InvestorPresentation

December 2017

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 development

strategies, and our target financial model. Any statement relating to our plans, goals, expectations or any future event should be considered a

forward-looking statement. While we have based our forward-looking statements on our current expectations, forward-looking statements are

subject to substantial risks and uncertainties. As a result, our actual results could differ materially from those indicated in our forward-looking

statements, 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-looking

statements include, among others, changes in customer demand, the extent to which we are able to develop successful new products, changes

to 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 filed

with 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 update

any 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

4

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

5

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 Software a s a Serv ice Of fer ing

Pursue Market Share 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

7

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 er s

RETAIL INDUSTRIAL ENERGY / UTILITIESHEALTHCARE SMART BUILDING

TRANSPORTATION FINANCIALS EDUCATIONMILITARY & GOV’T TELECOM

$190BModule/Sensor

Addressing Expanding IoT

Opportunity

9

$315BModule/Sensor

$193BApplication Software

$73BIoT Platform

2016 2020Source: IDC

t

IOT SOLUTIONS FROM THE DEVICE TO THE DATA CENTER

New Connected Devices

Legacy Devices

Network

LantronixEmbedded Modules

& Gateways

Data Center

LantronixExternal Device

Gateways

LantronixIT 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

Sampling

First SaaS OfferingLaunched in Fall of 2017

▪ 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 MARKET

ROBUST DATA

HANDLING

Combo 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 Series

Best-in-Class Embedded Solution for Managed Industrial Wi-Fi Connectivity

12

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

MACH10 GLOBAL DEVICE MANAGER

OEM-Centric. System Integrator Friendly.

Ready-To-Use, Scalable Device Lifecycle Management for Industrial Machines

Multi-Dimensional IoT SaaS

Centralized Management

Remote Device Monitoring

Cloud-powered, browser-based anytime, anywhere

access to your globally installed base of devices

Bandwidth-optimized real-time monitoring with

rules-based notifications.

We Built It,

So That You Don’t Have To.

Multi-Tenant & Multi-UserMulti-tenant portals allow the end customers and system

integrators to only manage the devices they own

MACH10

GLOBAL DEVICE

MANAGER

OEMs can dramatically reduce their IoT software

development schedules and get to market quickly

Reduce Software Development Time

Copyright © Lantronix 2017. All rights reserved.COMPANY CONFIDENTIAL

C O P YR IG HT © L A N TR O N IX 2 0 1 7 . A L L R IG HTS R E SE R V E D . 14

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

15

Operating Results

16

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

Net Revenue $ 10,940 $11,222 $11,524 $ 11,044 $ 10,606 $ 40,592 $ 44,730

Gross Profit $ 5,700 $ 5,812 $ 6,398 $ 5,670 $ 5,594 $ 19,378 $ 23,580

% of Net Revenue 52.1% 51.8% 55.5% 51.3% 52.7% 47.7% 52.7%

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

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

▪ M a i nt a i ne d G r o s s M a rg i n s A b o v e 5 0 %

▪ 7 t h C o n s ec ut i v e Q u a r ter o f N o n - G A AP P r o f i ta b i l i t y

Q1 FY 2018 HIGHLIGHTS:

SELECTED INCOME STATEMENT INFORMATION

17

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 ed G r o s s M a rg 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 ra 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,September

30,2017 2017

Cash and Cash Equivalents $ 8,073 $ 8,223

Accounts Receivable, Net 3,432 2,687

Inventories, Net 6,959 7,258

Total Assets 30,132 29,518

Current Liabilities 8,989 8,667

Non-Current Liabilities 455 429

Working Capital 10,391 10,165

Common Shares Outstanding 17,809 17,918

RSUs Outstanding 300 262

Stock Options Outstanding 4,184 4,771

Weighted Average Exercise Price Per Share $ 1.78 $ 1.84

Invest in one of the few public company IoT pure plays

▪ Establ i shed g lobal I oT so lut ions provider wi th b lue c h ip c ustomer base

▪ New l eadership t eam w/ s igni f i cant enterpr i se exper ience

▪ Pursuing fa st g r owing I oT ma rket wi th double 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 for FY17

▪ Operat ing near GAAP break -even a nd de l ivered seven c onsecut ive quarters o f non -GAAP prof i tabi l i ty

▪ Bus iness model wi th s igni f i cant operat ing l everage

▪ No l ong-term debt, c a sh f low pos i t ive for s i x c onsecut ive quarters

▪ Substant ia l NOL federa l c arryover ($88.5M a s o f 6/30/2017)

SUMMARY

investors@lantronix.com

21

(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