InvestorPresentation

April 2018

COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Copyright © Lantronix 2017. All rights reserved.

Forward-Looking Statements

This presentation contains forward-looking statements, including statements concerning our business plans, our product developmentstrategies, and our target financial model. Any statement relating to our plans, goals, expectations or any future event should be considered aforward-looking statement. While we have based our forward-looking statements on our current expectations, forward-looking statements aresubject to substantial risks and uncertainties. As a result, our actual results could differ materially from those indicated in our forward-lookingstatements, and you should not rely on any of these forward-looking statements.

Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-lookingstatements include, among others, changes in customer demand, the extent to which we are able to develop successful new products, changesto the rate of decline of our legacy products, and the risks and uncertainties described in “Risk Factors” in our Annual Report on Form 10-K filedwith the Securities and Exchange Commission, or SEC, as well as in our other filings with the SEC.

Our forward-looking statements are based on our view as of the date they are made. We expressly disclaim any intent or obligation to updateany forward-looking statements after the date hereof.

LantronixEnabling the Industrial Internet of Things

• Global provider of secure data access and management solutions for Industrial IoT

• Innovator known for leading edge connectivity solutions that are easy to deploy and help accelerate time to market

• Millions of devices connected worldwide

• Strong Blue Chip customer base

• Based in Irvine California - company founded in 1989

• NASDAQ listed: LTRX

IoT Pure PlayEstablished public company investing in Growth Market

Fiscal Year Ended June 30, 2017$44.7M Revenue10% YoY Growth

Global RevenueAmericas 55%EMEA 30%APJ 15%

Experienced Leadership Team Focused on Growth

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PROVEN LEADERSHIP TEAM

Jeffrey BenckPresident & CEO

Jeremy WhitakerCFO

Sanjeev DatlaCTO

Kevin YoderVP, WW Sales

Michael A. FinkVP, Operations

Daryl MillerVP, Engineering

Shahram MehrabanVP, Marketing

Kurt ScheuermanVP, General Counsel

Tom MortonVP, Human Resources

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OUR MISSION

CREATING SECURE DATA ACCESS AND MANAGEMENT SOLUTIONS FOR THE INDUSTRIAL IOT

Our mission is to be the leading supplier of IoT solutions that enable companies to dramatically simplify the creation, deployment, and management of IoT projects while providing secure access to data for applications and people.

Expand S oftware a s a S erv ice Of fer ing

Pursue Market S hare Ga ins wi th I T

Management Pr oducts

Gr ow I oT R evenue wi th New Wire less Gateway Pr oducts

OUR GROWTH STRATEGY

Product Portfolio

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IOT GATEWAYS & BUILDING BLOCKS

Connectivity Without Complexity

IT MANAGEMENT SOLUTIONS

Management of Enterprise IT Infrastructure

MANAGEMENT SOFTWARE

Scalable Software Made Simple

what

WELL POSITIONED IN KEY MARKET SEGMENTS

S t r o n g b a s e o f g l o b a l b l u e -c h i p c u s t o m e r s

RETAIL INDUSTRIAL ENERGY / UTILITIESHEALTHCARE SMART BUILDING

TRANSPORTATION FINANCIALS EDUCATIONMILITARY & GOV’T TELECOM

FAVORABLE SECULAR TRENDS

I o T B u s i n e s s

Growth in online and mobile

banking and increasing

security threats

FINANCIALS

Growth on online education

requiring higherlevels of network

uptime

EDUCATION

Increasing connectivity of

critical infrastructure

systems

MILITARY & GOV’T

Increasing connectivity of mission critical

IoT devices

TELECOM

I T M B u s i n e s s

Increasing automation and connectivity in

factories

INDUSTRIAL

Digitization of the distribution grid

due to renewables & EVs

ENERGY / UTILITIES

Greater demands for connectivity

in hospitals & remote patient

care

HEALTHCARE

Integrated systems require

greater connectivity

SMART BUILDING

IOT SOLUTIONS FROM THE DEVICE TO THE DATA CENTER

New Connected Devices

Legacy Devices

Network

LantronixEmbedded Modules

& Gateways

Data Center

LantronixExternal Device

GatewaysLantronix

IT Management Solutions

LANTRONIX IOT GATEWAYSPRODUCT PORTFOLIO

Secure and certified enterprise-ready connectivity, network intelligence and

management at scale for industrial and commercial devices and machines

Embedded IoT Gateways (Wi-Fi & Bluetooth)Ideal to drop into any new or inflight design and their tiny size is perfect for high-volume integration

IoT Device Gateways (Wi-Fi & Cellular)

Ideal for connecting existing devices and machines or when it is

desirable to keep connectivity external to asset

xPico 240Mid-range

Ethernet, Wi-Fi

xPico 250Mid-range

Ethernet, Wi-FiBluetooth

PremierWave 2050

Enhanced Ethernet, Wi-Fi Bluetooth

SGX5150Ethernet, Wi-Fi

Bluetooth

PremierWave XC HSPA+

Ethernet, Cellular

Launched Fall of 2017

Launched Spring of 2016 Launched Fall of 2016

Launched atEmbedded World 2018

First SaaS OfferingLaunched in Fall of 2017

Second Offering Launched atEmbedded World 2018

Seamlessly enable Wi-Fi, Ethernet and Bluetooth connectivity Build and deploy with production ready embedded software Integrate advanced enterprise security and intelligent networking Remotely monitor, manage and maintain your machines with MACH10

Accelerate the development of secure connected machines

INTEGRATIONTIME TO MARKETROBUST DATA

HANDLINGCombo Bluetooth, Wi-Fi and

Ethernet. Cloud Managed Gateway stack for complete IoT connectivity in compact

footprint

Field proven embedded Gateway software

accelerates product development and

deployment, mitigates risk

INDUSTRIAL GRADE SECURITY

Device Authentication and Secure Connectivity, Data-

at-rest and Data-in-motion security,

Enterprise Wi-Fi Security

Reliably communicate with one or more local or remote applications using TruPort Serial or TruPort Socket

technologies

LAUNCHED DECEMBER 2017: xPico 200 SeriesBest-in-Class Embedded Solution for Managed Industrial Wi-Fi Connectivity

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Copyright © Lantronix 2017. All rights reserved.COMPANY CONFIDENTIAL 13

LANTRONIX GATEWAY CENTRAL

Device Management SaaS Offering for Lantronix Gateways

Announced at Embedded World 2018

Cloud-powered Configuration, Management And Monitoring For Lantronix Gateways Powered by MACH10

Centralized Directory for IoT Gateways

Automate Updates

Monitor Network Statistics andConfigure Alerts

The quickest and simplest way to remotely configure,manage and monitor your entire fleet of Lantronix IoTGateways.

Free up your resources by scheduling configuration and firmware updates inadvance. Dynamic groups make it easy.

Keep a watch on the network. Fix issues before your customer or boss knows.

MINIMIZE TRUCK ROLLS.INCREASE EQUIPMENT UPTIME.

Seamless Upgrade to Global Device ManagerLike how you manage Lantronix IoT Gateways. Upgrade toGlobal Device Manager and manage your devices as well.

LANTRONIX

GATEWAY CENTRAL

Copyright © Lantronix 2017. All rights reserved.COMPANY CONFIDENTIAL

XPort EdgeN e x t G e n e r a t i o n E m b e d d e d E t h e r n e t G a t e w a y & D e v i c e S e r v e r i n t h e

s a m e c o m p a c t f o r m f a c t o r a s X P o r t

I n d u s t r i a l I O T - A c c e l e r a t e d .

Next generation of the world’s best selling embedded Ethernet device server providing full IoT gateway connectivity to any device with serial capability

Front View Back View

W h y X P o r t E d g e ?

TruPort® SECURITYProduction Ready Software CLOUD READYTrusted enterprise security for your IOT assets

seamlessly integrates with enterprise networks, offer distributed access but

centralized control, and secure authentication and encryption

Production Ready communication & management application software running

on RTOS with built-in web server – powered by a high performance real-time ARM

microcontroller

Integration with the Lantronix MACH10™ IOT Application platform simplifies the

process to deliver web-scale services and manage deployed assets

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Copyright © Lantronix 2017. All rights reserved.COMPANY CONFIDENTIAL

C O P Y R I G HT © L A N T R O N I X 2 0 1 7 . A L L R I G HT S R E S E R V E D . 15

LANTRONIX: AN IOT INNOVATOR

Industry’s 1st

802.11AC certified intelligent gateway

Industry’s 1st M2M Module with

Enterprise Wi-Fi Security

Industry’s 1st

embedded server with simultaneous soft AP &

client Wi-Fi mode

Industry’s 1st Enterprise Grade 5G Wi-Fi embedded IoT

gateway

Recognized by CRN®, a brand of The Channel Company, in its 2017 Internet of Things 50 list, which recognizes

companies whose innovative offerings are helping connect objects, computing devices, infrastructure, data storage and

data analytics that will transform our everyday lives.

Industry’s 1st Multi-Dimensional IoT

Application Development & Deployment Platform

Embedded & External IoT Gateways with Integrated Global

Device Management

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Operating Results

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(In thousands) Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 FY16 FY17

Net Revenue $11,222 $11,524 $ 11,044 $ 10,606 $ 11,336 $ 40,592 $ 44,730

Gross Profit $ 5,812 $ 6,398 $ 5,670 $ 5,594 $ 6,314 $ 19,378 $ 23,580

% of Net Revenue 51.8% 55.5% 51.3% 52.7% 55.7% 47.7% 52.7%

GAAP Net Income (Loss) $ 41 $ (162) $ (52) $ (641) $ 225 $ (1,962) $ (277)

Non-GAAP Net Income (Loss) $ 444 $ 484 $ 388 $ 306 $ 689 $ 238 $1,581

M a i nt a i ne d G r o s s M a r g i n s A b o v e 5 0 % G A A P i n c o m e o f $ 2 2 5 K a n d 8 t h C o n s e c u t i v e Q u a r t e r

o f N o n - G A A P P r o f i t a b i l i t y

Q2 FY 2018 HIGHLIGHTS:

SELECTED INCOME STATEMENT INFORMATION

18

RETURN TO REVENUE GROWTH IN FY17

R e v e n u e i n $ 0 0 0 s

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

FY16 FY17

IoT ITM Other

A n n u a l N e t R e v e nu e G r o w t h o f 1 0 %

I m p r o v e d G r o s s M a r g i n s t o 5 2 . 7 % f r o m 4 7 . 7 %

R e d uc e d G A A P L o s s f r o m $ 2 . 0 M t o $ 2 7 7 K a n d O p e r a t i n g N e a r G A A P b r e a k e v e n

I n c r e a s e d N o n - G A A P I n c o me f r o m $ 2 3 8 K t o $ 1 . 6 M

I n c r e a s e d c a s h b a l a nc e f r o m $ 6 M t o $ 8 . 1 M

FY 2017 HIGHLIGHTS:

SELECTED BALANCE SHEET INFORMATION

(In thousands except price per share data)June 30, December 31,

2017 2017

Cash and Cash Equivalents $ 8,073 $ 8,423

Accounts Receivable, Net 3,432 3,962

Inventories, Net 6,959 7,061

Total Current Assets 19,380 20,463

Current Liabilities 8,989 9,506

Working Capital 10,391 10,957

Common Shares Outstanding 17,809 18,177

RSUs Outstanding 300 232

Stock Options Outstanding 4,184 4,535

Weighted Average Exercise Price Per Option $ 1.78 $ 1.79

Invest in one of the few public company IoT pure plays

Establ i shed g lobal I oT so lut ions p rovider wi th b lue c h ip c ustomer b ase New l eadership t eam w/ s igni f i cant enterpr i se exper ience Pursuing f a st g r owing I oT ma rket wi th d ouble d ig i t CAGRs MACH10 I oT p lat form enables i ncrementa l g r owth opportuni ty

Solid operational execution and improving fundamentals

10% r evenue gr owth f or F Y17 Operat ing n ear GAAP b reak-even a nd d e l ivered e ight c onsecut ive

quarters o f n on-GAAP p rof i tabi l i ty Bus iness model wi th s igni f i cant operat ing l everage No l ong-term d ebt, c a sh f low p os i t ive f or s i x c onsecut ive quarters S ubstant ia l NOL f edera l c arryover ( $88.5M a s o f 6/30/2017)

SUMMARY

investors@lantronix.com

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(In thousands) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 FY16 FY17

GAAP Net Income (Loss) $ (104) $ 41 $ (162) $ (52) $ (641) $ (1,962) $ (277)

Non-GAAP Adjustments:

Share-based Compensation 201 220 224 267 252 870 912

Depreciation and Amortization 151 153 151 139 137 759 594

Interest Expense, Net 7 6 5 5 4 32 23

Other (Income) Expense, Net 3 (4) (2) 6 (1) (61) 3

Withholding Taxes on Stock Grants - 5 5 2 3 4 12

Severance and Restructuring Costs - - 246 - 527 533 246

Provision (Benefit) for Income Taxes 7 23 17 21 25 63 68

Total Non-GAAP Adjustments 369 403 646 440 947 2,200 1,858

Non-GAAP Net Income (Loss) $ 265 $ 444 $ 484 $ 388 $ 306 $ 238 $ 1,581

L a n t r o n i x b e l i e v e s t h a t t h e p r e s e n t a t i o n o f n o n - G A A P f i n a n c i a l i n f o r m a t i o n , w h e n p r e s e n t e d i n c o n j u n c t i o n w i t h t h e c o r r e s p o n d i n g G A A P m e a s u r e s , p r o v i d e s i m p o r t a n t s u p p l e m e n t a l i n f o r m a t i o n t o m a n a g e m e n t a n d i n v e s t o r s r e g a r d i n g f i n a n c i a l a n d b u s i n e s s t r e n d s r e l a t i n g t o t h e C o m p a n y ' s f i n a n c i a l c o n d i t i o n a n d r e s u l t s o f o p e r a t i o n s . T h e n o n - G A A P f i n a n c i a l m e a s u r e s d i s c l o s e d b y t h e C o m p a n y s h o u l d n o t b e c o n s i d e r e d a s u b s t i t u t e f o r , o r s u p e r i o r t o , f i n a n c i a l m e a s u r e s c a l c u l a t e d i n a c c o r d a n c e w i t h G A A P , a n d t h e f i n a n c i a l r e s u l t s c a l c u l a t e d i n a c c o r d a n c e w i t h G A A P a n d r e c o n c i l i a t i o n s o f t h e n o n - G A A P f i n a n c i a l m e a s u r e s t o t h e f i n a n c i a l m e a s u r e s c a l c u l a t e d i n a c c o r d a n c e w i t h G A A P s h o u l d b e c a r e f u l l y e v a l u a t e d . T h e n o n - G A A P f i n a n c i a l m e a s u r e s u s e d b y t h e C o m p a n y m a y b e c a l c u l a t e d d i f f e r e n t l y f r o m , a n d t h e r e f o r e m a y n o t b e c o m p a r a b l e t o , s i m i l a r l y t i t l e d m e a s u r e s u s e d b y o t h e r c o m p a n i e s . T h e C o m p a n y h a s p r o v i d e d r e c o n c i l i a t i o n s o f t h e n o n - G A A P f i n a n c i a l m e a s u r e s t o t h e m o s t d i r e c t l y c o m p a r a b l e G A A P f i n a n c i a l m e a s u r e s . M a n a g e m e n t b e l i e v e s t h a t n o n - G A A P o p e r a t i n g e x p e n s e s , n o n - G A A P n e t i n c o m e ( l o s s ) a n d n o n - G A A P n e t i n c o m e ( l o s s ) p e r s h a r e a r e i m p o r t a n t m e a s u r e s o f t h e C o m p a n y ' s b u s i n e s s . M a n a g e m e n t u s e s t h e a f o r e m e n t i o n e d n o n - G A A P m e a s u r e s t o m o n i t o r a n d e v a l u a t e o n g o i n g o p e r a t i n g r e s u l t s a n d t r e n d s t o g a i n a n u n d e r s t a n d i n g o f o u r c o m p a r a t i v e o p e r a t i n g p e r f o r m a n c e . N o n - G A A P o p e r a t i n g e x p e n s e s c o n s i s t o f o p e r a t i n g e x p e n s e s e x c l u d i n g ( i ) s h a r e - b a s e d c o m p e n s a t i o n a n d r e l a t e d p a y r o l l t a x e s ( i i ) d e p r e c i a t i o n a n d a m o r t i z a t i o n ; a n d ( i i i ) r e s t r u c t u r i n g a n d s e v e r a n c e c h a r g e s . N o n - G A A P n e t i n c o m e ( l o s s ) c o n s i s t s o f n e t i n c o m e ( l o s s ) e x c l u d i n g ( i ) n o n - G A A P a d j u s t m e n t s t o o p e r a t i n g e x p e n s e s , ( i i ) i n t e r e s t i n c o m e ( e x p e n s e ) , ( i i i ) o t h e r i n c o m e ( e x p e n s e ) , a n d ( i v ) i n c o m e t a x p r o v i s i o n ( b e n e f i t ) .

APPENDIX A: Reconciliation of Non-GAAP Financial Measures