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

FOR IMMEDIATE RELEASE

Iomega Ships New Peerless 10GB And 20GB Drive System

Iomega Product Heralds New Generation Of Portable Storage Devices

ROY, Utah, May 24, 2001 - Iomega Corporation (NYSE:IOM), a global leader in data management solutions, today announced that its new PeerlessTM 10GB and 20GB drive system is now shipping. The Peerless drive system, winner of two editor's choice awards upon its introduction in January 2001 at CES and Macworld, is shipping more than a month ahead of schedule and marks the arrival of a new generation of portable high-speed storage devices.

Configured with a USB interface module, the first Peerless drive systems are going to customers who pre-ordered through http://www.iomega.com. Iomega will begin shipping the system with FireWire® interface modules within weeks, and the Peerless drive system is expected to be widely available by late June when PC Expo opens in New York City.

"Many of today's digital applications demand a storage system that is truly portable, truly high capacity, and truly high performance," said Doug Collier, senior vice president, marketing and product management, Iomega Corporation. "With pocket-sized Peerless disks, users can back up an entire hard drive, migrate computer systems, and automatically protect all of their vital data with Iomega's easy-to-use QuikSync file backup software."

The Peerless drive system incorporates world-class technology based on IBM's TravelstarTM 20GN 2.5" notebook hard disk drive in 10GB and 20GB capacities. As the highest shock-rated removable hard disk drive, Travelstar provides Iomega's Peerless drive system with a solid technology platform in a rugged and reliable sealed disk that is roughly the size of a PDA. The Peerless disk slips into a base station only slightly larger than the disk itself - a slim, vertical enclosure that minimizes the footprint on the desktop.

The Peerless drive system's unique design lets users save money as they add capacity. The system's hard drive electronics are located in the base station, rather than on the disk itself, so users only have to buy the drive's electronics once. This industry-first technology is a product of collaborations between Iomega and IBM and results in disk prices as low as one cent per megabyte. The fully sealed disk design also eliminates the risk of dust contamination and allows sustained transfer rates up to 15 MB/sec with a FireWire interface module.

For more information about the Iomega Peerless drive system, please visit http://www.iomega.com/peerless.

Price and availability
The Iomega Peerless drive system can be ordered today by residents of the U.S. through http://www.iomega.com. Shipments to international regions are expected to begin at the end of May. The drive with interface module retails for $249.95 (U.S. suggested retail price). Individual Peerless disks can be ordered today for $159.95 (10GB) and $199.95 (20GB) (U.S. suggested retail prices). The base station bundled with an interface module and a 20GB disk retails for $399.95 (U.S. suggested retail price). The base station bundled with an interface module and a 10GB disk retails for $359.95. FireWire interface modules are expected to be available within weeks.

About Iomega
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip®, Jaz® and PocketZipTM drives and disks, the Peerless drive system, 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 Peerless drive and disks, 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 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 Annual Report on Form 10-K for the year ended December 31, 1999, 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 and LifeWorks are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Microdrive and Travelstar are trademarks of IBM Corporation and are used with permission. FireWire is a registered trademark of Apple Computer Inc. Certain other product names, brand names and company names may be trademarks or designations of their respective owners.