Analyst/Investors, please contact:
Barry Zwarenstein, Iomega Corporation, (858) 795-7190

For Immediate Release

Iomega Announces the New Zip® 750MB Drive

SAN DIEGO, August 15, 2002- Iomega Corporation (NYSE: IOM), a global leader in reliable portable data storage, today announced it is now shipping for worldwide availability the new Zip® 750MB USB 2.0 drive, the third generation of the company's award-winning removable storage solution for small business, home, and enterprise users.

The new Iomega Zip 750MB drive triples the capacity and more than doubles the maximum transfer rate of the popular Zip 250MB drive, and comes complete with advanced new software to protect and secure critical files at home, in the workplace, and on the road. The new Zip 750MB drive is available now with a high-speed USB 2.0 interface and in fall 2002 as a native FireWire® drive.

750MB Capacity
"The new Iomega Zip 750MB drive builds on the Zip heritage of easy-to-use, durable storage by offering superb software, triple the capacity and exceptional speed," said Werner Heid, president and CEO, Iomega Corporation. "For a long time we've been hearing from users who depend on their Zip drives but have been asking us for more capacity. The Zip 750MB drive meets that need and gives the user considerably greater performance."

50x50x50x Speed
The new Iomega Zip 750MB Drive raises the speed bar with a transfer rate of up to 7.5 MB/sec (maximum), or 50x50x50x in CD-RW terms (with a USB 2.0 interface). Unlike conventional CD-RW drives, Iomega's latest Zip drive delivers the same great performance regardless of whether the drive is reading, writing, or rewriting to a 750MB Zip disk.

Convenience & Durability
All Zip disks are pre-formatted, protected by a rigid plastic shell, and offer shirt-pocket convenience. Zip disks are durable and can easily shrug off the bangs, bumps and scratches that can ruin CD-R and CD-RW discs. And, because Zip disks are inherently rewritable, users don't have to stock one type of disk for write-once operations and another type for rewritable operations. The same Zip disk does it all with superior rewritable performance and durability. The Zip drive's simple drag-and-drop file management also eliminates the setup and disc-closing processes required to burn CD-R discs.

Compatibility
Since the Zip drive was introduced in March 1995, Iomega has shipped more than 48 million drives and 300 million disks, making the Zip platform one of the most popular and successful computer peripherals ever released. The new Zip 750MB drive is supported by both MacOS® and Windows. Iomega's new Zip 750MB drive is also backwards compatible with Zip 250MB disks (read and write) and 100MB disks (read only).

"Backward compatibility is important to existing users of 250MB and 100MB Zip disks, as well as to service bureaus and OEMs," said Tim Dammon, product general manager, front office storage, Iomega Corporation. "This capability lets home and business users standardize on the Zip 750MB platform without losing access to their library of existing Zip disks."

"Lockable" Disk for maximum security
Like every Zip solution, the new Zip 750MB drive offers password protection in firmware and ZIP disk serialization that allows the user to "lock" the Zip 750MB disk. This unique feature, only available in ZIP solutions, makes Iomega Zip disks the ideal portable storage product for truly protecting highly confidential information. .

Software
Included with each Zip 750MB drive are Iomega® Automatic Backup and Iomega® Sync software, easy-to-use software for comprehensive file management tasks. Iomega Automatic Backup provides the choice of scheduled or on-the-fly automatic backup of any designated folder or drive, and supports the protection of multiple revisions. Iomega Sync provides sophisticated synchronization of folders or drives across multiple PCs.

"The powerful software bundled with the new Zip 750MB drive enhances the value for existing Zip drive owners when they migrate to the new drive," Dammon added. "At the same time, a whole new generation of home and business users are going to experience the dependable, easy-to-use features and benefits of the Iomega Zip drive."

Availability
The new Iomega Zip 750MB USB 2.0 Drive is now available in the U.S. and worldwide for a suggested retail price of $179.95 (U.S. pricing only). The upcoming Zip 750MB FireWire® drive will debut in September at Apple Expo in Paris and be available worldwide this fall for a suggested retail price of $199.95 (U.S pricing only). An internal ATAPI version of the Zip 750MB drive will be available worldwide this fall for a suggested retail price of $149.95 (U.S. pricing only).

New Zip Disk Pricing
Zip 750MB disks, available in Kevlar blue, are $12.49 per disk (manufacturer's suggested retail price) in an 8-pack; Zip 250MB disks, available in grey, have a MSRP of $10.69 per disk in an 8-pack; and Zip 100MB disks, which are available in many colors to help people organize their files, are priced as low as $8.99 per disk in a 10-pack. (All pricing for U.S. only)

About Iomega
Iomega Corporation provides easy-to-use, high value storage solutions to help people protect, secure, capture and share their digital valuables. Iomega's award-winning storage products include the popular Zip® 100MB and Zip® 250MB drives and the new Zip® 750MB drive, as well as high-performance Iomega® HDD portable hard drives that feature capacities from 20GB to 30GB, Iomega® HDD external hard drives that will offer capacities from 40GB to 120GB, and Iomega® external CD-RW drives. Iomega® Automatic Backup software, Iomega® Sync software, and HotBurn™ CD-recording software simplify data protection and sharing at home and in the workplace. For networks, the new line of Iomega® NAS servers offers capacities of 120GB to 480GB. 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 Iomega product, 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 Iomega product, 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, 2001, and its most recent Quarterly Report on Form 10-Q

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Copyright© 2002 Iomega Corporation. . All rights reserved. Iomega, Zip, Peerless, Predator, DataSafe, QuikSync, HotBurn 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 be trademarks or designations of their respective owners.