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

FOR IMMEDIATE RELEASE

HipZip(tm) Beta Testers Preferred All-in-One Experience and Superior Ease of Use

NEW YORK - September 21, 2000 - Iomega Corporation (NYSE: IOM), a global leader in data management solutions, and Microsoft Corporation today announced that Iomega has selected Windows Media(tm) Player 7 as the default Windows(r)-based PC jukebox to be included with the new HipZip(tm) digital audio player, which launches today. Iomega selected the new all-in-one Windows Media Player 7 based on internal research showing that the Windows Media Player 7 exceeded customer usability and functionality expectations. Iomega also has selected the Microsoft(r) Windows Media Format as its default music format for the HipZip( player because it offers consumers twice as much CD-quality music as MP3 on Iomega's PocketZip(tm) disk.

"Selecting an easy-to-use jukebox was a priority in this decision," said Noel Sobelman, worldwide product line manager for PocketZip( at Iomega Corporation. "Windows Media Player 7 consistently received high scores from our beta testers as an intuitive, all-in-one place to download, manage, play and transfer their digital music from the PC to our new HipZip player."

Microsoft also announced today that the millions of users who have downloaded Windows Media Player 7 to date are already HipZip(- and PocketZip(-ready thanks to built-in Iomega disk support in the player.

"Consumers want an easy and cost-effective way to take their digital music everywhere and Iomega's HipZip player with PocketZip storage is a breakthrough product to make this a reality this holiday season," said Dave Fester, general manager, Digital Media Division, Microsoft Corporation. "Windows Media Player 7's integrated support for the HipZip player provides an easy and seamless way for consumers to transfer their favorite digital music to their PocketZip disks and take it with them wherever they go."

HipZip( is one of the first digital audio players using Iomega's PocketZip( portable media format (formally marketed under the Clik! trademark). The player's combination of PocketZip disks and the Windows Media Format breaks down cost barriers for digital-music fans, giving listeners an affordable way to build portable digital-music libraries. Combined with the high audio quality and built-in digital rights security of Windows Media, the low-cost PocketZip disks allow consumers to affordably collect, organize, transport and share digital music from top artists.

Windows Media Player 7 will be included in the Iomega HipZip( box in November. HipZip customers can also download the latest player at http://www.microsoft.com/windowsmedia/. Windows Media Player 7 is the only software that delivers a complete, all-in-one experience, including digital audio and video playback, a jukebox, an Internet radio tuner, an integrated media guide, audio CD creation and one-click transfer of digital music to portable devices. Windows Media Player 7 ends user confusion and the need to use several products to perform the most common digital media activities.
About Windows Media
Windows Media is the leading digital media platform, providing unmatched audio and video quality to consumers, content providers, solution providers, software developers and corporations. Windows Media offers the industry's only integrated rights-management solution and the most scalable and reliable streaming technology tested by independent labs. Windows Media Technologies includes Windows Media Player for consumers, Windows Media Services for servers, Windows Media Tools for content creation, and the Windows Media Software Development Kit (SDK) for software developers. Windows Media Player, available in
24 languages, is the fastest-growing media player. More information about Windows Media can be found at http://www.microsoft.com/windowsmedia/.

About Microsoft
Founded in 1975, Microsoft (NASDAQ: MSFT) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device.

About Iomega
Iomega Corporation (NYSE: IOM) manufactures and markets the award-winning Zip(r), Jaz(r) and PocketZip( drives and disks, and markets Iomega 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 (800) MY-STUFF
(800-697-8833), or on the Web at http://www.iomega.com/.

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Copyright (c) 2000 Iomega Corporation. Iomega, the stylized "i" logo, Zip, Jaz, Clik!, HipZip, and PocketZip are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries.
Microsoft, Windows Media and Windows are either registered trademarks or trademarks of Microsoft Corp. 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.

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