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

|                                                                                            |
|--------------------------------------------------------------------------------------------|
|                                                                                            |  |  |  |  |  |  |
|                                                                                       |   | Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |   |   |
| Revenue in Fourth Fiscal Quarter Grows Sequentially by 7.8% over Third Fiscal Quarter 2014 |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| GAAP Results                           |
| (in thousands, except per share data)  |   | Q4 2014 |   | Q4 2013 |   | YTD 2014 |   | YTD 2013 |
| Total Revenue                          |   | $ | 51,612 |  |   | $ | 51,369 |  |   | $ | 192,701 |  |   | $ | 195,381 |  |
| Gross Profit                           |   | $ | 23,647 |  |   | $ | 25,963 |  |   | $ | 90,484 |  |   | $ | 100,123 |  |
| Gross Margin                           |   | 45.8 | % |   | 50.5 | % |   | 47.0 | % |   | 51.2 | % |
| Operating Income                       |   | $ | 426 |  |   | $ | 3,564 |  |   | $ | 125 |  |   | $ | 7,547 |  |
| Operating Income as % of Total Revenue |   | 0.8 | % |   | 6.9 | % |   | 0.1 | % |   | 3.8 | % |
| Net Income                             |   | $ | 426 |  |   | $ | 2,047 |  |   | $ | 1,751 |  |   | $ | 5,805 |  |
| Net Income per Diluted Share           |   | $ | 0.02 |  |   | $ | 0.08 |  |   | $ | 0.07 |  |   | $ | 0.22 |  |

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-GAAP Results*                                                                                                 |
| (in thousands, except per share data)                                                                             |   | Q4 2014 |   | Q4 2013 |   | YTD 2014 |   | YTD 2013 |
| Operating Income                                                                                                  |   | $ | 426 |  |   | $ | 4,275 |  |   | $ | 206 |  |   | $ | 9,746 |  |
| Operating Income as % of Total Revenue                                                                            |   | 0.8 | % |   | 8.3 | % |   | 0.1 | % |   | 5.0 | % |
| Net Income                                                                                                        |   | $ | 419 |  |   | $ | 2,380 |  |   | $ | 216 |  |   | $ | 6,473 |  |
| Net Income per Diluted Share                                                                                      |   | $ | 0.02 |  |   | $ | 0.09 |  |   | $ | 0.01 |  |   | $ | 0.25 |  |
|                                                                                                              |   |   |   |   |   |   |   |   |
| EBITDA                                                                                                            |   | $ | 2,547 |  |   | $ | 5,584 |  |   | $ | 7,772 |  |   | $ | 15,947 |  |
| EBITDA as % of Total Revenue                                                                                      |   | 4.9 | % |   | 10.9 | % |   | 4.0 | % |   | 8.2 | % |
| * A table with a detailed reconciliation to non-GAAP information is provided at the end of this earnings release. |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenue Detail                         |   |
| (in thousands)                         |   | Q4 2014 |   | Q4 2013 |   | Change |   | % Change |   |
| Growth hardware                        |   | $ | 25,539 |  |   | $ | 23,348 |  |   | $ | 2,191 |  |   | 9.4 |  % |   |
| Mature hardware                        |   | $ | 21,455 |  |   | $ | 21,246 |  |   | $ | 209 |  |   | 1.0 |  % |   |
| Total product revenue                  |   | $ | 46,994 |  |   | $ | 44,594 |  |   | $ | 2,400 |  |   | 5.4 |  % |   |
| Service                                |   | $ | 4,618 |  |   | $ | 6,775 |  |   | $ | (2,157 | ) |   | (31.8 | )% |   |
| Total revenue                          |   | $ | 51,612 |  |   | $ | 51,369 |  |   | $ | 243 |  |   | 0.5 |  % |   |
|                                   |   |   |   |   |   |   |   |   |   |
| North America, primarily United States |   | $ | 31,644 |  |   | $ | 30,534 |  |   | $ | 1,110 |  |   | 3.6 |  % |   |
| Europe, Middle East and Africa         |   | $ | 12,356 |  |   | $ | 13,504 |  |   | $ | (1,148 | ) |   | (8.5 | )% |   |
| Asia                                   |   | $ | 6,014 |  |   | $ | 5,835 |  |   | $ | 179 |  |   | 3.1 |  % |   |
| Latin America                          |   | $ | 1,598 |  |   | $ | 1,496 |  |   | $ | 102 |  |   | 6.8 |  % |   |
| Total revenue                          |   | $ | 51,612 |  |   | $ | 51,369 |  |   | $ | 243 |  |   | 0.5 |  % |   |

|         |                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Growth hardware products increased by 9.4% in the in the fourth fiscal quarter of 2014 compared to the prior year comparable quarter, driven primarily by the cellular product lines, including new customer projects utilizing the TransPort® WR44. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | Service revenue decreased 31.8% as a result of completing fewer customer contracts as the same quarter in the prior fiscal year. |

|         |                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service gross margin for the fourth fiscal quarter of 2014 was 11.4% compared to 41.6% in the same quarter in the prior year resulting primarily from underutilization of consulting labor that had been retained for the expected demand of our service offerings. |

|         |                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Hardware product gross margin was 49.2% in the fourth fiscal quarter of 2014 compared to 51.9% in the same quarter in the prior year.  Gross margin was impacted by product line and customer mix. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | We recorded approximately $0.5 million of expenses related to our CEO transition agreement in the fourth fiscal quarter of 2014. |

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Incremental spending in the fourth fiscal quarter of 2014 for compensation and other personnel related expenses were partially offset by savings associated with other ongoing cost containment measures. |

|         |                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating expenses for the fourth fiscal quarter of 2013 included a restructuring charge of $0.4 million and an asset impairment charge on identifiable intangible assets of $0.4 million. |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenue Detail                         |
| (in thousands)                         |   | 2014 |   | 2013 |   | Change |   | % Change |
| Growth hardware                        |   | 89,908 |  |   | 88,047 |  |   | 1,861 |  |   | 2.1 |  % |
| Mature hardware                        |   | 82,938 |  |   | 85,031 |  |   | (2,093 | ) |   | (2.5 | )% |
| Total product revenue                  |   | 172,846 |  |   | 173,078 |  |   | (232 | ) |   | (0.1 | )% |
| Service                                |   | 19,855 |  |   | 22,303 |  |   | (2,448 | ) |   | (11.0 | )% |
| Total revenue                          |   | 192,701 |  |   | 195,381 |  |   | (2,680 | ) |   | (1.4 | )% |
|                                   |   |   |   |   |   |   |   |   |
| North America, primarily United States |   | 116,421 |  |   | 116,541 |  |   | (120 | ) |   | (0.1 | )% |
| Europe, Middle East and Africa         |   | 47,729 |  |   | 48,815 |  |   | (1,086 | ) |   | (2.2 | )% |
| Asia                                   |   | 22,762 |  |   | 24,507 |  |   | (1,745 | ) |   | (7.1 | )% |
| Latin America                          |   | 5,789 |  |   | 5,518 |  |   | 271 |  |   | 4.9 |  % |
| Total revenue                          |   | 192,701 |  |   | 195,381 |  |   | (2,680 | ) |   | (1.4 | )% |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | Service revenue was under pressure all year as customers cancelled or deferred projects that were not replaced. |

|         |                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Although the decline in sales of mature products was slower than expected, our growth products did not meet our revenue expectations, primarily due to a decrease in revenue from certain customers who delayed purchases during the fiscal year. |

|         |                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service gross margin for fiscal 2014 was 17.0% compared to 41.8% in the prior fiscal year.  We experienced underutilization of consulting labor that had been retained for the expected demand of our service offerings. |

|         |                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Hardware product gross margin was 50.4% in fiscal 2014 compared to 52.5% in the prior fiscal year.  Gross margin was impacted by product line and customer mix. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | We recorded approximately $1.0 million of expenses related to our CEO transition in fiscal 2014. |

|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating expense savings were realized in various categories in fiscal 2014 as a result of the continued focus on cost containment measures. |

|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating expenses for fiscal 2013 included a restructuring charge of $0.4 million and an asset impairment charge on identifiable intangible assets of $0.4 million, as well as a settlement of a patent infringement lawsuit for $1.5 million. |

|         |                                                                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net income includes discrete tax benefits of $1.6 million, or $0.06 per diluted share in fiscal 2014, compared to $0.8 million, or $0.03 per diluted share of discrete tax benefits in fiscal 2013.  Net income for fiscal 2013 also included the aforementioned legal settlement of $1.0 million, net of taxes or $0.04 per diluted share, the |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Digi’s cash and cash equivalents and marketable securities balance, including long-term marketable securities, was $91.9 million at September 30, 2014, a decrease of $13.8 million from September 30, 2013 primarily resulting from repurchases of common stock.  During fiscal 2014, Digi repurchased 1,734,421 shares for $15.8 million, at an average share price of $9.11. |

|         |                                                                 |
|---------|-----------------------------------------------------------------|
| • | Digi has no debt on the balance sheet as of September 30, 2014. |

|         |                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------|
| • | Digi’s current ratio was 6.7 to 1 at September 30, 2014 as compared to 7.0 to 1 at September 30, 2013. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | One of the top five largest public transit systems in North America, which services over 4 million people with a network of subways, streetcars, buses, and a specialized services, will utilize Digi International’s TransPort® WR44 for cellular connectivity in a new passenger payment system. The system allows customers to ride on any participating transit system without pre-purchasing tickets or having to search for the correct change. |

|         |                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The industry leader in timers, temperature controls, and process controllers for the foodservice industry will utilize an estimated 50,000 Digi XBee®  Zigbee modules for networked solutions for foodservice customers. |

|         |                                                                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | An organization that designs, manufactures and installs wireless radio nurse call systems in nursing and residential homes, sheltered housing complexes, NHS and private hospitals and clinics throughout the UK and Europe has chosen Digi’s ConnectCore® i.MX53 system-on-module (SoM) for its patient monitoring system.  |

|         |                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Digi's TransPort® WR44 will provide wireless Internet service to patrons on buses and light rail trains for a U.S.-based public transportation system that services over 20 million annual passengers within its more than 300-square-mile service area. |

|         |                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 1844myFuels, a provider of accurate and reliable tank level monitoring solutions for diesel, gas and chemicals, chose Digi International’s battery-powered Connect Tank, ConnectPort® X4 for cellular communication and Device Cloud by Etherios to get tank data to their customers using their Sensors2Cloud application. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Launch of world's first GOBI 4G LTE cellular router in Q4, the first M2M routers that give customers the ability to connect to either Verizon, AT&T, or Sprint’s 2G, 3G and 4G networks across North America using a single device.  We continue to see globally a strong momentum in our cellular business across multiple vertical industries, including retail, transportation, energy and government. |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Three months ended September 30, |   | Year ended September 30, |
|                         | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                         |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Operating income             | $ | 426 |  |   | 0.8 | % |   | $ | 3,564 |  |   | 6.9 | % |   | $ | 125 |  |   | 0.1 | % |   | $ | 7,547 |  |   | 3.8 | % |
| Legal settlement             | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1,525 |  |   | 0.8 |  |
| Restructuring reserve        | — |  |   | — |  |   | 350 |  |   | 0.7 |  |   | 81 |  |   | — |  |   | 313 |  |   | 0.2 |  |
| Intangible impairment charge | — |  |   | — |  |   | 361 |  |   | 0.7 |  |   | — |  |   | — |  |   | 361 |  |   | 0.2 |  |
| Non-GAAP operating income    | $ | 426 |  |   | 0.8 | % |   | $ | 4,275 |  |   | 8.3 | % |   | $ | 206 |  |   | 0.1 | % |   | $ | 9,746 |  |   | 5.0 | % |

|                                                                                                                                                                                                                                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                      | Three months ended September 30, |   | Year ended September 30, |
|                                                                                                                                                                                                                                                                                                      | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Net income and net income per common share, diluted                                                                                                                                                                                                                                                       | $ | 426 |  |   | $ | 0.02 |  |   | $ | 2,047 |  |   | $ | 0.08 |  |   | $ | 1,751 |  |   | $ | 0.07 |  |   | $ | 5,805 |  |   | $ | 0.22 |  |
| Legal settlement, net of taxes                                                                                                                                                                                                                                                                            | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 991 |  |   | 0.04 |  |
| Restructuring reserve, net of taxes                                                                                                                                                                                                                                                                       | — |  |   | — |  |   | 227 |  |   | 0.01 |  |   | 53 |  |   | — |  |   | 203 |  |   | 0.01 |  |
| Intangible impairment charge, net of taxes                                                                                                                                                                                                                                                                | — |  |   | — |  |   | 235 |  |   | 0.01 |  |   | — |  |   | — |  |   | 235 |  |   | 0.01 |  |
| Discrete tax benefits for extended research and development tax credits, re-measurement and reversal of certain tax reserves as a result of a federal income tax audit, reassessment of state research and development tax credits, and expiration of statute of limitations in various tax jurisdictions | (7 | ) |   | — |  |   | (129 | ) |   | — |  |   | (1,588 | ) |   | (0.06 | ) |   | (761 | ) |   | (0.03 | ) |
| Non-GAAP net income and net income per diluted share *                                                                                                                                                                                                                                                    | $ | 419 |  |   | $ | 0.02 |  |   | $ | 2,380 |  |   | $ | 0.09 |  |   | $ | 216 |  |   | $ | 0.01 |  |   | $ | 6,473 |  |   | $ | 0.25 |  |
| Diluted weighted average common shares                                                                                                                                                                                                                                                                    |   |   | 24,988 |  |   |   |   | 26,039 |  |   |   |   | 25,730 |  |   |   |   | 26,237 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three months ended September 30, |   | Year ended September 30, |
|                           | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                           |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Total revenue                  | $ | 51,612 |  |   | 100.0 |  % |   | $ | 51,369 |  |   | 100.0 |  % |   | $ | 192,701 |  |   | 100.0 |  % |   | $ | 195,381 |  |   | 100.0 |  % |
| Net income                     | $ | 426 |  |   | 0.8 |  % |   | $ | 2,047 |  |   | 4.0 |  % |   | $ | 1,751 |  |   | 0.9 |  % |   | $ | 5,805 |  |   | 3.0 |  % |
| Interest income, net           | (44 | ) |   | (0.1 | ) |   | (45 | ) |   | (0.1 | ) |   | (171 | ) |   | (0.1 | ) |   | (168 | ) |   | (0.1 | ) |
| Income tax provision (benefit) | 500 |  |   | 1.0 |  |   | 1,582 |  |   | 3.1 |  |   | (954 | ) |   | (0.5 | ) |   | 2,433 |  |   | 1.2 |  |
| Depreciation and amortization  | 1,665 |  |   | 3.2 |  |   | 2,000 |  |   | 3.9 |  |   | 7,146 |  |   | 3.7 |  |   | 7,877 |  |   | 4.0 |  |
| EBITDA*                        | $ | 2,547 |  |   | 4.9 |  % |   | $ | 5,584 |  |   | 10.9 |  % |   | $ | 7,772 |  |   | 4.0 |  % |   | $ | 15,947 |  |   | 8.2 |  % |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

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

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Three months endedSeptember 30, |   | Year endedSeptember 30, |
|                            | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Revenue:                        |   |   |   |   |   |   |   |
| Hardware product                | $ | 46,994 |  |   | $ | 44,594 |  |   | $ | 172,846 |  |   | $ | 173,078 |  |
| Service                         | 4,618 |  |   | 6,775 |  |   | 19,855 |  |   | 22,303 |  |
| Total revenue                   | 51,612 |  |   | 51,369 |  |   | 192,701 |  |   | 195,381 |  |
| Cost of sales:                  |   |   |   |   |   |   |   |
| Cost of hardware product        | 23,875 |  |   | 21,449 |  |   | 85,737 |  |   | 82,276 |  |
| Cost of service                 | 4,090 |  |   | 3,957 |  |   | 16,480 |  |   | 12,982 |  |
| Total cost of sales             | 27,965 |  |   | 25,406 |  |   | 102,217 |  |   | 95,258 |  |
| Gross profit                    | 23,647 |  |   | 25,963 |  |   | 90,484 |  |   | 100,123 |  |
| Operating expenses:             |   |   |   |   |   |   |   |
| Sales and marketing             | 10,099 |  |   | 9,453 |  |   | 40,576 |  |   | 40,513 |  |
| Research and development        | 7,868 |  |   | 7,529 |  |   | 29,789 |  |   | 30,327 |  |
| General and administrative      | 5,254 |  |   | 5,067 |  |   | 19,913 |  |   | 21,423 |  |
| Restructuring charges, net      | — |  |   | 350 |  |   | 81 |  |   | 313 |  |
| Total operating expenses        | 23,221 |  |   | 22,399 |  |   | 90,359 |  |   | 92,576 |  |
| Operating income                | 426 |  |   | 3,564 |  |   | 125 |  |   | 7,547 |  |
| Other income, net:              |   |   |   |   |   |   |   |
| Interest income                 | 44 |  |   | 50 |  |   | 176 |  |   | 210 |  |
| Interest expense                | — |  |   | (5 | ) |   | (5 | ) |   | (42 | ) |
| Other income, net               | 456 |  |   | 20 |  |   | 501 |  |   | 523 |  |
| Total other income, net         | 500 |  |   | 65 |  |   | 672 |  |   | 691 |  |
| Income before income taxes      | 926 |  |   | 3,629 |  |   | 797 |  |   | 8,238 |  |
| Income tax provision (benefit)  | 500 |  |   | 1,582 |  |   | (954 | ) |   | 2,433 |  |
| Net income                      | $ | 426 |  |   | $ | 2,047 |  |   | $ | 1,751 |  |   | $ | 5,805 |  |
| Net income per common share:    |   |   |   |   |   |   |   |
| Basic                           | $ | 0.02 |  |   | $ | 0.08 |  |   | $ | 0.07 |  |   | $ | 0.22 |  |
| Diluted                         | $ | 0.02 |  |   | $ | 0.08 |  |   | $ | 0.07 |  |   | $ | 0.22 |  |
| Weighted average common shares: |   |   |   |   |   |   |   |
| Basic                           | 24,715 |  |   | 25,666 |  |   | 25,345 |  |   | 25,956 |  |
| Diluted                         | 24,988 |  |   | 26,039 |  |   | 25,730 |  |   | 26,237 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                | Three months endedSeptember 30, |   | Year endedSeptember 30, |
|                                                | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Net income                                          | $ | 426 |  |   | $ | 2,047 |  |   | $ | 1,751 |  |   | $ | 5,805 |  |
| Other comprehensive (loss) income, net of tax:      |   |   |   |   |   |   |   |
| Foreign currency translation adjustment             | (3,259 | ) |   | 1,426 |  |   | (2,713 | ) |   | (1,826 | ) |
| Change in net unrealized (loss) gain on investments | (19 | ) |   | 9 |  |   | 43 |  |   | (63 | ) |
| Less income tax benefit (provision)                 | 7 |  |   | (4 | ) |   | (17 | ) |   | 24 |  |
| Other comprehensive (loss) income, net of tax       | (3,271 | ) |   | 1,431 |  |   | (2,687 | ) |   | (1,865 | ) |
| Comprehensive (loss) income                         | $ | (2,845 | ) |   | $ | 3,478 |  |   | $ | (936 | ) |   | $ | 3,940 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | September 30,                                        2014 |   | September 30, 2013 |
| ASSETS                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 47,490 |  |   | $ | 41,320 |  |
| Marketable securities                            | 32,898 |  |   | 47,006 |  |
| Accounts receivable, net                         | 28,576 |  |   | 26,829 |  |
| Inventories                                      | 31,247 |  |   | 26,140 |  |
| Deferred tax assets                              | 3,221 |  |   | 3,174 |  |
| Other                                            | 4,779 |  |   | 4,835 |  |
| Total current assets                             | 148,211 |  |   | 149,304 |  |
| Marketable securities, long-term                 | 11,541 |  |   | 17,389 |  |
| Property, equipment and improvements, net        | 13,231 |  |   | 13,910 |  |
| Identifiable intangible assets, net              | 6,785 |  |   | 9,728 |  |
| Goodwill                                         | 103,398 |  |   | 103,569 |  |
| Deferred tax assets                              | 7,266 |  |   | 6,151 |  |
| Other                                            | 440 |  |   | 221 |  |
| Total assets                                     | $ | 290,872 |  |   | $ | 300,272 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |   |   |
| Current liabilities:                             |   |   |   |
| Accounts payable                                 | $ | 10,712 |  |   | $ | 8,906 |  |
| Accrued compensation                             | 8,133 |  |   | 7,410 |  |
| Accrued warranty                                 | 862 |  |   | 1,063 |  |
| Other                                            | 2,308 |  |   | 3,911 |  |
| Total current liabilities                        | 22,015 |  |   | 21,290 |  |
| Income taxes payable                             | 2,534 |  |   | 3,903 |  |
| Deferred tax liabilities                         | 272 |  |   | 415 |  |
| Other noncurrent liabilities                     | 411 |  |   | 79 |  |
| Total liabilities                                | 25,232 |  |   | 25,687 |  |
|                                             |   |   |   |
| Total stockholders’ equity                 | 265,640 |  |   | 274,585 |  |
| Total liabilities and stockholders’ equity | $ | 290,872 |  |   | $ | 300,272 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2014 Results |

|                                                                                                                |
|----------------------------------------------------------------------------------------------------------------|
|                                                                                                                |  |  |  |  |  |  |  |
|                                                                                                           | Year ended September 30, |
|                                                                                                           | 2014 |   | 2013 |
| Operating activities:                                                                                          |   |   |   |
| Net income                                                                                                     | $ | 1,751 |  |   | $ | 5,805 |  |
| Adjustments to reconcile net income to net cash provided by operating activities:                              |   |   |   |
| Depreciation of property, equipment and improvements                                                           | 3,557 |  |   | 3,461 |  |
| Amortization of identifiable intangible assets                                                                 | 3,589 |  |   | 4,416 |  |
| Stock-based compensation                                                                                       | 4,330 |  |   | 3,773 |  |
| Excess tax benefits from stock-based compensation                                                              | (44 | ) |   | (67 | ) |
| Deferred income tax benefit                                                                                    | (2,681 | ) |   | (2,055 | ) |
| Bad debt/product return (recovery) provision                                                                   | 98 |  |   | 811 |  |
| Inventory obsolescence                                                                                         | 860 |  |   | 1,258 |  |
| Intangible impairment charge                                                                                   | — |  |   | 361 |  |
| Restructuring charges, net                                                                                     | 81 |  |   | 313 |  |
| Other                                                                                                          | 3 |  |   | (85 | ) |
| Changes in operating assets and liabilities (net of acquisition)                                               | (9,735 | ) |   | (6,243 | ) |
| Net cash provided by operating activities                                                                      | 1,809 |  |   | 11,748 |  |
| Investing activities:                                                                                          |   |   |   |
| Purchase of marketable securities                                                                              | (27,420 | ) |   | (67,159 | ) |
| Proceeds from maturities of marketable securities                                                              | 47,420 |  |   | 63,089 |  |
| Proceeds from sale of investment                                                                               | — |  |   | 136 |  |
| Acquisition of business, net of cash acquired                                                                  | — |  |   | (12,919 | ) |
| Purchase of property, equipment, improvements and certain     other intangible assets | (3,421 | ) |   | (2,886 | ) |
| Net cash provided by (used in) investing activities                                                            | 16,579 |  |   | (19,739 | ) |
| Financing activities:                                                                                          |   |   |   |
| Excess tax benefits from stock-based compensation                                                              | 44 |  |   | 67 |  |
| Proceeds from stock option plan transactions                                                                   | 3,689 |  |   | 2,193 |  |
| Proceeds from employee stock purchase plan transactions                                                        | 1,009 |  |   | 1,008 |  |
| Purchases of common stock                                                                                      | (15,702 | ) |   | (14,058 | ) |
| Net cash used in financing activities                                                                          | (10,960 | ) |   | (10,790 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                                   | (1,258 | ) |   | (145 | ) |
| Net increase (decrease) in cash and cash equivalents                                                           | 6,170 |  |   | (18,926 | ) |
| Cash and cash equivalents, beginning of period                                                                 | 41,320 |  |   | 60,246 |  |
| Cash and cash equivalents, end of period                                                                       | $ | 47,490 |  |   | $ | 41,320 |  |
|                                                                                                           |   |   |   |
| Supplemental schedule of non-cash investing and financing activities:                                          |   |   |   |
| Accrual for capitalized intangible asset                                                                       | $ | — |  |   | $ | 42 |  |
| Issuance of common stock for business acquisition                                                              | $ | — |  |   | $ | 6,741 |  |
| Accrual for purchase of common stock                                                                           | $ | 100 |  |   | $ | — |  |