Design Within Reach (DWRI)

Contractual Obligations

The following table details the Company’s contractual obligations as of December 30, 2006 (in thousands):

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We plan to finance our planned investments in property and equipment in fiscal year 2007 from our existing cash and cash equivalent balances and from our anticipated cash flows from operations. We believe that our sources of cash will be sufficient to fund our operations and anticipated capital expenditures for at least the next twelve months. Our ability to fund these requirements will depend on our future operations, performance and cash flow and is subject to prevailing economic conditions and financial, business and other factors, some of which are beyond our control. We cannot assure you that additional funds from available sources will be available on terms acceptable to us, or at all.

Contractual Obligations

The following table details the Company’s contractual obligations as of December 30, 2006 (in thousands):

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We plan to finance our planned investments in property and equipment in fiscal year 2007 from our existing cash and cash equivalent balances and from our anticipated cash flows from operations. We believe that our sources of cash will be sufficient to fund our operations and anticipated capital expenditures for at least the next twelve months. Our ability to fund these requirements will depend on our future operations, performance and cash flow and is subject to prevailing economic conditions and financial, business and other factors, some of which are beyond our control. We cannot assure you that additional funds from available sources will be available on terms acceptable to us, or at all.

Contractual Obligations

The following table summarizes our future contractual obligations as of December 31, 2005:

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We plan to finance our planned investments in property and equipment in fiscal years 2006 and 2007 from our existing balances and from our anticipated cash flows from operations. We believe that our sources of cash will be sufficient to fund our operations and anticipated capital expenditures for at least the next twelve months. Our ability to fund these requirements and comply with the financial covenants under our bank credit agreement will depend on our future operations, performance and cash flow and is subject to prevailing economic conditions and financial, business and other factors, some of which are beyond our control. We cannot assure you that additional funds from available sources will be available on terms acceptable to us, or at all.

Contractual Obligations

The following table summarizes our future contractual obligations as of January 1, 2005:

In addition, our credit agreement with Wells Fargo HSBC Trade Bank, N.A., which we amended in June 2004, provides for a $9.0 million operating line of credit. The $9.0 million operating line of credit is subject to availability guidelines that specify the amount that can be borrowed under the facility at any given time to provide working capital and expires on July 31, 2005. Amounts borrowed under this line of credit bear interest at

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an annual rate equal to the lender’s prime lending rate plus 0.25%. Amounts borrowed under our credit agreement are secured by our accounts receivable, inventory and equipment. The credit agreement also sets forth a number of affirmative and negative covenants to which we must adhere, including financial covenants that require us to achieve positive net earnings in each quarter and limitations on capital expenditures. We are currently in compliance with all financial covenants under our credit agreement. We have borrowed funds under these lines of credit from time to time and periodically have repaid such borrowings with available cash. As of January 1, 2005, no borrowings were outstanding under this facility.