MaxStream Acquired by Digi International(R) in $38.5 Million Deal

Utah-Based Technology Company Provides Strategic Edge in Emerging Markets

LINDON, Utah - July 28, 2006 -- MaxStream, a global leader in embedded wireless connectivity, announced today it has been acquired by Digi International(R), of Minnetonka, Minn. The $38.5 million MaxStream purchase was finalized this week in one of Utah's largest technology company acquisitions.

"Digi International is a well-respected global leader in commercial grade device networking applications. Adding MaxStream's product line, engineering talent, and stellar sales force will enable them to broaden their brand and product offering," said Brad Walters, MaxStream president and CEO. "This acquisition is truly beneficial for both organizations. Over the course of the past year, we have been courted by a number of companies seeking to acquire MaxStream. Ultimately, we felt Digi was the right fit for our technology, our culture and our future. This acquisition is focused on growth and the combination of technologies to enhance our product portfolios."

MaxStream has received numerous accolades since its founding in 1999, and has experienced accelerating growth as the demand for embedded wireless communications technology has increased. MaxStream technology is incorporated by organizations ranging from small robotics manufacturers and security integrators, to multibillion-dollar military and industrial contractors.

"This is an exciting acquisition for us. Not only is this a strong strategic and financial story, but it is also a terrific cultural fit," said Joe Dunsmore, CEO of Digi International. "We have found MaxStream to be an open, high-integrity culture, where great listening and teaming are highly valued, and where innovation is ingrained. We have found the management team to be entrepreneurial and yet very disciplined, allowing them to lead the company to high revenue growth and consistent profitability. These values are very compatible with the Digi culture."

In 2000, MaxStream received an initial investment of $1 million from the Canopy Group, a Utah-based venture capital firm. Shortly thereafter, MaxStream achieved profitability and has remained profitable ever since.

"We are very pleased with this agreement, and are encouraged that Digi International is investing in the future of MaxStream, its employees and in the strength of Utah's economic development," said Ron Heinz, executive director of Canopy Ventures. "This deal is a metaphor about the success Canopy's portfolio companies are achieving. This deal between Digi International and MaxStream is just the beginning."

About Digi International
Digi International, based in Minneapolis, makes device networking easy by developing products and technologies that are cost effective and easy to use. Digi markets its products through a global network of distributors and resellers, systems integrators and original equipment manufacturers (OEMs). www.digi.com

About MaxStream Inc.
MaxStream is a leading worldwide developer of wireless modem networking for electronic devices. MaxStream provides wireless modem modules, stand-alone radio modems, RF design services, and supporting software. Products and services by MaxStream include designing, manufacturing and supporting wireless communications for embedded systems. For more information regarding MaxStream's products and services, contact MaxStream Inc. at www.maxstream.net, info@maxstream.net, or call 866-765-9885.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which generally can be identified by the use of forward-looking terminology such as "anticipate," "believe," "target," "estimate," "may," "will," "expect," "plan," "project," "should," or "continue" or the negative thereof or other variations thereon or similar terminology. Such statements are based on information available to management as of the time of such statements and relate to, among other things, expectations of the business environment in which the companies operate, projections of future performance, perceived opportunities in the market and statements regarding the combined company's mission and vision, future financial and operating results, and benefits of the transaction. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, including risks related to the highly competitive market in which the companies operate, rapid changes in technologies that may displace products sold by the combined company, declining prices of networking products, the combined company's reliance on distributors, delays in product development efforts, uncertainty in consumer acceptance of the combined company's products, and changes in the companies' level of revenue or profitability. These forward-looking statements are neither promises nor guarantees, but are subject to risk and uncertainties that could cause actual results to differ materially from the expectations set forth in the forward-looking statements, including but not limited to uncertainties associated with economic conditions in the marketplace, particularly in the principal industry sectors served by the combined company, changes in customer requirements and in the volume of sales to principal customers, the ability of the combined company to achieve the anticipated benefits and synergies associated with this transaction, the challenges and risks associated with managing and operating business in numerous international locales, competition and technological change, and the risks that the businesses will not be integrated successfully.

These and other risks, uncertainties and assumptions identified from time to time in Digi's filings with the Securities and Exchange Commission, including without limitation, its annual reports on Form 10-K and quarterly reports on Form 10-Q, could cause future results to differ materially from those expressed in any forward-looking statements. Many of such factors are beyond Digi's ability to control or predict. These forward-looking statements speak only as of the date for which they are made. The companies disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.