                                                                                                     |   |   | 22,186  |   |   |   | 37,859  |   |   |   | 65,571 |   |
| Engineering                                                                                                      |   |   | 2,121   |   |   |   | 1,810   |   |   |   | 1,705 |   |
| Selling, general and administrative                                                                              |   |   | 34,915  |   |   |   | 40,963  |   |   |   | 44,477 |   |
| Amortization of intangible assets                                                                                |   |   | 1,981   |   |   |   | 2,305   |   |   |   | 2,745 |   |
| Severance, asset impairment and restructuring charges                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 24,895  |   |   |   | 15,686  |   |   |   | 81,414 |   |
| Operating loss                                                                                                   |   |   | (41,726 | )      |   |   | (22,905 | )      |   |   | (64,770 | ) |
| Other income (expense), net                                                                                      |   |   | (4,317  | )      |   |   | 21      |   |   |   | (4,994 | ) |
| Loss from continuing operations before income taxes and minority interests                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (46,043 | )      |   |   | (22,884 | )      |   |   | (69,764 | ) |
| Provision for income taxes                                                                                       |   |   | 2,628   |   |   |   | 1,502   |   |   |   | 1,412 |   |
| Minority interest in net income of consolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 593     |   |   |   | 1,165   |   |   |   | 739 |   |
| Loss from continuing operations                                                                                  |   | $      | (49,264 | )      |   | $      | (25,551 | )      |   | $ | (71,915 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net sales                                                                                                        |   |   | 100.0  | %      |   |   | 100.0  | %      |   |   | 100.0 | % |
| Cost of sales                                                                                                    |   |   | 92.3   |   |   |   | 90.0   |   |   |   | 83.6 |   |
| Gross profit                                                                                                     |   |   | 7.7    |   |   |   | 10.0   |   |   |   | 16.4 |   |
| Engineering                                                                                                      |   |   | 0.7    |   |   |   | 0.5    |   |   |   | 0.4 |   |
| Selling, general and administrative                                                                              |   |   | 12.2   |   |   |   | 10.8   |   |   |   | 11.1 |   |
| Amortization of intangible assets                                                                                |   |   | 0.7    |   |   |   | 0.6    |   |   |   | 0.7 |   |
| Severance, asset impairment and restructuring charges                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 8.7    |   |   |   | 4.1    |   |   |   | 20.3 |   |
| Operating loss                                                                                                   |   |   | (14.5  | )      |   |   | (6.0   | )      |   |   | (16.2 | ) |
| Other income (expense), net                                                                                      |   |   | (1.5   | )      |   |   | 0.0    |   |   |   | (1.2 | ) |
| Loss from continuing operations before income taxes and minority interests                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (16.0  | )      |   |   | (6.0   | )      |   |   | (17.4 | ) |
| Provision for income taxes                                                                                       |   |   | 0.9    |   |   |   | 0.4    |   |   |   | 0.4 |   |
| Minority interest in net income of consolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 0.2    |   |   |   | 0.3    |   |   |   | 0.2 |   |
| Loss from continuing operations (1)                                                                              |   |   | (17.2  | )%     |   |   | (6.7   | )%     |   |   | (18.0 | )% |

|                                                                                                                                                                                                                                                                                              |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| North America                                               |   | $      | 137,149 |   |   | $      | 203,202 |   |   | $ | 245,347 |   |
| Asia                                                                                                                                                                                                                                                                                              |   |   | 149,978 |   |   |   | 175,435 |   |   |   | 155,149 |   |
|                                                                                                                                                                                                                                                                                              |   | $      | 287,127 |   |   | $      | 378,637 |   |   | $ | 400,496 |   |

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|                 |   | Fiscal 2009 Compared to Fiscal 2008 |   |   | Fiscal 2008 Compared to Fiscal 2007 |   |
|----------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
| North America:       |   |                                |   |   |                                |   |
| Unit volume          |   |                                | (37    | %)     |                                |   | (14 | %) |
| Average unit pricing |   |                                | 8      | %      |                                |   | (4 | %) |
|                 |   |                                |   |   |                                |   |   |   |
| Asia:                |   |                                |   |   |                                |   |   |   |
| Unit volume          |   |                                | (23    | %)     |                                |   | (3 | %) |
| Average unit pricing |   |                                | 10     | %      |                                |   | 16 | % |
|                 |   |                                |   |   |                                |   |   |   |
| Consolidated:        |   |                                |   |   |                                |   |   |   |
| Unit volume          |   |                                | (24    | %)     |                                |   | (4 | %) |
| Average unit pricing |   |                                | 0      | %      |                                |   | (1 | %) |
|                 |   |                                |   |   |                                |   |   |   |

| ·   | demand decreases resulting from the deterioration of macroeconomic conditions; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | a strategic decision to rationalize our production and sales to select markets with a focus on more profitable parts; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | strategic efforts assist our customers in the transition of production to our Asia manufacturing facilities; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | capacity decrease as a result of the closure of our Wood Village facility in the fourth quarter of fiscal 2008; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | impact to customer relationships of the extended lead time issues experienced in the fourth quarter of fiscal 2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

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|                            |   | 2009   |    |   | 2008   |   |   | 2007 |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|--------|------|--------|
| Communications & Networking |   | $      | 116,482 |   |   |   | 40.6   | %    |   | $ | 159,535 |   |   |   | 42.1 | % |   | $ | 176,756 |   |   |   | 44.1 | % |
| Automotive                      |   |   | 58,423  |   |   |   | 20.4   | %    |   |   | 79,838 |   |   |   | 21.1 | % |   |   | 73,677 |   |   |   | 18.4 | % |
| Computing & Peripherals     |   |   | 21,368  |   |   |   | 7.4    | %    |   |   | 32,111 |   |   |   | 8.5 | % |   |   | 54,132 |   |   |   | 13.5 | % |
| Test, Industrial and Medical    |   |   | 36,238  |   |   |   | 12.6   | %    |   |   | 40,866 |   |   |   | 10.8 | % |   |   | 34,140 |   |   |   | 8.5 | % |
| Defense & Aerospace         |   |   | 27,401  |   |   |   | 9.5    | %    |   |   | 26,468 |   |   |   | 7.0 | % |   |   | 19,827 |   |   |   | 5.0 | % |
| Other                           |   |   | 27,215  |   |   |   | 9.5    | %    |   |   | 39,819 |   |   |   | 10.5 | % |   |   | 41,964 |   |   |   | 10.5 | % |
|                            |   | $      | 287,127 |   |   |   | 100.0  | %    |   | $ | 378,637 |   |   |   | 100.0 | % |   | $ | 400,496 |   |   |   | 100.0 | % |

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|                                                                                                                                                                                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| North America                                |   | $      | 4,739  |   |   | $      | 21,489 |   |   | $ | 54,037 |   |
| Asia                                                                                                                                                                                                    |   |   | 17,447 |   |   |   | 16,370 |   |   |   | 11,534 |   |
|                                                                                                                                                                                                    |   | $      | 22,186 |   |   | $      | 37,859 |   |   | $ | 65,571 |   |

|                                                                                                                                                                                                    |   | 2009   |   |   | 2008   |   |   | 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| North America                                |   |   | 3.5    | %      |   |   | 10.6   | %    |   |   | 22.0 | % |
| Asia                                                                                                                                                                                                    |   |   | 11.6   | %      |   |   | 9.3    | %    |   |   | 7.4 | % |
|                                                                                                                                                                                                    |   |   | 7.7    | %      |   |   | 10.0   | %    |   |   | 16.4 | % |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Goodwill impairment                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 20,500 |   |   | $      | -      |   |   | $ | 53,310 |   |
| Asset impairment                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 702    |   |   |   | 12,465 |   |   |   | 26,628 |   |
| Severance charges                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 3,121  |   |   |   | 3,188  |   |   |   | 1,476 |   |
| Wood Village plant closure charges                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,090  |   |   |   | 241    |   |   |   | - |   |
| Gain on sale of Hong Kong facility equipment                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (567   | )      |   |   | (301   | )      |   |   | - |   |
| Legal and other restructuring costs                                                                     |   |   | 49     |   |   |   | 93     |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 24,895 |   |   | $      | 15,686 |   |   | $ | 81,414 |   |

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| ·   | a lump-sum cash payment of $0.6 million and non-cash share-based compensation of $0.1 million related to the issuance of share-based awards upon the resignation of our former Chief Executive Officer; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the cost of $0.1 million for fees related to recruiting a new Chief  Executive Officer; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | $0.2 million of cash severance related to the termination of another senior manager of Merix Asia; and |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | $0.5 million of cash severance related to the resignation of Merix Asia’s Chief Executive Officer in the fourth quarter of fiscal 2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Revenue                                                                            |   | $      | 8,597  |   |
| Net impairment related to assets of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (1,062 | ) |
| Pre-tax loss                                                                       |   |   | (470   | ) |

----

Table of Contents
|                                    |   | Payments Due By Period |   |
|-----------------------------------------|--------|------------------------|--------|
|   Contractual Obligation      |   |  Total            |   |   | Less than 1 year |   |   | 1 - 3 years |   |   | 3 - 5 years |   |   | More than 5 years |   |
| Asset retirement obligations            |   | $                      | 504    |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 504 |   |
| Lease termination liability             |   |                   | 835    |   |   |   | 683 |   |   |   | 152 |   |   |   | - |   |   |   | - |   |
| Borrowings on revolving credit facility |   |                   | 8,000  |   |   |   | - |   |   |   | - |   |   |   | 8,000 |   |   |   | - |   |
| 4% Convertible debenture                |   |                   | 70,000 |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |   |   | - |   |
| Operating lease obligations             |   |                   | 7,697  |   |   |   | 2,108 |   |   |   | 2,768 |   |   |   | 1,733 |   |   |   | 1,088 |   |
| Capital purchase obligations            |   |                   | 684    |   |   |   | 684 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                    |   | $                      | 87,720 |   |   | $ | 3,475 |   |   | $ | 2,920 |   |   | $ | 79,733 |   |   | $ | 1,592 |   |

----

Table of Contents
| ·   | revenue recognition; |
|--------------------|----------------------|

| ·   | the allowance for doubtful accounts; |
|--------------------|--------------------------------------|

| ·   | valuation of excess and obsolete inventories and idle facilities; |
|--------------------|-------------------------------------------------------------------|

| ·   | the valuation and impairment of long-lived assets; |
|--------------------|----------------------------------------------------|

| ·   | the valuation and impairment of goodwill and other intangible assets; |
|--------------------|-----------------------------------------------------------------------|

| ·   | share-based compensation; |
|--------------------|---------------------------|

| ·   | warranty liabilities; |
|--------------------|-----------------------|

| ·   | legal contingencies; and |
|--------------------|--------------------------|

| ·   | accounting for income taxes. |
|--------------------|------------------------------|

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| ·   | Level 1 - Quoted prices in active markets for identical asset or liabilities. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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| ·   | discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
|--------------------|-----------------------------------------------------------------------------------------------------|

----

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Item 7A

| Book value of fixed rate debt | $70,000 |
|-------------------------------|---------|
| Fair value of fixed rate debt | $28,000 |

----

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Item 8

REPORT 

----

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| MERIX CORPORATION AND SUBSIDIARIES                                                             |   |
|------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                    |   |
| As of May 30, 2009 and May 31, 2008                                                            |   |
| (in thousands)                                                                                 |   |
|                                                                                           |   |   |   |   |   |   |
|                                                                                           |   | 2009 |   |   | 2008 |   |
| Assets                                                                                         |   |   |   |   |   |   |
| Current assets:                                                                                |   |   |   |   |   |   |
| Cash and cash equivalents                                                                      |   | $ | 17,571 |   |   | $ | 5,728 |   |
| Accounts receivable, net of allowances for doubtful accounts of $1,502 and $2,252              |   |   | 43,285 |   |   |   | 73,153 |   |
| Inventories, net                                                                               |   |   | 14,367 |   |   |   | 23,631 |   |
| Assets held for sale                                                                           |   |   | 3 |   |   |   | 1,477 |   |
| Deferred income taxes                                                                          |   |   | 160 |   |   |   | 75 |   |
| Prepaid and other current assets                                                               |   |   | 4,896 |   |   |   | 12,961 |   |
| Total current assets                                                                           |   |   | 80,282 |   |   |   | 117,025 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Property, plant and equipment, net of accumulated depreciation of $137,772 and $121,253        |   |   | 95,883 |   |   |   | 103,012 |   |
| Goodwill                                                                                       |   |   | 11,392 |   |   |   | 31,794 |   |
| Definite-lived intangible assets, net of accumulated amortization of $10,324 and $8,342        |   |   | 6,884 |   |   |   | 8,866 |   |
| Deferred income taxes, net                                                                     |   |   | 612 |   |   |   | 885 |   |
| Assets held for sale                                                                           |   |   | 1,146 |   |   |   | - |   |
| Other assets                                                                                   |   |   | 4,471 |   |   |   | 5,859 |   |
|         Total assets                                   |   | $ | 200,670 |   |   | $ | 267,441 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                                           |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                           |   |   |   |   |   |   |   |   |
| Accounts payable                                                                               |   | $ | 33,263 |   |   | $ | 59,789 |   |
| Accrued liabilities                                                                            |   |   | 14,715 |   |   |   | 15,783 |   |
| Total current liabilities                                                                      |   |   | 47,978 |   |   |   | 75,572 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                 |   |   | 78,000 |   |   |   | 70,000 |   |
| Other long-term liabilities                                                                    |   |   | 4,234 |   |   |   | 3,522 |   |
| Total liabilities                                                                              |   |   | 130,212 |   |   |   | 149,094 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Minority interest                                                                              |   |   | 3,935 |   |   |   | 4,573 |   |
| Commitments and Contingencies (Note 19)                                                        |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| Shareholders' equity:                                                                          |   |   |   |   |   |   |   |   |
| Preferred stock, no par value; 10,000 shares authorized; none issued                           |   |   | - |   |   |   | - |   |
| Common stock, no par value; 50,000 shares authorized; 21,781 and 21,073 issued and outstanding |   |   | 217,112 |   |   |   | 215,085 |   |
| Accumulated deficit                                                                            |   |   | (150,622 | ) |   |   | (101,358 | ) |
| Accumulated other comprehensive income                                                         |   |   | 33 |   |   |   | 47 |   |
| Total shareholders' equity                                                                     |   |   | 66,523 |   |   |   | 113,774 |   |
| Total liabilities and shareholders' equity                                                     |   | $ | 200,670 |   |   | $ | 267,441 |   |
|                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |
| See accompanying Notes to Consolidated Financial Statements.                                   |   |

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| MERIX CORPORATION AND SUBSIDIARIES                                                                   |   |
|------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                                |   |
| For the fiscal years ended May 30, 2009, May 31, 2008 and May 26, 2007                               |   |
| (in thousands, except per share data)                                                                |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   | May 30, |   |   | May 31, |   |   | May 26, |   |
|                                                                                                 |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |
| Net sales                                                                                            |   | $ | 287,127 |   |   | $ | 378,637 |   |   | $ | 400,496 |   |
| Cost of sales                                                                                        |   |   | 264,941 |   |   |   | 340,778 |   |   |   | 334,925 |   |
| Gross profit                                                                                         |   |   | 22,186 |   |   |   | 37,859 |   |   |   | 65,571 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|     Engineering                                                                  |   |   | 2,121 |   |   |   | 1,810 |   |   |   | 1,705 |   |
|     Selling, general and administration                                          |   |   | 34,915 |   |   |   | 40,963 |   |   |   | 44,477 |   |
|     Amortization of intangible assets                                            |   |   | 1,981 |   |   |   | 2,305 |   |   |   | 2,745 |   |
|     Severance, asset impairment and restructuring charges                        |   |   | 24,895 |   |   |   | 15,686 |   |   |   | 81,414 |   |
|        Total operating expenses                                   |   |   | 63,912 |   |   |   | 60,764 |   |   |   | 130,341 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                                                                       |   |   | (41,726 | ) |   |   | (22,905 | ) |   |   | (64,770 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest income                                                              |   |   | 134 |   |   |   | 793 |   |   |   | 1,378 |   |
|     Interest expense                                                             |   |   | (3,923 | ) |   |   | (4,119 | ) |   |   | (5,353 | ) |
|     Debt extinguishment costs                                                    |   |   | - |   |   |   | (476 | ) |   |   | - |   |
|     Gain on settlement of debt                                                   |   |   | - |   |   |   | 5,094 |   |   |   | - |   |
|     Other expense, net                                                           |   |   | (528 | ) |   |   | (1,271 | ) |   |   | (1,019 | ) |
|        Total other income (expense), net                          |   |   | (4,317 | ) |   |   | 21 |   |   |   | (4,994 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes and minority interests                           |   |   | (46,043 | ) |   |   | (22,884 | ) |   |   | (69,764 | ) |
| Provision for income taxes                                                                           |   |   | 2,628 |   |   |   | 1,502 |   |   |   | 1,412 |   |
| Income (loss) from continuing operations before minority interests                                   |   |   | (48,671 | ) |   |   | (24,386 | ) |   |   | (71,176 | ) |
| Minority interest in net income of consolidated subsidiaries                                         |   |   | 593 |   |   |   | 1,165 |   |   |   | 739 |   |
| Loss from continuing operations                                                                      |   |   | (49,264 | ) |   |   | (25,551 | ) |   |   | (71,915 | ) |
| Loss from discontinued operations, net of provision for income taxes of $0, $0 and $47, respectively |   |   | - |   |   |   | - |   |   |   | (517 | ) |
|     Net loss                                                                     |   | $ | (49,264 | ) |   | $ | (25,551 | ) |   | $ | (72,432 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per share from continuing operations                                                      |   | $ | (2.34 | ) |   | $ | (1.22 | ) |   | $ | (3.52 | ) |
| Basic loss per share from discontinued operations                                                    |   |   | - |   |   |   | - |   |   |   | (0.03 | ) |
| Basic net loss per share                                                                             |   | $ | (2.34 | ) |   | $ | (1.22 | ) |   | $ | (3.55 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted loss per share from continuing operations                                                    |   | $ | (2.34 | ) |   | $ | (1.22 | ) |   | $ | (3.52 | ) |
| Diluted loss per share from discontinued operations                                                  |   |   | - |   |   |   | - |   |   |   | (0.03 | ) |
| Diluted net loss per share                                                                           |   | $ | (2.34 | ) |   | $ | (1.22 | ) |   | $ | (3.55 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares - basic                                                            |   |   | 21,098 |   |   |   | 21,019 |   |   |   | 20,406 |   |
| Weighted average number of shares - diluted                                                          |   |   | 21,098 |   |   |   | 21,019 |   |   |   | 20,406 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying Notes to Consolidated Financial Statements.                                         |   |

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| MERIX CORPORATION AND SUBSIDIARIES                                                               |   |
|--------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY                                                  |   |
| AND COMPREHENSIVE INCOME (LOSS)                                                                  |   |
| For the fiscal years ended May 30, 2009, May 31, 2008 and May 26, 2007                           |   |
| (in thousands)                                                                                   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | Other |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   | Unearned |   |   |   |   |   | Comprehensive |   |   | Total |   |
|                                                                                             |   | Common Stock |   |   | Stock |   |   | Accumulated |   |   | Income |   |   | Shareholders' |   |
|                                                                                             |   | Shares |   |   | Amount |   |   | Compensation |   |   | Deficit |   |   | (Loss) |   |   | Equity |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at May 27, 2006                                                                          |   |   | 19,806 |   |   | $ | 204,831 |   |   | $ | (1,096 | ) |   | $ | (1,623 | ) |   | $ | 13 |   |   | $ | 202,125 |   |
| Stock Plans:                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Exercise of stock options                                                |   |   | 724 |   |   |   | 5,586 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,586 |   |
|     Issuance of restricted stock to employees                                |   |   | 198 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Share-based compensation expense                                         |   |   | - |   |   |   | 1,850 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,850 |   |
|     Issuance of stock under defined contribution plan                        |   |   | 126 |   |   |   | 1,234 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,234 |   |
|     Reversal of unearned stock compensation upon adoption of SFAS No. 123(R) |   |   | - |   |   |   | (1,096 | ) |   |   | 1,096 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Shares repurchased, surrendered or cancelled                             |   |   | (10 | ) |   |   | (71 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (71 | ) |
| Comprehensive income:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net loss                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (72,432 | ) |   |   | - |   |   |   | (72,432 | ) |
|     Change in pension cost, net of tax                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 17 |   |   |   | 17 |   |
|     Foreign currency translation adjustment, net of tax                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 3 |   |
|        Annual comprehensive loss                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (72,412 | ) |
| Effect of adoption of SFAS No. 158, net of tax                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 132 |   |   |   | 132 |   |
| Balance at May 26, 2007                                                                          |   |   | 20,844 |   |   |   | 212,334 |   |   |   | - |   |   |   | (74,055 | ) |   |   | 165 |   |   |   | 138,444 |   |
| Effect of adoption of FIN 48                                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,752 | ) |   |   | - |   |   |   | (1,752 | ) |
| Stock Plans:                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Exercise of stock options                                                |   |   | 1 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |
|     Issuance of restricted stock to employees                                |   |   | 139 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Share-based compensation expense                                         |   |   | - |   |   |   | 1,965 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,965 |   |
|     Issuance of stock under defined contribution plan                        |   |   | 133 |   |   |   | 873 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 873 |   |
|     Shares repurchased, surrendered or cancelled                             |   |   | (44 | ) |   |   | (89 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (89 | ) |
| Comprehensive income:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net loss                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (25,551 | ) |   |   | - |   |   |   | (25,551 | ) |
|     Foreign currency translation adjustment, net of tax                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 37 |   |   |   | 37 |   |
|     Change in pension cost, net of tax                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (155 | ) |   |   | (155 | ) |
|        Annual comprehensive loss                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (25,669 | ) |
| Balance at May 31, 2008                                                                          |   |   | 21,073 |   |   |   | 215,085 |   |   |   | - |   |   |   | (101,358 | ) |   |   | 47 |   |   |   | 113,774 |   |
| Stock Plans:                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Issuance of restricted stock to employees                                |   |   | 26 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Share-based compensation expense                                         |   |   | - |   |   |   | 1,617 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,617 |   |
|     Issuance of stock under employee stock purchase plan                     |   |   | 750 |   |   |   | 447 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 447 |   |
|     Shares repurchased, surrendered or cancelled                             |   |   | (68 | ) |   |   | (37 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (37 | ) |
| Comprehensive income:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net loss                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (49,264 | ) |   |   | - |   |   |   | (49,264 | ) |
|     Foreign currency translation adjustment, net of tax                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (14 | ) |   |   | (14 | ) |
|        Annual comprehensive loss                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (49,278 | ) |
| Balance at May 30, 2009                                                                          |   |   | 21,781 |   |   | $ | 217,112 |   |   | $ | - |   |   | $ | (150,622 | ) |   | $ | 33 |   |   | $ | 66,523 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying Notes to Consolidated Financial Statements.                                     |

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| MERIX CORPORATION AND SUBSIDIARIES                                                                                                     |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                  |   |
| For the fiscal years ended May 30, 2009, May 31, 2008 and May 26, 2007                                                                 |   |
| (in thousands)                                                                                                                         |   |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                   |   | May 30, 2009 |   |   | May 31, 2008 |   |   | May 26, 2007 |   |
| Net loss                      |   |  $ |    (49,264)  |   |   |  $ | (25,551)  |   |   |  $ | (72,432)  |   |
| Adjustments to reconcile net loss to cash provided by operating activities:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                                          |   |   | 22,605 |   |   |   | 20,992 |   |   |   | 23,226 |   |
| Contribution of common stock to defined contribution plan                                                                              |   |   | - |   |   |   | 873 |   |   |   | 1,234 |   |
| Share-based compensation expense                                                                                                       |   |   | 1,617 |   |   |   | 1,965 |   |   |   | 1,850 |   |
| Minority interest in net income of consolidated subsidiaries                                                                           |   |   | 593 |   |   |   | 1,165 |   |   |   | 739 |   |
| Asset impairment charges                                                                                                               |   |   | 21,202 |   |   |   | 13,056 |   |   |   | 80,773 |   |
| Accrual of lease termination liability                                                                                                 |   |   | 1,090 |   |   |   | 95 |   |   |   | - |   |
| Debt extinguishment charges                                                                                                            |   |   | - |   |   |   | 476 |   |   |   | - |   |
| Gain on settlement of debt                                                                                                             |   |   | - |   |   |   | (5,094 | ) |   |   | - |   |
| Gain on disposition of assets                                                                                                          |   |   | (594 | ) |   |   | (343 | ) |   |   | - |   |
| Other non-cash (income) expense                                                                                                        |   |   | - |   |   |   | 236 |   |   |   | - |   |
| Deferred income taxes                                                                                                                  |   |   | 89 |   |   |   | (485 | ) |   |   | - |   |
| Changes in operating accounts:                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase) decrease in accounts receivable, net                                                                                        |   |   | 29,843 |   |   |   | 3,672 |   |   |   | (1,863 | ) |
| (Increase) decrease in inventories, net                                                                                                |   |   | 9,264 |   |   |   | 1,600 |   |   |   | (847 | ) |
| Increase in income taxes receivable                                                                                                    |   |   | (10 | ) |   |   | (23 | ) |   |   | (295 | ) |
| (Increase) decrease in other assets                                                                                                    |   |   | 8,320 |   |   |   | (5,968 | ) |   |   | 196 |   |
| Increase (decrease) in accounts payable                                                                                                |   |   | (20,936 | ) |   |   | 9,775 |   |   |   | (62 | ) |
| Decrease in other accrued liabilities                                                                                                  |   |   | (2,745 | ) |   |   | (3,318 | ) |   |   | (6,165 | ) |
| Increase (decrease) in due to affiliate, net                                                                                           |   |   | 1,607 |   |   |   | (1,054 | ) |   |   | (387 | ) |
| Net cash provided by operating activities                                                                                              |   |   | 22,681 |   |   |   | 12,069 |   |   |   | 25,967 |   |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property, plant and equipment                                                                                             |   |   | (19,005 | ) |   |   | (28,394 | ) |   |   | (19,795 | ) |
| Proceeds from disposal of property, plant and equipment                                                                                |   |   | 988 |   |   |   | 278 |   |   |   | 999 |   |
| Purchases of investments                                                                                                               |   |   | - |   |   |   | (12,775 | ) |   |   | (179,025 | ) |
| Proceeds from sales and maturity of securities                                                                                         |   |   | - |   |   |   | 21,800 |   |   |   | 188,525 |   |
| Net cash used in investing activities                                                                                                  |   |   | (18,017 | ) |   |   | (19,091 | ) |   |   | (9,296 | ) |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from long-term borrowings                                                                                                     |   |   | 40,000 |   |   |   | - |   |   |   | - |   |
| Principal payments on long-term borrowings                                                                                             |   |   | (32,000 | ) |   |   | (2,500 | ) |   |   | (16,125 | ) |
| Payment of deferred financing costs                                                                                                    |   |   | (4 | ) |   |   | (257 | ) |   |   | - |   |
| Payments on capital lease obligations                                                                                                  |   |   | - |   |   |   | (438 | ) |   |   | (1,166 | ) |
| Proceeds from exercise of stock options and stock plan transactions                                                                    |   |   | 447 |   |   |   | 1 |   |   |   | 5,586 |   |
| Reacquisition of common stock                                                                                                          |   |   | (34 | ) |   |   | (89 | ) |   |   | (71 | ) |
| Distribution to minority shareholder                                                                                                   |   |   | (1,230 | ) |   |   | (1,142 | ) |   |   | - |   |
| Net cash provided by (used in) financing activities                                                                                    |   |   | 7,179 |   |   |   | (4,425 | ) |   |   | (11,776 | ) |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                                                                                |   |   | 11,843 |   |   |   | (11,447 | ) |   |   | 4,895 |   |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                                                       |   |   | 5,728 |   |   |   | 17,175 |   |   |   | 12,280 |   |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                                             |   | $ | 17,571 |   |   | $ | 5,728 |   |   | $ | 17,175 |   |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash paid for income taxes, net                                                                                                        |   | $ | 1,783 |   |   | $ | 1,562 |   |   | $ | 1,413 |   |
| Cash paid for interest                                                                                                                 |   |   | 3,342 |   |   |   | 3,740 |   |   |   | 5,300 |   |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance (reduction) of promissory note related to acquisition                                                                         |   | $ | - |   |   | $ | - |   |   | $ | (3,406 | ) |
| Other purchase price adjustments                                                                                                       |   |   | - |   |   |   | - |   |   |   | (1,435 | ) |
| Increase to asset retirement obligation                                                                                                |   |   | - |   |   |   | 130 |   |   |   | (74 | ) |
| FIN 48 transition adjustment                                                                                                           |   |   | - |   |   |   | 2,906 |   |   |   | - |   |
|                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying Notes to Consolidated Financial Statements.                                                                           |   |

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|                                                                                                                                                                                                                                                                                                                                 |   | Fiscal 2008   |   | Fiscal 2007  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------------|
|                                                                                                                                                                                                                                                                                                                                 |   | (as reported) |   | (as revised) |   | (as reported) |   | (as revised) |
| Net sales                                                                  | $      | 378,637       | $      | 378,637      | $ | 400,496 | $ | 400,496 |
| Cost of sales                                                              |   | 334,035       |   | 340,778      |   | 328,569 |   | 334,925 |
| Gross profit                                                               |   | 44,602        |   | 37,859       |   | 71,927 |   | 65,571 |
| Gross margin                                                               |   | 11.8%         |   | 10.0%        |   | 18.0% |   | 16.4% |
| Engineering expense                                                        |   | 8,553         |   | 1,810        |   | 8,061 |   | 1,705 |
| Other operating expenses                                                   |   | 58,954        |   | 58,954       |   | 128,636 |   | 128,636 |
| Loss from operations                                                       | $      | (22,905)      | $      | (22,905)     | $ | (64,770) | $ | (64,770) |

| ·   | the allowance for doubtful accounts; |
|--------------------|--------------------------------------|

| ·   | the valuation of excess and obsolete inventories and idle facilities; |
|--------------------|-----------------------------------------------------------------------|

| ·   | product warranty liabilities; |
|--------------------|-------------------------------|

| ·   | the valuation and impairment of long-lived assets; |
|--------------------|----------------------------------------------------|

| ·   | the valuation and impairment of goodwill and other intangible assets; |
|--------------------|-----------------------------------------------------------------------|

| ·   | share-based compensation; |
|--------------------|---------------------------|

| ·   | legal contingencies; and |
|--------------------|--------------------------|

| ·   | accounting for income taxes. |
|--------------------|------------------------------|

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|                          |   | 2009 |   |   | 2008   |   |
|-------------------------------|--------|------|--------|--------|--------|--------|
| Book value of fixed rate debt |   | $    | 70,000 |   |   | $      | 70,000 |   |
| Fair value of fixed rate debt |   | $    | 28,000 |   |   | $      | 38,106 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|  Balance, beginning of period                                                                     |   | $      | 2,147  |   |   | $      | 2,129  |   |   | $ | 2,297 |   |
| Provision for warranty charges                                                                         |   |   | 2,504  |   |   |   | 3,565  |   |   |   | 3,383 |   |
| Change in estimate for existing warranties                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (742   | )      |   |   | -      |   |   |   | - |   |
| Warranty charges incurred                                                                              |   |   | (2,948 | )      |   |   | (3,547 | )      |   |   | (3,551 | ) |
| Balance, end of period                                                                                 |   | $      | 961    |   |   | $      | 2,147  |   |   | $ | 2,129 |   |

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|                                                                                                                                                                                                                                                                          |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Stock options                                                                                                                                                                                                                                                                 |   |   | 3,221  |   |   |   | 2,970  |   |   |   | 1,607 |   |
| Convertible notes                                           |   |   | 4,608  |   |   |   | 4,608  |   |   |   | 4,608 |   |
|                                                                                                                                                                                                                                                                          |   |   | 7,829  |   |   |   | 7,578  |   |   |   | 6,215 |   |

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| ·   | Level 1 - Quoted prices in active markets for identical asset or liabilities. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Raw materials                                                                                  |   | $      | 2,986  |   |   | $      | 4,876 |   |
| Work in process                                                                                |   |   | 4,129  |   |   |   | 7,542 |   |
| Finished goods                                                                                 |   |   | 3,398  |   |   |   | 3,901 |   |
| Consigned finished goods                                                                       |   |   | 3,854  |   |   |   | 7,312 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 14,367 |   |   | $      | 23,631 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Two parcels of land                                                                         |   | $      | 1,146  |   |   | $      | 1,146 |   |
| Excess equipment                                                                            |   |   | 3      |   |   |   | 331 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 1,149  |   |   |   | 1,477 |   |
| Assets held for sale included in current assets                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (3     | )      |   |   | (1,477 | ) |
| Assets held for sales included in non-current assets                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 1,146  |   |   | $      | - |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Prepaid expenses                                                                                       |   | $      | 1,410  |   |   | $      | 1,778 |   |
| Income taxes receivable (Note 16)                                                                      |   |   | 328    |   |   |   | 318 |   |
| Value-added tax receivable                                                                             |   |   | 1,646  |   |   |   | 7,176 |   |
| Intercompany receivable (Note 1)                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | -      |   |   |   | 227 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,512  |   |   |   | 3,462 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 4,896  |   |   | $      | 12,961 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2009   |     |   | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Land                                                                       |   | $      | 922      |   |   | $      | 922 |   |
| Buildings and grounds                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 47,116   |   |   |   | 40,098 |   |
| Leasehold improvements                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 2,640    |   |   |   | 1,979 |   |
| Machinery and equipment                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 182,645  |   |   |   | 162,486 |   |
| Construction in progress                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 332      |   |   |   | 18,780 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 233,655  |   |   |   | 224,265 |   |
| Accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (137,772 | )      |   |   | (121,253 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $      | 95,883   |   |   | $      | 103,012 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Balance, beginning of period                                                                       |   | $      | 31,794  |   |   | $      | 31,614 |   |   | $ | 89,889 |   |
| Recognition of deferred tax assets related to Asia acquisition in accordance with SFAS No. 109, “Accounting for Income Taxes”                                                                                                                                                                                                                                                                                                                        |   |   | 98      |   |   |   | (545   | )      |   |   | (123 | ) |
| Impairment (Note 15)                                                                               |   |   | (20,500 | )      |   |   | -      |   |   |   | (53,311 | ) |
| Adjustment related to $3.4 million decrease in promissory note and $1.4 million purchase allocation adjustment                                                                                                                                                                                                                                                                                                                                                   |   |   | -       |   |   |   | -      |   |   |   | (4,841 | ) |
| Adjustment related to adoption of FIN 48                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | -       |   |   |   | 725    |   |   |   | - |   |
| Balance, end of period                                                                             |   | $      | 11,392  |   |   | $      | 31,794 |   |   | $ | 31,614 |   |

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|                                                                                                                                                                                                                                                                                                                                                                     | Amortization |   |   |    |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------|---------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                     | Period       |   | 2009   |    |   | 2008   |   |
| Customer relationships                                                           | 6.5-10 years |   | $      | 17,168  |   |   | $      | 17,168 |   |
| Accumulated amortization                                                         |         |   |   | (10,291 | )      |   |   | (8,317 | ) |
|                                                                                                                                                                                                                                                                                                                                                                     |         |   |   | 6,877   |   |   |   | 8,851 |   |
| Manufacturing sales representatives network                                                                                                                                                                                                                                                                                                                              | 5.5 years    |   | $      | 40      |   |   | $      | 40 |   |
| Accumulated amortization                                                         |         |   |   | (33     | )      |   |   | (25 | ) |
|                                                                                                                                                                                                                                                                                                                                                                     |         |   |   | 7       |   |   |   | 15 |   |
| Total definite-lived intangible assets                                                                                                                                                                                                                                                                                                                                   |         |   | $      | 6,884   |   |   | $      | 8,866 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Customer relationships                                                                       |   | $      | 1,975  |   |   | $      | 2,298  |   |   | $ | 2,415 |   |
| Non-compete agreement                                                                        |   |   | -      |   |   |   | -      |   |   |   | 323 |   |
| Manufacturing sales representatives network                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 7      |   |   |   | 7      |   |   |   | 7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $      | 1,982  |   |   | $      | 2,305  |   |   | $ | 2,745 |   |

|  Fiscal Year                                                                                                                                                                                    |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| 2010                                      |   | $      | 1,765  |   |
| 2011                                      |   |   | 1,553  |   |
| 2012                                      |   |   | 1,120  |   |
| 2013                                      |   |   | 727    |   |
| 2014                                      |   |   | 727    |   |
| Thereafter                                |   |   | 992    |   |
|                                                                                                                                                                                                 |   | $      | 6,884  |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Leasehold land use rights, net                                                                                 |   | $      | 1,199  |   |   | $      | 1,227 |   |
| Deferred financing costs, net                                                                                  |   |   | 3,022  |   |   |   | 3,842 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 250    |   |   |   | 790 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 4,471  |   |   | $      | 5,859 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Accrued compensation                                                                                          |   | $      | 6,686  |   |   | $      | 7,177 |   |
| Accrued warranty (Note 1)                                                                                     |   |   | 961    |   |   |   | 2,147 |   |
| Income taxes payable (Note 16)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 469    |   |   |   | 316 |   |
| Intercompany payable (Note 1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 1,380  |   |   |   | - |   |
| Asset retirement obligation – current portion (Note 10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | -      |   |   |   | 873 |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 5,219  |   |   |   | 5,270 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 14,715 |   |   | $      | 15,783 |   |

|                                                                 |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Asset retirement obligations at the beginning of the period          |   | $      | 1,328  |   |   | $      | 1,106 |   |
| Costs incurred for restoration of facilities                         |   |   | (841   | )      |   |   | (108 | ) |
| Revisions in estimated cash flows                                    |   |   | -      |   |   |   | 130 |   |
| Accretion expense                                                    |   |   | 17     |   |   |   | 200 |   |
| Asset retirement obligations at the end of the period                |   |   | 504    |   |   |   | 1,328 |   |
| Asset retirement obligations included in current liabilities         |   |   | -      |   |   |   | (873 | ) |
| Asset retirement obligations included in other long-term liabilities |   | $      | 504    |   |   | $      | 455 |   |

|   | NOTE 11. REVOLVING LINES OF CREDIT AND LONG-TERM DEBT |
|--------|------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                         |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| 4% Convertible debenture                                                       |   | $      | 70,000 |   |   | $      | 70,000 |   |
| Borrowings on revolving credit facilities                                                                                                                                                                                                                                                                                                                    |   |   | 8,000  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   | 78,000 |   |   |   | 70,000 |   |
| Less current maturities                                                        |   |   | -      |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                         |   | $      | 78,000 |   |   | $      | 70,000 |   |

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| ·   | it has no net cash settlement feature; |
|--------------------|----------------------------------------|

| ·   | delivery of the shares is within the control of the Company since the settlement shares were registered contemporaneously with the registration of the Notes due 2013; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Company has sufficient authorized shares to meet the settlement requirements; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | the contract has an explicit limit on the number of shares in settlement; |
|--------------------|---------------------------------------------------------------------------|

| ·   | there are no cash payments to the counterparty in the event the Company fails to make timely filings with the SEC; |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | there are no required cash payments to the counterparty if the shares initially delivered upon settlement are subsequently sold by the counterparty and the sales proceeds are insufficient to provide the counterparty with full return of the amount due; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | there are no provisions in the contract that indicate that the counterparty has rights that rank higher than those of a shareholder of the stock underlying the contract; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | there is no requirement in the contract to post collateral at any point or for any reason. |
|--------------------|--------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                         |   | 2007   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Revenue                                                      |   | $      | 8,597  |   |
| Net impairment related to assets of discontinued operations                                                                                                                                                                                                                                                  |   |   | (1,062 | ) |
| Pre-tax loss                                                 |   |   | (470   | ) |

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| Fiscal Year: |   |   |   |
|--------------|--------|--------|--------|
| 2010         |   | $      | 2,108  |   |
| 2011         |   |   | 1,808  |   |
| 2012         |   |   | 960    |   |
| 2013         |   |   | 903    |   |
| 2014         |   |   | 830    |   |
| Thereafter   |   |   | 1,088  |   |
|         |   | $      | 7,697  |   |

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|                                                                                                                                                                                                                                                |   | Shares Subject to Options |      |   | Weighted AverageExercise Price |   |   | Weighted Average Remaining Contractual Term (years) |   |   | AggregateIntrinsicValue |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|--------|--------------------------------|--------|--------|-----------------------------------------------------|--------|--------|-------------------------|--------|
| Balances, May 31, 2008                                                                                                                                                                                                                              |   |                           | 3,304,842 |   |                           | $      | 8.48   |                                                |   |   |                    |   |   |   |
| Granted                                          |   |                           | 588,250   |   |                           | $      | 1.73   |                                                |   |   |                    |   |   |   |
| Forfeited                                        |   |                           | (474,314  | )      |                           | $      | 4.43   |                                                |   |   |                    |   |   |   |
| Expired                                          |   |                           | (835,105  | )      |                           | $      | 8.41   |                                                |   |   |                    |   |   |   |
| Exercised                                        |   |                           | -         |   |                           | $      | -      |                                                |   |   |                    |   |   |   |
| Balances, May 30, 2009                                                                                                                                                                                                                              |   |                           | 2,583,673 |   |                           | $      | 7.71   |                                                |   |   | 4.09                    |   |   | $ | - |   |
| Vested and expected to vest as of May 30, 2009                                                                                                                                                                                                      |   |                           | 2,003,218 |   |                           | $      | 8.48   |                                                |   |   | 3.66                    |   |   | $ | - |   |
| Exercisable as of May 30, 2009                                                                                                                                                                                                                      |   |                           | 1,396,560 |   |                           | $      | 10.23  |                                                |   |   | 2.79                    |   |   | $ | - |   |

|                                                                                                                                                                                                                                                |   | RestrictedStock Awards |     |   | Weighted AverageGrant Date Per ShareFair Value |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|--------|------------------------------------------------|--------|
| Balances, May 31, 2008                                                                                                                                                                                                                              |   |                   | 344,061  |   |                                           | $      | 7.36 |   |
| Granted                                          |   |                   | 26,000   |   |                                           | $      | 2.13 |   |
| Vested                                           |   |                   | (122,945 | )      |                                           | $      | 7.59 |   |
| Forfeited                                        |   |                   | (40,858  | )      |                                           | $      | 6.32 |   |
| Balances, May 30, 2009                                                                                                                                                                                                                              |   |                   | 206,258  |   |                                           | $      | 6.76 |   |

|                                                                                         |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Weighted average grant-date per share fair value of share options granted                    |   | $      | 1.73   |   |   | $      | 4.56   |   |   | $ | 9.47 |   |
| Total intrinsic value of share options exercised                                             |   |   | -      |   |   |   | 1      |   |   |   | 2,591 |   |
| Fair value of non-vested shares that vested during the period                                |   |   | 130    |   |   |   | 270    |   |   |   | 582 |   |
| Share-based compensation recognized in results of operations                                 |   |   | 1,617  |   |   |   | 1,963  |   |   |   | 1,850 |   |
| Cash received from options exercised and shares purchased under all share-based arrangements |   |   | 447    |   |   |   | 1      |   |   |   | 5,586 |   |
| Weighted average grant-date per share fair value of shares issued under ESPP                 |   |   | 0.70   |   |   |   | 2.45   |   |   |   | - |   |
| Total fair value expensed for shares issued under the ESPP                                   |   |   | 248    |   |   |   | 278    |   |   |   | - |   |

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|                                |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cost of sales                       |   | $      | 300    |   |   | $      | 163    |   |   | $ | 296 |   |
| Engineering                         |   |   | 89     |   |   |   | 66     |   |   |   | 58 |   |
| Selling, general and administrative |   |   | 1,228  |   |   |   | 1,734  |   |   |   | 1,496 |   |
|                                |   | $      | 1,617  |   |   | $      | 1,963  |   |   | $ | 1,850 |   |

|                                                                                                                                                                                                                                                                                                              |   | 2009                    |         |   | 2008                    |   |         | 2007                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------------|--------|-------------------------|--------|--------------|-------------------------|--------|
| Risk-free interest rate                                                |   |                    | 1.85% - 3.64 | %      |                    |   | 1.59% - 5.13 | %                       |   |   | 4.48% - 5.10 | % |
| Dividend yield                                                         |   |                    | 0            | %      |                    |   | 0            | %                       |   |   | 0 | % |
| Expected term                                                          |   | 2.09 – 5.22 years |         |   | 1.57 – 5.27 years |   |         | 2.17 – 5.67 years |   |
| Volatility                                                             |   |                    | 55% - 65     | %      |                    |   | 46% - 93     | %                       |   |   | 46% - 91 | % |
| Discount for post vesting restrictions                                                                                                                                                                                                                                                                            |   |                    | 0            | %      |                    |   | 0            | %                       |   |   | 0 | % |
| Assumed forfeiture rate                                                |   |                    | 21.86        | %      |                    |   | 20.34        | %                       |   |   | 11.57 | % |

|                    |   | 2009     |        |   | 2008     |   |
|-------------------------|--------|----------|-------------|--------|----------|--------|
| Risk-free interest rate |   |     | 1.91% -3.01 | %      |     |   | 3.01 | % |
| Dividend yield          |   |     | 0           | %      |     |   | 0 | % |
| Expected term           |   | 6 months |        |   | 6 months |   |
| Volatility              |   |     | 69% - 81    | %      |     |   | 81 | % |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Goodwill impairment                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 20,500 |   |   | $      | -      |   |   | $ | 53,310 |   |
| Asset impairment                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 702    |   |   |   | 12,465 |   |   |   | 26,628 |   |
| Severance charges                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 3,121  |   |   |   | 3,188  |   |   |   | 1,476 |   |
| Wood Village plant closure charges                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,090  |   |   |   | 241    |   |   |   | - |   |
| Gain on sale of Hong Kong facility equipment                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (567   | )      |   |   | (301   | )      |   |   | - |   |
| Legal and other restructuring costs                                                                     |   |   | 49     |   |   |   | 93     |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 24,895 |   |   | $      | 15,686 |   |   | $ | 81,414 |   |

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| ·   | a lump-sum cash payment of $0.6 million and non-cash share-based compensation of $0.1 million related to the issuance of share-based awards upon the resignation of the former Chief Executive Officer; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the cost of $0.1 million for fees related to recruiting a new Chief Executive Officer; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | $0.2 million of cash severance related to the termination of another senior manager of Merix Asia; and |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | $0.5 million of cash severance related to the resignation of Merix Asia’s Chief Executive Officer in the fourth quarter of fiscal 2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   | Balance May 31, 2008 |   |   | Charged to Expense |   |   | Amounts Paid |   |   | BalanceMay 31,2009 |   |
|-------------------------|--------|----------------------|--------|--------|--------------------|--------|--------|--------------|--------|--------|--------------------|--------|
| Hong Kong plant closure |   | $                    | 134    |   |               | $      | 60     |         |   | $      | (194               | )      |   | $ | - |   |
| Executive severance     |   |                 | -      |   |               |   | 1,081  |         |   |   | (646               | )      |   |   | 435 |   |
|                    |   | $                    | 134    |   |               | $      | 1,141  |         |   | $      | (840               | )      |   | $ | 435 |   |

|                                                 |   | Balance May 26, 2007 |   |   | Charged to Expense |   |   | Amounts Paid |   |   | BalanceMay 31,2008 |   |
|------------------------------------------------------|--------|----------------------|--------|--------|--------------------|--------|--------|--------------|--------|--------|--------------------|--------|
| Merix Asia’s Chief Executive Officer severance |   | $                    | 453    |   |               | $      | -      |         |   | $      | (453               | )      |   | $ | - |   |
|  Hong Kong plant closure                        |   |                 | -      |   |               |   | 1,462  |         |   |   | (1,328             | )      |   |   | 134 |   |
|                                                 |   | $                    | 453    |   |               | $      | 1,462  |         |   | $      | (1,781             | )      |   | $ | 134 |   |

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|                                                                                                                                                                                                                                                                                                                                                                |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| U.S.                                                                                                                                                                                                                                                                                                                                                                |   | $      | (31,644 | )      |   | $      | (28,041 | )      |   | $ | 5,294 |   |
| Foreign                                                                                                                                                                                                                                                                                                                                                             |   |   | (14,399 | )      |   |   | 5,157   |   |   |   | (75,058 | ) |
| Loss from continuing operations before minority interests and income taxes                                                                                                                                                                                                                                                                                          |   | $      | (46,043 | )      |   | $      | (22,884 | )      |   | $ | (69,764 | ) |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |   |    |   |   |   |   |   |
| Tax provision:                                                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Current:                                                                                                                                                                                                                                                                                                                                                            |   |   |    |   |   |   |    |   |   |   |   |   |
| Federal                                                                     |   | $      | (123    | )      |   | $      | 19      |   |   | $ | 362 |   |
| State                                                                       |   |   | 61      |   |   |   | 53      |   |   |   | 257 |   |
| Foreign                                                                     |   |   | 2,430   |   |   |   | 1,826   |   |   |   | 671 |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   | 2,368   |   |   |   | 1,898   |   |   |   | 1,290 |   |
| Deferred:                                                                                                                                                                                                                                                                                                                                                           |   |   |    |   |   |   |    |   |   |   |   |   |
| Federal                                                                     |   |   | (10,700 | )      |   |   | (9,714  | )      |   |   | 5,040 |   |
| State                                                                       |   |   | (170    | )      |   |   | (1,177  | )      |   |   | (2,559 | ) |
| Foreign                                                                     |   |   | 747     |   |   |   | (77     | )      |   |   | (6,939 | ) |
|                                                                                                                                                                                                                                                                                                                                                                |   |   | (10,123 | )      |   |   | (10,968 | )      |   |   | (4,458 | ) |
| Valuation allowance:                                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |   |    |   |   |   |   |   |
| Federal                                                                     |   |   | 10,700  |   |   |   | 9,714   |   |   |   | (5,040 | ) |
| State                                                                       |   |   | 170     |   |   |   | 1,177   |   |   |   | 2,559 |   |
| Foreign                                                                     |   |   | (487    | )      |   |   | (319    | )      |   |   | 7,061 |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   | 10,383  |   |   |   | 10,572  |   |   |   | 4,580 |   |
| Total tax provision                                                         |   | $      | 2,628   |   |   | $      | 1,502   |   |   | $ | 1,412 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Tax expense at statutory rates                                                             |   | $      | (16,115 | )      |   | $      | (8,009 | )      |   | $ | (24,418 | ) |
| Increase (decrease) resulting from:                                                                                                                                                                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| State income taxes, net of federal benefit                                                                                                                                                                                                                                                                                                                                                             |   |   | (692    | )      |   |   | (338   | )      |   |   | (1,788 | ) |
| Effect of foreign income tax rates                                                                                                                                                                                                                                                                                                                                                                     |   |   | (293    | )      |   |   | (663   | )      |   |   | 5,360 |   |
| Effect of enacted change in future foreign tax rates                                                                                                                                                                                                                                                                                                                                                   |   |   | -       |   |   |   | -      |   |   |   | (1,035 | ) |
| Federal qualified research and experimentation credit                                                                                                                                                                                                                                                                                                                                                  |   |   | -       |   |   |   | -      |   |   |   | (44 | ) |
| State tax credits, net of federal benefits                                                                                                                                                                                                                                                                                                                                                             |   |   | (7      | )      |   |   | (6     | )      |   |   | - |   |
| Stock option windfall                                                                                     |   |   | -       |   |   |   | -      |   |   |   | (863 | ) |
| Non-deductible items:                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
| Goodwill impairment                                                                                       |   |   | 7,175   |   |   |   | -      |   |   |   | 18,698 |   |
| Intercompany charges not deductible in certain foreign jurisdictions                                                                                                                                                                                                                                                                                                                                   |   |   | 194     |   |   |   | 78     |   |   |   | 411 |   |
| Interest expense not deductible in certain foreign jurisdictions                                                                                                                                                                                                                                                                                                                                       |   |   | 345     |   |   |   | 428    |   |   |   | 1,347 |   |
| Amortization of intangibles                                                                               |   |   | 120     |   |   |   | 125    |   |   |   | 254 |   |
| Capital loss not deductible in foreign jurisdiction                                                                                                                                                                                                                                                                                                                                                    |   |   | -       |   |   |   | -      |   |   |   | (678 | ) |
| Other                                                                                                     |   |   | 127     |   |   |   | 196    |   |   |   | 116 |   |
| Change in valuation allowance                                                                                                                                                                                                                                                                                                                                                                          |   |   | 10,383  |   |   |   | 10,572 |   |   |   | 4,580 |   |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 1,391   |   |   |   | (881   | )      |   |   | (528 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 2,628   |   |   | $      | 1,502  |   |   | $ | 1,412 |   |

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Table of Contents
|                                                     |   | 2009   |    |   | 2008   |   |
|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred tax assets – current:                     |   |   |    |   |   |   |
| Inventories                                              |   | $      | 2,190   |   |   | $      | 1,856 |   |
| Vacation accrual                                         |   |   | 431     |   |   |   | 481 |   |
| Sales allowances                                         |   |   | 563     |   |   |   | 556 |   |
| Other                                                    |   |   | 835     |   |   |   | 900 |   |
|                                                     |   |   | 4,019   |   |   |   | 3,793 |   |
| Deferred tax assets – long-term:                   |   |   |    |   |   |   |   |   |
| Alternative minimum tax credit                           |   |   | 1,130   |   |   |   | 1,130 |   |
| Fixed asset basis difference                             |   |   | 1,765   |   |   |   | 359 |   |
| Net operating loss carryforwards                         |   |   | 30,478  |   |   |   | 21,511 |   |
| Qualified research and experimentation credits and other |   |   | 5,808   |   |   |   | 6,475 |   |
|                                                     |   |   | 39,181  |   |   |   | 29,475 |   |
| Deferred tax liabilities – long-term:              |   |   |    |   |   |   |   |   |
| Intangible basis difference                              |   |   | (484    | )      |   |   | (844 | ) |
| Other                                                    |   |   | (558    | )      |   |   | (461 | ) |
|                                                     |   |   | (1,042  | )      |   |   | (1,305 | ) |
| Net deferred tax asset before valuation allowance        |   |   | 42,158  |   |   |   | 31,963 |   |
| Valuation allowance                                      |   |   | (41,386 | )      |   |   | (31,003 | ) |
|                                                     |   | $      | 772     |   |   | $      | 960 |   |

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Table of Contents
|                                                |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Beginning Balance                                   |   | $      | 2,124  |   |   | $      | - |   |
| Additions for tax positions taken in prior periods  |   |   | -      |   |   |   | 2,119 |   |
| Additions for tax positions taken in current period |   |   | 318    |   |   |   | 5 |   |
| Decreases for lapses in statutes of limitation      |   |   | -      |   |   |   | - |   |
| Decreases for settlements with taxing authorities   |   |   | -      |   |   |   | - |   |
| Ending Balance                                      |   | $      | 2,442  |   |   | $      | 2,124 |   |
|                                                |   |   |   |   |   |   |   |   |
| Net Change                                          |   | $      | 318    |   |   | $      | 2,124 |   |

|                                                                                                                                                                                                                                                                                              |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| North America                                               |   | $      | 137,149 |   |   | $      | 203,202 |   |   | $ | 245,347 |   |
| Asia                                                                                                                                                                                                                                                                                              |   |   | 149,978 |   |   |   | 175,435 |   |   |   | 155,149 |   |
|                                                                                                                                                                                                                                                                                              |   | $      | 287,127 |   |   | $      | 378,637 |   |   | $ | 400,496 |   |

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Table of Contents
|                                                                                                                                                                                                                                                                                              |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| North America                                               |   | $      | 4,739  |   |   | $      | 21,489 |   |   | $ | 54,037 |   |
| Asia                                                                                                                                                                                                                                                                                              |   |   | 17,447 |   |   |   | 16,370 |   |   |   | 11,534 |   |
|                                                                                                                                                                                                                                                                                              |   | $      | 22,186 |   |   | $      | 37,859 |   |   | $ | 65,571 |   |

|    Fiscal 2008:                                                                                                                                                                                                                          |   | Fiscal2008(as reported) |   |   | Effect of Engineering Cost Reclassification |   |   |  Effect of Global Cost Allocation |   |   | Fiscal2008(as revised) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|---------------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------|--------|
| Merix North America                                       |   |                    | 12.2   | %      |                                        |   | (2.4   | )%                                     |   |   | 0.8                    | %      |   |   | 10.6 | % |
| Merix Asia                                                                                                                                                                                                                                              |   |                    | 11.3   | %      |                                        |   | (1.1   | )%                                     |   |   | (0.9                   | )%     |   |   | 9.3 | % |
| Consolidated                                              |   |                    | 11.8   | %      |                                        |   | (1.8   | )%                                     |   |   | -                      |   |   |   | 10.0 | % |

|    Fiscal 2007:                                                                                                                                                                                                                          |   | Fiscal2007(as reported) |   |   | Effect of Engineering Cost Reclassification |   |   |  Effect of Global Cost Allocation |   |   | Fiscal2007(as revised) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|---------------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------|--------|
| Merix North America                                       |   |                    | 23.5   | %      |                                        |   | (2.2   | )%                                     |   |   | 0.7                    | %      |   |   | 22.0 | % |
| Merix Asia                                                                                                                                                                                                                                              |   |                    | 9.2    | %      |                                        |   | (0.7   | )%                                     |   |   | (1.1                   | )%     |   |   | 7.4 | % |
| Consolidated                                              |   |                    | 18.0   | %      |                                        |   | (1.6   | )%                                     |   |   | -                      |   |   |   | 16.4 | % |

|                                                                                                                                                                                                                                                                                              |   | 2009   |    |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| North America                                               |   | $      | 132,225 |   |   | $      | 153,075 |   |
| Asia                                                                                                                                                                                                                                                                                              |   |   | 68,445  |   |   |   | 114,366 |   |
|                                                                                                                                                                                                                                                                                              |   | $      | 200,670 |   |   | $      | 267,441 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009   |    |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| United States                                                                |   | $      | 63,305  |   |   | $      | 79,172 |   |
| People’s Republic of China  (including Hong Kong)                                                                                                                                                                                                                                                                                                                                       |   |   | 57,083  |   |   |   | 71,244 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 120,388 |   |   | $      | 150,416 |   |

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Table of Contents
|                                                                                                                                                                                                                                                                                                                        |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Consulting fees                                                             |   | $      | 213    |   |   | $      | 198    |   |   | $ | 174 |   |
| Operating lease rental fees                                                 |   |   | 329    |   |   |   | 305    |   |   |   | 270 |   |
| Management fees                                                             |   |   | 146    |   |   |   | 78     |   |   |   | 50 |   |
| Capitalized construction costs                                                                                                                                                                                                                                                                                              |   |   | 325    |   |   |   | 1,597  |   |   |   | - |   |
| Other fees                                                                                                                                                                                                                                                                                                                  |   |   | 287    |   |   |   | 406    |   |   |   | 400 |   |
|                                                                                                                                                                                                                                                                                                                        |   | $      | 1,300  |   |   | $      | 2,584  |   |   | $ | 894 |   |

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Table of Contents
| Fiscal 2009                                                                                                                                                                                                                                                                                                                                                                                   |   | 1st Quarter |   |   | 2nd Quarter |   |   | 3rd Quarter |   |   | 4th Quarter |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|
| Net sales                                                                              |   | $           | 90,627 |   |        | $      | 76,900 |        |   | $      | 60,721      |   |   | $ | 58,879 |   |
| Gross profit                                                                           |   |        | 10,274 |   |        |   | 6,035  |        |   |   | 876         |   |   |   | 5,001 |   |
| Operating income (loss) (1)                                                            |   |        | 16     |   |        |   | (4,260 | )           |   |   | (30,833     | )      |   |   | (6,649 | ) |
| Net loss (1)                                                                           |   |        | (2,147 | )      |        |   | (6,088 | )           |   |   | (32,666     | )      |   |   | (8,363 | ) |
| Basic net loss per share                                                                                                                                                                                                                                                                                                                                                                      |   |        | (0.10  | )      |        |   | (0.29  | )           |   |   | (1.54       | )      |   |   | (0.39 | ) |
| Diluted net loss per share                                                                                                                                                                                                                                                                                                                                                                    |   |        | (0.10  | )      |        |   | (0.29  | )           |   |   | (1.54       | )      |   |   | (0.39 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |        |   |   |        |   |   |        |   |   |        |   |   |   |   |   |
| Fiscal 2008                                                                                                                                                                                                                                                                                                                                                                                   |   | 1st Quarter |   |   | 2nd Quarter |   |   | 3rd Quarter |   |   | 4th Quarter |   |
| Net sales                                                                              |   | $           | 99,430 |   |        | $      | 97,378 |        |   | $      | 94,275      |   |   | $ | 87,544 |   |
| Gross profit                                                                           |   |        | 11,043 |   |        |   | 9,523  |        |   |   | 7,924       |   |   |   | 9,369 |   |
| Operating loss(2)                                                                      |   |        | (1,878 | )      |        |   | (3,216 | )           |   |   | (17,510     | )      |   |   | (301 | ) |
| Net loss (2)                                                                           |   |        | (3,649 | )      |        |   | (5,009 | )           |   |   | (13,354     | )      |   |   | (3,539 | ) |
| Basic net loss per share                                                                                                                                                                                                                                                                                                                                                                      |   |        | (0.17  | )      |        |   | (0.24  | )           |   |   | (0.63       | )      |   |   | (0.17 | ) |
| Diluted net loss per share                                                                                                                                                                                                                                                                                                                                                                    |   |        | (0.17  | )      |        |   | (0.24  | )           |   |   | (0.63       | )      |   |   | (0.17 | ) |

----

| (1)   | Includes $24.9 million of severance, impairment and restructuring charges in fiscal 2009. See Note 15 for additional information. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes $15.7 million of severance, impairment and restructuring charges in fiscal 2008. See Note 15 for additional information. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents
SCHEDULE II

|                                                  |   |                              |   |   |                                  |   |   | Additions                     |   |   |                        |   |   |                |   |   |                             |   |
|-------------------------------------------------------|--------|-----------------------------------|--------|--------|---------------------------------------|--------|--------|-------------------------------|--------|--------|-----------------------------|--------|--------|---------------------|--------|--------|----------------------------------|--------|
|                                                  |   | Balance atBeginningof Period |   |   | Charged toCosts andExpenses |   |   | Charged to Other Accounts (1) |   |   | AcquiredthroughAcquisitions |   |   | Deductions (2) |   |   | Balance atEnd ofPeriod |   |
| For the fiscal year ended May 30, 2009                |   |                              |   |   |                                  |   |   |                          |   |   |                        |   |   |                |   |   |                             |   |
| Allowance for sales adjustments and doubtful accounts |   | $                                 | 2,252  |   |                                  | $      | 1,162  |                          |   | $      | 1,975                       |   |   | $                   | -      |   |                             | $      | (3,887 | ) |   | $ | 1,502 |   |
| Inventory obsolescence reserve                        |   |                              | 3,719  |   |                                  |   | 5,311  |                          |   |   | -                           |   |   |                | -      |   |                             |   | (5,410 | ) |   |   | 3,620 |   |
| Tax valuation allowance                               |   |                              | 31,003 |   |                                  |   | 10,383 |                          |   |   | -                           |   |   |                | -      |   |                             |   | - |   |   |   | 41,386 |   |
|                                                  |   |                              |   |   |                                  |   |   |                          |   |   |                        |   |   |                |   |   |                             |   |   |   |   |   |   |   |
| For the fiscal year ended May 31, 2008                |   |                              |   |   |                                  |   |   |                          |   |   |                        |   |   |                |   |   |                             |   |   |   |   |   |   |   |
| Allowance for sales adjustments and doubtful accounts |   | $                                 | 3,168  |   |                                  | $      | 304    |                          |   | $      | 1,236                       |   |   | $                   | -      |   |                             | $      | (2,456 | ) |   | $ | 2,252 |   |
| Inventory obsolescence reserve                        |   |                              | 3,379  |   |                                  |   | 5,658  |                          |   |   | -                           |   |   |                | -      |   |                             |   | (5,318 | ) |   |   | 3,719 |   |
| Tax valuation allowance                               |   |                              | 20,976 |   |                                  |   | 10,572 |                          |   |   | -                           |   |   |                | (545   | )      |                             |   | - |   |   |   | 31,003 |   |
|                                                  |   |                              |   |   |                                  |   |   |                          |   |   |                        |   |   |                |   |   |                             |   |   |   |   |   |   |   |
| For the fiscal year ended May 26, 2007                |   |                              |   |   |                                  |   |   |                          |   |   |                        |   |   |                |   |   |                             |   |   |   |   |   |   |   |
| Allowance for sales adjustments and doubtful accounts |   | $                                 | 2,683  |   |                                  | $      | 1,655  |                          |   | $      | 1,442                       |   |   | $                   | -      |   |                             | $      | (2,612 | ) |   | $ | 3,168 |   |
| Inventory obsolescence reserve                        |   |                              | 2,592  |   |                                  |   | 3,020  |                          |   |   | -                           |   |   |                | -      |   |                             |   | (2,233 | ) |   |   | 3,379 |   |
| Tax valuation allowance                               |   |                              | 16,518 |   |                                  |   | 4,580  |                          |   |   | -                           |   |   |                | (122   | )      |                             |   | - |   |   |   | 20,976 |   |

----

| (1)   | Charged to net sales. |
|-----------------|-----------------------|

| (2)   | Charges to the accounts included in this column are for the purposes for which the reserves were created and include write-offs, net of recoveries. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 9

Item 9A

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Table of Contents
| ·   | In August 2008, we implemented our global ERP system for the Asia operations. The new ERP system allows for greater consistency of accounting processes and internal controls between our U.S. and Asia operations and provides greater visibility into the accounting records and accounting practices in Asia. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have strengthened our staffing as well as the cost accounting procedures and related analytics to focus on trends and variance analysis to budgets and forecasts. In fiscal 2008, we implemented detailed periodic reviews of the results of Asia. These reviews provide for more formal communication processes related to the financial statement adjustmentsand changes in the internal control environment. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have invested significant amounts of time and expense on training for financial personnel in the U.S. and Asia. U.S. management has also commenced more frequent oversight trips to Asia. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have realigned our organization structure across the company along functional lines. This has resulted in an integration of the Asia finance team members into one globally-focused finance team. We believe this has resulted in more accountability across the organization and allows for sharing of best practices across all functions, improving the internalcontrol environment. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents
Item 9B

PART III

Item 10

Item 11

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

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Table of Contents
| Plan category                                                |   | Number of Shares of Common Stock to be Issued Upon Exercise of Outstanding Options (A) |      |   | Weighted Average Exercise Price of Outstanding Options |   |   | Number of Shares of Common Stock Available for Future Issuance [excluding shares reflected in (A)] |   |
|--------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|-----------|--------|--------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|--------|
| Equity compensation plan approved by security holders(1)     |   |                                                                                   | 1,027,125 |   |                                                   | $      | 9.37   |                                                                                               |   |   | 832,134 |   |
| Equity compensation plan not approved by security holders(2) |   |                                                                                   | 1,556,548 |   |                                                   |   | 6.60   |                                                                                               |   |   | 1,341,573 |   |
|                                                         |   |                                                                                   | 2,583,673 |   |                                                   | $      | 4.09   |                                                                                               |   |   | 2,173,707 |   |

| (1) | Consists of shares of common stock remaining available for issuance under 2006 Plan. Directors not affiliated with Merix participate in a program under which each receives an option to purchase 20,000 shares and a restricted stock award of shares having a value of $10,000 at the time first elected to the Board and an option to purchase 5,000 shares and a restricted stock award of shares having a value of $40,000on each anniversary of that date. The options granted under this program vest and become exercisable with respect to 25% of the shares on the first anniversary of the grant date and an additional 25% of the shares vest and become exercisable on each anniversary thereafter (assuming continued Board service). The number of restricted shares granted will be determined by dividing $40,000 by the fair market value of a share of Merix’ common stock on the date of grant. The restricted shares are fully vestedat grant, but will be subject to an agreement between Merix and each recipient prohibiting the sale or the disposition of such shares so long as the recipient remains a Merix director. The agreement will also provide that any director who resigns from the Board without the consent of a majority of the Board of Directors then in office will forfeit all such stock awards. Due to the decline the Company’s stock price, the fiscal 2009 annual grants to members of the board of directors were not issued. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     | Shares available for issuance under the 2006 Plan can be granted pursuant to stock options, stock appreciation rights, restricted stock or units, performance units, performance shares and any other stock based award selected by the plan administrator. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Consists of shares of common stock remaining available for issuance under the 2000 Plan. Shares available for issuance under the 2000 Plan can be granted pursuant to non-statutory stock options and stock awards. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Description of 2000 Nonqualified Stock Option Plan |
|--------|----------------------------------------------------|

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Table of Contents
Item 13

Item 14

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Table of Contents
PART IV

Item 15

|                                                                                                                         | Page   |
|------------------------------------------------------------------------------------------------------------------------------|--------|
| Report of Grant Thornton LLP, Independent Registered Public Accounting Firm                                                  | 50     |
|                                                                                                                         |   |
| Consolidated Balance Sheets as of May 30, 2009 and May 31, 2008                                                              | 51     |
|                                                                                                                         |   |
| Consolidated Statements of Operations for the fiscal years ended May 30, 2009, May 31, 2008 and May 26, 2007                 | 52     |
|                                                                                                                         |   |
| Consolidated Statements of Shareholders’ Equity for the fiscal years ended May 30, 2009, May 31, 2008 and May 26, 2007 | 53     |
|                                                                                                                         |   |
| Consolidated Statements of Cash Flows for the fiscal years ended May 30, 2009, May 31, 2008 and May 26, 2007                 | 54     |
|                                                                                                                         |   |
| Notes to Consolidated Financial Statements                                                                                   | 55     |
|                                                                                                                         |   |
| Schedule II – Valuation and Qualifying Accounts                                                                        | 84     |

| Exhibit No. | Description                                                                                                                                                                                                                    |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         | Articles of Incorporation of the Company, as amended - incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2001  (File No. 000-23818).      |
|        |                                                                                                                                                                                                                           |
| 3.2         | Amendment to Articles of Incorporation establishing Series A Preferred Stock, dated October 16, 2007 - incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K dated October 16, 2007 (File No. 000-23818). |
|        |                                                                                                                                                                                                                           |
| 3.3         | Merix Corporation Bylaws, as amended – incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 1, 2007  (File No. 000-23818).             |

| 4.3 | Rights Agreement dated as of October 16, 2007, between Merix Corporation and American Stock Transfer & Trust Company, as rights agent, which includes the form of Rights Certificate as Exhibit B - incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K dated October 16, 2007 (File No. 000-23818). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1*  | 1994 Stock Incentive Plan of the Company, as amended - incorporated by reference to Exhibit 99.1 to the Company’s Registration Statement on Form S-8 (Registration No. 333-59672).                                                                                             |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                 |
| 10.2*  | Merix Corporation 2000 Nonqualified Stock Option Plan of the Company, as amended - incorporated by reference to Exhibit 10.28 to the Company’s Annual Report on Form 10-K for the year ended May 25, 2002 (File No. 000-23818).                                                |
|   |                                                                                                                                                                                                                                                                                 |
| 10.3*  | Form of Executive Officer Stock Option Agreement - incorporated by reference to Exhibit 10.10 to the Company’s Quarterly Report on Form 10-Q for the period ended February 25, 2006 (File No. 000-23818).                                                                      |
|   |                                                                                                                                                                                                                                                                                 |
| 10.4*  | Restricted Stock Award Grant Program for Non-Employee Directors under the Merix Corporation 1994 Stock Incentive Plan - incorporated by reference to Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q for the period ended February 25, 2006 (File No. 000-23818). |
|   |                                                                                                                                                                                                                                                                                 |
| 10.5*  | Form of Employee Stock Bonus Agreement - incorporated by reference to Exhibit 10.9 of the Company’s Quarterly Report on Form 10-Q for the period ended August 27, 2005 (File No. 000-23818).                                                                                   |
|   |                                                                                                                                                                                                                                                                                 |

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Table of Contents
| Exhibit No. | Description                                                                                                                                                                                                      |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.6*       | Merix Corporation 2006 Equity Incentive Plan – incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended November 25, 2006 (File No. 000-23818). |

| 10.7*  | Merix Corporation 2007 Employee Stock Purchase Plan – incorporated by reference to exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended December 1, 2007 (Registration No. 333-148711).                                             |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                        |
| 10.8*  | Merix Corporation Deferred Compensation Plan - incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended November 25, 2006 (File No. 000-23818).                                                                  |
|   |                                                                                                                                                                                                                                                                        |
| 10.9*  | Indemnity Agreement between the Company and William C. McCormick as of October 21, 1997 - incorporated by reference to Exhibit 10.35 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 29, 1997 (File No. 000-23818).            |
|   |                                                                                                                                                                                                                                                                        |
| 10.10* | Indemnity Agreement between the Company and Robert C. Strandberg as of June 30, 1998 – incorporated by reference to Exhibit 10.30 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 30, 1998 (File No. 000-23818).                      |
|   |                                                                                                                                                                                                                                                                        |
| 10.11* | Indemnity Agreement between the Company and Dr. William Lattin dated as of September 28, 2000 - incorporated by reference to Exhibit 10.33 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 25, 2000 (File No. 000-23818). |

| 10.13* | Indemnity Agreement between the Company and George H. Kerckhove dated as of June 28, 2001 - incorporated by reference to Exhibit 10.31 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2001 (File No. 000-23818).                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                               |
| 10.14* | Indemnity Agreement between the Company and Donald D. Jobe dated as of December 20, 2001 - incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 24, 2001 (File No. 000-23818).                   |
|   |                                                                                                                                                                                                                                                                               |
| 10.15* | Indemnity Agreement between the Company and Kirby A. Dyess dated as of September 24, 2002 - incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 23, 2002 (File No. 000-23818).                  |
|   |                                                                                                                                                                                                                                                                               |
| 10.16* | Indemnity Agreement between the Company and Francis Yuen dated as of April 8, 2008.                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                               |
| 10.17  | Summary of Key Terms of Compensation Arrangements with Merix Corporation Executive Officers – incorporated by reference to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2007 (File No. 000-23818).                                       |
|   |                                                                                                                                                                                                                                                                               |
| 10.18  | Summary of Key Terms of Compensation Arrangements with Merix Corporate Non-Employee Directors – incorporated by reference to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2007 (File No. 000-23818).                                     |
|   |                                                                                                                                                                                                                                                                               |
| 10.19* | Executive Severance and Noncompetition Agreement between Merix Corporation and Michael D. Burger, dated April 26, 2007 - incorporated by reference to Exhibit 10.50 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2007 (File No. 000-23818). |

| 10.20* | Indemnity Agreement between Merix Corporation and Michael D. Burger, dated April 26, 2007 – incorporated by reference to Exhibit 10.55 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2007 (File No. 000-23818). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                        |
| 10.21* | Executive Severance Agreement between the Company and Thomas R. Ingham, dated August 22, 2005 - incorporated by reference to the Company’s Current Report on Form 8-K filed on August 30, 2005 (File No. 000-23818).                             |

| 10.22* | Indemnity Agreement between the Company and Thomas R. Ingham, dated August 22, 2005 - incorporated by reference to the Company’s Current Report on Form 8-K filed on August 30, 2005 (File No. 000-23818).                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                      |
| 10.23* | Executive Severance Agreement between the Company and Kelly E. Lang as of July 31, 2006 – incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 4, 2006 (File No. 000-23818). |
|   |                                                                                                                                                                                                                                      |
| 10.24* | Indemnity Agreement between the Company and Kelly E. Lang as of July 31, 2006 – incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 4, 2006 (File No. 000-23818).           |

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Table of Contents
| Exhibit No. | Description                                                                                                                                                                                                                                                                                                                                |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.25*      | Executive Severance and Noncompetition Agreement between the Company and Linda Moore, dated April 11, 2007 - incorporated by reference to Exhibit 10.52 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2007 (File No. 000-23818).                                                                     |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.26*      | Indemnity Agreement between the Company and Linda Moore, dated April 23, 2007 – incorporated by reference to Exhibit 10.57 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 26, 2007 (File No. 000-23818).                                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.27*      | Executive Severance and Noncompetition Agreement between the Company and Allen L. Muhich, dated April 7, 2008 – incorporated by reference to Exhibit 10.27 to the Company’s Annual Report on Form 10-K fir the fiscal year ended May 31, 2008 (File No. 000-23818.                                                             |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.28*      | Indemnity Agreement between the Company and Allen L. Muhich, dated December 10, 2007 2008 – incorporated by reference to Exhibit 10.28 to the Company’s Annual Report on Form 10-K fir the fiscal year ended May 31, 2008 (File No. 000-23818.                                                                                 |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.29*      | Executive Severance and Noncompetition Agreement between the Company and Steven N. Lach, dated July 29, 2008.                                                                                                                                                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.30*      | Executive Severance and Noncompetition Agreement between the Company and Alfred Pang, dated May 15, 2008.                                                                                                                                                                                                                                  |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.31*      | Form of Offer Letter for Vice President level position at Merix Corporation – incorporated by reference to Exhibit 10.58 to the Company’s Annual Report of Form 10-K for the fiscal year ended May 26, 2007 (File No. 000-23818).                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.32       | Lease Agreement between the Company and Opus Northwest, LLC, dated as of August 22, 2000 - incorporated by reference to Exhibit 10.32 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 26, 2000 (File No. 000-23818).                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.33       | Lease Agreement between the Company and Triple Net Properties Realty, Inc. as Agent for NNN VF Woodside Corporate Park, LLC dated as of February 9, 2007.                                                                                                                                                                                  |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.34       | First Amendment to Lease between the Company and Triple Net Properties Realty, Inc. as Agent for NNN VF Woodside Corporate Park, LLC dated as of April 2, 2008.                                                                                                                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.35       | Loan and Security Agreement, dated May 9, 2008 and executed on May 12, 2008, by and between Merix Corporation and Bank of America, N.A., and the other parties named therein - incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 13, 2008 (File No. 001-33752).                        |
|        |                                                                                                                                                                                                                                                                                                                                       |
| 10.36       | Merix Singapore Facility Agreement, dated May 9, 2008 and executed on May 12, 2008, by and between Merix Holding (Singapore) Pte Ltd and Bank of America, N.A., and the other parties named therein - incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed May 13, 2008 (File No. 001-33752). |

| 10.37  | Guaranty and Security Agreement, dated May 9, 2008 and executed on May 12, 2008, by Merix Nevada, Inc. and Merix Asia, Inc. in favor of Bank of America, N.A. as Agent and certain financial institutions - incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed May 13, 2008  (File No. 001-33752). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.38  | First Amendment, dated May 18, 2009, to Loan and Security Agreement by and between Merix Corporation and Bank of America, N.A. and the other parties name therein- incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 26, 2009 (File No. 001-33752).                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.39  | Indenture dated May 16, 2006, between Merix Corporation and U.S. Bank National Association, as Trustee - incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 16, 2006 (File No. 000-23818).                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.40  | Form of 4% Convertible Senior Subordinated Note Due 2013 (incorporated by reference to Section 2.2 of Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended February 24, 2007) (File No. 000-23818).                                                                                                             |

| 10.41  | Registration Rights Agreement dated as of May 16, 2006, between Merix Corporation and Thomas Weisel Partners LLC - incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on May 16, 2006  (File No. 000-23818). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                  |
| 10.42* | Amendment #2 To Executive Severance and Noncompetition Agreement between the Company and Linda Moore, effective April 8, 2009.                                                                                                                                        |

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Table of Contents
| Exhibit No. | Description                                                                                                                                                                                                                                                                                                            |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.43*      | Form of Amendment to Executive Severance and Noncompetition Agreement for Michael Burger, Kelly Lang, Thomas Ingham and Linda Moore.                                                                                                                                                                                   |
|        |                                                                                                                                                                                                                                                                                                                   |
| 10.44*      | Form of Amendment to Executive Severance and Noncompetition Agreement for other officers.                                                                                                                                                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                   |
| 10.45       | First Amendment to Loan and Security Agreement, dated May 18, 2009, by and between Merix Corporation and Bank of America, N.A., as administrative agent and lender -- incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 26, 2009 (File No. 001-33752).             |
|        |                                                                                                                                                                                                                                                                                                                   |
| 10.46       | Foreign Exchange Loan Contract, dated June 26, 2009, by and between Merix Printed Circuits Technology Limited and Industrial and Commercial Bank of China, Limited – incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 30, 2009 (File No. 001-33752).       |
|        |                                                                                                                                                                                                                                                                                                                   |
| 10.47       | Maximum Amount Mortgage Agreement, dated June 26, 2009, by and between Merix Printed Circuits Technology Limited and Industrial and Commercial Bank of China, Limited -- – incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed June 30, 2009 (File No. 001-33752). |
|        |                                                                                                                                                                                                                                                                                                                   |
| 21          | List of Subsidiaries                                                                                                                                                                                                                                                                                                   |
|        |                                                                                                                                                                                                                                                                                                                   |
| 23.1        | Consent of Grant Thornton LLP                                                                                                                                                                                                                                                                                          |
|        |                                                                                                                                                                                                                                                                                                                   |
| 31.1        | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.                                                                                                                                                                                          |
|        |                                                                                                                                                                                                                                                                                                                   |
| 31.2        | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.                                                                                                                                                                                          |
|        |                                                                                                                                                                                                                                                                                                                   |
| 32.1+       | Certification of Chief Executive Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.                                                                                                                                                               |
|        |                                                                                                                                                                                                                                                                                                                   |
| 32.2+       | Certification of Chief Financial Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.                                                                                                                                                               |

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Table of Contents
SIGNATURES

|                      | Company Name |                                                   |
|---------------------------|--------------|--------------------------------------------------------|
|                      |         |                                                   |   |
| Date: July 30, 2009  | By:          | /s/ MICHAEL D. BURGER                             |   |
|                      |         | Name: Michael D. Burger                           |   |
|                      |         | Title: Director, President and Chief Executive Officer |   |
|                      |         |                                                   |   |

|                                                                                                         |   |   |                                                                                                              |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------|--------|
| /s/ MICHAEL D. BURGER                                                                                        |   |   | /s/ KELLY E. LANG                                                                                                 |   |
| Name: Michael D. Burger                                                                                 |   |   | Name: Kelly E. Lang                                                                                          |   |
| Title: Director, President and Chief Executive Officer     (Principal Executive Officer) |   |   | Title: Executive Vice President and Chief Financial Officer     (Principal Financial Officer) |   |

|                                                                                                               |   |   |                      |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|
| /s/ ALLEN L. MUHICH                                                                                                |   |   | /s/ KIRBY A. DYESS        |   |
| Name: Allen L. Muhich                                                                                              |   |   | Name: Kirby A. Dyess |   |
| Title: Vice President, Finance and Corporate Controller    (Principal Accounting Officer) |   |   | Title: Director           |   |

|                  |   |   |                           |   |
|-----------------------|--------|--------|--------------------------------|--------|
| /s/ DONALD D. JOBE    |   |   | /s/ GEORGE H. KERCKHOVE        |   |
| Name: Donald D. Jobe  |   |   | Name: George H. Kerckhove |   |
| Title: Director  |   |   | Title: Director                |   |

|                        |   |   |                             |   |
|-----------------------------|--------|--------|----------------------------------|--------|
| /s/ DR. WILLIAM W. LATTIN   |   |   | /s/ WILLIAM C. MCCORMICK         |   |
| Name: Dr. William W. Lattin |   |   | Name: William C. McCormick  |   |
| Title: Director        |   |   | Title: Chairman of the Board     |   |

|                       |   |   |                               |   |
|----------------------------|--------|--------|------------------------------------|--------|
| /s/ ROBERT C. STRANDBERG   |   |   | /s/ FRANCIS YUEN KIN PHENG         |   |
| Name: Robert C. Strandberg |   |   | Name: Francis Yuen Kin Pheng  |   |
| Title: Director       |   |   | Title: Director                    |   |