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

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |
| GAAP Results                          |
| (in thousands, except per share data) |   | Q2 2013 |   | Q2 2012 |   | YTD 2013 |   | YTD 2012 |
| Net Sales                             |   | $48,197 |   | $49,016 |   | $95,188 |   | $95,678 |
| Operating Income                      |   | $419 |   | $3,429 |   | $2,091 |   | $4,245 |
| Net Income                            |   | $1,000 |   | $2,122 |   | $2,230 |   | $2,846 |
| Net Income per Diluted Share          |   | $0.04 |   | $0.08 |   | $0.08 |   | $0.11 |

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |
| Non-GAAP Results*                                                                                            |
| (in thousands, except per share data)                                                                        |   | Q2 2013 |   | Q2 2012 |   | YTD 2013 |   | YTD 2012 |
| Operating Income                                                                                             |   | $1,907 |   | $3,489 |   | $3,579 |   | $4,541 |
| Net Income                                                                                                   |   | $1,591 |   | $2,161 |   | $2,677 |   | $2,827 |
| Net Income per Diluted Share                                                                                 |   | $0.06 |   | $0.08 |   | $0.10 |   | $0.11 |
| * A table with a detailed reconciliation to non-GAAP information is provided later in this earnings release. |

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

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

|         |                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Digi strengthened its sales organization with the appointment of Kevin C. Riley as senior vice president of sales.  Riley provides years of solutions selling experience and will be instrumental in driving increased sales of M2M solutions and creating process improvement in the Digi sales organization. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Last week, Digi announced a rebrand of the iDigi Device Cloud® as Device Cloud by EtheriosTM, to be completed by the beginning of May.  Etherios, a division of Digi International and Salesforce.com Cloud Alliance Platinum Partner, is a widely recognized cloud computing services provider with a longstanding track record of helping organizations realize their cloud strategy.  The rebranding emphasizes the openness of the Device Cloud and that it is hardware manufacturer independent. |

|         |                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Digi enhanced the Etherios Device Cloud with the addition of carrier subscription management capabilities.  Organizations can now create M2M applications, manage remote devices and oversee carrier subscriptions from more than 90 global carriers in one management interface. |

|         |                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Continuing its leadership in wireless innovation, Digi launched the next generation of its XBee Wi-Fi module.  It features native Etherios Device Cloud integration and other new features to enable rapid deployment of cloud-based M2M solutions. |

|         |                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Digi makes development of cloud-connected Android devices fast and easy with the introduction of the ConnectCard for i.MX28 module with Android.  Based on Freescale Semiconductor technology, the product demonstrates Digi's commitment to Freescale Semiconductor. |

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

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | For the threemonths endedMarch 31,2013 |   | % of netsales |   | For the threemonths endedMarch 31,2012 |   | % of netsales |   | For the sixmonths endedMarch 31,2013 |   | % of netsales |   | For the sixmonths endedMarch 31,2012 |   | % of netsales |
| Operating Income          | $ | 419 |  |   | 0.9 | % |   | $ | 3,429 |  |   | 7.0 | % |   | $ | 2,091 |  |   | 2.2 | % |   | $ | 4,245 |  |   | 4.4 | % |
| Legal settlement          | 1,525 |  |   | 3.2 | % |   | — |  |   | — |  |   | 1,525 |  |   | 1.6 | % |   | — |  |   | — |  |
| Restructuring reserve     | (37 | ) |   | — |  |   | 60 |  |   | 0.1 | % |   | (37 | ) |   | — |  |   | 296 |  |   | 0.3 | % |
| Non-GAAP operating income | $ | 1,907 |  |   | 4.0 | % |   | $ | 3,489 |  |   | 7.1 | % |   | $ | 3,579 |  |   | 3.8 | % |   | $ | 4,541 |  |   | 4.7 | % |

|                                                                                                                                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                      | Three months ended March 31, |   | Six months ended March 31, |
|                                                                                                                                                                                                      | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net income and net income per common share, diluted                                                                                                                                                       | $ | 1,000 |  |   | $ | 0.04 |  |   | $ | 2,122 |  |   | $ | 0.08 |  |   | $ | 2,230 |  |   | $ | 0.08 |  |   | $ | 2,846 |  |   | $ | 0.11 |  |
| Legal settlement, net of taxes                                                                                                                                                                            | 991 |  |   | 0.04 |  |   | — |  |   | — |  |   | 991 |  |   | 0.04 |  |   | — |  |   | — |  |
| Restructuring reserve, net of taxes                                                                                                                                                                       | (24 | ) |   | — |  |   | 39 |  |   | 0.00 |  |   | (24 | ) |   | — |  |   | 192 |  |   | 0.01 |  |
| Gain on sale of investment, net of taxes                                                                                                                                                                  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (88 | ) |   | 0.00 |  |
| Discrete tax benefits for extended research and development tax credit recorded in the second quarter of fiscal 2013 and reversal of tax reserves for closure of various jurisdictions’ tax matters | (376 | ) |   | (0.01 | ) |   | — |  |   | — |  |   | (520 | ) |   | (0.02 | ) |   | (123 | ) |   | 0.00 |  |
| Non-GAAP net income and net income per diluted share *                                                                                                                                                    | $ | 1,591 |  |   | $ | 0.06 |  |   | $ | 2,161 |  |   | $ | 0.08 |  |   | $ | 2,677 |  |   | $ | 0.10 |  |   | $ | 2,827 |  |   | $ | 0.11 |  |
| Diluted weighted average common shares                                                                                                                                                                    |   |   | 26,476 |  |   |   |   | 26,205 |  |   |   |   | 26,474 |  |   |   |   | 26,172 |  |

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

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | For the threemonths endedMarch 31,2013 |   | % of netsales |   | For the threemonths endedMarch 31,2012 |   | % of netsales |   | For the sixmonths endedMarch 31,2013 |   | % of netsales |   | For the sixmonths endedMarch 31,2012 |   | % of netsales |
| Net sales                                                        | $ | 48,197 |  |   | 100.0 |  % |   | $ | 49,016 |  |   | 100.0 |  % |   | $ | 95,188 |  |   | 100.0 |  % |   | $ | 95,678 |  |   | 100.0 |  % |
| Net income                                                       | 1,000 |  |   | 2.1 |  % |   | 2,122 |  |   | 4.3 |  % |   | 2,230 |  |   | 2.3 |  % |   | 2,846 |  |   | 3.0 |  % |
| Interest income, net                                             | (13 | ) |   | — |  % |   | (59 | ) |   | (0.1 | )% |   | (65 | ) |   | (0.1 | )% |   | (131 | ) |   | (0.1 | )% |
| Income tax (benefit) provision                                   | (130 | ) |   | (0.3 | )% |   | 1,374 |  |   | 2.8 |  % |   | 488 |  |   | 0.5 |  % |   | 1,685 |  |   | 1.8 |  % |
| Depreciation and amortization                                    | 1,990 |  |   | 4.1 |  % |   | 2,014 |  |   | 4.1 |  % |   | 3,909 |  |   | 4.1 |  % |   | 4,043 |  |   | 4.2 |  % |
| Earnings before interest, taxes, depreciation and amortization * | $ | 2,847 |  |   | 5.9 |  % |   | $ | 5,451 |  |   | 11.1 |  % |   | $ | 6,562 |  |   | 6.9 |  % |   | $ | 8,443 |  |   | 8.8 |  % |

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

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

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Three months ended March 31, |   | Six months ended March 31, |
|                            | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net sales                       | $ | 48,197 |  |   | $ | 49,016 |  |   | $ | 95,188 |  |   | $ | 95,678 |  |
| Cost of sales                   | 23,236 |  |   | 23,233 |  |   | 45,748 |  |   | 45,465 |  |
| Gross profit                    | 24,961 |  |   | 25,783 |  |   | 49,440 |  |   | 50,213 |  |
| Operating expenses:             |   |   |   |   |   |  |   |   |  |
| Sales and marketing             | 10,414 |  |   | 10,340 |  |   | 20,688 |  |   | 20,439 |  |
| Research and development        | 7,775 |  |   | 7,753 |  |   | 15,192 |  |   | 15,985 |  |
| General and administrative      | 6,390 |  |   | 4,201 |  |   | 11,506 |  |   | 9,248 |  |
| Restructuring                   | (37 | ) |   | 60 |  |   | (37 | ) |   | 296 |  |
| Total operating expenses        | 24,542 |  |   | 22,354 |  |   | 47,349 |  |   | 45,968 |  |
| Operating income                | 419 |  |   | 3,429 |  |   | 2,091 |  |   | 4,245 |  |
| Other income (expense), net:    |   |   |   |   |   |   |   |
| Interest income                 | 50 |  |   | 74 |  |   | 102 |  |   | 146 |  |
| Interest expense                | (37 | ) |   | (15 | ) |   | (37 | ) |   | (15 | ) |
| Other income, net               | 438 |  |   | 8 |  |   | 562 |  |   | 155 |  |
| Total other income, net         | 451 |  |   | 67 |  |   | 627 |  |   | 286 |  |
| Income before income taxes      | 870 |  |   | 3,496 |  |   | 2,718 |  |   | 4,531 |  |
| Income tax (benefit) provision  | (130 | ) |   | 1,374 |  |   | 488 |  |   | 1,685 |  |
| Net income                      | $ | 1,000 |  |   | $ | 2,122 |  |   | $ | 2,230 |  |   | $ | 2,846 |  |
| Net income per common share:    |   |   |   |   |   |  |   |   |  |
| Basic                           | $ | 0.04 |  |   | $ | 0.08 |  |   | $ | 0.09 |  |   | $ | 0.11 |  |
| Diluted                         | $ | 0.04 |  |   | $ | 0.08 |  |   | $ | 0.08 |  |   | $ | 0.11 |  |
| Weighted average common shares: |   |   |   |   |   |  |   |   |  |
| Basic                           | 26,138 |  |   | 25,709 |  |   | 26,163 |  |   | 25,674 |  |
| Diluted                         | 26,476 |  |   | 26,205 |  |   | 26,474 |  |   | 26,172 |  |

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

|                                                                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                            | Three months ended March 31, |   | Six months ended March 31, |
|                                                                                                                                                                                            | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net income                                                                                                                                                                                      | $ | 1,000 |  |   | $ | 2,122 |  |   | $ | 2,230 |  |   | $ | 2,846 |  |
| Other comprehensive income (loss), net of tax:                                                                                                                                                  |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                                                                                                         | (3,090 | ) |   | (139 | ) |   | (3,379 | ) |   | (1,922 | ) |
| Change in net unrealized (loss) gain on investments                                                                                                                                             | (61 | ) |   | 64 |  |   | (59 | ) |   | 87 |  |
| Less income tax benefit (provision)                                                                                                                                                             | 24 |  |   | (25 | ) |   | 23 |  |   | (34 | ) |
| Reclassification of realized loss on investments included in net income (1)                                                                                                                     | — |  |   | — |  |   | — |  |   | 12 |  |
| Less income tax benefit (2)                                                                                                                                                                     | — |  |   | — |  |   | — |  |   | (5 | ) |
| Other comprehensive loss, net of tax                                                                                                                                                            | (3,127 | ) |   | (100 | ) |   | (3,415 | ) |   | (1,862 | ) |
| Comprehensive (loss) income                                                                                                                                                                     | $ | (2,127 | ) |   | $ | 2,022 |  |   | $ | (1,185 | ) |   | $ | 984 |  |
| (1)  Recorded in Other income, net in our Condensed Consolidated Statement of Operations(2)  Recorded in Income tax (benefit) provision in our Condensed Consolidated Statements of Operations. |

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

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | March 31,2013 |   | September 30,2012 |
| ASSETS                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 42,357 |  |   | $ | 60,246 |  |
| Marketable securities                            | 37,401 |  |   | 58,372 |  |
| Accounts receivable, net                         | 23,857 |  |   | 24,634 |  |
| Inventories                                      | 25,799 |  |   | 24,435 |  |
| Deferred tax assets                              | 3,472 |  |   | 3,389 |  |
| Other                                            | 5,925 |  |   | 2,493 |  |
| Total current assets                             | 138,811 |  |   | 173,569 |  |
| Marketable securities, long-term                 | 22,105 |  |   | 2,016 |  |
| Property, equipment and improvements, net        | 15,107 |  |   | 15,157 |  |
| Identifiable intangible assets, net              | 11,938 |  |   | 10,629 |  |
| Goodwill                                         | 102,473 |  |   | 86,209 |  |
| Deferred tax assets                              | 4,636 |  |   | 5,010 |  |
| Other                                            | 526 |  |   | 494 |  |
| Total assets                                     | $ | 295,596 |  |   | $ | 293,084 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |   |   |
| Current liabilities:                             |   |   |   |
| Accounts payable                                 | $ | 7,387 |  |   | $ | 6,040 |  |
| Income taxes payable                             | — |  |   | 1,269 |  |
| Accrued compensation                             | 5,789 |  |   | 5,744 |  |
| Accrued warranty                                 | 925 |  |   | 1,021 |  |
| Accrued legal settlement                         | 1,525 |  |   | — |  |
| Other                                            | 3,562 |  |   | 4,118 |  |
| Total current liabilities                        | 19,188 |  |   | 18,192 |  |
| Income taxes payable                             | 3,363 |  |   | 3,294 |  |
| Deferred tax liabilities                         | 489 |  |   | 630 |  |
| Other noncurrent liabilities                     | 100 |  |   | 111 |  |
| Total liabilities                                | 23,140 |  |   | 22,227 |  |
|                                             |   |   |   |
| Total stockholders’ equity                 | 272,456 |  |   | 270,857 |  |
| Total liabilities and stockholders’ equity | $ | 295,596 |  |   | $ | 293,084 |  |

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

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Six months endedMarch 31, |
|                                                                              | 2013 |   | 2012 |
| Operating activities:                                                             |   |   |   |
| Net income                                                                        | $ | 2,230 |  |   | $ | 2,846 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |
| Depreciation of property, equipment and improvements                              | 1,705 |  |   | 1,606 |  |
| Amortization of identifiable intangible assets                                    | 2,204 |  |   | 2,437 |  |
| Stock-based compensation                                                          | 1,914 |  |   | 1,886 |  |
| Excess tax benefits from stock-based compensation                                 | (53 | ) |   | (67 | ) |
| Deferred income tax benefit                                                       | (1,079 | ) |   | (1,173 | ) |
| Bad debt/product return provision                                                 | 285 |  |   | 338 |  |
| Inventory obsolescence                                                            | 554 |  |   | 776 |  |
| Restructuring                                                                     | — |  |   | 296 |  |
| Other                                                                             | (307 | ) |   | (117 | ) |
| Changes in operating assets and liabilities (net of acquisition)                  | (4,103 | ) |   | (2,720 | ) |
| Net cash provided by operating activities                                         | 3,350 |  |   | 6,108 |  |
| Investing activities:                                                             |   |   |   |
| Purchase of marketable securities                                                 | (37,337 | ) |   | (41,640 | ) |
| Proceeds from maturities of marketable securities                                 | 38,161 |  |   | 30,566 |  |
| 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 | (2,080 | ) |   | (2,650 | ) |
| Net cash used in investing activities                                             | (14,175 | ) |   | (13,589 | ) |
| Financing activities:                                                             |   |   |   |
| Excess tax benefits from stock-based compensation                                 | 53 |  |   | 67 |  |
| Proceeds from stock option plan transactions                                      | 590 |  |   | 521 |  |
| Proceeds from employee stock purchase plan transactions                           | 248 |  |   | 568 |  |
| Purchase of treasury stock                                                        | (6,765 | ) |   | — |  |
| Net cash (used) provided by financing activities                                  | (5,874 | ) |   | 1,156 |  |
| Effect of exchange rate changes on cash and cash equivalents                      | (1,190 | ) |   | (621 | ) |
| Net decrease in cash and cash equivalents                                         | (17,889 | ) |   | (6,946 | ) |
| Cash and cash equivalents, beginning of period                                    | 60,246 |  |   | 54,684 |  |
| Cash and cash equivalents, end of period                                          | $ | 42,357 |  |   | $ | 47,738 |  |
|                                                                              |   |   |   |
| Supplemental schedule of non-cash investing activities:                           |   |   |   |
| Issuance of common stock for business acquisition                                 | $ | (6,804 | ) |   | $ | — |  |
| Securities purchased, not settled                                                 | $ | — |  |   | $ | (3,600 | ) |