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

FOR IMMEDIATE RELEASE

NEW IOMEGA ZIP® DRIVE REQUIRES NO POWER CABLE

Host Power And Hot Swap Functionality A
Robust Solution At Home And On The Road

ROY, Utah, January 3, 2001 - Iomega Corporation (NYSE: IOM), a global leader in data management solutions, today announced the U.S. availability of the new Zip® 250MB USB Powered Drive. By receiving both data and power through a single USB cable, eliminating the need for an additional power cable, the ultra-thin drive offers improved mobility and simplified connectivity for both PC and Macintosh® users.

"This drive is an ideal solution for everyone from mobile professionals who don't want to hunt for power outlets to families that simply have more than one computer and need a versatile way to protect important files," said Doug Collier, vice president of marketing, product management and business development, Iomega Corporation. "A person can move this drive from a notebook to a desktop, a PC to a Mac®, and from one operating system to another. They don't have to deal with multiple cables, they just plug one line into the USB port and they're done."

The new Zip® 250MB USB Powered Drive is hot swappable, meaning users can connect and use the drive without turning off the computer. The drive weighs just nine ounces and is one of the smallest high-capacity, portable storage solutions on the market. The drive is also compatible with all Zip 250MB and Zip 100MB disks, ensuring that customers can continue using the more than 240 million Zip disks shipped worldwide. One Iomega Zip U250TM disk, the new premium design Zip disk, will be included with the drive.

The Zip® 250MB USB Powered Drive is available in the United States at retail stores and through IomegaDirect.com for a suggested retail price of $179.95. The Zip 250MB USB Powered Drive will be available in Europe, Asia Pacific, and Latin America by the end of the first quarter in 2001.

The Zip® 250MB USB Powered Drive is compatible with computers running Windows® 95, Windows 98, Windows 2000, Windows Me, Windows NT 4.0, Linux (Kernel 2.4.0), and MacOs 8.1 or above. For more information on the new Zip 250MB USB Powered Drive, visit http://www.Iomega.com.

Note: The new Zip® 250 USB Powered Drive is a USB device and does not connect to laptops through the PCMCIA slot.

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.

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Copyright© 2000 Iomega Corporation. Iomega, Zip, Zip U250, Jaz, PocketZip, HipZip, FotoShow, and LifeWorks are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Windows is a registered trademark of Microsoft Corporation in the US and/or other countries. Mac and Macintosh are registered trademarks of Apple Computer, Inc. in the US and/or other countries.

NOTE: The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, including statements regarding the expectations, beliefs, hopes, intentions or strategies of Iomega regarding the future. All forward-looking statements included in this document are based upon information available to Iomega as of the date hereof, and Iomega assumes no obligation to update any such forward-looking statement. 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, USB technology, and Iomega products, manufacturing issues, including component availability and pricing, reliance upon third-party suppliers, development and distribution issues, product pricing and conformity to specifications, competition, intellectual property rights and other risks as identified in the reports filed from time to time with the U.S. Securities and Exchange Commission by Iomega, including Iomega's Annual Report to Stockholders for 1999 on Form 10-K and its most recent quarterly reports filed with the SEC.