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FOR IMMEDIATE RELEASE

Iomega Makes "Backup To Disk and Archive To Tape" A Reality For Small and Medium-Sized Businesses
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Introductory Specials Available Now On New Iomega NAS Backup Bundle Solutions

SAN DIEGO, August 25, 2003 - Iomega Corporation (NYSE: IOM), a global leader in data storage, today announced three new Iomega® NAS Backup bundles for small and medium-sized businesses. Offering a complete "backup to disk and archive to tape" solution for your server that improves performance, availability, and ease of use for today's business data needs, the new Iomega NAS Backup bundle solutions kick off with two introductory specials available now through September 26, 2003.

Iomega NAS backup bundles are pre-tested and certified solutions that provide backup, recovery, archive, and data protection for networks. They are designed to speed up backup and recovery operations by introducing another disk system, the NAS server, into the backup scenario. The result is a more efficient network that is much easier to manage, while retaining the traditional data security advantages of tape archiving.

Complete, Certified, Cost-Effective
Iomega NAS backup bundles include a Windows® Powered Iomega NAS server with up to 1.28 TB of capacity, an Iomega Tape autoloader with up to 6.4 TB of backup capacity (compressed), and backup and data protection software from Computer Associates (including BrightStor™ ARCserve® 9.0 and eTrust™ AntiVirus 7.0) or Yosemite Technologies (TapeWare® 7.0). Bundled systems are pre-tested and certified for compatibility by Iomega.

High Performance With Seamless Compatibility
Traditional tape backup systems are limited by low transfer rates and linear access to stored files. Iomega NAS backup bundles accelerate day-to-day backups by using a disk-based NAS server for routine backup operations. For added redundancy and to enable secure off-site storage, all files stored on the NAS server can be archived to tape with the Iomega autoloader via a direct SCSI connection, which minimizes network traffic. The NAS server and tape autoloader work together as a self-contained system, to ensure that Iomega backup bundles will be compatible with existing servers and backup software.

“The Iomega NAS backup bundle brings a welcome level of integration to the entry level and mid-range segment of the NAS market,” said Wayne Arvidson, director of worldwide marketing for network storage solutions, Iomega Corporation. “Integrating Iomega NAS servers with tape autoloaders and industry-leading tape management software delivers the best of both worlds: the short backup and recovery times made possible by the NAS server, and the data security and archive advantages of tape.”

Iomega NAS Backup 320m and 640m Bundles
The new Iomega NAS Backup 320m and 640m bundles feature a midrange Windows Powered Iomega NAS server that includes four hot-swappable hard drives in a 1U rack-mount enclosure, a Pentium® 4 processor, high-speed error-correction code memory, dual Gigabit Ethernet (GbE) (Cu) ports, and a standard SCSI port for tape archiving.

The 320m bundle, with 320 GB of total drive capacity, uses the Iomega Tape 640VS with Yosemite TapeWare 7.0 software for tape backup. The 640m bundle, with 640 GB of total drive capacity, utilizes the Iomega Tape 1600LTO with Computer Associates software for tape archiving.

Iomega NAS Backup 1280m Bundle
The new Iomega NAS Backup 1280m bundle relies on a Windows Powered Iomega P800m NAS server with 8 drives in a 2U configuration, dual 2.4GHz Intel® Xeon™ CPUs with Hyper-Threading technology, dual Gigabit Ethernet (GbE) ports and a Fast Ethernet port. Iomega’s P800 series of NAS servers provide virtually 100 percent uptime thanks to hot-swappable power supplies, fans and drives. The 1280m bundle, with 960 GB of total drive capacity, uses the Iomega Tape 6400LTO with Computer Associates software for tape archiving.

Computer Associates Backup Software
Mid-range Iomega NAS Backup 640m and 1280m bundles will ship with powerful software from Computer Associates for backup and data protection. BrightStor™ ARCserve® 9.0 for Windows provides data and storage availability, scalability, interoperability, high performance and superior management features; eTrust™ AntiVirus 7.0 for Windows provides enterprise-class protection against virtually all forms of costly virus and malware attacks.

Yosemite Backup Software
Entry-level Iomega NAS Backup 320m bundles will ship with Yosemite TapeWare 7.0 software to enable easy tape archive and retrieval. With a modular, multithreaded design, TapeWare 7.0 features automatic server and client discovery, automated tape device and autoloader configuration, and intuitive backup and restore wizards. TapeWare 7.0 is also able to write up to eight data streams simultaneously, increasing data throughput and minimizing backup times.

Pricing and Availability
From now through September 26, 2003, Iomega is featuring two introductory specials: an Iomega NAS Backup 320m bundle with 480 GB of NAS storage for the price of 320 GB ($6,999), and an Iomega NAS Backup 640m bundle with 720 GB of NAS storage for the price of 640 GB ($12,999).

Beginning September 29, 2003, the introductory specials will end and three standard Iomega NAS backup bundles are expected to ship: The Iomega NAS Backup 320m, $6,999; the Iomega NAS Backup 640m, $12,999; and the Iomega NAS Backup 1280m at a price of $23,999.

About Iomega
Iomega Corporation provides easy-to-use, high value storage solutions to help people protect, secure, capture and share their valuable digital information. Iomega’s award-winning storage products include the popular Zip® 100MB, 250MB and 750MB drives, high-performance Iomega HDD Portable Hard Drives, Iomega HDD Desktop Hard Drives, Iomega Mini USB Drives, Iomega external CD-RW drives, Iomega DVD drives and the Iomega Floppy USB-Powered Drive. Iomega simplifies data protection and sharing at home and in the workplace with Iomega Automatic Backup software, Iomega Sync software, HotBurn® CD-recording software, and Active Disk™ technology. For networks, Iomega® NAS servers offer capacities of 160GB to 1.4TB. For unlimited capacity and anytime, anywhere access, Iomega offers iStorage™ secure online storage. Iomega also offers businesses and consumers a comprehensive data recovery services solution for recovering lost data due to hardware failure, file corruption or media damage. The Company can be reached at 1-888-4-IOMEGA (888-446-6342), or on the Web at www.iomega.com.

NOTE: The statements contained in this release regarding development, production and distribution of the Iomega products, 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 products, 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, 2002, and its most recent Quarterly Report on Form 10-Q.

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Copyright© 2003 Iomega Corporation. All rights reserved. Iomega, Zip, Active Disk, iStorage and HotBurn 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.