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

FOR IMMEDIATE RELEASE

First Internal Zip 250MB Drive To Swap Between Laptop and Desktop Bays

ROY, Utah, March 23, 2001 – Iomega Corporation (NYSE: IOM), a global leader in data management solutions, today announced the worldwide availability of the Zip® 250MB MultiBay Drive from Compaq Computer Corporation. Compaq's innovative new internal drive is designed to be easily swapped between ArmadaTM portable computers and iPAQTM desktop computers.

"This drive offers Compaq customers the best of both worlds, the speed and simplicity of an internal Zip drive and the flexible use of an external drive," said Doug Collier, senior vice president, marketing and product management, Iomega Corporation. "Having a Zip drive along while traveling gives Armada users the full benefit of Zip durability and convenience at thousands of copy centers and at millions of client desktops."

The Compaq Zip® 250MB MultiBay drive is hot swappable, meaning that users do not need to reboot when moving the drive between laptop and desktop systems. An internal Zip drive also enables laptop users to back up content without having to connect to their company's network. The Zip MultiBay drive is compatible with all 100MB and 250MB Zip disks.

"We are pleased to now offer Armada portable computer users the mobility of an optional internal Zip drive. A MultiBay Zip drive allows mobile users to leave their desks and work from their laptops with data backup on the go," said Eric Brennan, director of North America Mobile Solutions, Compaq Computer Corporation.

The Zip 250MB MultiBay drive is available worldwide through Compaq. For more information about Iomega Zip products, please visit www.iomega.com.

About Iomega
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip®, Jaz® and PocketZipTM drives and disks, the HipZipTM digital audio player, the FotoShowTM digital image center, LifeWorksTM software, and Iomega QuikSyncTM software; Iomega also markets Iomega CD-RW drives, CompactFlashTM and SmartMediaTM memory cards, and the Iomega MicrodriveTM miniature hard drive. Iomega's products help people to save, share, manage and create important information such as Internet downloads, audio files, personal photographs, spreadsheets, and slides, 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 1-888-4-IOMEGA (888-446-6342), or on the Web at http://www.iomega.com.

NOTE: The statements contained in this release regarding development, production and distribution of the Compaq Zip 250MB MultiBay Drive, anticipated product pricing and availability, expected product performance and specifications, future applications for the new product and all other statements that are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based upon information available to Iomega as of the date hereof, and Iomega disclaims any intention or obligation to update any such forward-looking statements. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to, the successful completion of product development and testing, market acceptance of, and demand for, the Zip 250MB MultiBay Drive product, any difficulties encountered in ramping up production or other manufacturing issues, including component availability and pricing, co-development, production, and distribution issues, product pricing and conformity to specifications, dependence upon third party suppliers, competition, intellectual property rights and other risks and uncertainties identified in the reports filed from time to time by Iomega with the U.S. Securities and Exchange Commission , including Iomega's Annual Report on Form 10-K for the year ended December 31, 1999, and its most recent Quarterly Report on Form 10-Q.

# # #

Copyright© 2001 Iomega Corporation. All rights reserved. Iomega and Zip are registered trademarks of Iomega Corporation in the United States and/or other countries. Compaq, Armada, and iPAQ are either registered trademarks or trademarks of Compaq Information Technologies Group, L.P. in the United States and/or other countries.