[December 22, 2014]

Digi International Provides Update on Thailand Fire Incident

On November 12, 2014, Digi International (News - Alert) ® (NASDAQ:DGII, www.digi.com) issued a press release reporting that a fire had significantly impacted the operations of SVI Public Company Limited, a contract manufacturer it utilizes near Bangkok, Thailand. We are providing an update on the situation and its anticipated impact on our results.

While the fire caused a significant disruption to our short-term manufacturing capacity, our efforts to redirect production requirements to other contract manufacturers, accelerate production in our own facility and resume limited production at another SVI facility have progressed better than we originally expected. Further, we now expect the replacement cost of equipment we owned that was destroyed or irreparably damaged in the fire to be covered by insurance proceeds.

Despite this progress, we do anticipate the fire will impact on our fiscal first quarter results. Specifically, we expect the revenue impact from the fire on the quarter ending December 31, 2014 to be in the range of $1.5 million to $2.5 million. We expect the fire to impact earnings per share in the first quarter in the range of $0.03 to $0.04. We do not expect the fire to impact our full fiscal year 2015 results.

"We are very pleased with our team's quick response to this unexpected disruption. Our contract manufacturing partners and our suppliers have done a great job of meeting the challenge of minimizing disruption to our customers," said Steve Snyder, Chief Financial Officer.

Customers can continue to refer to www.digi.com/updates for the latest information on specific product availability.

About Digi International

Digi International is the M2M solutions expert, combining products and services as end-to-end solutions to drive business efficiencies. Digi provides the industry's broadest range of wireless products, a cloud computing platform tailored for devices and development services to help customers get to market fast with wireless devices and applications. Digi's entire solution set is tailored to allow any device to communicate with any application, anywhere in the world. For more information, visit Digi's website at www.digi.com, or call 877-912-3444 (U.S.) or 952-912-3444 (International).

Forward-Looking Statements

This press release contains forward-looking statements that are based on management's current expectations and assumptions. These statements often can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "may," "will," "expect," "plan," "project," "should," or "continue" or the negative thereof or other variations thereon or similar terminology. Among other items, these statements relate to expectations of the business environment in which the company operates, projections of future performance, perceived marketplace opportunities and statements regarding our mission and vision. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, including risks related to the impact of the fire in Thailand such as the extent of damage to our supplier's facilities and capacity to service our needs, damage to any tooling, equipment or inventory at the supplier's facilities, uncertainties as to the timeline for any damage caused by the fire to be remediated and the supplier's ability to restore its capacity to provide any services to us, uncertainties as to the availability of alternative sources of manufacturing for the lost capacity in Thailand and the terms and conditions associated with our utilization of those alternative sources, uncertainties concerning the availability and cost of commodity materials and product components that we do not make internally, whether insurance will cover the cost of lost equipment and inventory, actions by our competitors in response to the impact of the fire and other risks, uncertainties and assumptions identified from time to time in our filings with the United States Securities and Exchange Commission, including without limitation, our annual report on Form 10-K for the year ended September 30, 2014 and other filings. These risks, uncertainties and assumptions could cause future results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Many of such factors are beyond our ability to control or predict. These forward-looking statements speak only as of the date for which they are made. We disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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