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 External Hard Drives Now Shipping With FolderShare Software
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Easy-to-Use File-Sharing Software Connects Iomega Hard Drive Users Around The World for Secure, Private File Sharing

SAN DIEGO, June 30, 2005 - Iomega Corporation (NYSE: IOM), a global leader in data storage celebrating 25 years in business, today announced that its entire lineup of Iomega® external hard disk drives is now shipping with FolderShare™ software, giving users state-of-the-art file-sharing capabilities that are private, secure, and password-protected.

"Iomega's broad product lineup of external hard drives combined with FolderShare software give home and office users an easy, convenient way to access, synchronize and share files," said Sean Burke, executive vice president, consumer solutions and operations, Iomega Corporation. "With a FolderShare account, people can connect to their Iomega hard drives from any web browser, anywhere in the world, which means their files are always within reach. Users can also automatically keep folders synchronized on all their computers -- a home and office computer, for example, or a desktop and laptop computer. And they can share files more easily with friends, family, and coworkers, especially large files like photo albums or PowerPoint presentations, knowing that only their invited guests will be allowed access."

File Security Comes First
FolderShare software provides the buttoned-down security of a controlled, invitation-only private network. Unlike most peer-to-peer software applications, FolderShare ensures that only invited users can access FolderShare libraries. Behind the scenes, FolderShare authenticates invited users using RSA key certificates, and it protects file transfers from computer to computer with AES file encryption using 256-bit keys.

FolderShare does all this without changing the user interface in any way; it works in the background so there is nothing new to learn. Users continue to manage their files as they normally would in standard Windows folders; FolderShare maintains the library connections with other computers.

FolderShare Technology Overview
FolderShare software is a breakthrough in file management that allows Windows® users to set up secure peer-to-peer networks for file-sharing tasks with invited users-in effect, a personal and highly customizable VPN (virtual private network). Users can set up as many as 250 FolderShare libraries; each library can include up to 50,000 files and folders. The library metaphor makes it easy to set up collections of files that the user may share with other invited users; all it takes is to send an e-mail invitation.

When a file in a FolderShare library is created, changed, or deleted, FolderShare automatically updates all computers with rights to that library. File transfers are immediate, transparent and secure. Shared files are always up to date, even on computers that are physically separated by thousands of miles and a dozen time zones. With FolderShare running in the background, home users and businesses can be radically more efficient in their daily work.

Basic, Personal, and Professional Editions
Iomega external hard drives now ship with FolderShare Basic, which supports personal file-synching and file distribution. Users can set up two FolderShare libraries of up to 500 files each, sync files between two or more PCs, and give other users read-only access to these libraries. A FolderShare user can invite an unlimited number of guests to connect to either of the user's two FolderShare libraries. Users may also choose to upgrade to more extensive versions of the FolderShare product that include additional features.

With an upgrade to FolderShare Personal, users gain enhanced performance and features suitable for personal and home office use. FolderShare Personal can handle up to 100 FolderShare libraries of 20,000 files each, and library owners can assign full read-write access to invited users. FolderShare Personal also includes remote web access and the ability to handle up to five uploads or downloads at once, which can improve throughput.

FolderShare Professional adds performance features for frequent users of very large files, including compressed file transfers and file difference support (i.e., sending only the file changes, not the whole file). FolderShare Professional can manage up to 250 libraries of 50,000 files each, and allows network administrators to assign and manage FolderShare accounts.

Iomega's Hard Disk Drive Lineup
Iomega has an external hard drive for just about any storage need and work environment, both professional and personal. For high capacity external storage on the desktop, Iomega offers high-performance 3.5" desktop drives with multiple interfaces; it also offers the value-oriented 3.5" Silver Series desktop drives with USB 2.0 support only. For portability, users can choose either a dual-interface 2.5" Iomega Portable Hard drive or the 2.5" USB 2.0-only Silver Series portable drive. For the ultimate in go-anywhere portability, the 1.8" Iomega Mini Hard Drive is lightweight and USB-powered-no need to pack an AC power adapter.

Iomega 3.5" Desktop Drives

1. Iomega® Desktop Hard Drives, Black Series. Includes dual-interface (USB 2.0 and FireWire® 400) and triple-interface (USB 2.0, FireWire® 400, and FireWire 800) models. Capacities include 80GB, 120GB, 160GB, 250GB, and 400GB.*
2. Iomega® Desktop Hi-Speed USB 2.0 hard drives, Silver Series. Capacities include 80GB, 160GB, and 250GB.

Iomega 2.5" Portable Drives

1. Iomega® Portable Hard Drive USB 2.0/FireWire®. Capacities include 40GB and 60GB.
2. Iomega® Portable Hi-Speed USB 2.0 hard drives, Silver Series. Capacities include 40GB, 60GB, 80GB, and 100GB.

Iomega 1.8" Mini Drives

1. " Iomega® Mini Hard Drive Hi-Speed USB 2.0, Capacities include 20GB, 40GB and 60GB.

Price and Availability
Pricing for all Iomega external hard disk drives is available online at www.iomega.com. FolderShare Basic Edition software is now included with all Iomega external hard disk drives shipping in the Americas and Asia Pacific and will be available later this year for Iomega hard drives shipping in Europe. FolderShare Personal Edition is an available upgrade for $49.95 annually. FolderShare Professional Edition is available for $99.95 annually.

FolderShare is also available separately through iomega.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 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 Iomega external hard drive products with FolderShare software, anticipated product pricing and availability, expected product performance and specifications, future applications for FolderShare or hard disk drives, 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 software or products, 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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* For all stated hard drive capacities, 1 GB = 1,000,000,000 bytes.

Copyright© 2005 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. FolderShare is a trademark of ByteTaxi in the U.S. and/or other countries. Certain other product names, brand names and company names may be trademarks or designations of their respective owners.