EXHIBIT 99.1


Lantronix Provides Update on Internal Review; Appoints Marc Nussbaum Interim CEO

  Will Restate Fiscal 2001 and 2002 Results; Obtains Joint Ownership Rights to
                           Gordian-Designed Technology

IRVINE, Calif., May 30 /PRNewswire-FirstCall/ -- Lantronix, Inc. (Nasdaq: LTRXE)
today announced that, based on the results of the voluntary internal review by
the company's audit committee, assisted by Ernst & Young, the company has
determined that it will amend certain of its previously issued financial
reports. The restatement is currently expected to result in net revenue
reductions of less than 15 percent for both fiscal 2001 and 2002. The company
also currently anticipates that it will record a charge of approximately $1.0 to
$2.0 million for the third quarter of fiscal 2002, principally for excess and
obsolete inventory, which will reduce the third- quarter earnings announced on
May 1, 2002. The company anticipates filing amendments to its previously issued
financial reports with the Securities and Exchange Commission after discussion
with the SEC.

The Lantronix Board of Directors announced the appointment of Marc Nussbaum as
interim chief executive officer and president, succeeding Fred Thiel, who will
assume the role of chief technology and strategy officer. The company also
announced that Thiel and Bernhard Bruscha have resigned from the Board of
Directors. H.K. Desai, a current member of the company's Board of Directors, was
elected chairman.

"Marc Nussbaum has more than twenty years experience in the computer industry.
Marc served as senior vice president and chief technical officer for Western
Digital for seventeen years where he helped build the LSI controller board and
drive business to $4.0 billion in revenue," Chairman Desai stated. "Our focus is
to complete the internal review and necessary filings that will enable us to
move on and pursue Lantronix's objective of being the premier provider of
networking technologies."

"I believe that this transition is in the best interest of the company and its
stockholders," said Thiel. "I continue to firmly believe and remain committed
to Lantronix's vision of delivering the best products and solutions that enable
network connectivity for our customers now and in the future. I look forward to
working with Marc and the rest of the management team to help define and
contribute towards Lantronix's long-term success."

Lantronix also announced that it received notification from Nasdaq on May 23,
2002 that it does not meet the filing requirements for continued listing on the
Nasdaq National Market and is therefore subject to delisting. Lantronix has
requested a hearing before a Nasdaq listing qualifications panel to review the
Staff Determination. There can be no assurance the Panel will grant the
company's request for continued listing. The notice from NASDAQ was sent as a
result of the company's current non-compliance with Marketplace Rule
4310(c)(14), which requires timely filing of the company's quarterly report on
Form 10-Q. The company intends to file its quarterly report promptly upon the
completion of the internal review.



Lantronix also announced that it has signed a new intellectual property
agreement with Gordian Corporation, Lantronix's long-time provider of product
designs and engineering services. The agreement gives Lantonix joint ownership
of the Gordian intellectual property that is embodied in the products Gordian
has designed for Lantronix since 1989. The agreement provides that Lantronix
will be able to use the intellectual property to support, maintain and enhance
its products. The agreement extinguishes Lantronix's obligations to pay
royalties for each unit of a Gordian-designed product that it sells.

Lantronix will pay Gordian $6.0 million to acquire an interest in the Gordian
intellectual property, which will be paid in three installments. The company
paid $3.0 million concurrent with the signing of the agreement and is obligated
to pay $2.0 million on July 1, 2002 and $1.0 million on July 1, 2003. Lantronix
will also purchase $1.5 million for engineering and support services from
Gordian over the next 18 months.

About Lantronix

Lantronix, Inc. (Nasdaq: LTRXE) 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.

This release contains forward-looking statements concerning the company's
expected financial restatement and possible delisting from the Nasdaq National
Market. These statements are subject to risks and uncertainties, including
possible additional changes in the Company's historical financial results that
might be identified as a result of the internal review, and the results of the
hearing before the Nasdaq panel concerning delisting.

SOURCE: Lantronix, Inc.

05/30/2002

CONTACT: Jim Kerrigan of Lantronix, Inc., +1-949-453-3990