MINNEAPOLIS, Nov. 3 /PRNewswire/ -- Server-based communications products from Digi International(R) Inc. (Nasdaq: DGII) form a major part of a Telkom South Africa (Telkom) contract -- worth several hundred million Rand (R6/$1) -- as part of Telkom's overall strategy to expand ISDN service in South Africa and penetrate the networking, remote access and video conferencing markets.

Telkom, currently the sole telecommunications provider in South Africa, has used Digi(TM) products internally since its entrance into the South African telecommunications market in 1997.

As a condition of the new two-year agreement, Telkom will market Digi's DataFire(R) line of carrier-class server-based adapter cards under Telkom's own InContact label to the corporate IT and Internet service industries, and to anyone requiring robust remote access solutions.

Digi's distributor in sub-Saharan Africa, SPS Virtual Communications Technologies (Vicotec) and systems integrator PQ Africa, a subsidiary of Comparex Holdings, will supply the Digi product. SPS Vicotec and PQ Africa will also supply Lucent technology as part of the Telkom ISDN service.

SPS Vicotec is currently spearheading Telkom's InContact marketing and training programs and will provide sales support. Thus far, more than 600 Telkom sales professionals have completed competency-based sales training programs.

Telkom will offer Digi's DataFire 30/60 and the DataFire RAS 4 remote access concentrators. Specifically designed to meet a wide range of remote access needs, the DataFire RAS concentrators use advanced dense modem technology to provide low-cost connectivity and scalability to meet future growth demands. Digi's built-in modems use the latest advances in Digital Signal Processing (DSP) technology, resulting in the industry's highest density of on-board modems for a RAS concentrator.

Digi leadership sees this contract as a clear indicator of the steady shift to versatile, server-based communications solutions. "More and more, telecommunications companies are realizing the advantages of server-powered communications because it provides the flexibility to change with constantly advancing technology," said John Schinas, Digi chairman. "SA Telkom's decision to use Digi as a key part of its expansion plan is a tremendous validation of our commitment to server-powered communications."

About Digi International ... Bringing Server-Powered Communications to the World

Digi International, based in Minneapolis, is a leading world-wide provider of voice and data communications hardware and software that delivers seamless connectivity solutions for open systems, server-based remote access and LAN markets. The company markets its products through a global network of distributors and resellers, system integrators and original equipment manufacturers (OEMs). For more information, visit Digi's Web site at http://www.digi.com or call 800-344-4273 (U.S.) or 612-912-3444 (International).

About SPS Virtual Communications Technologies (Vicotec)

SPS Vicotec, recently voted one of South Africa's top 10 non-listed companies, is positioned as the country's foremost specialist remote access and virtual connectivity company. It has exclusive value added distribution rights for a number of global market-leading products and has architected solutions for such high profile sites as the South African Reserve Bank.

About SA Telkom ... The Communications Authority in South Africa

As the exclusive provider of telecommunications services to South Africa, SA Telkom is licensed to provide South Africa with national long-distance, international telecommunications, local access telecommunications, public pay telephone, and certain other services.

For the past five years, Telkom has worked with partners like PQ Africa and Digi International to provide South Africa with approximately 2.7 million new access lines, place 120,000 additional public pay telephones, and convert 1.25 million access lines to the latest in digital technology to meet the changing needs of its residential and business customers.

Certain statements made in this release are forward looking statements that involve risks and uncertainties. These forward-looking statements are not guaranties of the company's future performance. Important factors could cause actual results to defer materially include, but are not limited to the following: rapid changes in products and technologies that may displace products sold by Digi, the competitive industry within which Digi operates, Digi's reliance on distributors, declining prices of networking products, and changes in the companies level of profitability.

SOURCE Digi International Inc.