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

Higher Capacity Key-Sized Drive Offers Even More Data Portability

SAN DIEGO, Calif., March 17, 2003 - Iomega Corporation (NYSE: IOM), a global leader in portable data storage, today announced the latest addition to its line of USB flash memory drives: the new 256MB Iomega® Mini USB drive. The ideal accessory for mobile users in business, home and educational settings, the Iomega Mini USB 256MB drive makes transporting and sharing data easier than ever.

Active Disk and Mini Lock Software Provide Convenience and Security
Weighing less than an ounce and as small as a car key, the Iomega® 256MB Mini USB drive has enough capacity for hundreds of digital photos, dozens of MP3 music files or hundreds of smaller documents and presentations. It also supports Iomega’s patented Active Disk™ technology, which allows Active Disk Powered software applications to conveniently launch and run directly from an Iomega Mini USB drive. Software and data reside together on the Mini USB drive, require no separate installation on the host PC, and leave no trace after the drive is disconnected. More than 100 Active Disk applications are available as downloads from the Iomega Web site, www.iomega-activedisk.com, including such titles as Microsoft® Reader, MusicMatch® Jukebox, StuffIt and Active Disk Powered Windows XP Moving Tool.

“What makes the Iomega Mini USB Drive unbeatable is its Active Disk Technology,” said Michael Johnson, product general manager, sourced products, Iomega Corporation. “Having the ability to take your software applications with you wherever you go provides a new level of convenience that users just haven’t experienced before.”

The Iomega Mini USB Drive, now available in 64MB, 128MB and 256MB sizes, also includes Iomega’s Mini Lock software, which gives users the ability to control their data by creating a password-protected secure area, called a Privacy Zone, on the drive. This Mini Lock software, which is available for Windows 98/98SE/Me/2000/XP, uses a built-in CPU on the Mini USB drive for password encryption, adding further security to the data by making the password harder to decode.

Distinctive Product Design
The Iomega Mini USB drive has a sliding key ring design that easily moves between the body of the Mini drive and the cap. This design feature offers improved security for users since they can keep the drive itself attached to their key ring when traveling, then flip the key-ring connector to the cap before they detach the drive for use with a PC. The stylish Mini USB drive also includes a clip for attaching the drive to a shirt or pants pocket.

Cross-Platform Capabilities
The Iomega® 256MB Mini USB drive’s plug-and-play functionality provides users with complete freedom from the cables, adapters, power supplies or batteries required by other solutions. To use the drive, the user just uncaps the drive and attaches it to an available USB or Hi-Speed USB (USB 2.0) port. The Iomega 256MB Mini USB drive is automatically recognized as an external drive in Windows 2000, Me, and XP and Mac OS 9.0 and higher, allowing instant access to the data and making it easy for users to transport or share their documents between different computers. (Windows 98 and Mac OS 8.6 systems require a separate driver, downloadable from Iomega). Connected to a Hi-Speed USB port, the Iomega 256MB Mini USB drive features 1MB/sec read/write performance.

Warranty and Availability
Consumers receive a full three-year limited warranty on all Iomega Mini USB drives; many competing products only carry a one-year warranty. Pricing for the Iomega Mini 256MB USB drive is $159.95. Iomega Mini USB drives with capacities of 64MB ($69.95) and 128MB ($89.95) are also available (all pricing is U.S. only). Iomega Mini USB drives are available for purchase through select retailers or by visiting www.iomega.com.

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 750MB drives, high-performance Iomega® HDD Portable Hard Drives that feature capacities from 20GB to 60GB, Iomega® HDD Desktop Hard Drives that offer capacities from 40GB to 120GB, the new Iomega® Mini USB Drive, and Iomega® external CD-RW drives. 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 120GB to 720GB. 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 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.

Copyright© 2003 Iomega Corporation. All rights reserved. Iomega, Zip, Predator, HotBurn and Active Disk are either registered trademarks or trademarks of Iomega Corporation in the United States and/or other countries. Microsoft and Windows are registered trademarks of Microsoft 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.