ANAHEIM, CA -- Beset by cash flow problems, DDi Corp. today killed one of its fleas, announcing it would close its circuit board shops in the U.K. DDi does not anticipate any net write-off or material cash restructuring charges.

In a statement, chief executive Bruce McMaster said, "We believe that the discontinuation of our UK-based business is a positive development for our shareholders. It provides a resolution to the liquidity challenges that have beset that business, enables us to cease reporting that business as an ongoing operation, and permits us to concentrate our efforts on the North American market. "

McMaster said DDi will focus on growing a value-added reseller services business recently begun in the U.S.

The U.K. operations carried heavy debt even before their acquisition by DDi in 2000, McMaster said. The company, which is operating on slim cash reserves, "could not justify" the large amounts of cash needed to restructure.

DDi Europe will be placed into administration, a move that permits DDi Corp. to remove $38 million of the UK-based indebtedness from its books.

In recent quarters, DDi Europe has contributed approximately one-third of DDi Corp.'s consolidated net sales, which totaled about $285 million for the 12 months ended last September.

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