Analyst/Investors, please contact:
Jim Recob, Iomega Corporation, (801) 332-4430 recob@iomega.com

FOR IMMEDIATE RELEASE

New Win-Jam Digital Audio Player to Include Iomega PocketZip and Microsoft Windows Media Technologies for Secure Digital Music

ROY, Utah and SCHAUMBURG, Ill., Aug. 30, 2000 - Iomega Corporation (NYSE:IOM), a global leader in data management solutions, and I-Jam( Multimedia L.L.C., a pioneer in the digital audio arena, today announced a strategic alliance to introduce a new line of digital audio players from I-Jam, marketed under the Win-Jam and I-Jam brands. With the new Win-Jam II player, I-Jam L.L.C., one of the leaders in portable digital audio, unites two leading-edge technologies-Iomega's PocketZip(tm) removable storage and the Microsoft Windows Media Format-to deliver affordable portable music to digital audio player users.

Using the Microsoft Windows Media Player 7, the new Win-Jam II digital audio player can record and play roughly 80 minutes of music on each 40MB PocketZip( disk, the disk formerly marketed under the Clik! trademark. The Win-Jam II player's internal PocketZip drive is designed for skip-free playback, fast USB downloads, and up to 12 hours of continuous operation on its rechargeable lithium ion battery. In addition, Win-Jam players support the Microsoft Windows Media Rights Manager for secure music downloads and pre-recorded content from the major record labels.

"We are excited that I-Jam has chosen Iomega's PocketZip storage for its new digital audio players," said Bruce Albertson, president and CEO, Iomega Corporation. "PocketZip technology offers I-Jam customers the music they want at the price they want to pay. We expect PocketZip-based digital audio players to have huge appeal with consumers. The download capability allows consumers to build albums of their favorite songs. And PocketZip disks are as affordable as any of the successful music formats of the past, including CDs, tapes, and vinyl albums. This alliance is great for both companies and further solidifies acceptance of the PocketZip platform in the portable digital audio market."

Outstanding Value
I-Jam( has paired Iomega's PocketZip( storage with Windows Media Format for the outstanding value the combination offers consumers, making it practical and affordable to create portable libraries of music. PocketZip disks are as easy to carry as pocket change, are encased in a metal shell for better durability than the old CD music format, and are so inexpensive compared to solid-state memory cards that consumers can afford to bring hours of their favorite music with them on a few PocketZip disks.

Iomega estimates that consumers build a media library averaging 20 disks in the first year after they adopt a new music format. With the Win-Jam II player, that 20-disk collection has a media cost of about $200, or $10 per PocketZip( disk. Building an equivalent music collection with the MP3 format and solid-state memory cards would take twice the storage space compared to files in the Windows Media Format, and would cost $4,000 at today's suggested retail price of approximately $80 for a 32MB card, well beyond the reach of ordinary consumers. With PocketZip-based players like Win-Jam II, consumers can now build affordable digital music collections.

"The combination of Iomega's PocketZip platform and Windows Media Format gives the Win-Jam II player the versatility, portability and low cost that today's music fans demand in digital audio players," said Doug Marrison, president and CEO, I-Jam Multimedia. "Thanks to our partnership with Iomega, Win-Jam II users will have virtually unlimited access to their digital music collection wherever they go."

"I-Jam Multimedia's addition of Iomega's PocketZip storage for its next-generation Win-Jam II player will continue to lower the cost of enjoying digital music for consumers," said Kevin Unangst, group product manager, Digital Media Division, Microsoft Corporation. "Combined with the industry-leading audio quality of Windows Media, Win-Jam II users will get the benefits of doubling their CD-quality digital music together with super economical media storage."

The I-Jam/Iomega partnership follows previous announcements from several original equipment manufacturers to include PocketZip( technology in their audio players. And, Iomega will deliver its own player, the HipZip(tm) digital audio player, this fall. Other manufacturers already announced include Sensory Science Corporation, Addonics Technologies Corporation, Varo Vision Co., OptoMedia Corporation, LG International Corp., Rexon Technologies, RFC and Frontier Labs. Sensory Science released the first Clik!-based digital audio player, the rave:mp 2300, in July 2000.

About I-Jam Multimedia LLC
I-Jam Multimedia L.L.C., headquartered in Schaumburg, Ill., was formed in 1999 to develop and market micro-sized, multimedia products in the digital audio and video categories. The company is leveraging its advanced, in-house expertise in microcircuit design and development with its consumer marketing experience to create innovative solutions for the entertainment and technology industries. For more information, go to the company's Web site at http://www.ijamworld.com.

About Iomega
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip(r), Jaz(r) and PocketZip( drives and disks and markets the ZipCD(tm) CD-RW drives and discs. Iomega's products help people to save, share, manage and create important information such as spreadsheets, slides, Internet downloads, audio files and personal photographs, while protecting that content from viruses and hackers. Used in homes, businesses, government and educational facilities and by creative professionals everywhere, Iomega storage solutions are the enabling technologies preferred by millions. The Company can be reached at 1-800-MY-STUFF (800-697-8833), or on the Web at http://www.iomega.com.

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Special note: Statements contained in this release relating to Iomega's plans to include its PocketZip drive into several OEMs' digital audio players as the primary storage unit and the expected availability and functionality of the OEM players with Iomega's drive built-in are forward-looking statements. There are a number of important factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including market acceptance of, and demand for, the OEM MP3 players with Iomega's PocketZip drive built-in, manufacturing issues, including component availability and pricing, development and distribution issues, product pricing and conformity to specifications, competition, intellectual property rights and other risks as identified in Iomega's Annual Report to Stockholders for 1999 on Form 10-K, and its most recent quarterly reports filed with the SEC.

Copyright (c) 2000 Iomega Corporation. Iomega, Zip, Jaz, PocketZip, HipZip, Clik!, and ZipCD are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. I-Jam and JamStation are trademarks and/or registered trademarks of I-Jam Multimedia L.L.C. Microsoft and Windows Media are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Certain other product names, brand names and company names may be trademarks or designations of their respective owners.