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

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

For Immediate Release

Iomega® Corporation Announces OEM Deal with Promise Technology
For New Iomega REV™ Drive

SAN DIEGO, August 12, 2004 ­ Iomega Corporation (NYSE: IOM), a global leader in data storage, today announced an OEM agreement for distribution of Iomega® 35GB* REV™ Drives in China and Taiwan with Promise Technology Global Solution Group, an originator and global leader in ATA and SATA RAID data protection and storage solutions.   REV drive products, which currently include USB 2.0, FireWire®, and ATAPI models, sold under this agreement will be branded Promise REV drives.

According to the agreement, Promise Technology will market the REV drive as an OEM product in China and Taiwan sales channels, including VARS and systems integrators.   Promise will market and sell REV drives in bundles with Iomega software and Promise Technology's hardware and software products.   All 35GB REV disks will continue to be sold under the Iomega brand.

  "We are excited about this deal with Promise Technologies, which we believe opens new doors for the REV drive in our target markets in new geographies," said Scott Sheehan, vice president of OEM sales and business development, Iomega Corporation. "With its leadership position in ATA and SATA storage solutions, Promise Technologies is in an excellent position to build awareness for REV products and to help OEMs, VARs, and systems integrators incorporate the REV drive into their storage and backup product offerings."

This agreement gives the REV drive additional presence and support in Asia, and delivers against the initiatives of Promise Technology.

"In March 2004, we announced our new sales strategy to include complementary OEM product(s) to support our own product lines," said Andy Liu, GM/VP of Promise Global Storage Solution Group.   "This is required in order to meet our customer demand of 'plug and play' solutions. Promise Technology and Iomega Corp. are known for their technical excellence in data storage protection.   Through this alliance, we can provide the best value and best of breed solution in today's data storage market.   We are confident that the REV drive will become one of our key products to support our market expansion plan."

REV Product Features
The Iomega REV drive, launched in April, delivers exceptional read-write performance of up to 25 MB/sec. (maximum native transfer rate), much faster than writable CD or DVD alternatives.   REV disks are smaller than a deck of playing cards (10 x 77 x 75 mm) and with 35GB of storage capacity on each disk, REV disks have more than seven times the capacity of standard DVD discs.   With drag-and-drop random access technology, REV drive users can copy and transport files in seconds.

At less than half the price of most competing tape products, Iomega's REV drive outperforms more expensive tape alternatives like DDS-4, DAT-72, VXA®, AIT-1, and DLT VS80.   The REV drive is designed to solve many of the problems encountered with tape solutions, making it a viable alternative or replacement solution where tape is being used today.   While tape is a fragile, slow and expensive linear-access technology, the REV drive offers robust, high-speed data transfers with random access capability, transforming the backup process and making system or file recovery tasks faster, easier and less costly in terms of both labor and network downtime.

Iomega 35GB REV disks are rated for over one million rewrites (estimated) and are engineered for a long shelf life, estimated to exceed 30 years. In the REV drive design, sensitive components like the read/write heads and electronics are located in the REV drive for protection. The disk itself holds a hard drive platter and a quiet fluid-dynamic bearing motor, a design that delivers high durability while also eliminating the spindle hole as a potential source of dust contamination. Patent-pending air filtration, together with shutters that seal off both drive and disk from outside air when the disk is inserted and ejected, contribute to a virtual "clean room" environment inside the removable REV disk.

These features, combined with Iomega's patent-pending advanced two-stage error correction and patent-pending automatic head cleaning, give REV storage products exceptional data integrity.

Revolutionary Software
Included with every REV drive is Iomega Automatic Backup Pro software, which provides easy-to-use frequent file-level backup to a REV drive. Once configured, the "no-touch" software automatically backs up specified files (including multiple revisions); keeps multiple backup sets on different destination drives; excludes user-selected files by file type, and performs scheduled backups. Powerful professional-level features include 2.6:1 compression and AES (Advanced Encryption Standard) file encryption, along with support for Windows® server operating systems.

Software industry support for the Iomega REV drive has been growing fast since its first release in April 2004; eight backup software vendors currently support the REV drive.

About Promise Technology, Inc.
Promise Technology is the originator and global leader of ATA RAID, using cost-effective ATA technology to design and manufacture fast, reliable data protection and storage alternatives to SCSI RAID systems. With its history of ATA product and technology development, Promise Technology is the recognized world leader in ATA controllers, ATA RAID cards and ATA RAID subsystems. Promise Technology maintains ongoing product development relationships with leading ATA hard drive manufacturers and server and storage OEMs. Headquartered in Milpitas, CA, the company maintains offices in Europe, Taiwan, and China. For more information, visit Promise Technology's website at http://www.promise.com.

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 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 future performance of products, future business activities between Promise and Iomega, future bundles of software or hardware to be sold by Promise, 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.