ANAHEIM, CA – Along with its second quarter financial results, DDi Corp. announced that it has acquired PCB manufacturer Soverign Circuits and sold its assembly business to Veritek Manufacturing.

On August 8,, DDi sold its assembly business to Veritek Manufacturing Services LLC, for approx. $12 million in cash. The assembly business had unaudited net sales of $15.6 million for the six months ended June 30, 2006 and $31.1 million for 2005, with gross margins of 13% and 10%, respectively. DDi also signed a merger agreement to acquire Sovereign Circuits, for $14.8 million, expected to be paid with a combination of cash and shares of DDi common stock. DDi will assume net debt of no more than $3.3 million at closing. Sovereign Circuits is a PCB manufacturer offering rigid, flex and rigid-flex PCB products and specialized materials technologies. Sovereign Circuits had unaudited revenue of approx. $17.2 million last year.

Mikel Williams, president and chief executive said in a statement, " Since the beginning of last year, we have implemented several initiatives to enhance DDi's performance, including the improvement of our capital structure, the elimination of our underperforming European operations and the strengthening of our management team. We are now acting to divest our lower-margin, non-core assembly business. With the addition of Sovereign, we expect to extend our presence in the military, aerospace and high-durability commercial markets -- strategic markets in which we are currently underrepresented. Further, acquiring Sovereign will add flex and rigid-flex product capabilities to our product offering, which will allow for improved market penetration by the DDi sales team."

Second quarter net sales increased 15.3% to $52.5 million from $45.5 million for the same period in 2005 and up $51 million sequentiall. The YOY improvement is primarily due to a 17.2% increase in PCB net sales and a 6.8% increase in assembly net sales. The sequential increase in net sales is primarily all due to the assembly division. YTD net sales were up 14.3% to $103.5 million.

Gross profit during Q2 of $10.1 million, or 19.2% of net sales, also increased versus $5.5 million, or 12.% of net sales in Q2 2005 and was sequentially down slightly from $10.3 million, or 20%  of net sales. Adjusted gross profit, increased to 19.4% YOY but fell sequentially from 20.4%.

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