Analyst/Investors, please contact:
Barry Zwarenstein, Iomega Corporation, (801) 332-3585

FOR IMMEDIATE RELEASE

IOMEGA REPORTS FIRST QUARTER NET INCOME GROWTH

SAN DIEGO, April 18, 2002- Iomega Corporation (NYSE: IOM) today reported net income of $31.2 million, or $0.61 per diluted share, for the quarter ended March 31, 2002, which included $15.8 million, or $0.31 per diluted share, attributable to a decrease in the Company's valuation allowance for net deferred tax assets. This compares to first quarter 2001 net income of $9.8 million, or $0.18 per diluted share. During the quarter, the Company's total cash, cash equivalents, and temporary investments grew a further $12.3 million to a level of $341.4 million as of March 31, 2002.
First quarter 2002 revenue of $178.9 million decreased $99.3 million, or 36% compared to first quarter 2001, primarily due to decreased Zip®, CD-RW, and Jaz® revenues. The first quarter 2002 gross margin percentage was 40.5%, compared with 30.8% for the first quarter of the prior year, while first quarter 2002 operating expenses were reduced by 38%, from $74.8 million in first quarter 2001 to $46.1 million this year. Operating income for first quarter 2002 was $26.4 million as compared with $10.9 million in the prior year quarter.

"The encouraging first quarter results are a further indication that our restructuring and other cost reduction efforts are yielding positive and measurable results," said Werner Heid, president and CEO, Iomega Corporation. "Our team will continue to build world-class operational efficiencies, but our focus will now shift increasingly to a more challenging goal, which is to reverse the decline in revenue, most notably in our profitable core Zip product line, by the end of the year and to lay the foundation for revenue growth in 2003 and subsequent years."

"We have embarked upon a series of programs to stabilize Zip revenue," continued Heid, "including enhanced software solutions for continuous data backup, increased focus on installed base marketing, accelerated product development, and improved international penetration. We are building on this foundation to deliver on our goal to become the leading global provider of storage solutions to protect and secure our customers' digital valuables. A particularly exciting example is the recent introduction of a line of Networked Attached Storage (NAS) solutions with breakthrough price/performance characteristics. The well established reputation of the Iomega brand as a storage provider, our new reseller partner programs, complementary software applications, and outstanding customer support and service should enable the Company, over time, to establish a strong position in this fast growing market."

First quarter 2002 Zip revenue of $143.1 million decreased $60.7 million from first quarter 2001 Zip revenue of $203.8 million. Iomega's first quarter 2002 Zip drive shipments were 1.1 million units, a decrease of 0.4 million units when compared to first quarter 2001. First quarter 2002 Zip disk shipments were 9.1 million units, a decrease of 2.6 million units when compared to first quarter 2001. Zip drive unit sales to OEM customers of 0.6 million decreased 0.1 from first quarter 2001 and represented 51% of total unit shipments in the first quarter, which compares to 43% in first quarter 2001. The first quarter 2002 Zip gross margin percentage of 48.6% increased from 39.2% in the same period a year ago, reflecting lower costs and a continuing trend from Zip 100 to Zip 250 drives and disks. The improved margins and significantly lower operating expenses more than offset the impact of the decrease in sales, resulting in a first quarter 2002 Zip product profit margin (PPM) of $57.3 million compared with $55.3 million in first quarter 2001.

First quarter 2002 CD-RW revenue of $22.6 million decreased $21.9 million from first quarter 2001 CD-RW revenue of $44.5 million. The lower revenue in the first quarter resulted primarily from the Company's decision to exit the internal CD-RW drive business and supply constraints experienced during the early part of first quarter 2002. First quarter 2002 CD-RW PPM of $0.1 million compares to a product loss of $5.9 million in first quarter 2001. The increased PPM in the first quarter was primarily due to the new CD-RW sourcing strategy, the decision to exit the internal drive business, and lower operating expenses.

First quarter 2002 Jaz revenue of $5.9 million decreased $20.7 million from first quarter 2001. The Jaz PPM in the first quarter was $1.9 million, which compares to $9.7 million in first quarter 2001. The year-over-year decrease in Jaz revenue and PPM was a result of the Company's decision to discontinue the Jaz product line.

Other revenue in the first quarter 2002 included Peerless™ revenue of $6.1 million. This compares to Peerless revenue in fourth quarter 2001 of $6.0 million. Peerless product loss in first quarter 2002 was $3.7 million as compared to a product loss of $0.4 million in fourth quarter 2001. The increased product loss was primarily due to inventory reserves established in light of the April 8, 2002 announcement of the new Iomega portable and external hard drives.

During first quarter 2002, the Company repurchased 0.34 million shares of its common stock for approximately $2.9 million. Cumulative shares repurchased under the buyback program announced on September 8, 2000, were 3.26 million shares for $27.7 million through the end of first quarter 2002.

Please refer to the attached supplemental information schedule for unit information by product line and revenue by region.

Conference Call Information
AS PREVIOUSLY ANNOUNCED, THE COMPANY WIL HOLD A CONFERENCE CALL BEGINNING AT 4:30 P.M. EDT TODAY TO DISCUSS IOMEGA'S FIRST QUARTER RESULTS. A SIMULTANEOUS WEBCAST OF THE CONFERENCE CALL AND REPLAYS FOR TWO WEEKS WILL BE AVAILABLE AT http://www.iomega.com.

Reverse Stock Split
All share and per share information included in this release gives retroactive effect to the one-for-five reverse stock split effected as of the close of business on September 28, 2001.

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 storage solutions include the popular Zip® 100MB and 250MB drives, high performance portable hard drives that feature capacities from 10GB to 30GB, external hard drives that will offer capacities from 40GB to 120GB, 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 offer 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.

Special Note Regarding Forward-Looking Statements
The statements contained in this release regarding the progress of the Company's restructuring and cost reduction efforts, impact of these efforts on the Company's future results, a continued focus on improving operational efficiencies, the goal to reduce the revenue decline and to lay the foundation for revenue growth in 2003 and subsequent years, the goal to become the leading global provider of storage solutions to protect and secure our customers' digital valuables, the goal to establish a strong position in the NAS market, 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 the current expectations. Factors that could cause or contribute to such differences include unforeseen difficulties in implementing restructuring activities, the level of retail and OEM market acceptance of and demand for the Company's products, declining consumer confidence levels and general market demand for PCs and consumer electronics products, the Company's success in timely producing and marketing its products, the Company's inability to reverse the revenue decline on the Zip product line, the Company's inability to achieve profitability on its CD-RW product line throughout 2002, technical difficulties, competitive pricing pressures or a lack of market acceptance with respect to any of the Company's new products, the Company's inability to maintain stringent quality assurance standards and enhanced customer service, availability of critical product components, the failure or delay of any sole source supplier, products and technology obsolescence, manufacturing and inventory issues, management turnover, intellectual property rights, competition, litigation, general economic and/or industry-specific conditions and the 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 annual report on Form 10-K.

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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.