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Press Release

Digi International Acquires SMART Temps

Acquisition Strengthens Position as Cold Chain Leader in Foodservice Industry and Expands Addressable Market to Education and Healthcare Markets

MINNETONKA, Minn., Jan. 9, 2017 – Digi International®, (NASDAQ: DGII, www.digi.com), a leading global provider of machine-to-machine (M2M) and Internet of Things (IoT) connectivity products and services, today announced that it has acquired SMART Temps, a provider of real-time foodservice temperature management for restaurant, grocery, education and hospital settings as well as real-time temperature management for pharmacy, blood bank and laboratory environments. Terms of the transaction were not disclosed.

With its third strategic acquisition in 15 months, Digi has established itself as a clear leader in the cold chain industry with more than 10,000 locations under management. The acquired SMART Temps technology will continue to be supported, as well as leveraged within Digi’s existing products and services, to expand its advanced portfolio of products for the cold chain market.

“In addition to strengthening our leadership position in the foodservice industry, this acquisition provides Digi with a strategic entry point into the education and healthcare markets,” said Ron Konezny, president and chief executive officer, Digi International. “Our objective is to identify the best ideas and technologies across our cold chain portfolio to bring the most advanced solutions to market.”

The SMART Temps team, led by CEO John Miller, has more than 50 years of experience in bringing wireless temperature monitoring solutions to various food service environments. SMART Temps’ educational solution provides menu integration capabilities, which decreases the time it takes to perform manual temperature tasks. Mr. Miller and the SMART Temps employees will become part of the Digi Cold Chain Solutions team and will report to COO Kevin Riley.

“Our two companies together will bring industry-leading technology to market, so that our customers can be assured of the highest level of safety for their food and healthcare monitoring,” said Miller. “We are excited to be part of Digi’s growing leadership in temperature monitoring and look forward to continuing to expand our service offerings.”

Digi cold chain brands currently being marketed include: Digi Honeycomb, FreshTemp and SMART Temps.

For more information visit: http://www.digi.com/cold-chain-solutions.

About Digi International 
Digi International (NASDAQ: DGII) is a leading global provider of business and mission-critical machine-to-machine (M2M) and Internet of Things (IoT) connectivity products and services. We help our customers create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security, relentless reliability and bulletproof performance. Founded in 1985, we’ve helped our customers connect over 100 million things, and growing. 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 Statement
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 about the future business performance and adoption of the cold chain solution purchased in the above described acquisition as well as future actions, operations and performance of Digi’s cold chain solutions group. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, including risks related to whether our business will perform as anticipated, the potential growth or entrance in the marketplace of competitors, some of whom may have significantly more resources than us, whether the intended target market for the cold chain solutions group will readily adopt our offerings, whether we will develop the appropriate channels to effectively sell our cold chain offerings into the marketplace, rapid changes in technologies that may displace products and services we intend to sell, delays in product development efforts, uncertainty in user acceptance of our products and services, the ability to integrate our products and services with those of other parties in a commercially accepted manner, potential liabilities that can arise if any of our products have design or manufacturing defects, our ability to defend or settle satisfactorily any litigation, uncertainty in global economic conditions and economic conditions within particular regions of the world which could negatively affect product demand and the financial solvency of customers and suppliers, the impact of natural disasters and other events beyond our control that could negatively impact our supply chain and customers, our ability to attract and retain important employees, potential unintended consequences associated with restructuring or other similar business initiatives that may impact our ability to retain important employees and our ability to execute on the business to achieve the anticipated benefits and synergies associated with the transaction. These 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, 2016 and subsequent quarterly reports on Form 10-Q and other filings, could cause the company's 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 any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact:
Peter Ramsay
Global Results Communications
Office: 949.307.5908
digi@globalresultspr.com