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

|        |
|--------|
|        |  |  |  |  |  |  |
|   |   | Digi International Reports First Fiscal Quarter 2015 Results |   |   |
|   |   | Product Revenue Shows Strong Growth |   |   |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |
| GAAP Results                                  |
| (in thousands, except per share data)         |   | Q1 2015 |   | Q1 2014 |
| Total Revenue                                 |   | $ | 48,723 |  |   | $ | 47,322 |  |
| Gross Profit                                  |   | $ | 21,922 |  |   | $ | 22,908 |  |
| Gross Margin                                  |   | 45.0 |  % |   | 48.4 | % |
| Operating (Loss) Income                       |   | $ | (1,620 | ) |   | $ | 628 |  |
| Operating (Loss) Income as % of Total Revenue |   | (3.3 | )% |   | 1.3 | % |
| Net (Loss) Income                             |   | $ | (339 | ) |   | $ | 688 |  |
| Net (Loss) Income per Diluted Share           |   | $ | (0.01 | ) |   | $ | 0.03 |  |

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |
| Non-GAAP Results*                                                                                                 |
| (in thousands, except per share data)                                                                             |   | Q1 2015 |   | Q1 2014 |
| Net (Loss) Income                                                                                                 |   | $ | (827 | ) |   | $ | 526 |  |
| Net (Loss) Income per Diluted Share                                                                               |   | $ | (0.03 | ) |   | $ | 0.02 |  |
|                                                                                                              |   |   |   |   |
| EBITDA                                                                                                            |   | $ | 290 |  |   | $ | 2,570 |  |
| EBITDA as % of Total Revenue                                                                                      |   | 0.6 | % |   | 5.4 | % |
| * A table with a detailed reconciliation to non-GAAP information is provided at the end of this earnings release. |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenue Detail                         |
| (in thousands)                         |   | Q1 2015 |   | Q1 2014 |   | Change |   | % Change |
| Growth hardware                        |   | $ | 25,850 |  |   | $ | 21,803 |  |   | $ | 4,047 |  |   | 18.6 |  % |
| Mature hardware                        |   | 19,083 |  |   | 20,186 |  |   | (1,103 | ) |   | (5.5 | )% |
| Total product revenue                  |   | 44,933 |  |   | 41,989 |  |   | 2,944 |  |   | 7.0 |  % |
| Service                                |   | 3,790 |  |   | 5,333 |  |   | (1,543 | ) |   | (28.9 | )% |
| Total revenue                          |   | $ | 48,723 |  |   | $ | 47,322 |  |   | $ | 1,401 |  |   | 3.0 |  % |
|                                   |   |   |   |   |   |   |   |   |
| North America, primarily United States |   | $ | 30,713 |  |   | $ | 29,437 |  |   | $ | 1,276 |  |   | 4.3 |  % |
| Europe, Middle East and Africa         |   | 11,231 |  |   | 11,597 |  |   | (366 | ) |   | (3.2 | )% |
| Asia                                   |   | 5,403 |  |   | 5,073 |  |   | 330 |  |   | 6.5 |  % |
| Latin America                          |   | 1,376 |  |   | 1,215 |  |   | 161 |  |   | 13.3 |  % |
| Total revenue                          |   | $ | 48,723 |  |   | $ | 47,322 |  |   | $ | 1,401 |  |   | 3.0 |  % |

|         |                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Product revenue increased by $2.9 million, or 7.0%, in the first fiscal quarter of 2015 compared to the prior year's comparable quarter, driven primarily by cellular router and gateway products, which increased by 47% over the same quarter in the prior fiscal year. |

|         |                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service revenue decreased by $1.5 million, or 28.9%, in the first fiscal quarter of 2015 compared to the prior year's comparable quarter as a result of completing fewer contracts. |

|         |                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Hardware product gross margin was 48.6% in the first fiscal quarter of 2015 compared to 51.7% in the same quarter in the prior year.  Gross margin was negatively impacted by product mix, as well as incremental expenses associated with the impact of the Thailand fire. |

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service gross margin for the first fiscal quarter of 2015 was 2.7% compared to 22.2% in the same quarter in the prior year, resulting from underutilization of consulting labor. |

|         |                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net loss in the first fiscal quarter of 2015 included a discrete tax benefit of $0.5 million, or $0.02 per diluted share, resulting from the reinstatement of the research and development tax credit for calendar year 2014 and the reversal of tax reserves for the expiration of the statutes of limitation for various U.S. and foreign jurisdictions. |

|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| • | Net income in the first fiscal quarter of 2014 included a discrete tax benefit of $0.2 million, or $0.01 per diluted |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

|         |                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our cash and cash equivalents and marketable securities balance, including long-term marketable securities, was $92.3 million at December 31, 2014, an increase of $0.3 million over the comparable balance at September 30, 2014. |

|         |                                                              |
|---------|--------------------------------------------------------------|
| • | We had no debt on the balance sheet as of December 31, 2014. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | At December 31, 2014, our current ratio was 6.2 to 1 compared to 6.8 to 1 at September 30, 2014. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In January 2015, we expanded our global reach by extending our wireless product portfolio to Digi-Key’s global customer base of 500,000 engineers. Digi-Key, the industry leader in electronic component selection, availability, and delivery, now offers our complete product portfolio. Design engineers around the world now have access to the full-range of our RF, Embedded, and Cellular Components. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In November 2014, we reached an agreement for global distribution with Mouser Electronics, a leading customer-focused distributor.  Under the agreement, announced at this year’s Electronica International Trade Fair, Mouser now has worldwide rights to sell our complete portfolio of wireless products, including embedded system-on-module and RF radio module solutions, wireless components, XBee gateways, including cellular gateways, RF modems, peripherals, sensors, and Rabbit module and single-board products. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In November 2014, we announced the launch of the XBee® ZigBee Cloud Kit, an all-in-one kit that allows anyone with an interest in M2M and the Internet of Things to quickly build a wireless hardware prototype, connect it to the Internet, and control it from the cloud. The kit offers the easiest and fastest path for product developers and makers to create cloud-connected prototypes using XBee ZigBee technology. The kit is simple enough to help non-engineers get their creations connected to the cloud in 30 minutes and flexible enough for professionals to build rapid prototypes with advanced programming and cloud-based data sets. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Etherios was recognized by salesforce.com for its outstanding contribution toward customer success in the third annual salesforce.com Partner Innovation Awards at Dreamforce 2014, the world’s largest software event. Etherios was recognized for its collaboration with Walgreens, one of the world’s largest retail drugstore companies, to improve its customer service experience through the implementation of Service Cloud. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | International Tower Lighting, LLC, an industry leader in designing and manufacturing state-of-the-art obstruction lighting systems and components, chose the Digi TransPort WR21 to equip cell tower monitors for greater connectivity and remote monitoring and management. The DigiTransPort WR21 transition also facilitates International Tower Lighting’s transition from 3G to LTE. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The California Department of Conservation (CaDoC) provides services and information that promote environmental health, economic vitality, informed land-use decisions and sound management of California’s natural resources. Activities include the monitoring of watersheds, earthquakes, riverbeds and more. CaDoC plans include the ConnectPort TS and the Digi WR21 cellular router for new projects and upgrades of installed CWANs. |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Clean Hands Safe Hands is a non-intrusive and cost-effective wireless technology designed to help hospitals monitor and report hand hygiene compliance. The Bluetooth-enabled hand sanitizer monitoring system alerts caregivers when they forget to sanitize their hands. The system is equipped with Digi’s XBee® Gateway, which is integrated with Device Cloud by EtheriosTM to get effectiveness and compliance data to the cloud. |

|         |                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | MH Corin, Inc., the leader in highway safety products for our multiple state distribution areas, has chosen the Digi XBee-PRO® 900HP for temperature sensor networking embedded in the asphalt of roadways around the United States for Road Weather Information Systems. |

|         |                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | DC motor control and accessory manufacturer Extron, the engineering division of The Lakeland Companies, has partnered with us to create sensor networks for soil and grain monitoring services with Digi XBee-PRO® 900HP modules. Monitoring, such as temperature tracking, gives Extron customers extended visibility and control of field assets. |

|                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                          | Three months ended December 31, |
|                                                                                                                                          | 2014 |   | 2013 |
| Net (loss) income and net (loss) income per common share, diluted                                                                             | $ | (339 | ) |   | $ | (0.01 | ) |   | $ | 688 |  |   | $ | 0.03 |  |
| Restructuring reserve, net of taxes                                                                                                           | — |  |   | — |  |   | 53 |  |   | — |  |
| Discrete tax benefits for extended research and development tax credits and expiration of statute of limitations in various tax jurisdictions | (488 | ) |   | (0.02 | ) |   | (215 | ) |   | (0.01 | ) |
| Non-GAAP net (loss) income and net (loss) income per diluted share                                                                            | $ | (827 | ) |   | $ | (0.03 | ) |   | $ | 526 |  |   | $ | 0.02 |  |
| Diluted weighted average common shares*                                                                                                       |   |   | 24,150 |  |   |   |   | 26,229 |  |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three months ended December 31, |
|                           | 2014 |   | 2013 |
|                           |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Total revenue                  | $ | 48,723 |  |   | 100.0 | % |   | $ | 47,322 |  |   | 100.0 | % |
|                           |   |   |   |   |   |   |   |
| Net (loss) income              | $ | (339 | ) |   |   |   | $ | 688 |  |   |   |
| Interest income, net           | (38 | ) |   |   |   | (43 | ) |   |   |
| Income tax (benefit) provision | (855 | ) |   |   |   | 76 |  |   |   |
| Depreciation and amortization  | 1,522 |  |   |   |   | 1,849 |  |   |   |
| EBITDA                         | $ | 290 |  |   | 0.6 | % |   | $ | 2,570 |  |   | 5.4 | % |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

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

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |
|                              | Three months endedDecember 31, |
|                              | 2014 |   | 2013 |
| Revenue:                          |   |   |   |
| Hardware product                  | $ | 44,933 |  |   | $ | 41,989 |  |
| Service                           | 3,790 |  |   | 5,333 |  |
| Total revenue                     | 48,723 |  |   | 47,322 |  |
| Cost of sales:                    |   |   |   |
| Cost of hardware product          | 23,112 |  |   | 20,263 |  |
| Cost of service                   | 3,689 |  |   | 4,151 |  |
| Total cost of sales               | 26,801 |  |   | 24,414 |  |
| Gross profit                      | 21,922 |  |   | 22,908 |  |
| Operating expenses:               |   |   |   |
| Sales and marketing               | 10,792 |  |   | 10,219 |  |
| Research and development          | 7,562 |  |   | 7,257 |  |
| General and administrative        | 5,188 |  |   | 4,723 |  |
| Restructuring charges, net        | — |  |   | 81 |  |
| Total operating expenses          | 23,542 |  |   | 22,280 |  |
| Operating (loss) income           | (1,620 | ) |   | 628 |  |
| Other income, net:                |   |   |   |
| Interest income                   | 38 |  |   | 43 |  |
| Other income, net                 | 388 |  |   | 93 |  |
| Total other income, net           | 426 |  |   | 136 |  |
| (Loss) income before income taxes | (1,194 | ) |   | 764 |  |
| Income tax (benefit) provision    | (855 | ) |   | 76 |  |
| Net (loss) income                 | $ | (339 | ) |   | $ | 688 |  |
| Net income per common share:      |   |   |   |
| Basic                             | $ | (0.01 | ) |   | $ | 0.03 |  |
| Diluted                           | $ | (0.01 | ) |   | $ | 0.03 |  |
| Weighted average common shares:   |   |   |   |
| Basic                             | 24,150 |  |   | 25,716 |  |
| Diluted                           | 24,150 |  |   | 26,229 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |
|                                                | Three months endedDecember 31, |
|                                                | 2014 |   | 2013 |
| Net (loss) income                                   | $ | (339 | ) |   | $ | 688 |  |
| Other comprehensive (loss) income, net of tax:      |   |   |   |
| Foreign currency translation adjustment             | (2,373 | ) |   | 343 |  |
| Change in net unrealized (loss) gain on investments | (29 | ) |   | 38 |  |
| Less income tax benefit (provision)                 | 11 |  |   | (15 | ) |
| Other comprehensive (loss) income, net of tax       | (2,391 | ) |   | 366 |  |
| Comprehensive (loss) income                         | $ | (2,730 | ) |   | $ | 1,054 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | December 31, 2014 |   | September 30, 2014 |
| ASSETS                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 45,043 |  |   | $ | 47,490 |  |
| Marketable securities                            | 32,624 |  |   | 32,898 |  |
| Accounts receivable, net                         | 23,281 |  |   | 28,576 |  |
| Inventories                                      | 33,364 |  |   | 31,247 |  |
| Deferred tax assets                              | 3,206 |  |   | 3,221 |  |
| Other                                            | 5,372 |  |   | 4,249 |  |
| Total current assets                             | 142,890 |  |   | 147,681 |  |
| Marketable securities, long-term                 | 14,600 |  |   | 11,541 |  |
| Property, equipment and improvements, net        | 13,864 |  |   | 13,231 |  |
| Identifiable intangible assets, net              | 6,061 |  |   | 6,785 |  |
| Goodwill                                         | 102,674 |  |   | 103,398 |  |
| Deferred tax assets                              | 6,766 |  |   | 7,383 |  |
| Other                                            | 396 |  |   | 440 |  |
| Total assets                                     | $ | 287,251 |  |   | $ | 290,459 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |   |   |
| Current liabilities:                             |   |   |   |
| Accounts payable                                 | $ | 12,032 |  |   | $ | 10,451 |  |
| Accrued compensation                             | 7,517 |  |   | 8,133 |  |
| Other                                            | 3,664 |  |   | 3,170 |  |
| Total current liabilities                        | 23,213 |  |   | 21,754 |  |
| Income taxes payable                             | 2,017 |  |   | 2,724 |  |
| Deferred tax liabilities                         | 37 |  |   | 272 |  |
| Other noncurrent liabilities                     | 600 |  |   | 411 |  |
| Total liabilities                                | 25,867 |  |   | 25,161 |  |
|                                             |   |   |   |
| Total stockholders’ equity                 | 261,384 |  |   | 265,298 |  |
| Total liabilities and stockholders’ equity | $ | 287,251 |  |   | $ | 290,459 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports First Fiscal Quarter 2015 Results |

|                                                                                                                |
|----------------------------------------------------------------------------------------------------------------|
|                                                                                                                |  |  |  |  |  |  |  |
|                                                                                                           | Three months ended December 31, |
|                                                                                                           | 2014 |   | 2013 |
| Operating activities:                                                                                          |   |   |   |
| Net (loss) income                                                                                              | $ | (339 | ) |   | $ | 688 |  |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities:                       |   |   |   |
| Depreciation of property, equipment and improvements                                                           | 752 |  |   | 897 |  |
| Amortization of identifiable intangible assets                                                                 | 770 |  |   | 952 |  |
| Stock-based compensation                                                                                       | 1,184 |  |   | 1,023 |  |
| Excess tax benefits from stock-based compensation                                                              | — |  |   | (20 | ) |
| Deferred income tax provision (benefit)                                                                        | 412 |  |   | (506 | ) |
| Bad debt/product return provision                                                                              | 30 |  |   | 22 |  |
| Inventory obsolescence                                                                                         | 230 |  |   | 229 |  |
| Restructuring charges, net                                                                                     | — |  |   | 81 |  |
| Other                                                                                                          | (6 | ) |   | 102 |  |
| Changes in operating assets and liabilities                                                                    | 2,310 |  |   | (3,805 | ) |
| Net cash provided by (used in) operating activities                                                            | 5,343 |  |   | (337 | ) |
| Investing activities:                                                                                          |   |   |   |
| Purchase of marketable securities                                                                              | (12,135 | ) |   | — |  |
| Proceeds from maturities of marketable securities                                                              | 9,321 |  |   | 7,109 |  |
| Purchase of property, equipment, improvements and certain     other intangible assets | (1,469 | ) |   | (975 | ) |
| Net cash (used in) provided by investing activities                                                            | (4,283 | ) |   | 6,134 |  |
| Financing activities:                                                                                          |   |   |   |
| Excess tax benefits from stock-based compensation                                                              | — |  |   | 20 |  |
| Proceeds from stock option plan transactions                                                                   | 9 |  |   | 2,813 |  |
| Proceeds from employee stock purchase plan transactions                                                        | 261 |  |   | 296 |  |
| Purchases of common stock                                                                                      | (2,257 | ) |   | — |  |
| Net cash (used in) provided by financing activities                                                            | (1,987 | ) |   | 3,129 |  |
| Effect of exchange rate changes on cash and cash equivalents                                                   | (1,520 | ) |   | 224 |  |
| Net (decrease) increase in cash and cash equivalents                                                           | (2,447 | ) |   | 9,150 |  |
| Cash and cash equivalents, beginning of period                                                                 | 47,490 |  |   | 41,320 |  |
| Cash and cash equivalents, end of period                                                                       | $ | 45,043 |  |   | $ | 50,470 |  |