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

Enterprise-Level NAS Performance For Small and Medium-Sized Business

SAN DIEGO, May 5, 2003 - Iomega Corporation (NYSE: IOM), a global leader in data storage, is now shipping a new generation of Iomega® network attached storage (NAS) servers. The new Iomega® NAS P800m and P850m servers, powered by Microsoft® Windows®, deliver up to 1.4 terabytes of easy-to-manage storage capacity, giving network administrators enterprise-level features and data security that is priced for the corporate departmental and workgroup storage budget.

Designed for the growing storage needs of small and medium-sized businesses, Iomega’s new NAS P800m and P850m servers excel in adding storage capacity to existing networks and in consolidating data from across the network. In vertical markets such as education, health care, government, and professional services, customers can use the Iomega NAS 800 series to support their data-intensive applications, improve their backup and archiving practices, and lower their network support costs.

Wayne Arvidson, director of marketing, network storage solutions, Iomega Corporation, said, “Iomega designed the P800m and P850m to reduce the workload of network managers and provide a viable platform for businesses that need to maximize their IT resources. On a price-performance basis, the new 800 series is an outstanding value for corporate departments, enterprise workgroups, and vertical markets where critical data has to be available data.”

A Windows-Powered Solution
The Iomega® NAS P800m and P850m servers come standard with key Microsoft® Windows® 2000 technologies for ease of management:

• Distributed file system service (DFS), for seamlessly linking additional Iomega NAS servers to the network;
• Active Directory™ services (ADS), for managing users, servers and policies;
• Persistent Storage Manager (PSM), for creating space-efficient snapshots of network data and recovering lost, damaged, or accidentally deleted files.
• File Replication service (FRS), for replicating system policies and login scripts among Windows 2000 servers;
• Storage Resource Manager (SRM), for allocating storage, filtering files, and reporting on file usage, providing intelligent information on how the storage is being used with two levels of policy.

Enterprise-Level Performance, Priced For Departments
The new Iomega NAS P800m and P850m servers provide up to 1260 GB (gigabytes) of RAID 5 storage capacity (1440 GB total usable drive capacity) with virtually 100 percent uptime, thanks to hot-swappable power supplies, fans and drives.

The use of dual 2.4 GHz Intel® Xeon™ CPUs with Hyper-Threading technology means the NAS 800 series can handle more clients at a faster rate. Dual CPUs also enable the NAS 800 series to deliver software RAID with equivalent performance to hardware RAID at a fraction of the cost.

Providing an added performance boost are dual Gigabit Ethernet (GbE) ports and a Fast Ethernet port, with flexible configuration options. In addition, one GbE card in the P850m server is an Alacritech TCP/IP Offload Engine, reducing CPU load and bus load to improve performance by up to 20 percent.

Because they are Microsoft® Windows® Powered, the P800m and P850m servers are also storage devices that network administrators know how to use. They are designed to integrate easily into Windows 2000 networks.

Technical Support & Warranty
The NAS P800m and P850m come standard with Iomega's NAS Gold Plus service plan. In addition to Iomega's standard service of phone, e-mail and award-winning Web support, the Gold Plus service plan offers 24x7 technical support, a three-year limited warranty and three-year next-business-day onsite service.

Availability
The Iomega NAS P800m has a suggested retail price of $12,499.00; the Iomega NAS P850m has a suggested retail price of $17,499.00. (Pricing is U.S. only.) Both products are now shipping worldwide.

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 in 64MB, 128MB and 256MB capacity sizes, Iomega® external CD-RW 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 120GB to 1.4TB. 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, 2002, and its most recent Quarterly Report on Form 10-Q.

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