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|   |   | Digi International Reports Fourth Fiscal Quarter and Full Year 2013 Results |   |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |
| GAAP Results                          |
| (in thousands, except per share data) |   | Q4 2013 |   | Q4 2012 |   | YTD 2013 |   | YTD 2012 |
| Net Sales                             |   | $51,369 |   | $47,248 |   | $195,381 |   | $190,558 |
| Operating Income                      |   | $3,564 |   | $4,554 |   | $7,547 |   | $10,881 |
| Net Income                            |   | $2,047 |   | $2,462 |   | $5,805 |   | $7,615 |
| Net Income per Diluted Share          |   | $0.08 |   | $0.09 |   | $0.22 |   | $0.29 |

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |
| Non-GAAP Results*                                                                                                 |
| (in thousands, except per share data)                                                                             |   | Q4 2013 |   | Q4 2012 |   | YTD 2013 |   | YTD 2012 |
| Operating Income                                                                                                  |   | $4,275 |   | $4,554 |   | $9,746 |   | $12,140 |
| Net Income                                                                                                        |   | $2,380 |   | $2,133 |   | $6,473 |   | $6,813 |
| Net Income per Diluted Share                                                                                      |   | $0.09 |   | $0.08 |   | $0.25 |   | $0.26 |
| * 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 Fourth Fiscal Quarter and Full Year 2013 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Social Machine®, the only Connected Product solution on the Salesforce AppExchange, will enable ATEK a preferred business partner for industrial sensing, security, and safety systems, to accelerate its customer company transformation.  This customer will transform its current product which wirelessly monitors liquid for tanks into a connected product that will offer preventative customer service by reporting real-time data back via the SalesForce platform.  Through salesforce.com, our customer’s support organization will be automatically informed when service is needed, driving operational efficiencies and reinventing customer service as a preventative, rather than reactive, activity. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Device Cloud by EtheriosTM, won “Best Horizontal Implementation” and “Best Vertical Implementation” awards at the Battle of the Platforms during the M2M Evolution conference in August.  The Device Cloud was recognized for its ability to enable organizations to quickly and easily connect any device, manage and control large populations of devices, and drive business process improvements across the organization. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Almerys, a subsidiary of Orange Business Services, selected the ConnectPort® X3, Digi TransPort® WR41 and Device Cloud by EtheriosTM to add wireless functionality to its cardiology telehealth pilot project in the Auvergne region of France.  Digi’s remote gateway and Device Cloud enable secure visibility to patient health warning signs in order to facilitate health care decision-making. |

|         |                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Deployment of a monitoring system from Quidel, a leading provider of medical diagnostic solutions, that communicates near real-time test results for tracking world-wide influenza outbreaks utilizing the Transport WR21 cellular router and the Device Cloud. |

|         |                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A leading manufacturer and provider of irrigation products and services selected the newly released Xbee 900HP for use in its next generation wireless remote for easy control of system operation |

|         |                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Rollout of Digi Transport® WR44 RR, an enterprise-class cellular router designed specifically for rugged on-board rail environments providing passenger Internet access and Positive Train Control (PTC), for installations in the Northeast. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | SteadyServ Technologies’ SaaS based inventory and order management system for the beer industry leverages Digi’s ConnectPort gateway. SteadyServ's iKeg provides real time intelligence via smart phone and tablet-based applications to users throughout the retail, distribution and brewing segments in the $22 billion dollar U.S. draft beer industry.  This disruptive solution provides a host of near-real time inventory consumption, depletion, profitability and product mix intelligence and trending information which allows for a marked improvement in operational and supply chain management efficiencies. |

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| Digi International Reports Fourth Fiscal Quarter and Full Year 2013 Results |

|         |                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Strategic collaboration with Ericsson that enables M2M Applications in China.  Digi and Ericsson have installed a successful power distribution monitoring pilot system for Shandong Power of the State Grid Corporation of China (SGCC).  The system is expected to be deployed in five cities across Shandong. |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Three months ended September 30, |   | Twelve months ended September 30, |
|                         | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                         |   |   | % of netsales |   |   |   | % of netsales |   |   |   | % of netsales |   |   |   | % of netsales |
| Operating Income             | $ | 3,564 |  |   | 6.9 | % |   | $ | 4,554 |  |   | 9.6 | % |   | $ | 7,547 |  |   | 3.9 | % |   | $ | 10,881 |  |   | 5.7 | % |
| Legal settlement             | — |  |   | — |  |   | — |  |   | — |  |   | 1,525 |  |   | 0.8 | % |   | — |  |   | — |  |
| Restructuring reserve        | 350 |  |   | 0.7 | % |   | — |  |   | — |  |   | 313 |  |   | 0.2 | % |   | 1,259 |  |   | 0.7 | % |
| Intangible impairment charge | 361 |  |   | 0.7 | % |   | — |  |   | — |  |   | 361 |  |   | 0.2 | % |   | — |  |   | — |  |
| Non-GAAP operating income*   | $ | 4,275 |  |   | 8.3 | % |   | $ | 4,554 |  |   | 9.6 | % |   | $ | 9,746 |  |   | 5.0 | % |   | $ | 12,140 |  |   | 6.4 | % |

|                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                        | Three months ended September 30, |   | Twelve months ended September 30, |
|                                                                                                                                                        | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net income and net income per common share, diluted                                                                                                         | $ | 2,047 |  |   | $ | 0.08 |  |   | $ | 2,462 |  |   | $ | 0.09 |  |   | $ | 5,805 |  |   | $ | 0.22 |  |   | $ | 7,615 |  |   | $ | 0.29 |  |
| Legal settlement, net of taxes                                                                                                                              | — |  |   | — |  |   | — |  |   | — |  |   | 991 |  |   | 0.04 |  |   | — |  |   | — |  |
| Restructuring reserve, net of taxes                                                                                                                         | 227 |  |   | 0.01 |  |   | — |  |   | — |  |   | 203 |  |   | 0.01 |  |   | 818 |  |   | 0.03 |  |
| Gain on sale of investment, net of taxes                                                                                                                    | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (88 | ) |   | — |  |
| Intangible impairment charge, net of taxes                                                                                                                  | 235 |  |   | 0.01 |  |   | — |  |   | — |  |   | 235 |  |   | 0.01 |  |   | — |  |   | — |  |
| Discrete tax benefits for extended research and development tax credit and reversal of tax reserves for closure of various jurisdictions’ tax matters | (129 | ) |   | — |  |   | (329 | ) |   | (0.01 | ) |   | (761 | ) |   | (0.03 | ) |   | (1,532 | ) |   | (0.06 | ) |
| Non-GAAP net income and net income per diluted share *                                                                                                      | $ | 2,380 |  |   | $ | 0.09 |  |   | $ | 2,133 |  |   | $ | 0.08 |  |   | $ | 6,473 |  |   | $ | 0.25 |  |   | $ | 6,813 |  |   | $ | 0.26 |  |
| Diluted weighted average common shares                                                                                                                      |   |   | 26,039 |  |   |   |   | 26,188 |  |   |   |   | 26,237 |  |   |   |   | 26,146 |  |

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|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                           | Three months ended September 30, |   | Twelve months ended September 30, |
|                                                           | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                           |   |   | % of netsales |   |   |   | % of netsales |   |   |   | % of netsales |   |   |   | % of netsales |
| Net sales                                                      | $ | 51,369 |  |   | 100.0 |  % |   | $ | 47,248 |  |   | 100.0 |  % |   | $ | 195,381 |  |   | 100.0 |  % |   | $ | 190,558 |  |   | 100.0 |  % |
| Net income                                                     | 2,047 |  |   | 4.0 |  % |   | 2,462 |  |   | 5.2 |  % |   | 5,805 |  |   | 3.0 |  % |   | 7,615 |  |   | 4.0 |  % |
| Interest income, net                                           | (45 | ) |   | (0.1 | )% |   | (64 | ) |   | (0.1 | )% |   | (168 | ) |   | (0.1 | )% |   | (266 | ) |   | (0.1 | )% |
| Income tax provision                                           | 1,582 |  |   | 3.1 |  % |   | 1,943 |  |   | 4.1 |  % |   | 2,433 |  |   | 1.2 |  % |   | 3,282 |  |   | 1.7 |  % |
| Depreciation and amortization                                  | 2,000 |  |   | 3.9 |  % |   | 1,795 |  |   | 3.8 |  % |   | 7,877 |  |   | 4.0 |  % |   | 7,815 |  |   | 4.1 |  % |
| Earnings before interest, taxes, depreciation and amortization | $ | 5,584 |  |   | 10.9 |  % |   | $ | 6,136 |  |   | 13.0 |  % |   | $ | 15,947 |  |   | 8.2 |  % |   | $ | 18,446 |  |   | 9.7 |  % |

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| Digi International Reports Fourth Fiscal Quarter and Full Year 2013 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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|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | Three months endedSeptember 30, |   | Twelve months endedSeptember 30, |
|                              | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net sales:                        |   |   |   |   |   |   |   |
| Product                           | $ | 44,594 |  |   | $ | 44,842 |  |   | $ | 173,078 |  |   | $ | 180,434 |  |
| Service                           | 6,775 |  |   | 2,406 |  |   | 22,303 |  |   | 10,124 |  |
| Total net sales                   | 51,369 |  |   | 47,248 |  |   | 195,381 |  |   | 190,558 |  |
| Cost of sales:                    |   |   |   |   |   |   |   |
| Cost of product                   | 21,449 |  |   | 21,100 |  |   | 82,276 |  |   | 84,714 |  |
| Cost of service                   | 3,957 |  |   | 1,328 |  |   | 12,982 |  |   | 5,507 |  |
| Total cost of sales               | 25,406 |  |   | 22,428 |  |   | 95,258 |  |   | 90,221 |  |
| Gross profit                      | 25,963 |  |   | 24,820 |  |   | 100,123 |  |   | 100,337 |  |
| Operating expenses:               |   |   |   |   |   |   |   |
| Sales and marketing               | 9,453 |  |   | 8,883 |  |   | 40,513 |  |   | 39,242 |  |
| Research and development          | 7,529 |  |   | 7,003 |  |   | 30,327 |  |   | 30,767 |  |
| General and administrative        | 5,067 |  |   | 4,380 |  |   | 21,423 |  |   | 18,188 |  |
| Restructuring charges, net        | 350 |  |   | — |  |   | 313 |  |   | 1,259 |  |
| Total operating expenses          | 22,399 |  |   | 20,266 |  |   | 92,576 |  |   | 89,456 |  |
| Operating income                  | 3,564 |  |   | 4,554 |  |   | 7,547 |  |   | 10,881 |  |
| Other income (expense), net:      |   |   |   |   |   |   |   |
| Interest income                   | 50 |  |   | 72 |  |   | 210 |  |   | 289 |  |
| Interest expense                  | (5 | ) |   | (8 | ) |   | (42 | ) |   | (23 | ) |
| Other income (expense), net       | 20 |  |   | (213 | ) |   | 523 |  |   | (250 | ) |
| Total other income (expense), net | 65 |  |   | (149 | ) |   | 691 |  |   | 16 |  |
| Income before income taxes        | 3,629 |  |   | 4,405 |  |   | 8,238 |  |   | 10,897 |  |
| Income tax provision              | 1,582 |  |   | 1,943 |  |   | 2,433 |  |   | 3,282 |  |
| Net income                        | $ | 2,047 |  |   | $ | 2,462 |  |   | $ | 5,805 |  |   | $ | 7,615 |  |
| Net income per common share:      |   |   |   |   |   |   |   |
| Basic                             | $ | 0.08 |  |   | $ | 0.10 |  |   | $ | 0.22 |  |   | $ | 0.30 |  |
| Diluted                           | $ | 0.08 |  |   | $ | 0.09 |  |   | $ | 0.22 |  |   | $ | 0.29 |  |
| Weighted average common shares:   |   |   |   |   |   |   |   |
| Basic                             | 25,666 |  |   | 25,853 |  |   | 25,956 |  |   | 25,743 |  |
| Diluted                           | 26,039 |  |   | 26,188 |  |   | 26,237 |  |   | 26,146 |  |

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|                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                             | Three months endedSeptember 30, |   | Twelve months endedSeptember 30, |
|                                                                                                                                                                                             | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Net income                                                                                                                                                                                       | $ | 2,047 |  |   | $ | 2,462 |  |   | $ | 5,805 |  |   | $ | 7,615 |  |
| Other comprehensive income (loss), net of tax:                                                                                                                                                   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                                                                                                          | 1,426 |  |   | 1,101 |  |   | (1,826 | ) |   | (3,354 | ) |
| Change in net unrealized gain (loss) on investments                                                                                                                                              | 9 |  |   | 46 |  |   | (63 | ) |   | 126 |  |
| Less income tax (provision) benefit                                                                                                                                                              | (4 | ) |   | (20 | ) |   | 24 |  |   | (51 | ) |
| Reclassification of realized loss on investments included in net income (1)                                                                                                                      | — |  |   | 3 |  |   | — |  |   | 15 |  |
| Less income tax benefit (2)                                                                                                                                                                      | — |  |   | 1 |  |   | — |  |   | (4 | ) |
| Other comprehensive income (loss), net of tax                                                                                                                                                    | 1,431 |  |   | 1,131 |  |   | (1,865 | ) |   | (3,268 | ) |
| Comprehensive income (loss)                                                                                                                                                                      | $ | 3,478 |  |   | $ | 3,593 |  |   | $ | 3,940 |  |   | $ | 4,347 |  |
| (1)  Recorded in Other income (expense), net in our Condensed Consolidated Statements of Operations(2)  Recorded in Income tax provision in our Condensed Consolidated Statements of Operations. |

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| Digi International Reports Fourth Fiscal Quarter and Full Year 2013 Results |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | September 30,2013 |   | September 30,2012 |
| ASSETS                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 41,320 |  |   | $ | 60,246 |  |
| Marketable securities                            | 47,006 |  |   | 58,372 |  |
| Accounts receivable, net                         | 26,829 |  |   | 24,634 |  |
| Inventories                                      | 26,140 |  |   | 24,435 |  |
| Deferred tax assets                              | 3,174 |  |   | 3,389 |  |
| Other                                            | 4,835 |  |   | 2,493 |  |
| Total current assets                             | 149,304 |  |   | 173,569 |  |
| Marketable securities, long-term                 | 17,389 |  |   | 2,016 |  |
| Property, equipment and improvements, net        | 13,910 |  |   | 15,157 |  |
| Identifiable intangible assets, net              | 9,728 |  |   | 10,629 |  |
| Goodwill                                         | 103,569 |  |   | 86,209 |  |
| Deferred tax assets                              | 5,832 |  |   | 5,010 |  |
| Other                                            | 221 |  |   | 494 |  |
| Total assets                                     | $ | 299,953 |  |   | $ | 293,084 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |   |   |
| Current liabilities:                             |   |   |   |
| Accounts payable                                 | $ | 8,906 |  |   | $ | 6,040 |  |
| Income taxes payable                             | — |  |   | 1,269 |  |
| Accrued compensation                             | 7,410 |  |   | 5,744 |  |
| Accrued warranty                                 | 1,063 |  |   | 1,021 |  |
| Other                                            | 3,911 |  |   | 4,118 |  |
| Total current liabilities                        | 21,290 |  |   | 18,192 |  |
| Income taxes payable                             | 3,903 |  |   | 3,294 |  |
| Deferred tax liabilities                         | 415 |  |   | 630 |  |
| Other noncurrent liabilities                     | 79 |  |   | 111 |  |
| Total liabilities                                | 25,687 |  |   | 22,227 |  |
|                                             |   |   |   |
| Total stockholders’ equity                 | 274,266 |  |   | 270,857 |  |
| Total liabilities and stockholders’ equity | $ | 299,953 |  |   | $ | 293,084 |  |

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|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Twelve months endedSeptember 30, |
|                                                                              | 2013 |   | 2012 |
| Operating activities:                                                             |   |   |   |
| Net income                                                                        | $ | 5,805 |  |   | $ | 7,615 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |
| Depreciation of property, equipment and improvements                              | 3,461 |  |   | 3,339 |  |
| Amortization of identifiable intangible assets                                    | 4,416 |  |   | 4,476 |  |
| Stock-based compensation                                                          | 3,773 |  |   | 3,727 |  |
| Excess tax benefits from stock-based compensation                                 | (67 | ) |   | (198 | ) |
| Deferred income tax benefit                                                       | (2,055 | ) |   | (2,452 | ) |
| Bad debt/product return provision                                                 | 811 |  |   | 500 |  |
| Inventory obsolescence                                                            | 1,258 |  |   | 1,413 |  |
| Intangible impairment charge                                                      | 361 |  |   | — |  |
| Restructuring charges, net                                                        | 313 |  |   | 1,259 |  |
| Other                                                                             | (85 | ) |   | 13 |  |
| Changes in operating assets and liabilities (net of acquisition)                  | (6,243 | ) |   | (4,565 | ) |
| Net cash provided by operating activities                                         | 11,748 |  |   | 15,127 |  |
| Investing activities:                                                             |   |   |   |
| Purchase of marketable securities                                                 | (67,159 | ) |   | (72,669 | ) |
| Proceeds from maturities of marketable securities                                 | 63,089 |  |   | 65,533 |  |
| Proceeds from sale of investment                                                  | 136 |  |   | 135 |  |
| Acquisition of business, net of cash acquired                                     | (12,919 | ) |   | — |  |
| Purchase of property, equipment, improvements and certainother intangible assets  | (2,886 | ) |   | (3,953 | ) |
| Net cash used in investing activities                                             | (19,739 | ) |   | (10,954 | ) |
| Financing activities:                                                             |   |   |   |
| Excess tax benefits from stock-based compensation                                 | 67 |  |   | 198 |  |
| Proceeds from stock option plan transactions                                      | 2,193 |  |   | 1,072 |  |
| Proceeds from employee stock purchase plan transactions                           | 1,008 |  |   | 1,041 |  |
| Purchases of common stock                                                         | (14,058 | ) |   | — |  |
| Net cash (used in) provided by financing activities                               | (10,790 | ) |   | 2,311 |  |
| Effect of exchange rate changes on cash and cash equivalents                      | (145 | ) |   | (922 | ) |
| Net (decrease) increase in cash and cash equivalents                              | (18,926 | ) |   | 5,562 |  |
| Cash and cash equivalents, beginning of period                                    | 60,246 |  |   | 54,684 |  |
| Cash and cash equivalents, end of period                                          | $ | 41,320 |  |   | $ | 60,246 |  |
|                                                                              |   |   |   |
| Supplemental schedule of non-cash investing activities:                           |   |   |   |
| Accrual for capitalized intangible asset                                          | $ | 42 |  |   | $ | — |  |
| Issuance of common stock for business acquisition                                 | $ | 6,741 |  |   | $ | — |  |