Analyst/Investors, please contact:
Barry Zwarenstein, Iomega Corporation, (858) 314-7190

For Immediate Release

Iomega Zip 250MB Drive Now Available As Internal Floppy Drive Replacement Option for New HP Compaq Business Desktop Computers

SAN DIEGO, June 10, 2003 - Iomega® Corporation (NYSE: IOM), a global leader in data storage, announced today the award-winning Iomega Zip® zip 250MB ATAPI drive is now a configure-to-order (CTO) built–in option for customers purchasing products in the new line of HP Compaq Business Desktop d330 series and d530 series computers. In addition to this CTO option, HP will offer an Iomega zip 250MB ATAPI drive Option Kit for resellers that specialize in desktop integration services, and for customers who wish to perform their own drive replacement.

Computer users who want removable magnetic storage with higher storage capacities and faster speed for their desktop computers are realizing that it’s time to retire the floppy disk due to its low storage capacity and slower transfer speed. PC manufacturers have responded by offering new desktops without floppy drives or by providing the customer the option to remove the floppy drive from the desktop and replace it with other storage options, such as the Iomega zip 250MB ATAPI drive . Iomega Zip disks and drives offer an optimum solution since just one Zip 250MB disk can store the same amount of data as 173 floppy disks and an Iomega zip 250MB ATAPI drive can transfer data up to 2.4 MB / sec.

“We are very pleased that Hewlett-Packard has chosen Iomega’s popular Zip drives as an option for customers that want to replace the internal floppy drive in their computers,” said Greg Rhine, vice president and general manager of the Americas region, Iomega Corporation. “The zip 250MB ATAPI drive and Iomega Zip disks offer HP customers a dependable, durable solution for protecting, securing and sharing their important files.”

Iomega and HP will be offering introductory specials on select zip 250MB ATAPI drive and Zip250MB disk purchases throughout the month of June. For a limited time, Iomega is also offering its IomegaWare™ software, along with an additional suite of software, as free downloads from its website to HP customers.

“HP always strives to provide its customers with the best possible computer products and solutions in the marketplace,” said Bob Ducey, Memory and Storage product line marketing manager, business desktops, HP Personal Systems Group. “Iomega’s Zip drive is recognized as one of the easiest to use portable storage solutions for computer users that need to transport and share large files. The Iomega Zip Drive is an added value for buyers of our new line of HP Compaq Business Desktop PCs.”

Availability
This Zip drive configure-to-order opportunity is available to customers purchasing HP Compaq d330 series and d530 series business desktop computers through their HP sales representative or online at the HP web site at www.hp.com by clicking on “desktops and workstations”, then “business desktops”. For other Iomega products available for HP computers, visit the HP Software and Peripheral web store at (www.smb.compaq.com) and click on software & peripherals or www.iomegadirect.com.

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 and Iomega® HDD Desktop Hard Drives, 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 160GB to 1.4TB. For unlimited capacity and anytime, anywhere access, Iomega offers iStorage™ secure online storage choice. 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.

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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.