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

FOR IMMEDIATE RELEASE

Iomega Delivers FireWire-Based Peerless Drive System
For Macintosh and Windows Computers

Fastest Removable Storage Device Ever from Iomega

ROY, Utah, August 13, 2001 - Iomega Corporation (NYSE: IOM), a global leader in reliable portable data storage, today announced the availability of its award-winning new Peerless™ drive system with FireWire® interface for Macintosh® and Windows® computers. The versatile new drive, now at retail in the U.S., establishes a new capacity and performance benchmark for removable storage devices in consumer and business applications.

Peerless technology represents a new generation in removable storage from Iomega, featuring affordable pocket-sized 10GB and 20GB disks, an ultra-reliable sealed disk design, and interchangeable interface modules. The new FireWire® interface gives the Peerless drive system a sustained transfer rate of up to 15MB per second with a computer equipped with a FireWire® 1394 PCI card.

"The Peerless drive is designed for many different types of users," said Werner Heid, president and CEO, Iomega Corporation. "People who are editing digital video or running other high-bandwidth streaming applications can never have too much backup speed or storage capacity, making the new Peerless FireWire bundle an ideal choice. Users who need broad compatibility with current PC and Mac computers will appreciate the modular design of Peerless, which allows them to swap the FireWire interface module for a USB interface module. The speed, capacity and modular design of Peerless make it one of the most versatile storage solutions on the market today."

The Peerless drive system's unique design also lets users save money as they add capacity. Unlike other portable storage systems, the Peerless system's hard drive electronics are located in the base station, rather than on the disk itself, so users only buy the drive's electronics once - even as their capacity needs grow. This industry-first technology results in disk prices as low as one cent per megabyte.

The FireWire-based Peerless drive bundle for Macintosh and Windows computers is available for a suggested $359 (U.S. retail, 10GB bundle) or $399 (U.S. retail, 20GB bundle). It is compatible with Windows 98SE, Me, and 2000, and with Mac OS 8.6 through 9.x. Certification with Windows XP and Mac OS 10.x is in progress. The Peerless drive system is available from major retailers, distributors, and online at www.iomega.com.

The Peerless drive system with USB 1.1 interface began shipping in May 2001 for Windows and Macintosh computers. A Mac-only Peerless drive with FireWire interface was released in July. Interface modules, 10GB and 20GB disks, and base stations are sold both separately and in bundles, giving users the freedom to build the Peerless system that meets their specific needs.

Iomega's Peerless drive system has received numerous accolades since the product was announced earlier this year. Honors for Peerless include an Editor's Choice award from Popular Mechanics at the Consumer Electronics Show in Las Vegas, as well as a Macworld Best of Show award at Macworld SF 2001 in San Francisco.

About Iomega Corporation
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip®, Jaz® and PocketZip™ drives and disks, the HipZip™ digital audio player, the FotoShow™ digital image center, LifeWorks™ software, and Iomega QuikSync™ software; Iomega also markets Iomega CD-RW drives, CompactFlash™ and SmartMedia™ memory cards, 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 the new Peerless interface, 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, market acceptance of, and demand for, Peerless products, 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 most recent filings on forms 10-K and 10-Q.

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Copyright© 2001 Iomega Corporation. All rights reserved. Iomega, Zip, Jaz, PocketZip, HipZip, FotoShow, Predator, QuikSync and LifeWorks are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. FireWire is a trademark of Apple Computer, Inc. Microdrive is a trademark of IBM Corporation and is used with permission.