The device number is a 2 byte value that is part of the channel ID. The purpose of the device number is to identify an individual device. As the device number is a 2 byte value it can be used to distinguish between 2^16 devices.
The device number can be extended by using the top nibble of the transmission type (also part of the channel ID) as the top nibble of the "extended device number". Therefore the extended device number can be used to distinguish between 2^20 devices.
If the device number is 0xF5E4 and the Transmission Type is 0x35, then the extended device number will be 0x3F5E4.