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

Iomega Corporation Introduces Exciting New Desktop Hard Drive Product Lines
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Redesign Adds Versatility, Style and a Choice of High-Speed Interfaces

SAN DIEGO, September 30, 2004 - Iomega Corporation (NYSE: IOM), a global leader in data storage, today introduced a sweeping redesign of its growing lineup of Iomega-branded external hard drives.   Incorporating best-in-class features for improved usability and performance, Iomega's new desktop hard drives are ideal for home users or small businesses that need simple and complete solutions for managing and protecting large data files, music, photos, video, drive images and other data.

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

"This is Iomega's third-generation external hard drive design, so we were able to incorporate considerable customer feedback and insight into our new external hard drive product lines," said Brad Nelson, product general manager, consumer products, Iomega Corporation. "These new drives combine the best features of the previous generation with new versatility, easy-to-use bundled software for file backup and disaster recovery, and an improved selection of capacities and interface options.

"Digital photography, downloadable music, and digital video camcorders, as well as an endless variety of data files, all contribute to increased demand for desktop storage," Nelson continued. "Iomega's redesigned external hard drives should improve the data storage and protection experience for computer users by giving them an easy way to keep all that data backed up automatically, without having to push a button or start a program. Automatic backup of all their important files is the safety net that can protect from data disasters."

Product Features
New features include a stackable design, a drive stand for space-saving vertical placement that can be stowed in the drive case when not in use, and a high-gloss black finish. A Kensington® security slot is built in to help users secure the drive in high-traffic locations, and an on/off switch adds the option of powering down the drive at night. Drives will be available with up to three interfaces -- including FireWire® 800 -- for improved performance (see below).

All of the new drives feature 7200 RPM drive performance and whisper-quiet operation. Each drive also comes complete with full versions of disaster recovery software and award-winning Iomega Automatic Backup software.

Three new families of external hard drives are being announced today:

• USB 2.0 (Hi-Speed USB) Only. Designed for home users and small businesses with USB 2.0 equipped PCs, these drives deliver plug-and-play simplicity in 120GB, 160GB, and 250GB capacities, and are expected to begin shipping October 5, 2004. As always, USB 2.0 drives are backward compatible for use with USB 1.1.

• Dual-Interface USB 2.0 and FireWire 400. Designed for enthusiasts with a desire for flexibility, these drives are available as 120GB, 160GB, and 250GB models. These dual-interface drives are available at retail and online with an expected ship date of October 15, 2004.

• Triple-Interface USB 2.0, FireWire 400, and FireWire 800. Designed for Mac users who want the highest speeds available, these drives include the hot new FireWire 800 interface for improved performance and are available as 160GB, 250GB and 400GB models. The triple-interface drives come complete with Dantz Retrospect Express for Mac users, and are available at retail and online with an expected ship date of November 5, 2004.

Value Line
Existing Iomega Desktop USB 2.0 HDD drives, with capacities of 80GB, 120GB, 160GB, and 250GB, will remain available. Like today's newly announced drives, they include Iomega Automatic Backup software and disaster recovery software for award-winning high-performance backup that is easy to use. These drives do not have the new stackable case design and interface options.

Touch-Free Backups
All Iomega external hard drives include a full version of the award-winning Iomega Automatic Backup software for advanced real-time backup. With Iomega Automatic Backup software, backups are automatic and "touch-free"--users do not have to count on remembering to push a button or run a program. They 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 disaster recovery software that lets the user create a comprehensive disk image of the primary hard drive. If the system crashes, or gets a virus, or the drive ever needs to be replaced, the user can easily restore all software and settings from the disk image, without the need to reinstall the operating system or individual programs.

Price and Availability
New USB 2.0 drives are expected to begin shipping October 5, 2004, at a price of $159 for the 120GB model, $189 for the 160GB model, and $249 for the 250GB model.

New dual-interface USB 2.0 and FireWire® 400 models are expected to ship October 15, 2004, for availability at major retailers and online, with pricing starting at $179 for the 120GB model, $199 for the 160GB model, and $269 for the 250GB model.

New triple-interface drives (USB 2.0, FireWire® 400, FireWire® 800) are expected to ship November 5, 2004, for availability at major retailers and online, with pricing starting at $209 for the 160GB model, $279 for the 250GB model, and $429 for the 400GB model.

Iomega's value line of external hard drives is available now at retail and online. Drives are priced at $129 for the 80GB model, $159 for the 120GB model, $149 for the 160GB model, and $229 for the 250GB model.

All prices listed above 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 external hard drive product lines, 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.

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.