Lantronix Announces Contract for Wireless Medical Point-of-Care Application

Fortune 100 Medical Equipment Manufacturer Selects Lantronix WiFi Product Line; Company's Largest Single Wireless Contract to Date


IRVINE, Calif., June 21, 2007 (PRIME NEWSWIRE) -- Lantronix, Inc. (Nasdaq:LTRX) today announced a multi-year product development and supply agreement with a leading maker of blood glucose monitoring solutions. Lantronix will develop a custom, battery-operated version of its commercially-available WiBox(r) 802.11 b/g wireless device server for the manufacturer's medical point-of-care application. Terms of the agreement include a non-recurring payment and minimum quantity purchase commitment valued at approximately $360,000 over the initial 12 months of production and an additional minimum commitment for approximately $490,000 of next-generation technology based on certain project milestones.

"Interest in M2M device networking among medical device manufacturers and end user point-of-care sites has been growing, particularly for applications using 802.11 LAN wireless technologies," said Marc Nussbaum, president and chief executive officer of Lantronix. "We identified the medical market as an area of high M2M growth potential several years ago, and today's announcement represents the company's largest contract for wireless M2M products to date, reflecting our successful penetration of this emerging opportunity."

Nussbaum continued, "We are currently engaged in evaluation and design-in activity at many medical equipment manufacturers, including several Fortune 100 companies and brand leaders in the medical device market. Revenues in the first nine months of fiscal 2007, from wireless product sales, contributed approximately 10% to total revenues, and sales of wireless products are expected to accelerate significantly in fiscal year 2008."

According to Frost and Sullivan, the U.S. medical device market -- including both electronic and passive devices -- will reach $8.6 billion in 2008. Initial shipments under the above referenced agreement are expected to begin in the third fiscal quarter of 2008 and contribute to second half fiscal year 2008 revenues.

The WiBox 802.11 b/g is a dual-port wireless device server that enables virtually any piece of electronic equipment with a serial interface to be connected to 802.11 b/g networks quickly and easily. This innovative core technology was enhanced and packaged specifically for use in the customer's medical point-of-care application by merging wireless communications, a web server, the highest security protocols available, a built-in battery and intelligent power management into a customized 2" x 4" enclosure. With its break-through power management technology, the small battery-powered product is capable of operating for multiple days at a time between recharge cycles.

Lantronix offers a full line of external and embedded 802.11 b/g wireless device servers including: MatchPort(tm) b/g, an embedded wireless device networking module (and the first in a family of pin/form-factor compatible wired and wireless modules); WiPort(tm), the company's first wireless embedded device server; WiSpan(tm), an external Ethernet-to-wireless bridge device; and XPress-DR+(tm) Wireless, a rugged wireless device server designed for industrial applications.

For information on Lantronix's complete wireless suite, please visit: www.lantronix.com

About Lantronix

Lantronix, Inc. (Nasdaq:LTRX) is a leading innovator in device networking technology. The company specializes in wired and wireless hardware and software solutions which allow virtually any electronic product to be networked-enabled in order to remotely access, monitor and control it over a network or the Internet. The Lantronix Device Network Architecture (DNA) includes Device Enablement solutions which provide a direct network connection to equipment and machines for remote monitoring and control, and Management and Control solutions which extend the ability to remotely manage IT equipment and literally thousands of networked devices, regardless of location, from a central point of access. Lantronix provides customizable technologies and solutions that are used by original equipment manufacturer (OEMs) design engineers to network-enable their products, IT administrators to manage data center and network infrastructure, and systems integrators to provide a complete, remote device management solutions for their customers. With nearly two decades of networking expertise and more than 30,000 customers worldwide, Lantronix solutions are used in every major vertical market including security, industrial and building automation, medical, transportation, retail/POS, financial, government, consumer electronics/appliances, IT/data center, and pro-AV/signage. The company's headquarters are located in Irvine, Calif. For more information, visit www.lantronix.com.

Lantronix and WiBox are registered trademarks, and MatchPort , WiPort, WiSpan and XPress-DR+ are trademarks of Lantronix, Inc. All other trademarks are properties of their respective owners.

The Lantronix company logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1735

This news release contains forward-looking statements, including statements concerning the potential growth of the M2M market, our ability to penetrate that market through new products and increase our revenues from the M2M market, future product shipments and the revenue of Lantronix in future periods. These forward-looking statements are based on current management expectations and are subject to risks and uncertainties that could cause actual reported results and outcomes to differ materially from those expressed in the forward-looking statements, including but not limited to: our ability to identify and profitably develop new products that will be attractive to our target markets, including the M2M market and the timing and success of new product introductions; changing market conditions and competitive landscape; government and industry standards; market acceptance of the Company's products by our customers; pricing trends; and actions by competitors. For a more detailed discussion of these and other risks and uncertainties, see the Company's recent SEC filings, including the Form 10-K for the fiscal year ended June 30, 2006, and subsequent reports on Form 10-Q and Form 8-K. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.



            

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