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

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

For Immediate Release

IOMEGA REPORTS RESULTS OF TAX REVIEW AND FULL FIRST QUARTER 2004 FINANCIAL RESULTS

SAN DIEGO, May 10, 2004 ­ Iomega Corporation (NYSE: IOM) today announced it has completed the review of its net tax assets and associated valuation reserves and released its full, tax-impacted financial results for the quarter ended March 28, 2004.

On April 22, 2004, in conjunction with releasing its first quarter 2004 pre-tax results, the Company announced that it was conducting an analysis of its net tax assets and associated valuation reserves. That analysis has been completed and the Company concluded that foreign withholding taxes which were previously presented as Income Taxes Receivable should be reclassified and reported as Deferred Tax Assets on the Company’s balance sheets. The amount reclassified on the December 31, 2003 balance sheet was $8.5 million. The Company further concluded that no net adjustment was required to the fourth quarter 2003 tax provision as a result of certain fourth quarter offsetting adjustments related, in part, to the tax consequences of a $75 million intercompany dividend required to fund the one-time $5 per share cash dividend paid to shareholders on October 1, 2003, and that no adjustments to the tax provisions were required in any other prior period.

The Company also reported a net loss of $4.9 million or $0.09 per share for first quarter 2004. This compares to net income of $5.3 million, or $0.10 per diluted share, for the same period in 2003. First quarter 2004 net loss included a $1.6 million increase in the tax valuation allowances on the Company’s net deferred tax assets as a result of a decrease in the available foreign cash which could be repatriated to utilize NOLs and other deferred tax assets. Net income for first quarter 2003 was favorably impacted by $3.7 million of after-tax net legal settlements.

As previously reported, first quarter 2004 revenue was $84.1 million, a decrease of $22.1 million, or 21%, compared to first quarter 2003 revenue of $106.2 million; and first quarter 2004 operating loss was $6.0 million, compared to first quarter 2003 operating income of $7.2 million, which included the $6.0 million of pre-tax net favorable legal settlements.

Full financial statements for the quarter ended March 28, 2004 are included in the Company’s Quarterly Report on Form 10-Q which was filed earlier today with the SEC. Condensed financial statements are attached to this press release. The pre-tax numbers in the financial statements being filed and issued today are identical to what the Company published on April 22, 2004.

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 35GB 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 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 2TB. 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.

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