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

FOR IMMEDIATE RELEASE

New Iomega Zip 100MB Value Drive Delivers Reliable
Portable Storage On a Budget

ROY, Utah, July 16, 2001 - Iomega Corporation (NYSE: IOM), a global leader in reliable portable data storage, today introduced Iomega’s most aggressively priced external Zip® drive ever: the Zip 100MB USB VL-Series drive, which will be available in August at a U.S. suggested retail price of $69.95. Iomega’s new drive features a rugged design, reliable operation and unmatched ease of use while lowering the cost of portable storage for home and small business users and others.

The Zip 100MB USB VL-Series drive is a low-power design that requires no power adapter, conveniently connecting to a host computer with a single USB cable. The drive is compatible with all Iomega Zip 100MB disks, and is designed for horizontal or vertical placement on a desktop, minimizing its footprint. It comes complete with USB cable and IomegaWare™ software tools for Macintosh®, Windows® and Linux® computers.

“Iomega’s Zip VL-Series drive targets a new broader audience on a budget that needs dependable portable storage for their computer files,” said Doug Collier, senior vice president, product marketing, Iomega Corporation. “By making a new Zip drive available in a wider range of outlets, including mass merchandisers, Iomega expects to reach untapped markets, growing its user base and sales of durable, reliable Zip disks.”

In a packaging departure from Iomega’s traditional boxes, Zip 100MB USB VL-Series drives will be sold in clear blister packs designed for easy in-store display on wall pegs, free-standing product displays, and on standard store shelves.

The Zip 100MB USB VL-Series drive will be available in the U.S. at discount retail outlets, in Europe and in Latin America, and will be available alongside premium Zip drives on a promotional basis at major U.S. electronics stores, catalogs and distribution channels. For more information, please visit http://www.iomega.com/zip.

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 Zip drive, 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, Iomega Zip drives, 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. Microdrive is a trademark of IBM Corporation and is used with permission