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

FOR IMMEDIATE RELEASE

Iomega Expects to Report Lower Second Quarter Results

ROY, Utah, June 18, 2001 - Iomega Corporation (NYSE: IOM), a global leader in data management solutions, today announced that revenue in the second quarter of 2001 may be in the range of $180 to $190 million, down significantly from revenue of $304 million in the second quarter of 2000. As a result, the Company expects to report a pre-tax loss for the second quarter of 2001.

"The revenue shortfall in the second quarter is due mainly to lower Zip and Jaz revenue," said Philip Husby, chief financial officer, Iomega Corporation. "Sales of HipZip, FotoShow and CD-RW have also been below our expectations. We expect to record charges in the second quarter that reflect our best judgement regarding the net realizable value of HipZip, FotoShow, and CD-RW inventory at Iomega and in Iomega's retail and distribution channels, possible loss accruals for related supplier purchase commitments, and other charges."

The Company's pre-tax loss for the quarter is expected to range from $41 to $62 million, including charges ranging from $33 to $50 million. Iomega cautioned that actual results for the second quarter, which ends on July 1, 2001, may be higher or lower based upon a number of factors, including sales activity for the remainder of the quarter, sales and inventory data collected from Iomega's channels that may impact revenue recognition, and ongoing assessments of the charges required to appropriately reflect the net realizable value of inventory, possible loss accruals, and other charges.

The Company continues to examine opportunities to reduce costs. Last week, the Company announced that its worldwide manufacturing operations will be consolidated at the Company's Penang, Malaysia, manufacturing facility. The Company expects to undertake additional cost reduction actions. These actions will likely result in additional charges in the third quarter of 2001.

The company plans to announce second quarter results after the close of business on July 19, 2001.

About Iomega
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip®, Jaz®, PocketZipTM and PeerlessTM 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, DataSafeTM network attached storage (NAS) servers 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 expected revenues and pre-tax loss for the second quarter, expected charges in the second and third quarters, 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 the current expectations. Factors that could cause or contribute to such differences include, but are not limited to: sales activity for the remainder of the quarter; sales and inventory data collected from Iomega's channels that may impact revenue recognition: ongoing assessments of the charges required to appropriately reflect the net realizable value of inventory, possible loss accruals and other charges; any other items, adjustments and reserves that may be identified prior to the end of the quarter or during the normal quarter-end process of closing the Company's accounting records; 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 and LifeWorks 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.