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

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

For Immediate Release

Iomega Corporation Increases The Options of Personal and Professional Online Storage for Important Data
***
Iomega® iStorage™ Accounts are Fast, Flexible and Secure

SAN DIEGO, June 2, 2005 - Iomega Corporation (NYSE: IOM), a global leader in data storage celebrating 25 years of business in 2005, today announced the availability of two enhanced iStorage™ online accounts for home and business users, making it easier than ever to securely access and share data anywhere in the world over the Internet.

Iomega's iStorage accounts meet the need for secure access to important files from virtually any Internet connection, setting a benchmark in convenience for mobile users, small businesses, and the family digital photographer. To celebrate the new online storage offerings, through the month of June, iStorage annual accounts are available at a 25 percent savings. See http://www.istorageonline.com for details.

"When Iomega introduced the original iStorage account for business users in 2003, online storage was a niche business with limited appeal to the home user," said Mike Nikzad, Vice President of Customer Relations, Iomega Corporation. "Today, computer users are more conscious of the true value of their irreplaceable data. They are also more likely to have a broadband connection to the Internet. In fact, broadband penetration is approaching the 50 percent mark in the U.S. Finally, the costs of online storage are coming down. Together, these factors make an iStorage account economical insurance against the disaster of lost data."

According to the Telecom Industry Association, broadband accounts will surpass dialup accounts in the U.S. sometime in 2005.* British market research firm Point Topic recently reported that broadband Internet accounts worldwide increased by 50 million in 2004 to a total of 150.5 million.** In the U.S., eMarketer estimates that broadband subscriptions will grow from 34 million in 2004 to 69.4 million in 2008, a compound annual growth rate of 19.3 percent.***

The rapid transition to broadband Internet access is changing the way computer users think about storage. Because an iStorage account is maintained offsite, it offers inherent security advantages over storing data on a user's PC. None of the usual threats to an office PC or network-fire, theft, hardware failure, virus attack, natural disaster-have any affect on an iStorage account. iStorage data is always safely located far away from your other back-up equipment.

The iStorage platform also offers performance and reliability advantages. Because iStorage resides in a world-class data center, users are assured of high availability and performance from anywhere, with reliability and security metrics that exceed most users' own networks.

iStorage™ Home: Affordable Personal Protection
An iStorage™ Home account is tailored to the needs of individual users, providing dependable file security and backup for managing important files. A free backup client lets users specify files or folders for automatic backup. A single iStorage account can hold the backup files of several computers (for instance, a home computer, office computer, and laptop), with no bandwidth or usage limitations.

Users can retrieve their files from any internet-connected computer and email files from Palm and Blackberry wireless devices (support for other devices is in development). They may also email files of any size, without concern for mail server restrictions, by using the included Whale Mail service. Whale Mail lets users send a password-protected link to an iStorage file rather than the file itself.

iStorage™ Professional: Secure Storage Without Per-Seat Fees
For business users, an iStorage™ Professional account allows an administrator to manage up to 15GB**** or more of secure online storage for multiple users. Costs are fixed, with no per-seat fees or limitations on the number of users. iStorage licenses are based entirely on capacity, not the number of users.

The administrator of an iStorage Professional account can add an arbitrary number of users, create groups, set up guest accounts, and create personal or shared pools of storage for each account. For group shares, the administrator can also set access permission for all users to control how information is managed.

iStorage Professional accounts also provide the disaster protection benefits of offsite backup without the prohibitive expense of purchasing, setting up and managing redundant offsite servers. An iStorage account can be cheap insurance against data loss due to fire, theft, hardware failure or malicious virus attack, helping provide business continuity when disaster strikes.

Businesses also get the benefit of having a built-in FTP server with all iStorage Professional accounts. This allows a business full FTP capabilities without any additional infrastructure costs. Iomega's iStorage FTP capabilities will work with any FTP client.

Peace of Mind With iStorage Security
Regardless of the account type, iStorage™ online accounts give home and small business users the data security and disaster protection previously available only to larger organizations with dedicated offsite data storage facilities.

iStorage accounts are immune to local catastrophes. They are maintained offsite on physically redundant servers located on the east and west coasts and meet the highest security standards available today. Telco-grade disk storage and cutting-edge firewall technology protect stored data, and 128-bit file encryption secures data transfers to and from an iStorage account. Stored files can be further secured with 'Triple-DES' encryption for an extra level of protection. All files are also archived to CD. A dedicated security monitoring system and strict internal controls and policies ensure that data is accessible only by the authorized users.

Network administrators can take advantage of the security features of the iStorage platform as an alternative to exposing their corporate network to the Internet.

Price and Availability
To help celebrate its 25 years of innovation in storage, Iomega is offering annual subscriptions for 25 percent off all annual prices listed below through the month of June.

All iStorage™ accounts are available directly from Iomega at www.istorageonline.com. The iStorage Consumer account is available in capacities of 250MB ($5.95/month), 1GB ($17.95/month), and 5GB ($49.95/month). iStorage Professional accounts are available from 1GB ($24.95/month) to 15GB ($159.95/month) and up. An annual license is also available for all accounts; annual pricing is equivalent to 10 monthly payments (i.e., two months free). All prices are in U.S. dollars.

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® 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 iStorage products, anticipated product pricing and availability, expected performance and specifications, future applications for the new products/services 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, 2004, and its most recent Quarterly Report on Form 10-Q.

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* "Spending in U.S. Telecom Industry Rises 7.9% to $784.5 Billion in 2004." PulseOnline Feb. 2005. Telecom Industry Association.

** "World Broadband Statistics: Q4 2004." Point Topic Ltd. Mar. 2005.

*** "North America Broadband." eMarketer. Feb. 2005.

**** 1GB = 1,000,000,000 bytes.

Copyright© 2005 Iomega Corporation. All rights reserved. Iomega, Zip, REV, iStorage, 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. Microsoft and Windows are trademarks or registered trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.