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|        |  |  |  |  |  |  |
|   |   | Digi International Reports Second Fiscal Quarter 2014 Results |   |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| GAAP Results                          |
| (in thousands, except per share data) |   | Q2 2014 |   | Q2 2013 |   | YTD 2014 |   | YTD 2013 |
| Total Revenue                         |   | $ | 45,882 |  |   | $ | 48,197 |  |   | $ | 93,204 |  |   | $ | 95,188 |  |
| Operating (Loss) Income               |   | $ | (649 | ) |   | $ | 419 |  |   | $ | (21 | ) |   | $ | 2,091 |  |
| Net Income                            |   | $ | 738 |  |   | $ | 1,000 |  |   | $ | 1,426 |  |   | $ | 2,230 |  |
| Net Income per Diluted Share          |   | $ | 0.03 |  |   | $ | 0.04 |  |   | $ | 0.05 |  |   | $ | 0.08 |  |

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-GAAP Results*                                                                                                 |
| (in thousands, except per share data)                                                                             |   | Q2 2014 |   | Q2 2013 |   | YTD 2014 |   | YTD 2013 |
| Operating (Loss) Income                                                                                           |   | $ | (649 | ) |   | $ | 1,907 |  |   | $ | 60 |  |   | $ | 3,579 |  |
| Net (Loss) Income                                                                                                 |   | $ | (367 | ) |   | $ | 1,591 |  |   | $ | 159 |  |   | $ | 2,677 |  |
| Net (Loss) Income per Diluted Share                                                                               |   | $ | (0.01 | ) |   | $ | 0.06 |  |   | $ | 0.01 |  |   | $ | 0.10 |  |
| * A table with a detailed reconciliation to non-GAAP information is provided at the end of this earnings release. |

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| Digi International Reports Second Fiscal Quarter 2014 Results |

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| Digi International Reports Second Fiscal Quarter 2014 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Digi International and Arrow Electronics Inc. signed a global distribution agreement expanding their existing successful North American distribution alliance. Arrow will offer leading Digi embedded products and Device Cloud by EtheriosTM, which allows any device to communicate with any application anywhere in the world. Previously available to Arrow customers in North America, these solutions now are available globally. This strategic relationship strengthens Digi’s worldwide channel strategy and increased ability to service large multi-national projects outside of North America. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | OEM Technology Solutions, a Digi International customer of over 20 years, announced that it will use Device Cloud by Etherios to further its offerings in preventative customer service and condition-based monitoring on rail systems throughout the world. OEM Technology Solutions equipment powers over 20,000 systems in rail cars in 20 countries. The company first turned to Digi International for its hardware, such as the ConnectCore® Wi-9C embedded wireless module and Digi TransPort® WR44 cellular gateway, to enable its products wirelessly. Now, Device Cloud makes that information even more accessible and actionable by making it available via the web. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Etherios will develop a system to maximize solar power generation. The system calculates the amount of energy needed per residence and transfers unused solar power to those in need by way of the smart grid. The Etherios Wireless Design Services group will develop the hardware and software, including a wireless gateway that will connect the energy monitoring system and Device Cloud by Etherios. The gateway will monitor electrical energy generation, storage and consumption, and export to the electrical utility. |

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The leading information system provider for the taxi business will use the ConnectCore® Wi-i.MX53 in solutions related to online card payment, intelligent positioning systems, and data collection systems. The company provides system and software integration services in demanding mobile system ventures. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In February, Digi International announced the release of the Digi TransPort® WR11, a cellular router that provides a secure and reliable connection for retail and point-of-sale applications. The Digi TransPort WR11 connects ATMs, lottery terminals, payment kiosks, vending machines, and digital signs with cellular networks. The WR11 helps retailers and payment network operators increase network uptime and reduce costs associated with disconnected stores and payment terminals. The WR11 is part of the Digi TransPort family of 3G/4G cellular routers that provide flexible, enterprise level cellular routers for remote and mobile networking applications. Many are used in large-scale secure electronic payment networks for point-of-sale, lottery, self-service kiosks, and off-premise ATM machines. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In February, Digi International announced the ConnectCore® 6, the world’s first surface mount multi-chip module with built-in wireless connectivity. The ConnectCore 6 provides access to all of the features of the Freescale® i.MX 6 Quad, i.MX 6 Dual and i.MX 6 Solo processors, making it the ideal solution for M2M applications. The module’s small form factor and design, which requires no connectors, reduces manufacturing costs and makes it easier than ever to add wireless capabilities to portable devices. |

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|                                                          |   |   |   |   |
| Digi International Reports Second Fiscal Quarter 2014 Results |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | Three months ended March 31, |   | Six months ended March 31, |
|                              | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                              |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Operating (Loss) Income           | $ | (649 | ) |   | (1.4 | )% |   | $ | 419 |  |   | 0.9 | % |   | $ | (21 | ) |   | — |  % |   | $ | 2,091 |  |   | 2.2 |  % |
| Legal settlement                  | — |  |   | — |  % |   | 1,525 |  |   | 3.2 | % |   | — |  |   | — |  % |   | 1,525 |  |   | 1.6 |  % |
| Restructuring reserve             | — |  |   | — |  % |   | (37 | ) |   | — | % |   | 81 |  |   | 0.1 |  % |   | (37 | ) |   | — |  % |
| Non-GAAP operating (loss) income* | $ | (649 | ) |   | (1.4 | )% |   | $ | 1,907 |  |   | 4.0 | % |   | $ | 60 |  |   | 0.1 |  % |   | $ | 3,579 |  |   | 3.8 |  % |

|                                                                                                                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                          | Three months ended March 31, |   | Six months ended March 31, |
|                                                                                                                                                                                                                                          | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Net income and net income per common share, diluted                                                                                                                                                                                           | $ | 738 |  |   | $ | 0.03 |  |   | $ | 1,000 |  |   | $ | 0.04 |  |   | $ | 1,426 |  |   | $ | 0.05 |  |   | $ | 2,230 |  |   | $ | 0.08 |  |
| Legal settlement, net of taxes                                                                                                                                                                                                                | — |  |   | — |  |   | 991 |  |   | 0.04 |  |   | — |  |   | — |  |   | 991 |  |   | 0.04 |  |
| Restructuring reserve, net of taxes                                                                                                                                                                                                           | — |  |   | — |  |   | (24 | ) |   | — |  |   | 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, and expiration of statute of limitations in various tax jurisdictions | (1,105 | ) |   | (0.04 | ) |   | (376 | ) |   | (0.01 | ) |   | (1,320 | ) |   | (0.05 | ) |   | (520 | ) |   | (0.02 | ) |
| Non-GAAP net (loss) income and net (loss) income per diluted share *                                                                                                                                                                          | $ | (367 | ) |   | $ | (0.01 | ) |   | $ | 1,591 |  |   | $ | 0.06 |  |   | $ | 159 |  |   | $ | 0.01 |  |   | $ | 2,677 |  |   | $ | 0.10 |  |
| Diluted weighted average common shares                                                                                                                                                                                                        |   |   | 26,144 |  |   |   |   | 26,476 |  |   |   |   | 26,189 |  |   |   |   | 26,474 |  |

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|                                                               |  |  |  |  |
|                                                          |   |   |   |   |
| Digi International Reports Second Fiscal Quarter 2014 Results |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | Three months ended March 31, |   | Six months ended March 31, |
|                                                            | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                            |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Total revenue                                                   | $ | 45,882 |  |   | 100.0 |  % |   | $ | 48,197 |  |   | 100.0 |  % |   | $ | 93,204 |  |   | 100.0 |  % |   | $ | 95,188 |  |   | 100.0 |  % |
| Net income                                                      | 738 |  |   | 1.6 |  % |   | 1,000 |  |   | 2.1 |  % |   | 1,426 |  |   | 1.5 |  % |   | 2,230 |  |   | 2.3 |  % |
| Interest income, net                                            | (49 | ) |   | (0.1 | )% |   | (13 | ) |   | — |  % |   | (92 | ) |   | (0.1 | )% |   | (65 | ) |   | (0.1 | )% |
| Income tax (benefit) provision                                  | (1,317 | ) |   | (2.9 | )% |   | (130 | ) |   | (0.3 | )% |   | (1,241 | ) |   | (1.3 | )% |   | 488 |  |   | 0.6 |  % |
| Depreciation and amortization                                   | 1,870 |  |   | 4.1 |  % |   | 1,990 |  |   | 4.1 |  % |   | 3,719 |  |   | 4.0 |  % |   | 3,909 |  |   | 4.1 |  % |
| Earnings before interest, taxes, depreciation and amortization* | $ | 1,242 |  |   | 2.7 |  % |   | $ | 2,847 |  |   | 5.9 |  % |   | $ | 3,812 |  |   | 4.1 |  % |   | $ | 6,562 |  |   | 6.9 |  % |

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|                                                               |  |  |  |  |
|                                                          |   |   |   |   |
| Digi International Reports Second Fiscal Quarter 2014 Results |

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|                                                               |  |  |  |  |
|                                                          |   |   |   |   |
| Digi International Reports Second 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 |

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|                                                               |  |  |  |  |
|                                                          |   |   |   |   |
| Digi International Reports Second Fiscal Quarter 2014 Results |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | Three months endedMarch 31, |   | Six months endedMarch 31, |
|                              | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Revenue:                          |   |   |   |   |   |   |   |
| Hardware product                  | $ | 40,560 |  |   | $ | 43,111 |  |   | $ | 82,549 |  |   | $ | 86,154 |  |
| Service                           | 5,322 |  |   | 5,086 |  |   | 10,655 |  |   | 9,034 |  |
| Total revenue                     | 45,882 |  |   | 48,197 |  |   | 93,204 |  |   | 95,188 |  |
| Cost of sales:                    |   |   |   |   |   |   |   |
| Cost of hardware product          | 20,012 |  |   | 20,122 |  |   | 40,275 |  |   | 40,248 |  |
| Cost of service                   | 4,090 |  |   | 3,114 |  |   | 8,241 |  |   | 5,500 |  |
| Total cost of sales               | 24,102 |  |   | 23,236 |  |   | 48,516 |  |   | 45,748 |  |
| Gross profit                      | 21,780 |  |   | 24,961 |  |   | 44,688 |  |   | 49,440 |  |
| Operating expenses:               |   |   |   |   |   |   |   |
| Sales and marketing               | 10,399 |  |   | 10,414 |  |   | 20,618 |  |   | 20,688 |  |
| Research and development          | 7,411 |  |   | 7,775 |  |   | 14,668 |  |   | 15,192 |  |
| General and administrative        | 4,619 |  |   | 6,390 |  |   | 9,342 |  |   | 11,506 |  |
| Restructuring charges, net        | — |  |   | (37 | ) |   | 81 |  |   | (37 | ) |
| Total operating expenses          | 22,429 |  |   | 24,542 |  |   | 44,709 |  |   | 47,349 |  |
| Operating (loss) income           | (649 | ) |   | 419 |  |   | (21 | ) |   | 2,091 |  |
| Other income, net:                |   |   |   |   |   |   |   |
| Interest income                   | 50 |  |   | 50 |  |   | 93 |  |   | 102 |  |
| Interest expense                  | (1 | ) |   | (37 | ) |   | (1 | ) |   | (37 | ) |
| Other income, net                 | 21 |  |   | 438 |  |   | 114 |  |   | 562 |  |
| Total other income, net           | 70 |  |   | 451 |  |   | 206 |  |   | 627 |  |
| (Loss) income before income taxes | (579 | ) |   | 870 |  |   | 185 |  |   | 2,718 |  |
| Income tax (benefit) provision    | (1,317 | ) |   | (130 | ) |   | (1,241 | ) |   | 488 |  |
| Net income                        | $ | 738 |  |   | $ | 1,000 |  |   | $ | 1,426 |  |   | $ | 2,230 |  |
| Net income per common share:      |   |   |   |   |   |   |   |
| Basic                             | $ | 0.03 |  |   | $ | 0.04 |  |   | $ | 0.06 |  |   | $ | 0.09 |  |
| Diluted                           | $ | 0.03 |  |   | $ | 0.04 |  |   | $ | 0.05 |  |   | $ | 0.08 |  |
| Weighted average common shares:   |   |   |   |   |   |   |   |
| Basic                             | 25,644 |  |   | 26,138 |  |   | 25,680 |  |   | 26,163 |  |
| Diluted                           | 26,144 |  |   | 26,476 |  |   | 26,189 |  |   | 26,474 |  |

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|                                                               |  |  |  |  |
|                                                          |   |   |   |   |
| Digi International Reports Second Fiscal Quarter 2014 Results |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                | Three months endedMarch 31, |   | Six months endedMarch 31, |
|                                                | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Net income                                          | $ | 738 |  |   | $ | 1,000 |  |   | $ | 1,426 |  |   | $ | 2,230 |  |
| Other comprehensive (loss) income, net of tax:      |   |   |   |   |   |   |   |
| Foreign currency translation adjustment             | (181 | ) |   | (3,090 | ) |   | 162 |  |   | (3,379 | ) |
| Change in net unrealized gain (loss) on investments | 26 |  |   | (61 | ) |   | 64 |  |   | (59 | ) |
| Less income tax (provision) benefit                 | (10 | ) |   | 24 |  |   | (25 | ) |   | 23 |  |
| Other comprehensive (loss) income, net of tax       | (165 | ) |   | (3,127 | ) |   | 201 |  |   | (3,415 | ) |
| Comprehensive income (loss)                         | $ | 573 |  |   | $ | (2,127 | ) |   | $ | 1,627 |  |   | $ | (1,185 | ) |

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|                                                               |  |  |  |  |
|                                                          |   |   |   |   |
| Digi International Reports Second Fiscal Quarter 2014 Results |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | March 31,2014 |   | September 30,2013 |
| ASSETS                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 43,557 |  |   | $ | 41,320 |  |
| Marketable securities                            | 45,035 |  |   | 47,006 |  |
| Accounts receivable, net                         | 25,900 |  |   | 26,829 |  |
| Inventories                                      | 30,592 |  |   | 26,140 |  |
| Deferred tax assets                              | 3,435 |  |   | 3,174 |  |
| Other                                            | 5,261 |  |   | 4,835 |  |
| Total current assets                             | 153,780 |  |   | 149,304 |  |
| Marketable securities, long-term                 | 10,804 |  |   | 17,389 |  |
| Property, equipment and improvements, net        | 13,673 |  |   | 13,910 |  |
| Identifiable intangible assets, net              | 8,309 |  |   | 9,728 |  |
| Goodwill                                         | 104,045 |  |   | 103,569 |  |
| Deferred tax assets                              | 6,520 |  |   | 5,832 |  |
| Other                                            | 419 |  |   | 221 |  |
| Total assets                                     | $ | 297,550 |  |   | $ | 299,953 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |   |   |
| Current liabilities:                             |   |   |   |
| Accounts payable                                 | $ | 9,114 |  |   | $ | 8,906 |  |
| Accrued compensation                             | 6,198 |  |   | 7,410 |  |
| Accrued warranty                                 | 972 |  |   | 1,063 |  |
| Other                                            | 2,725 |  |   | 3,911 |  |
| Total current liabilities                        | 19,009 |  |   | 21,290 |  |
| Income taxes payable                             | 2,387 |  |   | 3,903 |  |
| Deferred tax liabilities                         | 330 |  |   | 415 |  |
| Other noncurrent liabilities                     | 124 |  |   | 79 |  |
| Total liabilities                                | 21,850 |  |   | 25,687 |  |
|                                             |   |   |   |
| Total stockholders’ equity                 | 275,700 |  |   | 274,266 |  |
| Total liabilities and stockholders’ equity | $ | 297,550 |  |   | $ | 299,953 |  |

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

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Six months endedMarch 31, |
|                                                                              | 2014 |   | 2013 |
| Operating activities:                                                             |   |   |   |
| Net income                                                                        | $ | 1,426 |  |   | $ | 2,230 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |
| Depreciation of property, equipment and improvements                              | 1,828 |  |   | 1,705 |  |
| Amortization of identifiable intangible assets                                    | 1,891 |  |   | 2,204 |  |
| Stock-based compensation                                                          | 2,070 |  |   | 1,914 |  |
| Excess tax benefits from stock-based compensation                                 | (44 | ) |   | (53 | ) |
| Deferred income tax benefit                                                       | (1,065 | ) |   | (1,079 | ) |
| Bad debt/product return (recovery) provision                                      | (151 | ) |   | 285 |  |
| Inventory obsolescence                                                            | 409 |  |   | 554 |  |
| Restructuring charges, net                                                        | 81 |  |   | — |  |
| Other                                                                             | 46 |  |   | (307 | ) |
| Changes in operating assets and liabilities (net of acquisition)                  | (9,681 | ) |   | (4,103 | ) |
| Net cash (used in) provided by operating activities                               | (3,190 | ) |   | 3,350 |  |
| Investing activities:                                                             |   |   |   |
| Purchase of marketable securities                                                 | (5,157 | ) |   | (37,337 | ) |
| Proceeds from maturities of marketable securities                                 | 13,778 |  |   | 38,161 |  |
| Acquisition of business, net of cash acquired                                     | — |  |   | (12,919 | ) |
| Purchase of property, equipment, improvements and certainother intangible assets  | (1,921 | ) |   | (2,080 | ) |
| Net cash provided by (used in) investing activities                               | 6,700 |  |   | (14,175 | ) |
| Financing activities:                                                             |   |   |   |
| Excess tax benefits from stock-based compensation                                 | 44 |  |   | 53 |  |
| Proceeds from stock option plan transactions                                      | 3,209 |  |   | 590 |  |
| Proceeds from employee stock purchase plan transactions                           | 561 |  |   | 248 |  |
| Purchases of common stock                                                         | (5,416 | ) |   | (6,765 | ) |
| Net cash used in financing activities                                             | (1,602 | ) |   | (5,874 | ) |
| Effect of exchange rate changes on cash and cash equivalents                      | 329 |  |   | (1,190 | ) |
| Net increase (decrease) in cash and cash equivalents                              | 2,237 |  |   | (17,889 | ) |
| Cash and cash equivalents, beginning of period                                    | 41,320 |  |   | 60,246 |  |
| Cash and cash equivalents, end of period                                          | $ | 43,557 |  |   | $ | 42,357 |  |
|                                                                              |   |   |   |
| Supplemental schedule of non-cash investing activities:                           |   |   |   |
| Issuance of common stock for business acquisition                                 | $ | — |  |   | $ | 6,804 |  |