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

FOR IMMEDIATE RELEASE

Iomega Reports First-Quarter 2001 Profit Of $9.8 Million

ROY, Utah, April 19, 2001( Iomega Corporation (NYSE: IOM) today reported net income of $9.8 million, or $0.04 per diluted share, for the first quarter ended April 1, 2001. This net income compares to first quarter 2000 net income of $51.8 million, or $0.19 per diluted share, which included $20.1 million, or $.07 per diluted share, attributable to certain tax benefits. First quarter 2001 revenue of $278.2 million decreased $66.7 million from $344.9 million in the first quarter 2000, due to lower Zip® and Jaz® revenue partially offset by higher CD-RW revenue.

"I am pleased to report our sixth consecutive profitable quarter, although we have not met our goal of achieving profitable revenue growth," said Bruce Albertson, president and CEO. "First quarter 2001 revenue was down considerably from the fourth quarter 2000; however, we were able to control costs and actually increased pre-tax income by 5 percent compared to the fourth quarter of 2000. While there are challenges ahead, including the worldwide economic uncertainty, we see many growth opportunities. These include leveraging and growing our established base of over 42 million Zip drives and 260 million Zip disks, revitalizing international markets, branding of sourced products, and upcoming new product releases. We believe that our newest products, HipZip, FotoShow, Predator, QuikSync software, CompactFlash and SmartMedia, along with our planned future products, DataSafe network attached storage servers, the Peerless drive system and the 100MB PocketZip drive, demonstrate Iomega's commitment to develop growth opportunities in new and existing markets."

First quarter 2001 Zip product profit margin (PPM) of $54.9 million decreased $33.1 million from the first quarter of 2000, as Zip revenue decreased $74.0 million. The Zip PPM decrease primarily reflects lower prices and lower disk and aftermarket drive shipments. Cumulative worldwide shipments (including licensee shipments) now exceed 42 million Zip drives and 260 million Zip disks.

First quarter 2001 Jaz PPM of $9.7 million decreased $2.8 million from the first quarter of 2000, as Jaz revenue decreased $25.3 million. The Jaz PPM decrease primarily reflects lower shipments of both disks and drives.

The first quarter 2001 CD-RW product loss of $5.9 million increased from near break-even in the first quarter of 2000, due primarily to higher manufacturing and operating expenses associated with adding additional drives and competitive pricing. Revenue in the first quarter 2001 of $44.5 million increased $33.7 million from the first quarter of 2000 as Iomega introduced additional drives, including the PredatorTM CD-RW drive, to its product line from the single drive offered in the first quarter of 2000.

The first quarter 2001 PocketZipTM product loss of $8.1 million represented an improvement of $8.2 million over the first quarter of 2000, primarily due to $7.4 million in charges taken in the first quarter of 2000 to reflect estimates of the net realizable value of inventory and equipment. First quarter 2001 PocketZip revenue of $1.3 million decreased $0.8 million from the first quarter of 2000.

The cash, cash equivalents, and temporary investments balance was $372.9 million with no long-term debt at April 1, 2001. Iomega did not repurchase any common stock during the first quarter of 2001.

Supplemental financial information is also available at the following location: www.iomega.com/about/investor/q101_pres.pdf.

Investors and others without Internet access may contact the company at 1-801-332-3585 or by e-mail to investorrelations@iomega.com.

AS PREVIOUSLY ANNOUNCED, THE COMPANY WILL HOLD A CONFERENCE CALL BEGINNING AT 4:30 EST TODAY TO DISCUSS IOMEGA'S FINANCIAL RESULTS. A SIMULTANEOUS WEBCAST OF THE CONFERENCE CALL AND REPLAYS FOR TWO WEEKS WILL BE AVAILABLE AT http://www.iomega.com/about/investor.

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 QuikSyncTM software; Iomega also markets 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 continued profitability, leveraging the established Zip base, revitalization of international markets, branding of sourced products, upcoming new product release, planned future products, 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 the level of retail and OEM market acceptance of and demand for the Company's existing and new products, general market demand for PCs and consumer electronics products, the Company's success in timely producing and marketing its products, the Company's ability to maintain stringent quality assurance standards and enhanced customer service, availability of critical product components, manufacturing and inventory issues, intellectual property rights, competition, litigation, general economic and/or industry-specific conditions and the 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.
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Copyright© 2001 Iomega Corporation. All rights reserved. Iomega, Zip, Jaz, PocketZip, HipZip, FotoShow, Predator, QuikSync, LifeWorks, Club Iomega, Peerless and iomegadirect 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 under license by Iomega Corporation. Certain other product names, brand names and company names may be trademarks or designations of their respective owners.