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

Analyst/Investors, please contact:
Barry Zwarenstein, Iomega Corporation, (858) 314-7188

For Immediate Release

New Features and Form Factor Ideal for Small Business Office Environment

SAN DIEGO, May 24, 2004 ­ Iomega Corporation (NYSE: IOM), a global leader in data storage, today announced two new entry-level network attached storage (NAS) servers: the Iomega® NAS 200d Series 320GB* and Iomega NAS 200d Series 480GB* servers. Designed for small and medium-sized businesses, remote office and department workgroups, Iomega’s new NAS servers come standard with Microsoft® Windows® Storage Server 2003, an industry first in a convenient desktop form factor.

“This is a breakthrough network-attached storage product in this form factor,” said Wayne Arvidson, director, professional storage services, Iomega Corporation. “Iomega is offering the first Microsoft-based solution in a package that is perfect for an office environment, sensitive to desktop real estate and noise issues, yet still leveraging the power and protection afforded by our popular rack-mounted models. Because most small offices today are Microsoft-based, Iomega’s new 200d Series ensures seamless integration with Microsoft computing environments while also supporting heterogeneous client PCs and network file protocols. Compared with the alternative or proprietary operating systems typically found on products in this range, Iomega’s adoption of Microsoft Storage Server 2003 is a huge benefit to our customers.”

Iomega will unveil these exciting new NAS products at a variety of venues this week, including CeBIT America in New York, CA (Computer Associates) World in Las Vegas, and TechEd in San Diego.

Iomega NAS 200d Benefits

• Improves office productivity by facilitating information and file-sharing
• Protects business-critical information
• Uses Windows Storage Server 2003 for ease of installation and familiar management tools
• Uses an extremely quiet and space-efficient enclosure
• Employs SATA (Serial ATA) hard drives for improved RAID integration, system performance, ease of serviceability and upgradeability
• Provides 4 USB 2.0 ports and 1 Ultra SCSI 320 port (480GB only) for integrating high-speed backup devices such as Iomega's revolutionary REV™ drive
• Provides storage and file-sharing in remote locations with limited IT staff
• Employs RAID 1 or 5 (200d 480 GB) to protect data against loss due to a hard disk drive failure
• Supports mixed computing environments—Windows®, Mac®, Linux UNIX and Netware
• Includes Iomega's award-winning Iomega Automatic Backup Software and Computer Associates' eTrust Anti-virus Software for data protection right out of the box.

Compatibility with existing Microsoft Windows environments greatly reduces training needs, operating expenses and total cost of ownership, enabling Iomega’s NAS 200d servers to deliver a superior combination of capacity, performance and ease of use in the sub-$2,000 NAS product category.

Benefits of Microsoft Storage Server 2003
The Iomega NAS 200d Series products offer Microsoft Windows Storage Server 2003. Microsoft’s operating system software is preconfigured and ready to deploy in minutes. Among the key features in the Iomega implementation of Windows Storage Server 2003 are:

• Volume Shadow Copy Services (VSS). Up to 64 point-in-time data restore points can be created per volume, allowing quick restores of deleted or corrupted data.
• Distributed File System (DFS). Simplifies locating and managing data on multiple network servers.
• File Replication Service (FRS). Maintains identical sets of files & directories on different servers & workstations so when a file is updated on one server, the file replication service replaces the corresponding files on other servers
• Encrypting File Systems (EFS). Stores encrypted data so even if the disk is moved to another system the data remains secure.

Price and Availability
Iomega’s new NAS 200d Series products will be shipping in the U.S., Canada and Latin America in June and will be available from Iomega-registered resellers, direct marketers and catalog retailers. The Iomega NAS 200d Series 320GB has a list price of $1,399; the Iomega NAS 200d Series 480GB has a list price of $1,999 (all prices are U.S. suggested retail). The products are expected to begin shipping to other international markets later in the summer.

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 the performance, competitive positioning, and benefits of new products including the NAS products described herein, as well as any statements about 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, actual performance of new products once distributed, unique features of particular environments, 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, loss of key personnel, 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 = 1,000,000,000 bytes.

Copyright© 2004 Iomega Corporation. All rights reserved. Iomega, Zip, REV, Active Disk, 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.