For  Immediate  Release

    LANTRONIX, INC. EXPECTS INCREASED REVENUES AND LOWER CASH USAGE FOR SECOND
                     FISCAL QUARTER ENDED DECEMBER 31, 2003

        COMPANY WILL BOOK $2.1-$3.4 MILLION IMPAIRMENT CHARGE IN QUARTER

     IRVINE,  CA,  JANUARY  29,  2004  -  Lantronix,  Inc.  (Nasdaq: LTRX) today
announced  that  the company expects to report increased revenues and lower cash
usage  for  its  second fiscal quarter ended December 31, 2003. Revenues for the
second  fiscal  quarter  are expected to be approximately $12.5 million, up from
$12.2  million the prior quarter. This will be the second consecutive quarter of
revenue  growth.

     Cash usage for the three-month period ending December 31, 2003 was expected
to decrease to approximately $214,000, down from approximately $611,000 used the
prior  quarter.

     The company also disclosed that it will record a non-cash impairment charge
of  approximately  $2.1-$3.4  million  in  the  December  quarter related to the
decreased  asset value of its Premise software unit. The impairment results from
lower  software  revenues than anticipated in the home and commercial automation
software  business.

     The  company  is scheduled to announce its second quarter results after the
close  of  business  Thursday,  February  5,  2004.

ABOUT  LANTRONIX,  INC.

Lantronix,  Inc. (NASDAQ: LTRX) is a provider of hardware and software solutions
ranging  from systems that allow users to remotely manage network infrastructure
equipment  to technologies that network-enable devices and appliances. Lantronix
was  established  in  1989, and its worldwide headquarters are in Irvine, Calif.
For  more  information,  visit the company on the Internet at www.lantronix.com.
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This  news  release  contains  forward-looking  statements, including statements
relating  to the Company's Q2 financial results and future costs associated with
its  Premise  unit.  These  statements  involve  risks and uncertainties. Actual
results  and outcomes may differ materially from those discussed or anticipated.
Factors  that  might affect actual outcomes include, but are not limited to, the
outside  auditor's  final  review  of  the Company's Q2 numbers and the costs of
continuing  to operate the Premise unit. For a more detailed discussion of these
and  associated  risks,  see  the Company's most recent documents filed with the
Securities  and  Exchange  Commission.

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Lantronix  is a registered trademark of Lantronix, Inc. All other trademarks are
properties  of  their  respective  owners.

Media  Contacts:  Jim  Kerrigan,  CFO  Lantronix  949-453-3990