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

FOR IMMEDIATE RELEASE

Iomega Expects to Report Lower Fourth Quarter Results

ROY, Utah, January 5, 2001 - Iomega Corporation (NYSE: IOM), a global leader in data management solutions, announced that, based on preliminary estimates, revenue and earnings for its fourth quarter ended December 31, 2000 will be below expectations. Revenue for the fourth quarter of 2000 is expected to be between $325 million and $330 million, compared to $434 million reported for the fourth quarter of 1999. Net income per diluted common share for the fourth quarter of 2000 is expected to be between $0.07 and $0.09, including approximately $15 million, or $0.05 per diluted common share, resulting from an expected decrease in the Company's valuation allowance for net deferred tax assets.

The lower fourth quarter 2000 revenue resulted primarily from lower worldwide Zip® drive and media sales. Lower net income was primarily the result of lower Zip sales combined with increased marketing costs primarily associated with advertising to build brand awareness and to support new product introductions. Iomega cautioned that actual results may be higher or lower based upon a number of factors, including sales and inventory data collected from Iomega's distribution and retail channels that may impact the recognition of revenue, and changes in the tax valuation allowance. Actual fourth quarter results will be announced on Thursday, January 18, 2001 after the close of market.

"We began our fourth quarter with significant momentum, having just reported our second best quarter in the Company's history," said Bruce Albertson, president and CEO. "We are taking steps to control costs to adjust to changing market conditions and expect to remain profitable. With the new products introduced in the fourth quarter and our newest product announced today, we feel there are good opportunities as we enter 2001. In spite of our fourth quarter results, we still expect to report the second most profitable year on a pre-tax basis in our twenty-year history."

The Company also announced plans to hold a conference call beginning at 4:30 EST on January 18th, after the release of fourth quarter results, to discuss Iomega's financial results and management's plans for 2001. A simultaneous webcast of the conference call and replays through February 1, 2001 will be available at http://www.vcall.com.

About Iomega
Iomega Corporation (NYSE:IOM) manufactures and markets the award-winning Zip®, Jaz® and PocketZip( drives and disks, the HipZipTM digital audio player, the FotoShowTM digital image center, LifeWorksTM software, and Iomega Quik Sync 2 software; Iomega also markets Iomega CD-RW drives. 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 earnings for the fourth quarter, continued profitability and expected cost reductions, expectations for 2001, 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 and inventory data collected from Iomega's distribution and retail channels that may impact the recognition of revenue, estimates of taxes, the application of available tax credits and adjustments and changes in the tax valuation allowance, other items, adjustments and reserves that may be identified during the normal quarter end and year end processes 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, 1999 and its most recent Quarterly Report on Form 10-Q.

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Copyright(c) 2001 Iomega Corporation. Iomega, Zip, Jaz, PocketZip, HipZip, FotoShow, and LifeWorks are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Certain other product names, brand names, and company names may trademarks or designations of their respective owners.