Media please contact:
Chris Romoser, Iomega Corporation, (858) 314-7148 romoser@iomega.com

Analyst/Investors, please contact:
Tom Kampfer, Iomega Corporation, (858) 314-7188

For Immediate Release

New Iomega Network Hard Drive Lightens Storage Load for Home, Small Business Users

SAN DIEGO, September 29, 2004 - Iomega Corporation (NYSE: IOM), a global leader in data storage, today announced the new Iomega® Network Hard Drive for shared file storage on home and small networks. Available immediately in capacities of 160 GB* or 250 GB, Iomega's Network Hard Drive is perfect for home and small business users, providing a convenient location for shared files, photos, music and video. The Iomega Network Hard Drive lightens the storage load for networked PCs without the cost and complexity of a server.

The new Iomega Network Hard Drive will debut next week at the TechXNY tradeshow in New York City, Oct. 5-7, at the Jacob Javits Convention Center.

"Large application files have become much more common in recent years, straining the resources of home and small business users," said Brad Nelson, product general manager, consumer products, Iomega Corporation. "People outgrow their hard drives, or they find that they are losing track of important files because the files are scattered across the network. The new Iomega Network Hard Drive solves both problems by keeping those large files together in a convenient, easily managed location. This new product meets a huge demand for flexible, low-cost network storage for the kinds of files that people are using today."

Network Storage Made Simpler
Conventional external hard drives require a host PC for their storage connection. However, the Iomega Network Hard Drive simplifies life for network users by attaching directly to the network via its 10/100 Fast Ethernet port and running independently of any PC. As a result, every network user enjoys uninterrupted file access even when the other PCs on the network are not running, providing client PCs with total flexibility to shut down or reboot as needed. Installation is also extremely easy, even for non-technical users. After plugging the drive into an available Ethernet port—for instance, on the broadband router that many households use to share Internet access—each user simply runs Iomega's discovery tool software, which automatically configures access to the Network Hard Drive for that PC. The Network Hard Drive then appears on the desktop as a locally attached drive and can be used just like any other drive.   The Iomega 250GB Network Hard Drive can store the equivalent of 375 hours of video, over 4,300 hours of music, or 1 million photos.**

Iomega Automatic Backup Included
Each Network Hard Drive comes complete with award-winning Iomega Automatic Backup software for up to four client PCs. With Iomega Automatic Backup software, backups are automatic and "touch-free—no need to remember to push a button or run a program. Users simply select the files and folders to protect, set the backup schedule, and let Iomega Automatic Backup software do the rest. And restoring data is easy—just drag and drop.

Iomega Automatic Backup software includes these advanced features:

• Enables touch-free backups whenever a file changes
• Allows personalized backup schedules
• Supports multiple backup locations
• Saves multiple file revisions (user selectable)
• Supports DVD, CD, hard drives, network drives, and solid-state memory cards
• Caches backup data when backup media is unavailable
• Simplifies file restoration with drag and drop convenience

Also included is Adobe® Photoshop® Album SE for managing digital photo collections and MusicMatch® Jukebox for digital audio.

Requirements
The Iomega Network Hard Drive is compatible with Ethernet networks and client PCs running Microsoft® Windows® 98/98SE/Me/2000/XP operating systems, Mac® OS X 10.2.7 or higher, Linux kernel 2.4.24 or above (user must have root access to the Linux System), and Samba version 3.04 or above. Configuration relies on DHCP (Dynamic Host Configuration Protocol) IP addressing, which is provided by the router, switch or hub used to connect the Iomega Network Hard Drive.

Price and Availability
The Iomega Network Hard Drive is available immediately at retail, distribution, and at www.iomega.com in 160GB and 250GB capacities. The 160GB Network Hard Drive retails for $279.95; the 250GB Network Hard Drive, for $379.95.   There is also a $30 mail-in rebate available on both capacity sizes. (All prices are U.S. suggested retail.)

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 new Iomega REV™ Drive, popular Zip® 100MB, 250MB and 750MB Drives; high-performance Iomega® HDD External Hard Drives in desktop and portable configurations; Iomega Mini USB Drives and Micro Mini™ USB Drives; Iomega external CD-RW Drives; Iomega Super DVD Drives and the QuikTouch™ Video Burner; and Iomega Floppy USB-Powered 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 160GB to 1TB. 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 Network Hard Drive, 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, 2003, and its most recent Quarterly Report on Form 10-Q.

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* 1 GB = 1 billion bytes.

** Estimate based on 1.48 Mbps MPEG-1 video, 128 Kbps MP3 audio, 250 KB three-megapixel JPEG photos.

Copyright© 2004 Iomega Corporation. All rights reserved. Iomega, Zip, REV, Active Disk, Micro Mini, iStorage, HotBurn and QuikTouch 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.