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

FOR IMMEDIATE RELEASE

New Iomega CD-RW Software
Combines Ease-Of-Use And Performance
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HotBurn Software From Iomega Delivers CD-RW Simplicity

ROY, Utah, August 30, 2001 - Iomega Corporation (NYSE: IOM), a global leader in reliable portable data storage, today set a new standard for speed and simplicity with the introduction of Iomega HotBurn™ software for CD recording.

In usability testing, HotBurn software consistently performed faster than the industry leader for users of all experience levels. In four out of five tasks measured, users were able to set up CD projects quicker, and they experienced less waiting time before and after the burn.

“CD-burning software often puts the user through a confusing and complicated process,” said Germaine Ward, senior vice president of software solutions, Iomega Corporation. “HotBurn software is a faster and easier user experience. It wraps the functions that people use most of the time-burning music, copying data, creating liner notes-into a clean powerful interface, replacing the usual complexity with one or two simple steps. HotBurn will allow CD-RW users to successfully burn a CD faster, and it will differentiate our optical drive bundles in an intensely competitive market.”

The HotBurn console interface conveniently groups all options for creating a CD on a single screen, and the interface is designed with replaceable skins that allow the user to customize the software’s look and feel. Additional convenience features include a “Best Of” CD creation function, which streamlines the making of a compilation disc by eliminating the need to copy selections from several CDs to the hard drive first.

Standard HotBurn features for Macintosh® and Windows® users include easy two-step music and data CD mastering, one-step CD duplication and convenient CD imaging of multiple copies from a source CD. HotBurn also fully supports new technologies like BURN-Proof™, which virtually eliminates the buffer under-run errors that can turn a CD into a coaster.

HotBurn for Windows includes an editor for CD labels and jewel case inserts, and it also incorporates drag-and-drop file management software that allows the CD-RW drive to work as a standard removable drive.

Iomega HotBurn software will be available in October with new Iomega CD-RW drives; it will also be available in the fourth quarter of this year as a retail download from www.iomega.com for users of third-party drives. Iomega HotBurn software is compatible with Windows 95, 98, Me, NT 4, and Windows 2000 on Pentium PCs with supported USB, FireWire or ATAPI CD-RW drives, and will be compatible with Windows XP in the fourth quarter of this year. Iomega HotBurn software is compatible with Macintosh computers running MacOS 8.6 through 9.x with supported USB, FireWire or ATAPI drives.

About Iomega
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip®, Jaz®, PocketZip™ and Peerless™ drives and disks, the HipZip™ digital audio player, the FotoShow™ digital image center, and Iomega QuikSync™, LifeWorks™, and HotBurn™ software; Iomega also markets Iomega CD-RW drives, CompactFlash™ and SmartMedia™ memory cards, DataSafe™ network attached storage (NAS) servers and the Iomega Microdrive™ 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 Iomega HotBurn software, 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 HotBurn software, difficulties encountered in ramping up production, product pricing, 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, 2000, and its most recent Quarterly Report on Form 10-Q.

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Copyright© 2001 Iomega Corporation. All rights reserved. Iomega, Zip, Jaz, PocketZip, Peerless, HipZip, FotoShow, Predator, QuikSync, DataSafe, LifeWorks and HotBurn are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Microdrive is a trademark of IBM Corporation and is used with permission. Certain other product names, brand names and company names may be trademarks or designations of their respective owners.