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Iomega Ships Windows® Powered Iomega® NAS Servers
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New NAS lineup Seamlessly Integrates Into Windows 2000 Networks

Media please contact:
Chris Romoser, Iomega Corporation, (858) 795-7148
romoser@iomega.com

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

For Immediate Release

Iomega Ships Windows® Powered Iomega® NAS Servers

SAN DIEGO, August 19, 2002- - Iomega Corporation (NYSE: IOM), a global leader in reliable data storage, announced today that it is now shipping a new line of Windows Powered Iomega® Network Attached Storage (NAS) servers, built with an optimized version of Windows 2000 technology. The new Iomega® NAS P400M, P405M, and P410M servers offer seamless integration into Windows 2000 networks for cross-platform file sharing, organizing and protecting critical organizational data for small and medium businesses.

"We've listened to our customers and have complemented our current UNIX-series NAS products with a new line of Windows-based NAS servers that addresses our customers' advanced needs," said Werner Heid, president and CEO, Iomega Corporation. "Today's small and mid-sized businesses can add network capacity more economically and seamlessly with NAS servers than with complex and expensive general purpose servers. Windows 2000 networks and the new Iomega NAS P400M, P405M, and P410M servers are designed to work perfectly together and deliver a higher level of networking integration."

Overview of Key Features
The new Iomega® NAS P400M, P405M, and P410M servers are powered by the NAS version of the Microsoft® Windows® 2000 Advanced Server operating system. Built-in Windows® 2000 features include support for Active Directory™ services (ADS), Persistent Storage Manager (PSM), Distributed file system (Dfs) service, and File Replication Service (FRS). On the hardware side, the Iomega NAS platform features four hot-swappable 7200 RPM drives, RAID 5, teamed dual 10/100 Ethernet support (for increased performance and reliability), Ultra 160 SCSI support (P405M and P410M ) for local tape backup, and storage capacities of up to 480GB.

"With demand for Windows Powered NAS continuing to accelerate," said Zane Adam, director, product management and marketing, Enterprise Storage Division, Microsoft Corp., " we are pleased to be working with Iomega to bring to market a NAS solution, delivering levels of scalability, reliability and high availability that Windows Powered NAS customers have come to expect, at very attractive price points."

Distributed File System
As storage needs grow, users of Windows Powered Iomega NAS servers can increase capacity through additional Iomega NAS servers linked to the same network. This is accomplished by the distributed file system of adding NAS servers to the same logical namespace.

Persistent Storage Manager™ Snapshot Software
To enhance data protection, The Persistent Storage Manager™ (PSM) creates periodic snapshots of network data. If a virus hits or a user accidentally deletes or overwrites a file, recovering the original data is a simple matter of "going back in time" to an earlier snapshot. Each snapshot can protect up to 255 volumes, including all volume security attributes and metadata. The PSM minimizes its storage footprint by capturing only incremental changes in each snapshot, which also improves performance.

Active Directory
Microsoft Active Directory is a Lightweight Directory Access Protocol (LDAP)-based directory service. Active Directory reduces IT maintenance costs by simplifying the management of users, workstations, servers, and policies. Key features include Kerberos authentication and a centralized user and group security model that reduces redundancy and allows the delegation of administrative rights over objects.

Iomega QuikSync™ Automatic Client Backup
Protecting client data is a key element in any NAS solution. Iomega's tightly integrated NAS servers combine industry-standard hardware and operating system components with Iomega® QuikSync™ software, a data protection program for automatic, on-the-fly client file backups.

Hardware Flexibility
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 workgroup. With features such as hot-swappable drives, RAID 5 and redundant network connections, Iomega NAS servers reduce downtime and simplify service and support. Pre-configured for plug and play installation in minutes, Iomega NAS servers transparently support file serving and sharing between multiple network environments and file protocols, giving network managers the power to consolidate data from platform-specific servers across the network to one easy-to-manage device.

Pricing and Availability
Manufacturer's suggested pricing for the NAS P400M with 160GB will be $2,199; for the NAS P405M with 320GB, $3,399; and for the NAS P410M with 480GB, $4,399. (All prices are U.S. only.)

Warranty and Service
All Iomega NAS servers come with an expanded service program that includes 24-hour a day telephone technical support in the U.S., and a standard warranty of one year (for "A" class product) or two years (for "P" class product). In addition, Iomega offers extended service plans that increase the warranty and service period for up to three years.

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, 250MB and the New 750MB drives, high-performance Iomega® HDD portable hard drives that feature capacities from 10GB to 30GB, Iomega® HDD external hard drives that will offer capacities from 40GB to 120GB, and Iomega® 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, 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, 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, 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, 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.