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For Immediate Release

Iomega Revamps NAS 400 Series for Improved Network Performance
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New Generation Technology Strengthens Iomegafs Microsoft Windows Storage Server 2003-based NAS Offerings

SAN DIEGO, December 03, 2004 - Iomega Corporation (NYSE: IOM), a global leader in data storage, today updated its NAS lineup with the new Iomega® NAS 400r series. Building on Iomega's success in NAS servers for small- and medium-sized businesses, the NAS 400r series is built on Microsoft Windows Storage Server 2003, uses a high-speed Serial ATA storage subsystem and features improved performance, reliability and software capabilities across the line. Windows Storage Server 2003 is standard on all models. Scaling up to 1.6TB* capacity, the new NAS 400r series leverages existing IT infrastructures by seamlessly integrating with Windows environments.

"Iomega has been very successful in the entire entry-level NAS market segment, both the sub-$2,000 and the $2,000 to $5,000 price bands," said Wayne Arvidson, general manager, Professional Storage Solutions, Iomega Corporation. "The NAS 400r server is easy to install and easy to manage, features hot-swappable SATA drives, and because it is powered by Windows Storage Server 2003, it integrates seamlessly into Windows-based environments that are the IT backbone of most small- and medium-sized businesses."

"Customers tell us they are looking to consolidate their costly Direct-Attached-Storage," said Leslie McGuire, group manager, Windows Server Division at Microsoft Corp. "Iomega's NAS 400r series of Windows Storage Server-based NAS devices provide easy migration to cost-effective NAS, reducing the cost of their storage environments."

According to Gartner, low end stand-alone ($2,000-$4,999) NAS unit shipments are projected to grow at a compound annual growth rate of 5.3 percent annually through 2008 (Gartner Dataquest, "Network Attached Storage Market Forecast: Worldwide, 2003-2008", P. Rinnen, April 2004).

The new Iomega NAS 400r servers are designed to protect, manage and share critical information that is the lifeblood of today's business operations. The Iomega NAS 400r servers target the needs of corporate departments, enterprise workgroups, large remote offices, and small- and medium-sized businesses, offering models with 640 GB, 1 TB, and 1.6TB of native storage capacity.

Hardware
The NAS 400r series features a high-speed Serial ATA storage subsystem. SATA drives are hot swappable, allowing a single drive to be removed from the unit without any data loss. The SATA drives in the NAS 400r offer a more reliable connection and improved RAID integration for better system performance and reliability with support for RAID levels 0, 1 and 5. Dual Gigabit Ethernet ports are now standard across the product line, as is a high-speed Ultra SCSI 320 port for backup to tape or the Iomega® REV™ drive or the recently announced Iomega REV Autoloader 1000. Other performance-oriented changes include the use of Intel® Pentium® 4 HT (Hyper-Threading) processors in the 1TB and 1.6TB systems, enabling software to run faster and more efficiently.

Software
Microsoft Windows Storage Server 2003, a member of the Windows Server System family, is standard with all NAS 400r models. The 400r series servers benefit from performance improvements, support for larger volume sizes and more files per volume. File share management capabilities of the Microsoft Distributed File System (DFS) and Encrypting File System (EFS) provide easy assignment and protection of shares. All models also support the Microsoft Volume Shadow Copy Service (VSS), which lets IT managers set up point-in-time snapshot copies of their files that users can recover without an IT administrator or costly recoveries of tape. As a result, productivity is increased and customers lower the cost of operating their IT infrastructures while IT administrators gain time to focus on aligning IT with business goals.

All NAS 400r servers also ship with Iomega Automatic Backup software, a complete client backup solution with unlimited licenses for client PCs. Also included with each NAS 400r server is a full version of Computer Associates eTrust Antivirus software, which provides continuous virus protection.

The NAS 400r 1.6TB model also includes Microsoft Windows Print Server for server-based printing with improved printer reliability, manageability, and security, as well as Microsoft Exchange support, which frees up the Exchange Server to focus on processing email and communication transactions. The NAS device takes over the task of delivering files to the appropriate user from the Exchange databases, improving throughput and manageability.

Warranty and Support
The Iomega NAS 400r series includes a standard 3-year limited warranty with 1 year of next business day onsite service and 24x7 phone and email support, among other features. Iomega's Gold Plus support plan, optional on all units, provides 3 years next-day onsite repair service. Platinum Plus support is also available, providing 3 years of same-day 4-hour onsite repair for $1,599 (400r 1TB) and $1,799 (400r 1.6TB).

Price and Availability
Iomega NAS 400r servers are shipping now for availability through value-added resellers and distributors, as well as online at www.iomega.com. The Iomega NAS 400r series 640GB server is available for $4,499; the Iomega NAS 400r series 1TB server, for $5,999; and the Iomega NAS 400r series 1.6TB server, for $7,499 (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 1.6TB. 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 NAS 400r, 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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* 1TB = 1 trillion bytes, or 1,000,000,000,000 bytes

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.