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

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |
|                                                                 |   | Digi International Reports Third Fiscal Quarter 2016 Results |   |   |
| Emphasis on Profitability Continues as Earnings Exceeds Expectations |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| GAAP Results from Continuing Operations             |
| (in thousands, except per share data)               |   | Q3 2016 |   | Q3 2015 |   | YTD 2016 |   | YTD 2015 |
| Total Revenue                                       |   | $ | 52,130 |  |   | $ | 52,055 |  |   | $ | 152,551 |  |   | $ | 149,674 |  |
| Gross Profit                                        |   | $ | 25,977 |  |   | $ | 25,024 |  |   | $ | 75,076 |  |   | $ | 70,816 |  |
| Gross Margin                                        |   | 49.8 | % |   | 48.1 | % |   | 49.2 | % |   | 47.3 | % |
| Operating Income                                    |   | $ | 5,125 |  |   | $ | 3,792 |  |   | $ | 12,067 |  |   | $ | 5,575 |  |
| Operating Income as % of Total Revenue              |   | 9.8 | % |   | 7.3 | % |   | 7.9 | % |   | 3.7 | % |
| Income from Continuing Operations                   |   | $ | 4,277 |  |   | $ | 3,085 |  |   | $ | 9,634 |  |   | $ | 5,765 |  |
| Income per Diluted Share from Continuing Operations |   | $ | 0.16 |  |   | $ | 0.12 |  |   | $ | 0.37 |  |   | $ | 0.23 |  |

|                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-GAAP Results from Continuing Operations*                                                                     |
| (in thousands, except per share data)                                                                            |   | Q3 2016 |   | Q3 2015 |   | YTD 2016 |   | YTD 2015 |
| Adjusted Income from Continuing Operations                                                                       |   | $ | 3,931 |  |   | $ | 2,745 |  |   | $ | 9,110 |  |   | $ | 4,563 |  |
| Adjusted Income per Diluted Share from Continuing Operations                                                     |   | $ | 0.15 |  |   | $ | 0.11 |  |   | $ | 0.35 |  |   | $ | 0.18 |  |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Adjusted EBITDA from Continuing Operations                                                                       |   | $ | 5,922 |  |   | $ | 5,171 |  |   | $ | 15,079 |  |   | $ | 10,404 |  |
| Adjusted EBITDA from Continuing Operations as % of Total Revenue                                                 |   | 11.4 | % |   | 9.9 | % |   | 9.9 | % |   | 7.0 | % |
| * Tables with detailed reconciliations to non-GAAP information are provided at the end of this earnings release. |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenue Detail QTD                     |
| (in thousands)                         |   | 2016 |   | 2015 |   | Change |   | % Change |
| Cellular routers and gateways          |   | $ | 10,756 |  |   | $ | 13,889 |  |   | $ | (3,133 | ) |   | (22.6 | ) |
| RF                                     |   | 9,517 |  |   | 7,641 |  |   | 1,876 |  |   | 24.6 |  |
| Embedded                               |   | 13,774 |  |   | 14,640 |  |   | (866 | ) |   | (5.9 | ) |
| Network                                |   | 16,500 |  |   | 13,831 |  |   | 2,669 |  |   | 19.3 |  |
| Total product revenue                  |   | 50,547 |  |   | 50,001 |  |   | 546 |  |   | 1.1 |  |
| Service                                |   | 1,583 |  |   | 2,054 |  |   | (471 | ) |   | (22.9 | ) |
| Total revenue                          |   | $ | 52,130 |  |   | $ | 52,055 |  |   | $ | 75 |  |   | 0.1 |  |
|                                   |   |   |   |   |   |   |   |   |
| North America, primarily United States |   | $ | 34,412 |  |   | $ | 32,127 |  |   | $ | 2,285 |  |   | 7.1 |  |
| Europe, Middle East and Africa         |   | 11,681 |  |   | 12,985 |  |   | (1,304 | ) |   | (10.0 | ) |
| Asia                                   |   | 5,013 |  |   | 6,091 |  |   | (1,078 | ) |   | (17.7 | ) |
| Latin America                          |   | 1,024 |  |   | 852 |  |   | 172 |  |   | 20.2 |  |
| Total revenue                          |   | $ | 52,130 |  |   | $ | 52,055 |  |   | $ | 75 |  |   | 0.1 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Product revenue increased by $0.5 million, or 1.1%, in the third fiscal quarter of 2016 compared to the third fiscal quarter of 2015.  This increase was driven primarily by network and RF products.  Network revenue increased by $2.7 million, or 19.3% due to large terminal server sales to significant customers.  RF revenue increased by $1.9 million, or 24.6% as a result of sales to significant customers in our North America channel.  These increases were partially offset by a decrease in revenue from embedded and cellular routers and gateways.  Embedded revenue decreased as a result of a decline in demand for legacy products included in this category.  Cellular routers and gateways revenue primarily decreased due to deferred timing of several large customer projects, all of which are expected to be realized in future quarters. |

|         |                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service revenue decreased by $0.5 million, or 22.9%, in the third fiscal quarter of 2016 compared to the comparable quarter in fiscal 2015, primarily in wireless design services.  This decline was partially offset by revenue from our Cold Chain Solutions. |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenue Detail YTD                     |
| (in thousands)                         |   | 2016 |   | 2015 |   | Change |   | % Change |
| Cellular routers and gateways          |   | $ | 35,826 |  |   | $ | 42,448 |  |   | $ | (6,622 | ) |   | (15.6 | ) |
| RF                                     |   | 26,582 |  |   | 24,815 |  |   | 1,767 |  |   | 7.1 |  |
| Embedded                               |   | 40,697 |  |   | 37,844 |  |   | 2,853 |  |   | 7.5 |  |
| Network                                |   | 44,421 |  |   | 37,935 |  |   | 6,486 |  |   | 17.1 |  |
| Total product revenue                  |   | 147,526 |  |   | 143,042 |  |   | 4,484 |  |   | 3.1 |  |
| Service                                |   | 5,025 |  |   | 6,632 |  |   | (1,607 | ) |   | (24.2 | ) |
| Total revenue                          |   | $ | 152,551 |  |   | $ | 149,674 |  |   | $ | 2,877 |  |   | 1.9 |  |
|                                   |   |   |   |   |   |   |   |   |
| North America, primarily United States |   | $ | 98,312 |  |   | $ | 90,973 |  |   | $ | 7,339 |  |   | 8.1 |  |
| Europe, Middle East and Africa         |   | 33,663 |  |   | 36,599 |  |   | (2,936 | ) |   | (8.0 | ) |
| Asia                                   |   | 15,162 |  |   | 17,208 |  |   | (2,046 | ) |   | (11.9 | ) |
| Latin America                          |   | 5,414 |  |   | 4,894 |  |   | 520 |  |   | 10.6 |  |
| Total revenue                          |   | $ | 152,551 |  |   | $ | 149,674 |  |   | $ | 2,877 |  |   | 1.9 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Product revenue increased by $4.5 million, or 3.1%, in the first nine months of fiscal 2016 compared to the comparable period in fiscal 2015.  This increase was driven primarily by network products, as certain significant legacy customers continued to purchase these products.  This increase was offset by the decrease in cellular routers and gateways. |

|         |                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Service revenue decreased by $1.6 million, or 24.2%, in the first nine months of fiscal 2016 compared to the comparable period in fiscal 2015, primarily in wireless design services, partially offset by revenue from Digi Cold Chain Solutions. |

|         |                                                                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue growth in the first nine months of fiscal 2016 was partially offset by the foreign translation from local currencies to the U.S. dollar, which resulted in a decrease of $0.9 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. |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our cash and cash equivalents and marketable securities balance, including long-term marketable securities, was $131.5 million at June 30, 2016, an increase of $8.8 million from the end of the second quarter 2016 and an increase of $25.7 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 $26.0 million at June 30, 2016, a decrease of $5.9 million over the comparable balance at September 30, 2015. |

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

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | At June 30, 2016, our current ratio was 7.8 to 1 compared to 6.9 to 1 at September 30, 2015. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | By 2050, global trends predict global water demand to increase by 55%. Technology innovation and expertise are crucial to helping the world overcome these challenges. GE has the expertise to solve their customers’ toughest water and process challenges. To help meet these challenges, GE Power has selected Digi Connect Tank to remotely measure chemical levels in water treatment system tanks for cooling towers, boilers and other applications with the need to conserve the use of fresh water. The system also helps to prevent scaling and biological contamination of equipment. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Navistar, a leading manufacturer of commercial trucks, buses, defense vehicles and engines, has selected the Digi Wireless Vehicle Bus Adapter (WVA) for its first generation OnCommandTM Link device, part of the OnCommandTM family of fleet management services. OnCommand Link allows two-way engine communication, secure wireless engine programming and vehicle health reporting without a service visit and installs in minutes by connecting directly into the diagnostic port of the vehicle. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Tisséo is the public-transit operator for the Toulouse metro area in the south of France that’s home to more than 1 million people. It plans to deploy the Digi WR44R cellular router on its new fleet of Lineo rapid-transit tram-buses. Using Digi for AND WIFI 4G connectivity, Tisséo may have real-time vehicle information (including locations) enabling it to provide passengers with up-to-date schedule/route information.  On-board signage will also display advertising messages to generate additional revenue for the agency. Future plans include on-board ticketing and preventive maintenance for rapid repairs. |

|         |                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Chugai Technos Corporation has announced a new offering, a CO2 ground monitoring system for carbon capture and storage (CCS). The system monitors conditions such as CO2, temperature, humidity, sunlight, and battery life by utilizing Digi XBee® PRO 900HP with the XBee® DigiMesh® networking protocol for its wireless |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

|         |                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Prolec has selected the Digi ConnectCore® 6 module for displays in their PME product family, which captures machine data, position and load in one package. PME brings together Prolec’s experience in sensor technology and safety systems to a platform designed to hold all machine data in one easily installed unit. |

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                             | Three months ended June 30, |   | Nine months ended June 30, |
|                                                                             | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Income and income per diluted share from continuing operations                   | $ | 4,277 |  |   | $ | 0.16 |  |   | $ | 3,085 |  |   | $ | 0.12 |  |   | $ | 9,634 |  |   | $ | 0.37 |  |   | $ | 5,765 |  |   | $ | 0.23 |  |
| Restructuring reserve, net of taxes                                              | (4 | ) |   | NM |  |   | (6 | ) |   | NM |  |   | 485 |  |   | 0.02 |  |   | 262 |  |   | 0.01 |  |
| Gain from insurance recovery, net of taxes                                       | — |  |   | — |  |   | (251 | ) |   | (0.01 | ) |   | — |  |   | — |  |   | (894 | ) |   | (0.04 | ) |
| Discrete tax benefits (1)                                                        | (342 | ) |   | (0.01 | ) |   | (83 | ) |   | NM |  |   | (1,009 | ) |   | (0.04 | ) |   | (570 | ) |   | (0.02 | ) |
| Adjusted income and adjusted income per diluted share from continuing operations | $ | 3,931 |  |   | $ | 0.15 |  |   | $ | 2,745 |  |   | $ | 0.11 |  |   | $ | 9,110 |  |   | $ | 0.35 |  |   | $ | 4,563 |  |   | $ | 0.18 |  |
| Diluted weighted average common shares                                           |   |   | 26,300 |  |   |   |   | 25,710 |  |   |   |   | 26,156 |  |   |   |   | 25,085 |  |

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

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       | Three months ended June 30, |   | Nine months ended June 30, |
|                                       | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                       |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |   |   |   | % of totalrevenue |
| Total revenue                              | $ | 52,130 |  |   | 100.0 | % |   | $ | 52,055 |  |   | 100.0 | % |   | $ | 152,551 |  |   | 100.0 | % |   | $ | 149,674 |  |   | 100.0 | % |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations          | $ | 4,277 |  |   |   |   | $ | 3,085 |  |   |   |   | $ | 9,634 |  |   |   |   | $ | 5,765 |  |   |   |
| Recovery of insurance proceeds             | — |  |   |   |   | (386 | ) |   |   |   | — |  |   |   |   | (1,375 | ) |   |   |
| Interest income, net                       | (43 | ) |   |   |   | (42 | ) |   |   |   | (155 | ) |   |   |   | (134 | ) |   |   |
| Income tax provision                       | 532 |  |   |   |   | 1,168 |  |   |   |   | 2,068 |  |   |   |   | 2,075 |  |   |   |
| Depreciation and amortization              | 1,156 |  |   |   |   | 1,346 |  |   |   |   | 3,532 |  |   |   |   | 4,073 |  |   |   |
| Adjusted EBITDA from continuing operations | $ | 5,922 |  |   | 11.4 | % |   | $ | 5,171 |  |   | 9.9 | % |   | $ | 15,079 |  |   | 9.9 | % |   | $ | 10,404 |  |   | 7.0 | % |

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|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

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| Digi International Reports Third Fiscal Quarter 2016 Results |

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| Digi International Reports Third Fiscal Quarter 2016 Results |

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

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                           | Three months endedJune 30, |   | Nine months endedJune 30, |
|                                                           | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Revenue:                                                       |   |   |   |   |   |   |   |
| Hardware product                                               | $ | 50,547 |  |   | $ | 50,001 |  |   | $ | 147,526 |  |   | $ | 143,042 |  |
| Service                                                        | 1,583 |  |   | 2,054 |  |   | 5,025 |  |   | 6,632 |  |
| Total revenue                                                  | 52,130 |  |   | 52,055 |  |   | 152,551 |  |   | 149,674 |  |
| Cost of sales:                                                 |   |   |   |   |   |   |   |
| Cost of hardware product                                       | 24,988 |  |   | 25,729 |  |   | 73,981 |  |   | 74,339 |  |
| Cost of service                                                | 1,165 |  |   | 1,302 |  |   | 3,494 |  |   | 4,519 |  |
| Total cost of sales                                            | 26,153 |  |   | 27,031 |  |   | 77,475 |  |   | 78,858 |  |
| Gross profit                                                   | 25,977 |  |   | 25,024 |  |   | 75,076 |  |   | 70,816 |  |
| Operating expenses:                                            |   |   |   |   |   |   |   |
| Sales and marketing                                            | 8,627 |  |   | 8,982 |  |   | 25,310 |  |   | 29,092 |  |
| Research and development                                       | 7,948 |  |   | 7,785 |  |   | 23,543 |  |   | 22,148 |  |
| General and administrative                                     | 4,283 |  |   | 4,474 |  |   | 13,409 |  |   | 13,598 |  |
| Restructuring (reversal) charge, net                           | (6 | ) |   | (9 | ) |   | 747 |  |   | 403 |  |
| Total operating expenses                                       | 20,852 |  |   | 21,232 |  |   | 63,009 |  |   | 65,241 |  |
| Operating income                                               | 5,125 |  |   | 3,792 |  |   | 12,067 |  |   | 5,575 |  |
| Other (expense) income, net:                                   |   |   |   |   |   |   |   |
| Interest income, net                                           | 43 |  |   | 42 |  |   | 155 |  |   | 134 |  |
| Other (expense) income, net                                    | (359 | ) |   | 419 |  |   | (520 | ) |   | 2,131 |  |
| Total other (expense) income, net                              | (316 | ) |   | 461 |  |   | (365 | ) |   | 2,265 |  |
| Income from continuing operations, before income taxes         | 4,809 |  |   | 4,253 |  |   | 11,702 |  |   | 7,840 |  |
| Income tax provision                                           | 532 |  |   | 1,168 |  |   | 2,068 |  |   | 2,075 |  |
| Income from continuing operations                              | 4,277 |  |   | 3,085 |  |   | 9,634 |  |   | 5,765 |  |
| Income (loss) from discontinued operations, after income taxes | — |  |   | (589 | ) |   | 3,230 |  |   | (2,162 | ) |
| Net income                                                     | $ | 4,277 |  |   | $ | 2,496 |  |   | $ | 12,864 |  |   | $ | 3,603 |  |
|                                                           |   |   |   |   |   |   |   |
| Basic net income (loss) per common share:                      |   |   |   |   |   |   |   |
| Continuing operations                                          | $ | 0.17 |  |   | $ | 0.12 |  |   | $ | 0.38 |  |   | $ | 0.24 |  |
| Discontinued operations                                        | $ | — |  |   | $ | (0.02 | ) |   | $ | 0.13 |  |   | $ | (0.09 | ) |
| Net income (1)                                                 | $ | 0.17 |  |   | $ | 0.10 |  |   | $ | 0.50 |  |   | $ | 0.15 |  |
| Diluted net income (loss) per common share:                    |   |   |   |   |   |   |   |
| Continuing operations                                          | $ | 0.16 |  |   | $ | 0.12 |  |   | $ | 0.37 |  |   | $ | 0.23 |  |
| Discontinued operations                                        | $ | — |  |   | $ | (0.02 | ) |   | $ | 0.12 |  |   | $ | (0.09 | ) |
| Net income                                                     | $ | 0.16 |  |   | $ | 0.10 |  |   | $ | 0.49 |  |   | $ | 0.14 |  |
| Weighted average common shares:                                |   |   |   |   |   |   |   |
| Basic                                                          | 25,904 |  |   | 24,938 |  |   | 25,684 |  |   | 24,525 |  |
| Diluted                                                        | 26,300 |  |   | 25,710 |  |   | 26,156 |  |   | 25,085 |  |

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|                                                              |  |  |  |  |
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| Digi International Reports Third Fiscal Quarter 2016 Results |

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | Three months endedJune 30, |   | Nine months endedJune 30, |
|                                                                               | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net income                                                                         | $ | 4,277 |  |   | $ | 2,496 |  |   | $ | 12,864 |  |   | $ | 3,603 |  |
| Other comprehensive (loss) income, net of tax:                                     |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                            | (1,272 | ) |   | 1,571 |  |   | (1,718 | ) |   | (4,158 | ) |
| Change in net unrealized gain (loss) on investments                                | 6 |  |   | 4 |  |   | 49 |  |   | (2 | ) |
| Less income tax (provision) benefit                                                | (2 | ) |   | (1 | ) |   | (18 | ) |   | 1 |  |
| Reclassification of realized loss (gain) on investments included in net income (1) | — |  |   | — |  |   | (7 | ) |   | 1 |  |
| Less income tax provision (2)                                                      | — |  |   | — |  |   | 3 |  |   | — |  |
| Other comprehensive (loss) income, net of tax                                      | (1,268 | ) |   | 1,574 |  |   | (1,691 | ) |   | (4,158 | ) |
| Comprehensive income (loss)                                                        | $ | 3,009 |  |   | $ | 4,070 |  |   | $ | 11,173 |  |   | $ | (555 | ) |

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|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
|                                               | June 30,2016 |   | September 30, 2015 |
| ASSETS                                             |   |   |   |
| Current assets:                                    |   |   |   |
| Cash and cash equivalents                          | $ | 61,072 |  |   | $ | 45,018 |  |
| Marketable securities                              | 63,137 |  |   | 47,191 |  |
| Accounts receivable, net                           | 28,536 |  |   | 27,788 |  |
| Inventories                                        | 25,957 |  |   | 31,877 |  |
| Deferred tax assets                                | — |  |   | 3,252 |  |
| Receivable from sale of business                   | 2,982 |  |   | — |  |
| Other                                              | 4,338 |  |   | 3,435 |  |
| Current assets of discontinued operations          | — |  |   | 1,624 |  |
| Total current assets                               | 186,022 |  |   | 160,185 |  |
| Marketable securities, long-term                   | 7,321 |  |   | 13,626 |  |
| Property, equipment and improvements, net          | 13,557 |  |   | 14,339 |  |
| Identifiable intangible assets, net                | 4,423 |  |   | 2,648 |  |
| Goodwill                                           | 109,880 |  |   | 100,183 |  |
| Deferred tax assets                                | 8,278 |  |   | 6,255 |  |
| Non-current receivable from sale of business       | 1,949 |  |   | — |  |
| Other                                              | 207 |  |   | 250 |  |
| Non-current assets of discontinued operations      | — |  |   | 2,874 |  |
| Total assets                                       | $ | 331,637 |  |   | $ | 300,360 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY         |   |   |   |
| Current liabilities:                               |   |   |   |
| Accounts payable                                   | $ | 8,720 |  |   | $ | 6,673 |  |
| Income taxes payable                               | — |  |   | 828 |  |
| Accrued compensation                               | 9,769 |  |   | 10,156 |  |
| Accrued warranty                                   | 1,135 |  |   | 1,014 |  |
| Contingent consideration on acquired business      | 726 |  |   | — |  |
| Other                                              | 3,594 |  |   | 3,037 |  |
| Current liabilities of discontinued operations     | — |  |   | 1,481 |  |
| Total current liabilities                          | 23,944 |  |   | 23,189 |  |
| Income taxes payable                               | 1,431 |  |   | 1,546 |  |
| Deferred tax liabilities                           | 602 |  |   | 135 |  |
| Contingent consideration on acquired business      | 9,861 |  |   | — |  |
| Other non-current liabilities                      | 856 |  |   | 457 |  |
| Non-current liabilities of discontinued operations | — |  |   | 95 |  |
| Total liabilities                                  | 36,694 |  |   | 25,422 |  |
|                                               |   |   |   |
| Total stockholders’ equity                   | 294,943 |  |   | 274,938 |  |
| Total liabilities and stockholders’ equity   | $ | 331,637 |  |   | $ | 300,360 |  |

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|--------------------------------------------------------------|
|                                                              |  |  |  |  |
|                                                         |   |   |   |   |
| Digi International Reports Third Fiscal Quarter 2016 Results |

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |
|                                                                                          | Nine months ended June 30, |
|                                                                                          | 2016 |   | 2015 |
| Operating activities:                                                                         |   |   |   |
| Net income                                                                                    | $ | 12,864 |  |   | $ | 3,603 |  |
| Adjustments to reconcile net income to net cash provided by operating activities:             |   |   |   |
| Depreciation of property, equipment and improvements                                          | 2,088 |  |   | 2,170 |  |
| Amortization of identifiable intangible assets                                                | 1,474 |  |   | 2,286 |  |
| Stock-based compensation                                                                      | 2,663 |  |   | 3,262 |  |
| Excess tax benefits from stock-based compensation                                             | (202 | ) |   | — |  |
| Deferred income tax provision                                                                 | 748 |  |   | 1,729 |  |
| 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                                              | 187 |  |   | — |  |
| Bad debt/product return provision                                                             | 116 |  |   | 198 |  |
| Inventory obsolescence                                                                        | 1,284 |  |   | 842 |  |
| Restructuring charges, net                                                                    | 747 |  |   | 509 |  |
| Other                                                                                         | 89 |  |   | (81 | ) |
| Changes in operating assets and liabilities                                                   | 1,395 |  |   | (4,147 | ) |
| Net cash provided by operating activities                                                     | 20,583 |  |   | 8,996 |  |
| Investing activities:                                                                         |   |   |   |
| Purchase of marketable securities                                                             | (56,256 | ) |   | (31,054 | ) |
| Proceeds from maturities of marketable securities                                             | 46,664 |  |   | 28,494 |  |
| 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             | (1,584 | ) |   | (3,888 | ) |
| Net cash used in investing activities                                                         | (11,174 | ) |   | (5,003 | ) |
| Financing activities:                                                                         |   |   |   |
| Excess tax benefits from stock-based compensation                                             | 202 |  |   | — |  |
| Proceeds from stock option plan transactions                                                  | 6,732 |  |   | 6,332 |  |
| Proceeds from employee stock purchase plan transactions                                       | 688 |  |   | 708 |  |
| Purchases of common stock                                                                     | (546 | ) |   | (2,339 | ) |
| Net cash provided by financing activities                                                     | 7,076 |  |   | 4,701 |  |
| Effect of exchange rate changes on cash and cash equivalents                                  | (431 | ) |   | (2,429 | ) |
| Net increase in cash and cash equivalents                                                     | 16,054 |  |   | 6,265 |  |
| Cash and cash equivalents, beginning of period                                                | 45,018 |  |   | 47,490 |  |
| Cash and cash equivalents, end of period                                                      | $ | 61,072 |  |   | $ | 53,755 |  |
|                                                                                          |   |   |   |
| Supplemental schedule of non-cash investing and financing activities:                         |   |   |   |
| Receivable related to sale of business                                                        | $ | 4,931 |  |   | $ | — |  |
| Liability related to acquisition of business                                                  | $ | (10,550 | ) |   | $ | — |  |
| Accrual for purchase of property, equipment, improvements and certain other intangible assets | $ | (38 | ) |   | $ | — |  |