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|   |   | Digi International Reports Third Fiscal Quarter 2013 Results |   |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |
| GAAP Results                          |
| (in thousands, except per share data) |   | Q3 2013 |   | Q3 2012 |   | YTD 2013 |   | YTD 2012 |
| Net Sales                             |   | $48,824 |   | $47,632 |   | $144,012 |   | $143,310 |
| Operating Income                      |   | $1,892 |   | $2,082 |   | $3,983 |   | $6,327 |
| Net Income                            |   | $1,528 |   | $2,307 |   | $3,758 |   | $5,153 |
| Net Income per Diluted Share          |   | $0.06 |   | $0.09 |   | $0.14 |   | $0.20 |

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |
| Non-GAAP Results*                                                                                            |
| (in thousands, except per share data)                                                                        |   | Q3 2013 |   | Q3 2012 |   | YTD 2013 |   | YTD 2012 |
| Operating Income                                                                                             |   | $1,892 |   | $3,045 |   | $5,471 |   | $7,586 |
| Net Income                                                                                                   |   | $1,416 |   | $1,853 |   | $4,093 |   | $4,680 |
| Net Income per Diluted Share                                                                                 |   | $0.05 |   | $0.07 |   | $0.16 |   | $0.18 |
| * A table with a detailed reconciliation to non-GAAP information is provided later in this earnings release. |

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| Digi International Reports Third Fiscal Quarter 2013 Results |

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| Digi International Reports Third Fiscal Quarter 2013 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | With the introduction of The Social Machine®, Digi's Etherios division turns data from products into actionable business information.   Typically this has required complex and costly custom application development. The Social Machine software makes this easy and is the industry's first cloud-based application for connecting widely deployed products into core business processes via the Salesforce Platform.  By providing real time performance data, The Social Machine can dramatically evolve Customer Support operations from typical reactive support to support that is proactive and preventative.  Now available through the Salesforce.com's AppExchange, The Social Machine has received strong interest from the Salesforce.com ecosystem. |

|         |                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Validating the significance of The Social Machine's impact on the M2M industry, ABI Research highlighted the platform in its recent report titled “Convergence of Social Networking and M2M Services.” |

|         |                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The iDigi Device Cloud was rebranded as Device Cloud by EtheriosTM to emphasize that Device Cloud works with any manufacturer's hardware-not just Digi hardware. |

|         |                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Digi's wireless design division, Spectrum Design Solutions, has combined with the Etherios division as Wireless Design Services to provide more capability to an expanded customer base. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Demonstrating how real-time M2M data can provide insight into customer behaviors and preferences, Digi and Etherios deployed a 500-node sensor network for the Data Sensing Lab at Google's developer conference, Google I/O.  The sensor network's 4,000 data streams running over Device Cloud provided continuous updates on temperature, pressure, light, air quality, motion and noise levels in San Francisco's Moscone Center during the conference. Device Cloud collected more than 500,000 data points per hour during Google I/O for the project. The data is now available to the 5,500 Google I/O developers, along with everyone interested in big data and the Internet of Things. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Continuing its leadership in wireless innovation, Digi launched the Digi Transport® WR44 RR, an enterprise-class cellular router designed specifically for rugged on-board rail environments.  The router is ideal for locomotive communications and monitoring, establishing passenger Internet access and Positive Train Control (PTC), a system for monitoring and controlling train movement to increase railway safety. |

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| Digi International Reports Third Fiscal Quarter 2013 Results |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | For the threemonths endedJune 30,2013 |   | % of netsales |   | For the threemonths endedJune 30,2012 |   | % of netsales |   | For the ninemonths endedJune 30,2013 |   | % of netsales |   | For the nine months endedJune 30,2012 |   | % of netsales |
| Operating Income           | $ | 1,892 |  |   | 3.9 | % |   | $ | 2,082 |  |   | 4.4 | % |   | $ | 3,983 |  |   | 2.8 | % |   | $ | 6,327 |  |   | 4.4 | % |
| Legal settlement           | — |  |   | — |  |   | — |  |   | — |  |   | 1,525 |  |   | 1.1 | % |   | — |  |   | — |  |
| Restructuring reserve      | — |  |   | — |  |   | 963 |  |   | 2.0 | % |   | (37 | ) |   | — |  |   | 1,259 |  |   | 0.9 | % |
| Non-GAAP operating income* | $ | 1,892 |  |   | 3.9 | % |   | $ | 3,045 |  |   | 6.4 | % |   | $ | 5,471 |  |   | 3.8 | % |   | $ | 7,586 |  |   | 5.3 | % |

|                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                        | Three months ended June 30, |   | Nine months ended June 30, |
|                                                                                                                                                        | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net income and net income per common share, diluted                                                                                                         | $ | 1,528 |  |   | $ | 0.06 |  |   | $ | 2,307 |  |   | $ | 0.09 |  |   | $ | 3,758 |  |   | $ | 0.14 |  |   | $ | 5,153 |  |   | $ | 0.20 |  |
| Legal settlement, net of taxes                                                                                                                              | — |  |   | — |  |   | — |  |   | — |  |   | 991 |  |   | 0.04 |  |   | — |  |   | — |  |
| Restructuring reserve, net of taxes                                                                                                                         | — |  |   | — |  |   | 626 |  |   | 0.02 |  |   | (24 | ) |   | — |  |   | 818 |  |   | 0.03 |  |
| Gain on sale of investment, net of taxes                                                                                                                    | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (88 | ) |   | — |  |
| Discrete tax benefits for extended research and development tax credit and reversal of tax reserves for closure of various jurisdictions’ tax matters | (112 | ) |   | — |  |   | (1,080 | ) |   | (0.04 | ) |   | (632 | ) |   | (0.02 | ) |   | (1,023 | ) |   | (0.05 | ) |
| Non-GAAP net income and net income per diluted share *                                                                                                      | $ | 1,416 |  |   | $ | 0.05 |  |   | $ | 1,853 |  |   | $ | 0.07 |  |   | $ | 4,093 |  |   | $ | 0.16 |  |   | $ | 4,860 |  |   | $ | 0.18 |  |
| Diluted weighted average common shares                                                                                                                      |   |   | 26,114 |  |   |   |   | 26,043 |  |   |   |   | 26,323 |  |   |   |   | 26,138 |  |

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| Digi International Reports Third Fiscal Quarter 2013 Results |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | For the threemonths endedJune 30,2013 |   | % of netsales |   | For the threemonths endedJune 30,2012 |   | % of netsales |   | For the ninemonths endedJune 30,2013 |   | % of netsales |   | For the ninemonths endedJune 30,2012 |   | % of netsales |
| Net sales                                                        | $ | 48,824 |  |   | 100.0 |  % |   | $ | 47,632 |  |   | 100.0 |  % |   | $ | 144,012 |  |   | 100.0 |  % |   | $ | 143,310 |  |   | 100.0 |  % |
| Net income                                                       | 1,528 |  |   | 3.1 |  % |   | 2,307 |  |   | 4.8 |  % |   | 3,758 |  |   | 2.6 |  % |   | 5,153 |  |   | 3.6 |  % |
| Interest income, net                                             | (58 | ) |   | (0.1 | )% |   | (71 | ) |   | (0.1 | )% |   | (123 | ) |   | (0.1 | )% |   | (202 | ) |   | (0.1 | )% |
| Income tax provision (benefit)                                   | 363 |  |   | 0.8 |  % |   | (346 | ) |   | (0.7 | )% |   | 851 |  |   | 0.6 |  % |   | 1,339 |  |   | 0.9 |  % |
| Depreciation and amortization                                    | 1,968 |  |   | 4.0 |  % |   | 1,977 |  |   | 4.2 |  % |   | 5,877 |  |   | 4.1 |  % |   | 6,020 |  |   | 4.2 |  % |
| Earnings before interest, taxes, depreciation and amortization * | $ | 3,801 |  |   | 7.8 |  % |   | $ | 3,867 |  |   | 8.1 |  % |   | $ | 10,363 |  |   | 7.2 |  % |   | $ | 12,310 |  |   | 8.6 |  % |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2013 Results |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2013 Results |

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

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2013 Results |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | Three months ended June 30, |   | Nine months ended June 30, |
|                              | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net sales                         | $ | 48,824 |  |   | $ | 47,632 |  |   | $ | 144,012 |  |   | $ | 143,310 |  |
| Cost of sales                     | 24,104 |  |   | 22,328 |  |   | 69,852 |  |   | 67,793 |  |
| Gross profit                      | 24,961 |  |   | 25,783 |  |   | 49,440 |  |   | 50,213 |  |
| Operating expenses:               |   |   |   |   |   |  |   |   |  |
| Sales and marketing               | 10,372 |  |   | 9,920 |  |   | 31,060 |  |   | 30,359 |  |
| Research and development          | 7,606 |  |   | 7,779 |  |   | 22,798 |  |   | 23,764 |  |
| General and administrative        | 4,850 |  |   | 4,560 |  |   | 16,356 |  |   | 13,808 |  |
| Restructuring                     | — |  |   | 963 |  |   | (37 | ) |   | 1,259 |  |
| Total operating expenses          | 22,828 |  |   | 23,222 |  |   | 70,177 |  |   | 69,190 |  |
| Operating income                  | 1,892 |  |   | 2,082 |  |   | 3,983 |  |   | 6,327 |  |
| Other (expense) income, net:      |   |   |   |   |   |   |   |
| Interest income                   | 58 |  |   | 71 |  |   | 160 |  |   | 217 |  |
| Interest expense                  | — |  |   | — |  |   | (37 | ) |   | (15 | ) |
| Other (expense) income, net       | (59 | ) |   | (192 | ) |   | 503 |  |   | (37 | ) |
| Total other (expense) income, net | (1 | ) |   | (121 | ) |   | 626 |  |   | 165 |  |
| Income before income taxes        | 1,891 |  |   | 1,961 |  |   | 4,609 |  |   | 6,492 |  |
| Income tax provision (benefit)    | 363 |  |   | (346 | ) |   | 851 |  |   | 1,339 |  |
| Net income                        | $ | 1,528 |  |   | $ | 2,307 |  |   | $ | 3,758 |  |   | $ | 5,153 |  |
| Net income per common share:      |   |   |   |   |   |  |   |   |  |
| Basic                             | $ | 0.06 |  |   | $ | 0.09 |  |   | $ | 0.14 |  |   | $ | 0.20 |  |
| Diluted                           | $ | 0.06 |  |   | $ | 0.09 |  |   | $ | 0.14 |  |   | $ | 0.20 |  |
| Weighted average common shares:   |   |   |   |   |   |  |   |   |  |
| Basic                             | 25,849 |  |   | 25,770 |  |   | 26,057 |  |   | 25,705 |  |
| Diluted                           | 26,114 |  |   | 26,043 |  |   | 26,323 |  |   | 26,138 |  |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2013 Results |

|                                                                                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                       | Three months ended June 30, |   | Nine months ended June 30, |
|                                                                                                                                                                                                       | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net income                                                                                                                                                                                                 | $ | 1,528 |  |   | $ | 2,307 |  |   | $ | 3,758 |  |   | $ | 5,153 |  |
| Other comprehensive income (loss), net of tax:                                                                                                                                                             |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                                                                                                                    | 127 |  |   | (2,533 | ) |   | (3,252 | ) |   | (4,455 | ) |
| Change in net unrealized (loss) gain on investments                                                                                                                                                        | (13 | ) |   | (7 | ) |   | (72 | ) |   | 80 |  |
| Less income tax benefit (provision)                                                                                                                                                                        | 5 |  |   | 3 |  |   | 28 |  |   | (31 | ) |
| Reclassification of realized loss on investments included in net income (1)                                                                                                                                | — |  |   | — |  |   | — |  |   | 12 |  |
| Less income tax benefit (2)                                                                                                                                                                                | — |  |   | — |  |   | — |  |   | (5 | ) |
| Other comprehensive income (loss), net of tax                                                                                                                                                              | 119 |  |   | (2,537 | ) |   | (3,296 | ) |   | (4,399 | ) |
| Comprehensive income (loss)                                                                                                                                                                                | $ | 1,647 |  |   | $ | (230 | ) |   | $ | 462 |  |   | $ | 754 |  |
| (1)  Recorded in Other (expense) income, net in our Condensed Consolidated Statements of Operations(2)  Recorded in Income tax provision (benefit) in our Condensed Consolidated Statements of Operations. |

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|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2013 Results |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | June 30,2013 |   | September 30,2012 |
| ASSETS                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 45,892 |  |   | $ | 60,246 |  |
| Marketable securities                            | 44,806 |  |   | 58,372 |  |
| Accounts receivable, net                         | 24,969 |  |   | 24,634 |  |
| Inventories                                      | 25,296 |  |   | 24,435 |  |
| Deferred tax assets                              | 3,151 |  |   | 3,389 |  |
| Other                                            | 5,772 |  |   | 2,493 |  |
| Total current assets                             | 149,886 |  |   | 173,569 |  |
| Marketable securities, long-term                 | 13,108 |  |   | 2,016 |  |
| Property, equipment and improvements, net        | 14,480 |  |   | 15,157 |  |
| Identifiable intangible assets, net              | 11,021 |  |   | 10,629 |  |
| Goodwill                                         | 102,611 |  |   | 86,209 |  |
| Deferred tax assets                              | 5,232 |  |   | 5,010 |  |
| Other                                            | 528 |  |   | 494 |  |
| Total assets                                     | $ | 296,866 |  |   | $ | 293,084 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |   |   |
| Current liabilities:                             |   |   |   |
| Accounts payable                                 | $ | 8,505 |  |   | $ | 6,040 |  |
| Income taxes payable                             | — |  |   | 1,269 |  |
| Accrued compensation                             | 7,718 |  |   | 5,744 |  |
| Accrued warranty                                 | 1,132 |  |   | 1,021 |  |
| Other                                            | 3,424 |  |   | 4,118 |  |
| Total current liabilities                        | 20,779 |  |   | 18,192 |  |
| Income taxes payable                             | 3,284 |  |   | 3,294 |  |
| Deferred tax liabilities                         | 444 |  |   | 630 |  |
| Other noncurrent liabilities                     | 97 |  |   | 111 |  |
| Total liabilities                                | 24,604 |  |   | 22,227 |  |
|                                             |   |   |   |
| Total stockholders’ equity                 | 272,262 |  |   | 270,857 |  |
| Total liabilities and stockholders’ equity | $ | 296,866 |  |   | $ | 293,084 |  |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2013 Results |

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Nine months endedJune 30, |
|                                                                              | 2013 |   | 2012 |
| Operating activities:                                                             |   |   |   |
| Net income                                                                        | $ | 3,758 |  |   | $ | 5,153 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |
| Depreciation of property, equipment and improvements                              | 2,551 |  |   | 2,483 |  |
| Amortization of identifiable intangible assets                                    | 3,326 |  |   | 3,537 |  |
| Stock-based compensation                                                          | 2,906 |  |   | 2,798 |  |
| Excess tax benefits from stock-based compensation                                 | (60 | ) |   | (133 | ) |
| Deferred income tax benefit                                                       | (1,397 | ) |   | (1,791 | ) |
| Bad debt/product return provision                                                 | 616 |  |   | 521 |  |
| Inventory obsolescence                                                            | 759 |  |   | 1,080 |  |
| Restructuring                                                                     | — |  |   | 1,259 |  |
| Other                                                                             | (109 | ) |   | (81 | ) |
| Changes in operating assets and liabilities (net of acquisition)                  | (4,242 | ) |   | (5,867 | ) |
| Net cash provided by operating activities                                         | 8,108 |  |   | 8,959 |  |
| Investing activities:                                                             |   |   |   |
| Purchase of marketable securities                                                 | (49,121 | ) |   | (64,234 | ) |
| Proceeds from maturities of marketable securities                                 | 51,773 |  |   | 45,998 |  |
| Proceeds from sale of investment                                                  | — |  |   | 135 |  |
| Acquisition of business, net of cash acquired                                     | (12,919 | ) |   | — |  |
| Purchase of property, equipment, improvements and certain other intangible assets | (2,415 | ) |   | (3,003 | ) |
| Net cash used in investing activities                                             | (12,682 | ) |   | (21,104 | ) |
| Financing activities:                                                             |   |   |   |
| Excess tax benefits from stock-based compensation                                 | 60 |  |   | 133 |  |
| Proceeds from stock option plan transactions                                      | 1,171 |  |   | 600 |  |
| Proceeds from employee stock purchase plan transactions                           | 740 |  |   | 811 |  |
| Purchases of common stock                                                         | (10,577 | ) |   | — |  |
| Net cash (used) provided by financing activities                                  | (8,606 | ) |   | 1,544 |  |
| Effect of exchange rate changes on cash and cash equivalents                      | (1,174 | ) |   | (1,869 | ) |
| Net decrease in cash and cash equivalents                                         | (14,354 | ) |   | (12,470 | ) |
| Cash and cash equivalents, beginning of period                                    | 60,246 |  |   | 54,684 |  |
| Cash and cash equivalents, end of period                                          | $ | 45,892 |  |   | $ | 42,214 |  |
|                                                                              |   |   |   |
| Supplemental schedule of non-cash investing and financing activities:             |   |   |   |
| Issuance of common stock for business acquisition                                 | $ | (6,804 | ) |   | $ | — |  |
| Securities purchased, not settled                                                 | $ | (250 | ) |   | $ | — |  |