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

FOR IMMEDIATE RELEASE

Iomega NAS Spells Big Business Advantages For Small and Medium-Sized Businesses

SAN DIEGO, March 18, 2002- Iomega Corporation (NYSE: IOM), a global leader in reliable data storage, today announced the U.S. launch of four new network attached storage (NAS) file servers that deliver breakthrough pricing and performance: the Iomega® NAS A300U and the Iomega NAS P400U, P405U and P410U. Offering models with capacities of up to 480GB, RAID 5 including hot spare, and hot-swappable drives, Iomega has created a flexible, cross-platform solution that businesses need for organizing, sharing, and protecting their critical data.
“This new line of affordable NAS servers represents Iomega’s commitment to delivering smart storage solutions to the back office, and provides a natural extension to Iomega’s successful line of storage solutions ,” said Werner Heid, president and CEO, Iomega Corporation. “More than ever, today’s small and medium-sized businesses are looking to protect and share their digital data. They don’t need an expensive general purpose server to accomplish this. Iomega has studied the marketplace and is delivering the solution – innovative NAS products that provide advanced functionality at dramatically lower costs.”.

Iomega’s new line of NAS servers includes features such as RAID 5 for under $1,100 and hot swappable drives for under $2,000. Iomega will also provide full technical support for the duration of warranty at no additional cost. And because small and medium sized businesses rely upon the information technology services of resellers, Iomega is also launching a new reseller program titled ioLink™ that will make the reseller an integral part of the strategic value proposition of Iomega’s NAS products.

Iomega NAS file servers are tailored to the rapidly expanding storage needs of the small office/home office (SOHO), small to medium-sized business, and enterprise workgroups. Each is pre-configured for easy installation in minutes. Iomega NAS servers transparently support multiple network environments and file protocols. The primary benefit of multi-platform support is the power it gives network managers to consolidate data from platform-specific servers across the network onto one easy-to-maintain device.

To enhance data protection and availability, Iomega also bundles software for client backup and other precautionary applications. Iomega’s tightly integrated NAS servers combine industry-standard hardware and operating system components with Iomega® QuikSync™ software for automatic, on-the-fly client backups.

“Hot swappability is an example of advanced NAS features Iomega is making available to small and medium-size companies,” said Akshay Gupta, NAS Product General Manager, Iomega Corporation. “Hot swappable drives reduce downtime and simplify service and support for small and medium-sized businesses.”

Availability
Iomega NAS “A” and “P” series servers are expected to be available in the U.S. in early April through authorized resellers and at Iomega.com. Suggested retail price for the NAS A300U with 120GB is $1,099; for the NAS P400U with 160GB, $1,999; for the NAS P405U with 320GB, $2,999; and for the NAS P410U with 480GB, $3,999.

Iomega NAS A300U Server
Iomega NAS “A” series server is the value and performance leader in its class.
The Iomega NAS A300U is a 1U rack mount with a single 10/100 Ethernet, three 40GB drives with a rotational speed of 7200RPM, and RAID 0 (striped), RAID 1 (mirrored), or RAID 5 (parity) options.

Iomega NAS P400U, P405U, and P410U Servers
For workgroups with higher data availability requirements, Iomega NAS “P” series servers add hot-swappable drives and enhanced performance options including Gigabit Ethernet. The Iomega NAS P400U is a 1U rack mount with dual 10/100 Ethernet, four 7200RPM 40GB drives and support for RAID and a “hot-spare” reserve drive.

In the second quarter of this year, Iomega will be one of the few companies in the industry to offer a choice of operating systems for NAS servers. The Iomega NAS P4XXM series using Microsoft Server Appliance Kit 2.0 is expected to ship in June 2002, providing customers the option of a Windows Powered NAS Solution. This is an answer for customers that want Server Active Directory™ service, local tape backup and full snapshot capability.

Warranty and Service
All Iomega NAS servers will come with free technical support and a standard warranty of one year (for “A” class product) or two years (for “P” class product). In addition, Iomega will offer extended service plans in the near future.

ioLink Reseller Program
To support the launch of the new NAS servers, Iomega is also announcing ioLink, a new partnership program with resellers designed to generate sales leads as well as provide top tier product training and customer support of NAS and other Iomega products. The ioLink reseller program, which is commencing in March, consists of up to twenty distinct benefits packaged into three participation levels. Resellers choose the level that best supports their business model and customer focus, gaining access to sales and marketing tools, special promotions, pre-qualified leads, sales incentives, training, priority technical support and field engineer support, and an array of other business-generating tools. By leveraging the Iomega brand recognition in backup and archiving, the new ioLink reseller program promises to be a strong catalyst for new sales.

About Iomega
Iomega Corporation is a global solution provider in protecting and securing critical data. Iomega’s award-winning storage products include the popular Zip® 100MB and 250MB drives, the high-performance Peerless™ drive system with 10GB and 20GB disks, and external CD-RW drives. Iomega QuikSync™ automatic backup software and HotBurn™ CD-recording software simplify data protection and sharing at home and in the workplace. For networks, Iomega’s new line of NAS servers will offer capacities of 120GB to 480GB. Iomega products help people capture, share, protect and secure their digital valuables. 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, personnel changes at either suppliers, distributors, or Iomega, 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, 2000, 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, LifeWorks and ioLink 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.