|        |
|--------|
|        |  |  |
|   |   |   |
|   |

|        |
|--------|
|        |  |  |  |  |  |  |
|   |   | Digi International Reports Third Fiscal Quarter 2014 ResultsReiterates Annual Guidance |   |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| GAAP Results                          |
| (in thousands, except per share data) |   | Q3 2014 |   | Q3 2013 |   | YTD 2014 |   | YTD 2013 |
| Total Revenue                         |   | $ | 47,885 |  |   | $ | 48,824 |  |   | $ | 141,089 |  |   | $ | 144,012 |  |
| Operating (Loss) Income               |   | $ | (280 | ) |   | $ | 1,892 |  |   | $ | (301 | ) |   | $ | 3,983 |  |
| Net (Loss) Income                     |   | $ | (101 | ) |   | $ | 1,528 |  |   | $ | 1,325 |  |   | $ | 3,758 |  |
| Net Income per Diluted Share          |   | $ | 0.00 |  |   | $ | 0.06 |  |   | $ | 0.05 |  |   | $ | 0.14 |  |

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-GAAP Results*                                                                                                 |
| (in thousands, except per share data)                                                                             |   | Q3 2014 |   | Q3 2013 |   | YTD 2014 |   | YTD 2013 |
| Operating (Loss) Income                                                                                           |   | $ | (280 | ) |   | $ | 1,892 |  |   | $ | (220 | ) |   | $ | 5,471 |  |
| Net (Loss) Income                                                                                                 |   | $ | (362 | ) |   | $ | 1,416 |  |   | $ | (203 | ) |   | $ | 4,093 |  |
| Net (Loss) Income per Diluted Share                                                                               |   | $ | (0.01 | ) |   | $ | 0.05 |  |   | $ | (0.01 | ) |   | $ | 0.16 |  |
| * A table with a detailed reconciliation to non-GAAP information is provided at the end of this earnings release. |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Watkins, the world’s largest manufacturer of hot tubs-sold under the HotSpring® and Caldera® brands-introduced its new and innovative ConnextionTM remote monitoring service. This product allows its dealers and customers alike to monitor and control spa functions from virtually anywhere in the world via a mobile device and/or a personal computer.  The solution includes Digi gateways, Device Cloud by Etherios and custom application development and professional services from Etherios. |

|         |                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A leading manufacturer of diagnostic healthcare solutions announced a next generation communications platform for its diagnostic testing device, which utilizes Digi’s TransPort cellular routers along with Device Cloud by EtheriosTM. |

|         |                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A global company that produces agricultural irrigation solutions has chosen the XBee DigiMesh® to enable communications between irrigation control units and distributed GPS technology.  The solution includes cellular communication to provide data to a web application that adds intelligence to watering schedules and patterns. |

|         |                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A leading global integrator chose Digi’s TransPort® WR21 to provide secure, reliable cellular data connectivity for one of Australia’s largest ATM providers.  The Digi solution provides wireline, 3G and 4G -based primary and backup Wide Area Network WAN connectivity. |

|         |                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A Fortune 200 corporation and leader in natural gas distribution in the U.S. chose the Digi TransPort® WR21 to replace legacy 2G routers throughout its data network for real-time asset monitoring.  The solution enables flow rate metering across its natural gas network. |

|         |                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A prominent provider of supply chain and asset management solutions selected the Digi TransPort® WR44 for its tank level monitoring application for fuel truck fleets.  The solution connects in-vehicle cellular-enabled tablet computers using Wi-Fi. |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | Three months ended June 30, |   | Nine months ended June 30, |
|                              | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                              |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Operating (loss) income           | $ | (280 | ) |   | (0.6 | )% |   | $ | 1,892 |  |   | 4.0 | % |   | $ | (301 | ) |   | (0.2 | )% |   | $ | 3,983 |  |   | 2.8 |  % |
| Legal settlement                  | — |  |   | — |  % |   | — |  |   | — | % |   | — |  |   | — |  % |   | 1,525 |  |   | 1.1 |  % |
| Restructuring reserve             | — |  |   | — |  % |   | — |  |   | — | % |   | 81 |  |   | 0.1 |  % |   | (37 | ) |   | — |  % |
| Non-GAAP operating (loss) income* | $ | (280 | ) |   | (0.6 | )% |   | $ | 1,892 |  |   | 4.0 | % |   | $ | (220 | ) |   | (0.2 | )% |   | $ | 5,471 |  |   | 3.8 |  % |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

|                                                                                                                                                                                                                                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                      | Three months ended June 30, |   | Nine months ended June 30, |
|                                                                                                                                                                                                                                                                                                      | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Net (loss) income and net income per common share, diluted                                                                                                                                                                                                                                                | $ | (101 | ) |   | $ | 0.00 |  |   | $ | 1,528 |  |   | $ | 0.06 |  |   | $ | 1,325 |  |   | $ | 0.05 |  |   | $ | 3,758 |  |   | $ | 0.14 |  |
| Legal settlement, net of taxes                                                                                                                                                                                                                                                                            | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 991 |  |   | 0.04 |  |
| Restructuring reserve, net of taxes                                                                                                                                                                                                                                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 53 |  |   | — |  |   | (24 | ) |   | — |  |
| Discrete tax benefits for extended research and development tax credits, re-measurement and reversal of certain tax reserves as a result of a federal income tax audit, reassessment of state research and development tax credits, and expiration of statute of limitations in various tax jurisdictions | (261 | ) |   | (0.01 | ) |   | (112 | ) |   | 0.00 |  |   | (1,581 | ) |   | (0.06 | ) |   | (632 | ) |   | (0.02 | ) |
| Non-GAAP net (loss) income and net (loss) income per diluted share *                                                                                                                                                                                                                                      | $ | (362 | ) |   | $ | (0.01 | ) |   | $ | 1,416 |  |   | $ | 0.05 |  |   | $ | (203 | ) |   | $ | (0.01 | ) |   | $ | 4,093 |  |   | $ | 0.16 |  |
| Diluted weighted average common shares                                                                                                                                                                                                                                                                    |   |   | 25,274 |  |   |   |   | 26,114 |  |   |   |   | 25,965 |  |   |   |   | 26,323 |  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | Three months ended June 30, |   | Nine months ended June 30, |
|                                                            | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                            |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Total revenue                                                   | $ | 47,885 |  |   | 100.0 |  % |   | $ | 48,824 |  |   | 100.0 |  % |   | $ | 141,089 |  |   | 100.0 |  % |   | $ | 144,012 |  |   | 100.0 |  % |
| Net (loss) income                                               | (101 | ) |   | (0.2 | )% |   | 1,528 |  |   | 3.1 |  % |   | 1,325 |  |   | 0.9 |  % |   | 3,758 |  |   | 2.6 |  % |
| Interest income, net                                            | (35 | ) |   | (0.1 | )% |   | (58 | ) |   | (0.1 | )% |   | (127 | ) |   | (0.1 | )% |   | (123 | ) |   | (0.1 | )% |
| Income tax (benefit) provision                                  | (213 | ) |   | (0.4 | )% |   | 363 |  |   | 0.8 |  % |   | (1,454 | ) |   | (1.0 | )% |   | 851 |  |   | 0.6 |  % |
| Depreciation and amortization                                   | 1,762 |  |   | 3.7 |  % |   | 1,968 |  |   | 4.0 |  % |   | 5,481 |  |   | 3.9 |  % |   | 5,877 |  |   | 4.1 |  % |
| Earnings before interest, taxes, depreciation and amortization* | $ | 1,413 |  |   | 3.0 |  % |   | $ | 3,801 |  |   | 7.8 |  % |   | $ | 5,225 |  |   | 3.7 |  % |   | $ | 10,363 |  |   | 7.2 |  % |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

|                               |
|-------------------------------|
|                               |  |  |
| Steve Snyder                  |   | Tom Caden |
| Digi International            |   | Dian Griesel Int'l. |
| 952-912-3637                  |   | 212-825-3210 |
| Email:  steve.snyder@digi.com |   | Email:  tcaden@dgicomm.com |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | Three months endedJune 30, |   | Nine months endedJune 30, |
|                              | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Revenue:                          |   |   |   |   |   |   |   |
| Hardware product                  | $ | 43,303 |  |   | $ | 42,330 |  |   | $ | 125,852 |  |   | $ | 128,484 |  |
| Service                           | 4,582 |  |   | 6,494 |  |   | 15,237 |  |   | 15,528 |  |
| Total revenue                     | 47,885 |  |   | 48,824 |  |   | 141,089 |  |   | 144,012 |  |
| Cost of sales:                    |   |   |   |   |   |   |   |
| Cost of hardware product          | 21,587 |  |   | 20,579 |  |   | 61,862 |  |   | 60,827 |  |
| Cost of service                   | 4,149 |  |   | 3,525 |  |   | 12,390 |  |   | 9,025 |  |
| Total cost of sales               | 25,736 |  |   | 24,104 |  |   | 74,252 |  |   | 69,852 |  |
| Gross profit                      | 22,149 |  |   | 24,720 |  |   | 66,837 |  |   | 74,160 |  |
| Operating expenses:               |   |   |   |   |   |   |   |
| Sales and marketing               | 9,859 |  |   | 10,372 |  |   | 30,477 |  |   | 31,060 |  |
| Research and development          | 7,253 |  |   | 7,606 |  |   | 21,921 |  |   | 22,798 |  |
| General and administrative        | 5,317 |  |   | 4,850 |  |   | 14,659 |  |   | 16,356 |  |
| Restructuring charges, net        | — |  |   | — |  |   | 81 |  |   | (37 | ) |
| Total operating expenses          | 22,429 |  |   | 22,828 |  |   | 67,138 |  |   | 70,177 |  |
| Operating (loss) income           | (280 | ) |   | 1,892 |  |   | (301 | ) |   | 3,983 |  |
| Other (expense) income, net:      |   |   |   |   |   |   |   |
| Interest income                   | 39 |  |   | 58 |  |   | 132 |  |   | 160 |  |
| Interest expense                  | (4 | ) |   | — |  |   | (5 | ) |   | (37 | ) |
| Other (expense) income, net       | (69 | ) |   | (59 | ) |   | 45 |  |   | 503 |  |
| Total other (expense) income, net | (34 | ) |   | (1 | ) |   | 172 |  |   | 626 |  |
| (Loss) income before income taxes | (314 | ) |   | 1,891 |  |   | (129 | ) |   | 4,609 |  |
| Income tax (benefit) provision    | (213 | ) |   | 363 |  |   | (1,454 | ) |   | 851 |  |
| Net (loss) income                 | $ | (101 | ) |   | $ | 1,528 |  |   | $ | 1,325 |  |   | $ | 3,758 |  |
| Net income per common share:      |   |   |   |   |   |   |   |
| Basic                             | $ | 0.00 |  |   | $ | 0.06 |  |   | $ | 0.05 |  |   | $ | 0.14 |  |
| Diluted                           | $ | 0.00 |  |   | $ | 0.06 |  |   | $ | 0.05 |  |   | $ | 0.14 |  |
| Weighted average common shares:   |   |   |   |   |   |   |   |
| Basic                             | 25,274 |  |   | 25,849 |  |   | 25,545 |  |   | 26,057 |  |
| Diluted                           | 25,274 |  |   | 26,114 |  |   | 25,965 |  |   | 26,323 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                | Three months endedJune 30, |   | Nine months endedJune 30, |
|                                                | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Net (loss) income                                   | $ | (101 | ) |   | $ | 1,528 |  |   | $ | 1,325 |  |   | $ | 3,758 |  |
| Other comprehensive income (loss), net of tax:      |   |   |   |   |   |   |   |
| Foreign currency translation adjustment             | 384 |  |   | 127 |  |   | 546 |  |   | (3,252 | ) |
| Change in net unrealized (loss) gain on investments | (2 | ) |   | (13 | ) |   | 62 |  |   | (72 | ) |
| Less income tax benefit (provision)                 | 1 |  |   | 5 |  |   | (24 | ) |   | 28 |  |
| Other comprehensive income (loss), net of tax       | 383 |  |   | 119 |  |   | 584 |  |   | (3,296 | ) |
| Comprehensive income                                | $ | 282 |  |   | $ | 1,647 |  |   | $ | 1,909 |  |   | $ | 462 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | June 30,                                        2014 |   | September 30,2013 |
| ASSETS                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 55,917 |  |   | $ | 41,320 |  |
| Marketable securities                            | 32,329 |  |   | 47,006 |  |
| Accounts receivable, net                         | 24,654 |  |   | 26,829 |  |
| Inventories                                      | 30,483 |  |   | 26,140 |  |
| Deferred tax assets                              | 3,464 |  |   | 3,174 |  |
| Other                                            | 5,049 |  |   | 4,835 |  |
| Total current assets                             | 151,896 |  |   | 149,304 |  |
| Marketable securities, long-term                 | 12,338 |  |   | 17,389 |  |
| Property, equipment and improvements, net        | 13,511 |  |   | 13,910 |  |
| Identifiable intangible assets, net              | 7,557 |  |   | 9,728 |  |
| Goodwill                                         | 104,329 |  |   | 103,569 |  |
| Deferred tax assets                              | 7,664 |  |   | 6,151 |  |
| Other                                            | 437 |  |   | 221 |  |
| Total assets                                     | $ | 297,732 |  |   | $ | 300,272 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |   |   |
| Current liabilities:                             |   |   |   |
| Accounts payable                                 | $ | 10,417 |  |   | $ | 8,906 |  |
| Accrued compensation                             | 7,792 |  |   | 7,410 |  |
| Accrued warranty                                 | 900 |  |   | 1,063 |  |
| Other                                            | 2,349 |  |   | 3,911 |  |
| Total current liabilities                        | 21,458 |  |   | 21,290 |  |
| Income taxes payable                             | 2,392 |  |   | 3,903 |  |
| Deferred tax liabilities                         | 288 |  |   | 415 |  |
| Other noncurrent liabilities                     | 242 |  |   | 79 |  |
| Total liabilities                                | 24,380 |  |   | 25,687 |  |
|                                             |   |   |   |
| Total stockholders’ equity                 | 273,352 |  |   | 274,585 |  |
| Total liabilities and stockholders’ equity | $ | 297,732 |  |   | $ | 300,272 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2014 Results |

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Nine months endedJune 30, |
|                                                                              | 2014 |   | 2013 |
| Operating activities:                                                             |   |   |   |
| Net income                                                                        | $ | 1,325 |  |   | $ | 3,758 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |
| Depreciation of property, equipment and improvements                              | 2,694 |  |   | 2,551 |  |
| Amortization of identifiable intangible assets                                    | 2,787 |  |   | 3,326 |  |
| Stock-based compensation                                                          | 3,160 |  |   | 2,906 |  |
| Excess tax benefits from stock-based compensation                                 | (44 | ) |   | (60 | ) |
| Deferred income tax benefit                                                       | (2,033 | ) |   | (1,397 | ) |
| Bad debt/product return (recovery) provision                                      | (196 | ) |   | 616 |  |
| Inventory obsolescence                                                            | 610 |  |   | 759 |  |
| Restructuring charges, net                                                        | 81 |  |   | (37 | ) |
| Other                                                                             | (24 | ) |   | (109 | ) |
| Changes in operating assets and liabilities (net of acquisition)                  | (5,815 | ) |   | (4,205 | ) |
| Net cash provided by operating activities                                         | 2,545 |  |   | 8,108 |  |
| Investing activities:                                                             |   |   |   |
| Purchase of marketable securities                                                 | (15,574 | ) |   | (49,121 | ) |
| Proceeds from maturities of marketable securities                                 | 35,364 |  |   | 51,773 |  |
| Acquisition of business, net of cash acquired                                     | — |  |   | (12,919 | ) |
| Purchase of property, equipment, improvements and certainother intangible assets  | (2,719 | ) |   | (2,415 | ) |
| Net cash provided by (used in) investing activities                               | 17,071 |  |   | (12,682 | ) |
| Financing activities:                                                             |   |   |   |
| Excess tax benefits from stock-based compensation                                 | 44 |  |   | 60 |  |
| Proceeds from stock option plan transactions                                      | 3,336 |  |   | 1,171 |  |
| Proceeds from employee stock purchase plan transactions                           | 770 |  |   | 740 |  |
| Purchases of common stock                                                         | (9,651 | ) |   | (10,577 | ) |
| Net cash used in financing activities                                             | (5,501 | ) |   | (8,606 | ) |
| Effect of exchange rate changes on cash and cash equivalents                      | 482 |  |   | (1,174 | ) |
| Net increase (decrease) in cash and cash equivalents                              | 14,597 |  |   | (14,354 | ) |
| Cash and cash equivalents, beginning of period                                    | 41,320 |  |   | 60,246 |  |
| Cash and cash equivalents, end of period                                          | $ | 55,917 |  |   | $ | 45,892 |  |
|                                                                              |   |   |   |
| Supplemental schedule of non-cash investing activities:                           |   |   |   |
| Issuance of common stock for business acquisition                                 | $ | — |  |   | $ | 6,804 |  |
| Securities purchased, not settled                                                 | $ | — |  |   | $ | 250 |  |