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

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |
|                                                                              |   | Digi International Reports Fourth Fiscal Quarter and Full Year 2016 Results |   |   |
| Focus on Profitability Results in                                                 |
|  43% Increase in Income from Continuing Operations for FY16 compared to FY15 |

|         |                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪ | Revenue for the fourth fiscal quarter of 2016 was $50.5 million compared to revenue for the fourth fiscal quarter of fiscal 2015 of $54.2 million.  Revenue for fiscal 2016 was $203.0 million compared to revenue for fiscal 2015 of $203.8 million. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪ |  Net income for the fourth fiscal quarter of 2016 was $3.8 million, or $0.14 per diluted share, compared to net income for the fourth fiscal quarter of 2015 of $3.0 million, or $0.12 per diluted share.  Income from continuing operations for the fourth fiscal quarter of 2016 was $3.8 million, or $0.14 per diluted share, compared to $3.7 million, or $0.14 per diluted share, in the prior year comparable quarter.  Income from continuing operations was $13.5 million in fiscal 2016, or $0.51 per diluted share, compared to $9.4 million, or $0.37 per diluted share, in fiscal 2015. Income from continuing operations increased by 42.9% for the fiscal year 2016 compared to fiscal 2015. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪ |  Adjusted EBITDA from Continuing Operations (Earnings Before Interest, Taxes, Depreciation and Amortization, adjusted for gain from insurance recovery) in the fourth fiscal quarter of 2016 was $5.9 million, or 11.8% of total revenue, compared to $6.5 million, or 11.9% of total revenue, in the fourth fiscal quarter of 2015.  For the full fiscal year 2016, Adjusted EBITDA from Continuing Operations was $21.0 million, or 10.4% of total revenue, compared to $16.9 million, or 8.3% of total revenue in fiscal 2015.  Adjusted EBITDA increased by 24.6% for fiscal year 2016 compared to fiscal 2015.  Please see Reconciliation of Income from Continuing Operations to Adjusted EBITDA from Continuing Operations later in this earnings release. |

|         |                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪ | Cash, cash equivalents and marketable securities were $137.7 million at September 30, 2016 an increase of $31.9 million from the end of the prior fiscal year. |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| GAAP Results from Continuing Operations             |
| (in thousands, except per share data)               |   | Q4 2016 |   | Q4 2015 |   | YTD 2016 |   | YTD 2015 |
| Total Revenue                                       |   | $ | 50,454 |  |   | $ | 54,173 |  |   | $ | 203,005 |  |   | $ | 203,847 |  |
| Gross Profit                                        |   | $ | 24,604 |  |   | $ | 26,305 |  |   | $ | 99,680 |  |   | $ | 97,121 |  |
| Gross Margin                                        |   | 48.8 | % |   | 48.6 | % |   | 49.1 | % |   | 47.6 | % |
| Operating Income                                    |   | $ | 5,038 |  |   | $ | 5,314 |  |   | $ | 17,105 |  |   | $ | 10,889 |  |
| Operating Income as % of Total Revenue              |   | 10.0 | % |   | 9.8 | % |   | 8.4 | % |   | 5.3 | % |
| Income from Continuing Operations                   |   | $ | 3,844 |  |   | $ | 3,668 |  |   | $ | 13,478 |  |   | $ | 9,433 |  |
| Income per Diluted Share from Continuing Operations |   | $ | 0.14 |  |   | $ | 0.14 |  |   | $ | 0.51 |  |   | $ | 0.37 |  |

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|                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-GAAP Results from Continuing Operations*                                                                     |
| (in thousands, except per share data)                                                                            |   | Q4 2016 |   | Q4 2015 |   | YTD 2016 |   | YTD 2015 |
| Adjusted Income from Continuing Operations                                                                       |   | $ | 3,790 |  |   | $ | 3,689 |  |   | $ | 12,900 |  |   | $ | 8,252 |  |
| Adjusted Income per Diluted Share from Continuing Operations                                                     |   | $ | 0.14 |  |   | $ | 0.14 |  |   | $ | 0.49 |  |   | $ | 0.33 |  |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Adjusted EBITDA from Continuing Operations                                                                       |   | $ | 5,941 |  |   | $ | 6,471 |  |   | $ | 21,020 |  |   | $ | 16,875 |  |
| Adjusted EBITDA from Continuing Operations as % of Total Revenue                                                 |   | 11.8 | % |   | 11.9 | % |   | 10.4 | % |   | 8.3 | % |
| * Tables with detailed reconciliations to non-GAAP information are provided at the end of this earnings release. |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenue Detail QTD                     |
| (in thousands)                         |   | 2016 |   | 2015 |   | Change |   | % Change |
| Cellular routers and gateways          |   | $ | 12,547 |  |   | $ | 16,218 |  |   | $ | (3,671 | ) |   | (22.6 | ) |
| RF                                     |   | 7,342 |  |   | 9,558 |  |   | (2,216 | ) |   | (23.2 | ) |
| Embedded                               |   | 15,792 |  |   | 13,219 |  |   | 2,573 |  |   | 19.5 |  |
| Network                                |   | 12,894 |  |   | 13,460 |  |   | (566 | ) |   | (4.2 | ) |
| Total product revenue                  |   | 48,575 |  |   | 52,455 |  |   | (3,880 | ) |   | (7.4 | ) |
| Service                                |   | 1,879 |  |   | 1,718 |  |   | 161 |  |   | 9.4 |  |
| Total revenue                          |   | $ | 50,454 |  |   | $ | 54,173 |  |   | $ | (3,719 | ) |   | (6.9 | ) |
|                                   |   |   |   |   |   |   |   |   |
| North America, primarily United States |   | $ | 33,145 |  |   | $ | 36,619 |  |   | $ | (3,474 | ) |   | (9.5 | ) |
| Europe, Middle East and Africa         |   | 11,269 |  |   | 10,924 |  |   | 345 |  |   | 3.2 |  |
| Asia                                   |   | 5,228 |  |   | 5,699 |  |   | (471 | ) |   | (8.3 | ) |
| Latin America                          |   | 812 |  |   | 931 |  |   | (119 | ) |   | (12.8 | ) |
| Total revenue                          |   | $ | 50,454 |  |   | $ | 54,173 |  |   | $ | (3,719 | ) |   | (6.9 | ) |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Product revenue decreased by $3.9 million, or 7.4%, in the fourth fiscal quarter of 2016 compared to the fourth fiscal quarter of 2015.  This decrease was driven primarily by lower sales of cellular routers and gateways and RF products.  Cellular routers and gateways revenue decreased by $3.7 million, or 22.6%, compared to the fourth fiscal quarter of 2015.  Cellular router and gateway revenue is driven by large awards-based customer projects and is subject to revenue fluctuations from quarter to quarter.  RF revenue decreased by $2.2 million, or 23.2% as a result of lower sales to significant customers in the solar energy market.  These decreases were partially offset by an increase in revenue from embedded products.  Embedded revenue increased as a result of significant customers moving to production of their products that use our modules. |

|         |                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service revenue increased by $0.2 million, or 9.4%, in the fourth fiscal quarter of 2016 compared to the comparable quarter in fiscal 2015, primarily due to incremental revenue of Cold Chain Solutions as a result of our acquisition of Bluenica Corporation in October 2015. |

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|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenue Detail YTD                     |
| (in thousands)                         |   | 2016 |   | 2015 |   | Change |   | % Change |
| Cellular routers and gateways          |   | $ | 48,373 |  |   | $ | 58,666 |  |   | $ | (10,293 | ) |   | (17.5 | ) |
| RF                                     |   | 33,924 |  |   | 34,373 |  |   | (449 | ) |   | (1.3 | ) |
| Embedded                               |   | 56,489 |  |   | 51,063 |  |   | 5,426 |  |   | 10.6 |  |
| Network                                |   | 57,315 |  |   | 51,395 |  |   | 5,920 |  |   | 11.5 |  |
| Total product revenue                  |   | 196,101 |  |   | 195,497 |  |   | 604 |  |   | 0.3 |  |
| Service                                |   | 6,904 |  |   | 8,350 |  |   | (1,446 | ) |   | (17.3 | ) |
| Total revenue                          |   | $ | 203,005 |  |   | $ | 203,847 |  |   | $ | (842 | ) |   | (0.4 | ) |
|                                   |   |   |   |   |   |   |   |   |
| North America, primarily United States |   | $ | 131,457 |  |   | $ | 127,592 |  |   | $ | 3,865 |  |   | 3.0 |  |
| Europe, Middle East and Africa         |   | 44,932 |  |   | 47,523 |  |   | (2,591 | ) |   | (5.5 | ) |
| Asia                                   |   | 20,390 |  |   | 22,907 |  |   | (2,517 | ) |   | (11.0 | ) |
| Latin America                          |   | 6,226 |  |   | 5,825 |  |   | 401 |  |   | 6.9 |  |
| Total revenue                          |   | $ | 203,005 |  |   | $ | 203,847 |  |   | $ | (842 | ) |   | (0.4 | ) |

|         |                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Product revenue increased by $0.6 million, or 0.3%, in fiscal 2016 compared to fiscal 2015.  This increase was driven primarily by embedded and network products, as certain significant legacy customers continued to purchase these products.  This increase was offset by the decrease in sales of cellular routers and gateways. |

|         |                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service revenue decreased by $1.4 million, or 17.3%, in fiscal 2016 compared to fiscal 2015, primarily due to lower revenue in wireless design services, partially offset by incremental revenue from Digi Cold Chain Solutions. |

|         |                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Included in our revenue performance for the year was a foreign currency translation decrease of $1.1 million when compared to the same period in the prior fiscal year and was primarily caused by the weakening of the Euro and British Pound against the U.S. dollar. |

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| Digi International Reports Fourth Fiscal Quarter and Full Year 2016 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our cash and cash equivalents and marketable securities balance, including long-term marketable securities, was $137.7 million at September 30, 2016, an increase of $6.2 million from the end of the third quarter 2016 and an increase of $31.9 million over the comparable balance at the end of our fiscal year 2015.  Please refer to the Condensed Consolidated Statements of Cash Flows for more information. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | Inventory was $26.3 million at September 30, 2016, a decrease of $5.6 million over the comparable balance at September 30, 2015. |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | We had no debt on the balance sheet as of September 30, 2016. |

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | At September 30, 2016, our current ratio was 8.2 to 1 compared to 6.9 to 1 at September 30, 2015. |

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|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                             | Three months ended September 30, |   | Twelve months ended September 30, |
|                                                                             | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Income and income per diluted share from continuing operations                   | $ | 3,844 |  |   | $ | 0.14 |  |   | $ | 3,668 |  |   | $ | 0.14 |  |   | $ | 13,478 |  |   | $ | 0.51 |  |   | $ | 9,433 |  |   | $ | 0.37 |  |
| Restructuring reserve                                                            | — |  |   | — |  |   | — |  |   | — |  |   | 747 |  |   | 0.03 |  |   | 403 |  |   | 0.02 |  |
| Gain from insurance recovery                                                     | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (1,375 | ) |   | (0.05 | ) |
| Tax effect from restructuring reserve and gain from insurance recovery           | — |  |   | — |  |   | — |  |   | — |  |   | (262 | ) |   | (0.01 | ) |   | 340 |  |   | 0.01 |  |
| Discrete tax benefits (1)                                                        | (54 | ) |   | NM |  |   | 21 |  |   | NM |  |   | (1,063 | ) |   | (0.04 | ) |   | (549 | ) |   | (0.02 | ) |
| Adjusted income and adjusted income per diluted share from continuing operations | $ | 3,790 |  |   | $ | 0.14 |  |   | $ | 3,689 |  |   | $ | 0.14 |  |   | $ | 12,900 |  |   | $ | 0.49 |  |   | $ | 8,252 |  |   | $ | 0.33 |  |
| Diluted weighted average common shares                                           |   |   | 26,621 |  |   |   |   | 25,846 |  |   |   |   | 26,311 |  |   |   |   | 25,227 |  |

|     |                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Discrete tax benefits include additional domestic refunds resulting from amended prior year tax return filings, extended research and development tax credits and expiration of statute of limitations in various tax jurisdictions. |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       | Three months ended September 30, |   | Twelve months ended September 30, |
|                                       | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                       |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Total revenue                              | $ | 50,454 |  |   | 100.0 | % |   | $ | 54,173 |  |   | 100.0 | % |   | $ | 203,005 |  |   | 100.0 | % |   | $ | 203,847 |  |   | 100.0 | % |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations          | $ | 3,844 |  |   |   |   | $ | 3,668 |  |   |   |   | $ | 13,478 |  |   |   |   | $ | 9,433 |  |   |   |
| Recovery of insurance proceeds             | — |  |   |   |   | — |  |   |   |   | — |  |   |   |   | (1,375 | ) |   |   |
| Interest income, net                       | (99 | ) |   |   |   | (80 | ) |   |   |   | (254 | ) |   |   |   | (214 | ) |   |   |
| Income tax provision                       | 1,144 |  |   |   |   | 1,609 |  |   |   |   | 3,212 |  |   |   |   | 3,684 |  |   |   |
| Depreciation and amortization              | 1,052 |  |   |   |   | 1,274 |  |   |   |   | 4,584 |  |   |   |   | 5,347 |  |   |   |
| Adjusted EBITDA from continuing operations | $ | 5,941 |  |   | 11.8 | % |   | $ | 6,471 |  |   | 11.9 | % |   | $ | 21,020 |  |   | 10.4 | % |   | $ | 16,875 |  |   | 8.3 | % |

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|                                                              |  |  |
| Mike Goergen                                                 |   |   |
| Senior Vice President, Chief Financial Officer and Treasurer |   |   |
| Digi International                                           |   |   |
| 952-912-3737                                                 |   |   |
| Email:  mike.goergen@digi.com                                |   |   |
|                                                         |   |   |

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|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                           | Three months endedSeptember 30, |   | Twelve months endedSeptember 30, |
|                                                           | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Revenue:                                                       |   |   |   |   |   |   |   |
| Hardware product                                               | $ | 48,575 |  |   | $ | 52,455 |  |   | $ | 196,101 |  |   | $ | 195,497 |  |
| Service                                                        | 1,879 |  |   | 1,718 |  |   | 6,904 |  |   | 8,350 |  |
| Total revenue                                                  | 50,454 |  |   | 54,173 |  |   | 203,005 |  |   | 203,847 |  |
| Cost of sales:                                                 |   |   |   |   |   |   |   |
| Cost of hardware product                                       | 24,284 |  |   | 26,816 |  |   | 98,265 |  |   | 101,155 |  |
| Cost of service                                                | 1,566 |  |   | 1,052 |  |   | 5,060 |  |   | 5,571 |  |
| Total cost of sales                                            | 25,850 |  |   | 27,868 |  |   | 103,325 |  |   | 106,726 |  |
| Gross profit                                                   | 24,604 |  |   | 26,305 |  |   | 99,680 |  |   | 97,121 |  |
| Operating expenses:                                            |   |   |   |   |   |   |   |
| Sales and marketing                                            | 8,537 |  |   | 8,482 |  |   | 33,847 |  |   | 37,574 |  |
| Research and development                                       | 7,412 |  |   | 7,801 |  |   | 30,955 |  |   | 29,949 |  |
| General and administrative                                     | 3,617 |  |   | 4,708 |  |   | 17,026 |  |   | 18,306 |  |
| Restructuring charge, net                                      | — |  |   | — |  |   | 747 |  |   | 403 |  |
| Total operating expenses                                       | 19,566 |  |   | 20,991 |  |   | 82,575 |  |   | 86,232 |  |
| Operating income                                               | 5,038 |  |   | 5,314 |  |   | 17,105 |  |   | 10,889 |  |
| Other (expense) income, net:                                   |   |   |   |   |   |   |   |
| Interest income, net                                           | 99 |  |   | 80 |  |   | 254 |  |   | 214 |  |
| Other (expense) income, net                                    | (149 | ) |   | (117 | ) |   | (669 | ) |   | 2,014 |  |
| Total other (expense) income, net                              | (50 | ) |   | (37 | ) |   | (415 | ) |   | 2,228 |  |
| Income from continuing operations, before income taxes         | 4,988 |  |   | 5,277 |  |   | 16,690 |  |   | 13,117 |  |
| Income tax provision                                           | 1,144 |  |   | 1,609 |  |   | 3,212 |  |   | 3,684 |  |
| Income from continuing operations                              | 3,844 |  |   | 3,668 |  |   | 13,478 |  |   | 9,433 |  |
| Income (loss) from discontinued operations, after income taxes | — |  |   | (683 | ) |   | 3,230 |  |   | (2,845 | ) |
| Net income                                                     | $ | 3,844 |  |   | $ | 2,985 |  |   | $ | 16,708 |  |   | $ | 6,588 |  |
|                                                           |   |   |   |   |   |   |   |
| Basic net income (loss) per common share:                      |   |   |   |   |   |   |   |
| Continuing operations                                          | $ | 0.15 |  |   | $ | 0.15 |  |   | $ | 0.52 |  |   | $ | 0.38 |  |
| Discontinued operations                                        | $ | — |  |   | $ | (0.03 | ) |   | $ | 0.13 |  |   | $ | (0.12 | ) |
| Net income (1)                                                 | $ | 0.15 |  |   | $ | 0.12 |  |   | $ | 0.65 |  |   | $ | 0.27 |  |
| Diluted net income (loss) per common share:                    |   |   |   |   |   |   |   |
| Continuing operations                                          | $ | 0.14 |  |   | $ | 0.14 |  |   | $ | 0.51 |  |   | $ | 0.37 |  |
| Discontinued operations                                        | $ | — |  |   | $ | (0.03 | ) |   | $ | 0.12 |  |   | $ | (0.11 | ) |
| Net income (1)                                                 | $ | 0.14 |  |   | $ | 0.12 |  |   | $ | 0.64 |  |   | $ | 0.26 |  |
| Weighted average common shares:                                |   |   |   |   |   |   |   |
| Basic                                                          | 25,987 |  |   | 24,998 |  |   | 25,760 |  |   | 24,645 |  |
| Diluted                                                        | 26,621 |  |   | 25,846 |  |   | 26,311 |  |   | 25,227 |  |

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|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                        | Three months endedSeptember 30, |   | Twelve months endedSeptember 30, |
|                                                                        | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net income                                                                  | $ | 3,844 |  |   | $ | 2,985 |  |   | $ | 16,708 |  |   | $ | 6,588 |  |
| Other comprehensive loss, net of tax:                                       |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                     | (389 | ) |   | (165 | ) |   | (2,107 | ) |   | (4,323 | ) |
| Change in net unrealized gain (loss) on investments                         | 4 |  |   | (19 | ) |   | 53 |  |   | (21 | ) |
| Less income tax (provision) benefit                                         | (2 | ) |   | 6 |  |   | (20 | ) |   | 7 |  |
| Reclassification of realized gain on investments included in net income (1) | — |  |   | — |  |   | (7 | ) |   | 1 |  |
| Less income tax provision (2)                                               | — |  |   | — |  |   | 3 |  |   | — |  |
| Other comprehensive loss, net of tax                                        | (387 | ) |   | (178 | ) |   | (2,078 | ) |   | (4,336 | ) |
| Comprehensive income                                                        | $ | 3,457 |  |   | $ | 2,807 |  |   | $ | 14,630 |  |   | $ | 2,252 |  |

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| Digi International Reports Fourth Fiscal Quarter and Full Year 2016 Results |

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|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
|                                               | September 30,2016 |   | September 30, 2015 |
| ASSETS                                             |   |   |   |
| Current assets:                                    |   |   |   |
| Cash and cash equivalents                          | $ | 75,727 |  |   | $ | 45,018 |  |
| Marketable securities                              | 58,382 |  |   | 47,191 |  |
| Accounts receivable, net                           | 28,685 |  |   | 27,788 |  |
| Inventories                                        | 26,276 |  |   | 31,877 |  |
| Deferred tax assets                                | — |  |   | 3,252 |  |
| Receivable from sale of business                   | 2,997 |  |   | — |  |
| Other                                              | 3,578 |  |   | 3,435 |  |
| Current assets of discontinued operations          | — |  |   | 1,624 |  |
| Total current assets                               | 195,645 |  |   | 160,185 |  |
| Marketable securities, long-term                   | 3,541 |  |   | 13,626 |  |
| Property, equipment and improvements, net          | 14,041 |  |   | 14,339 |  |
| Identifiable intangible assets, net                | 4,041 |  |   | 2,648 |  |
| Goodwill                                           | 109,448 |  |   | 100,183 |  |
| Deferred tax assets                                | 7,295 |  |   | 6,255 |  |
| Non-current receivable from sale of business       | 1,959 |  |   | — |  |
| Other                                              | 196 |  |   | 250 |  |
| Non-current assets of discontinued operations      | — |  |   | 2,874 |  |
| Total assets                                       | $ | 336,166 |  |   | $ | 300,360 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY         |   |   |   |
| Current liabilities:                               |   |   |   |
| Accounts payable                                   | $ | 8,569 |  |   | $ | 6,673 |  |
| Income taxes payable                               | 167 |  |   | 828 |  |
| Accrued compensation                               | 10,787 |  |   | 10,156 |  |
| Accrued warranty                                   | 1,033 |  |   | 1,014 |  |
| Contingent consideration on acquired business      | 513 |  |   | — |  |
| Other                                              | 2,739 |  |   | 3,037 |  |
| Current liabilities of discontinued operations     | — |  |   | 1,481 |  |
| Total current liabilities                          | 23,808 |  |   | 23,189 |  |
| Income taxes payable                               | 1,490 |  |   | 1,546 |  |
| Deferred tax liabilities                           | 616 |  |   | 135 |  |
| Contingent consideration on acquired business      | 9,447 |  |   | — |  |
| Other non-current liabilities                      | 776 |  |   | 457 |  |
| Non-current liabilities of discontinued operations | — |  |   | 95 |  |
| Total liabilities                                  | 36,137 |  |   | 25,422 |  |
|                                               |   |   |   |
| Total stockholders’ equity                   | 300,029 |  |   | 274,938 |  |
| Total liabilities and stockholders’ equity   | $ | 336,166 |  |   | $ | 300,360 |  |

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|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |
|                                                                        |   |   |   |   |
| Digi International Reports Fourth Fiscal Quarter and Full Year 2016 Results |

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |
|                                                                                          | Twelve months ended September 30, |
|                                                                                          | 2016 |   | 2015 |
| Operating activities:                                                                         |   |   |   |
| Net income                                                                                    | $ | 16,708 |  |   | $ | 6,588 |  |
| Adjustments to reconcile net income to net cash provided by operating activities:             |   |   |   |
| Depreciation of property, equipment and improvements                                          | 2,742 |  |   | 2,949 |  |
| Amortization of identifiable intangible assets                                                | 1,872 |  |   | 2,910 |  |
| Stock-based compensation                                                                      | 3,654 |  |   | 4,301 |  |
| Excess tax benefits from stock-based compensation                                             | (212 | ) |   | — |  |
| Deferred income tax provision                                                                 | 1,115 |  |   | (769 | ) |
| Gain on insurance settlement related to property and equipment                                | — |  |   | (1,375 | ) |
| Gain on sale of business                                                                      | (2,870 | ) |   | — |  |
| Change in fair value of contingent consideration                                              | (441 | ) |   | — |  |
| Bad debt/product return provision                                                             | 168 |  |   | 357 |  |
| Inventory obsolescence                                                                        | 1,734 |  |   | 1,284 |  |
| Restructuring charges, net                                                                    | 747 |  |   | 509 |  |
| Other                                                                                         | 66 |  |   | 87 |  |
| Changes in operating assets and liabilities                                                   | 1,806 |  |   | (2,767 | ) |
| Net cash provided by operating activities                                                     | 27,089 |  |   | 14,074 |  |
| Investing activities:                                                                         |   |   |   |
| Purchase of marketable securities                                                             | (74,759 | ) |   | (54,427 | ) |
| Proceeds from maturities of marketable securities                                             | 73,706 |  |   | 38,028 |  |
| Proceeds from sale of investment                                                              | 13 |  |   | — |  |
| Proceeds from sale of business                                                                | 2,849 |  |   | — |  |
| Acquisition of business, net of cash acquired                                                 | (2,860 | ) |   | — |  |
| Proceeds from insurance settlement related to property and equipment                          | — |  |   | 1,400 |  |
| Proceeds from sale of property and equipment                                                  | — |  |   | 45 |  |
| Purchase of property, equipment, improvements and certain other intangible assets             | (2,729 | ) |   | (4,500 | ) |
| Net cash used in investing activities                                                         | (3,780 | ) |   | (19,454 | ) |
| Financing activities:                                                                         |   |   |   |
| Excess tax benefits from stock-based compensation                                             | 212 |  |   | — |  |
| Proceeds from stock option plan transactions                                                  | 7,191 |  |   | 6,559 |  |
| Proceeds from employee stock purchase plan transactions                                       | 896 |  |   | 925 |  |
| Purchases of common stock                                                                     | (550 | ) |   | (2,339 | ) |
| Net cash provided by financing activities                                                     | 7,749 |  |   | 5,145 |  |
| Effect of exchange rate changes on cash and cash equivalents                                  | (349 | ) |   | (2,237 | ) |
| Net increase (decrease) in cash and cash equivalents                                          | 30,709 |  |   | (2,472 | ) |
| Cash and cash equivalents, beginning of period                                                | 45,018 |  |   | 47,490 |  |
| Cash and cash equivalents, end of period                                                      | $ | 75,727 |  |   | $ | 45,018 |  |
|                                                                                          |   |   |   |
| Supplemental schedule of non-cash investing and financing activities:                         |   |   |   |
| Receivable related to sale of business                                                        | $ | 4,956 |  |   | $ | — |  |
| Liability related to acquisition of business                                                  | $ | (10,550 | ) |   | $ | — |  |
| Accrual for purchase of property, equipment, improvements and certain other intangible assets | $ | (183 | ) |   | $ | (17 | ) |