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

FOR IMMEDIATE RELEASE

NEW YORK--(BUSINESS WIRE)--June 27, 2000--Iomega Corporation Iomega's New Zip(R) Drive Planned as Primary External Storage Device for Neon Technology's Internet Products Iomega Corporation (NYSE:IOM), a global leader in data management solutions, today unveiled a new external Zip(R) 100MB USB drive that combines functionality and style as an entry-level primary storage device for the Internet access device market and gaming consoles, many of which have no external storage capacity. In addition, Iomega announced it is working with Neon Technology to make its new Zip 100MB USB drives will be the primary external storage device for Neon's set-top boxes. "With its bold new look, easy-to-use features and full-functionality, we are gaining incredible interest from key Internet access device manufacturers, like Neon Technology, to offer the Zip 100MB USB drive as the primary storage device for their products," said Mark Lucas, executive vice president, global marketing and product management, Iomega Corporation. "We are also talking to the gaming companies about incorporating our Zip drive into their gaming consoles." Neon Technology manufactures set-top boxes to bring the Internet from the computer to the television set. These set-top boxes will allow consumers to browse the Web, send e-mail and make calls with Neon's Internet Picture Phone, all by using their television sets. Iomega's new Zip(R) 100MB USB drive will enable users of Neon's set-top box to store important digital content on their Zip disks to share with friends and family. The new Zip 100MB USB drives are planned to be offered with Neon's set-top boxes in the first quarter of 2001. "Neon Technology is committed to incorporating advanced features in our set-top boxes that benefit our customers, and offering the Zip 100MB USB drive to our customers continues that tradition," said YP Chou, president, Neon Technology. "The Zip drives will allow our customers virtually limitless storage capacity on affordable and popular technology." The new Zip(R) 100MB drive is USB-enabled, offering simple plug-and-play connectivity and faster transfer rates than traditional parallel port devices. The Zip 100MB USB drive is hot-swappable (except with Windows(R) NT(R)) and can plug into any available USB port while the computer is on. This drive is compatible with Windows(R) 95, 98, 2000, NT(R) 4.0 and Mac(R) OS 8.1-9.x. The newly designed Zip(R) 100MB USB drive is planned to be available in the fourth quarter through retailers, distributors and directly from Iomega at www.iomegadirect.com. The Zip 100MB USB drive will be available for an estimated street price of $99.99 (U.S.) and will use genuine Zip 100MB disks, available at the estimated street price of $9.99 (U.S.) each, when purchased in a six-pack. About Zip(R) drives and disks Iomega Zip(R) drives and genuine 100MB and 250MB disks offer an easy to use solution for consumers to save, protect and share information on their computers. Fast enough to run business and multimedia applications, the Zip drive brings a new level of performance to today's powerful personal computers. The Zip 250 drives also read and write to Zip 100MB disks, ensuring that customers who use the Zip 250MB drive still have the ability to share information with family, friends and colleagues. Iomega Zip drives and disks are available worldwide through retailers, OEMs, VARs, system integrators, distributors and directly from Iomega at www.iomegadirect.com. About Neon Technology Set-Top Boxes Neon Technology offers the complete entertainment solution by offering full DVD playback in a set-top box. Other set-top box features include e-mail with voice and picture attachments supports and the Internet picture phone that enables real-time voice and video; both allow users to communicate worldwide by dialing a local number. The Neon set-top box browser supports HTML 3.2 with frames, tables and Java script, Secure Socket Layer (SSL) version 3.0 for secure e-commerce transactions and RealNetworks' RealAudio 5.0 for streaming audio. The browser software can be upgraded on-line, ensuring that the software will never be obsolete. About Neon Technology Founded in 1995, Neon Technology Inc., is a leading provider of Internet appliances. Neon's products are designed to be a low-cost, easy-to-use alternative to personal computers. Neon's standards-based set-top boxes include features such as Web browsing, e-mail, the industry's first Internet Picture Phone and DVD playback. Neon provides a complete platform for delivering communications and entertainment solutions for local and international OEM partners. Neon Technology can be reached at 1-877-SET-TOPS or on the Web at www.neontech.com. About Iomega Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip(R), Jaz(R) and Clik!(TM) 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. Special note: Statements contained in this release relating to Iomega's plans to ship the redesigned Zip 100MB drive and Iomega's agreement with Neon Technologies and the expected availability and functionality of the redesigned Zip 100MB drive are forward-looking statements. There are a number of important factors that could cause actual event to differ materially from those indicated by such forward-looking statements, including market acceptance of, and demand for, the redesigned Iomega Zip 100MB drive, 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 on 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, Clik! and ZipCD are either registered trademarks or trademarks of Iomega 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.