ACTION EXPECTED TO IMPROVE COMPANY'S OPERATIONAL EFFICIENCY
14 March 2003 - Lantronix

Lantronix (NASDAQ: LTRX) today announced plans to further consolidate its engineering and marketing operations. Combined with the restructuring actions the company took at the end of the first fiscal quarter ended September 30, 2002, the company expects to consolidate its research and development activities to three locations by the end of June.

'This action represents our continued commitment to increasing Lantronix's operational efficiency. By consolidating our engineering resources from eight worldwide sites a year ago, to three, we will increase our ability to collaborate effectively and enhance our ability to deliver new networking technology solutions,' said Marc Nussbaum, president and chief executive officer. 'We continue to build and invest in expanding our engineering resources at our Irvine California, Redmond Washington and Milford Connecticut facilities.'

The action, which involves closing of the Naperville, Chicago facility and a phase out of the company's engineering operations in Germany, will affect approximately 19 people. Lantronix plans to increase staff at its three continuing engineering sites.

Nussbaum indicated that the consolidation will result in approximately $200,000 savings per quarter moving forward. The actions are expected to result in total net restructuring charges of $300K- $800K that will be recognized over the next four quarters.

http://www.lantronix.com

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